ASBURY AUTOMOTIVE GROUP (ABG)
US0434361046 - Common Stock
Taking everything into account, ABG scores 5 out of 10 in our fundamental rating. ABG was compared to 126 industry peers in the Specialty Retail industry. ABG has a medium profitability rating, but doesn't score so well on its financial health evaluation. ABG is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
ABG had positive earnings in the past year.
In the past year ABG had a positive cash flow from operations.
In the past 5 years ABG has always been profitable.
ABG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABG's Return On Assets of 5.93% is fine compared to the rest of the industry. ABG outperforms 69.05% of its industry peers.
ABG has a Return On Equity of 18.57%. This is in the better half of the industry: ABG outperforms 73.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.90%, ABG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABG is below the industry average of 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 18.57% | ||
| ROIC | 8.9% |
ROA(3y)8.34%
ROA(5y)7.65%
ROE(3y)26.02%
ROE(5y)26.92%
ROIC(3y)10.15%
ROIC(5y)9.94%
1.3 Margins
With a decent Profit Margin value of 4.07%, ABG is doing good in the industry, outperforming 70.63% of the companies in the same industry.
In the last couple of years the Profit Margin of ABG has grown nicely.
ABG has a better Operating Margin (7.23%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of ABG has grown nicely.
ABG has a Gross Margin of 18.62%. This is amonst the worse of the industry: ABG underperforms 82.54% of its industry peers.
In the last couple of years the Gross Margin of ABG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.23% | ||
| PM (TTM) | 4.07% | ||
| GM | 18.62% |
OM growth 3Y8.4%
OM growth 5Y9.56%
PM growth 3Y4.55%
PM growth 5Y10.74%
GM growth 3Y2.78%
GM growth 5Y3.02%
2. Health
2.1 Basic Checks
ABG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ABG has been reduced compared to 1 year ago.
Compared to 5 years ago, ABG has more shares outstanding
ABG has a worse debt/assets ratio than last year.
2.2 Solvency
ABG has an Altman-Z score of 2.62. This is not the best score and indicates that ABG is in the grey zone with still only limited risk for bankruptcy at the moment.
ABG's Altman-Z score of 2.62 is fine compared to the rest of the industry. ABG outperforms 61.90% of its industry peers.
The Debt to FCF ratio of ABG is 29.24, which is on the high side as it means it would take ABG, 29.24 years of fcf income to pay off all of its debts.
ABG has a Debt to FCF ratio (29.24) which is in line with its industry peers.
A Debt/Equity ratio of 1.51 is on the high side and indicates that ABG has dependencies on debt financing.
ABG has a Debt to Equity ratio of 1.51. This is in the lower half of the industry: ABG underperforms 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 29.24 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.17
WACC7.59%
2.3 Liquidity
ABG has a Current Ratio of 1.06. This is a normal value and indicates that ABG is financially healthy and should not expect problems in meeting its short term obligations.
ABG's Current ratio of 1.06 is on the low side compared to the rest of the industry. ABG is outperformed by 78.57% of its industry peers.
A Quick Ratio of 0.45 indicates that ABG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.45, ABG is doing worse than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for ABG have decreased strongly by -13.54% in the last year.
Measured over the past years, ABG shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.06% on average per year.
The Revenue has decreased by -4.09% in the past year.
ABG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.58% yearly.
EPS 1Y (TTM)-13.54%
EPS 3Y36.37%
EPS 5Y31.06%
EPS growth Q2Q-21.93%
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y27.56%
Revenue growth 5Y16.58%
Revenue growth Q2Q2.85%
3.2 Future
ABG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.34% yearly.
ABG is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.23% yearly.
EPS Next Y-1.9%
EPS Next 2Y0.12%
EPS Next 3Y5.72%
EPS Next 5Y22.34%
Revenue Next Year19.5%
Revenue Next 2Y11.59%
Revenue Next 3Y9.87%
Revenue Next 5Y28.23%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.82, the valuation of ABG can be described as very cheap.
97.62% of the companies in the same industry are more expensive than ABG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ABG to the average of the S&P500 Index (24.84), we can say ABG is valued rather cheaply.
The Price/Forward Earnings ratio is 6.95, which indicates a rather cheap valuation of ABG.
ABG's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 96.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.35. ABG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.82 | ||
| Fwd PE | 6.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABG indicates a somewhat cheap valuation: ABG is cheaper than 71.43% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ABG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.23 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
The decent profitability rating of ABG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y0.12%
EPS Next 3Y5.72%
5. Dividend
5.1 Amount
ABG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ASBURY AUTOMOTIVE GROUP
NYSE:ABG (4/26/2024, 7:04:00 PM)
After market: 221.97 0 (0%)221.97
+4.85 (+2.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.82 | ||
| Fwd PE | 6.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 18.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.23% | ||
| PM (TTM) | 4.07% | ||
| GM | 18.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-13.54%
EPS 3Y36.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y27.56%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y