ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
NYSE:ABG - New York Stock Exchange, Inc. - US0434361046 - Common Stock - Currency: USD
ABG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. There are concerns on the financial health of ABG while its profitability can be described as average. ABG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ABG was profitable.
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
Looking at the Return On Assets, with a value of 4.06%, ABG is in the better half of the industry, outperforming 64.75% of the companies in the same industry.
ABG has a Return On Equity of 11.46%. This is in the better half of the industry: ABG outperforms 68.85% of its industry peers.
The Return On Invested Capital of ABG (8.02%) is better than 68.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABG is below the industry average of 12.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.46% | ||
| ROIC | 8.02% |
ROA(3y)7.51%
ROA(5y)7.22%
ROE(3y)21.73%
ROE(5y)23.68%
ROIC(3y)9.95%
ROIC(5y)9.48%
1.3 Margins
With a decent Profit Margin value of 2.42%, ABG is doing good in the industry, outperforming 61.48% of the companies in the same industry.
In the last couple of years the Profit Margin of ABG has remained more or less at the same level.
Looking at the Operating Margin, with a value of 5.67%, ABG is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
ABG's Operating Margin has improved in the last couple of years.
ABG has a Gross Margin of 17.06%. This is amonst the worse of the industry: ABG underperforms 83.61% of its industry peers.
ABG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.67% | ||
| PM (TTM) | 2.42% | ||
| GM | 17.06% |
OM growth 3Y-10.52%
OM growth 5Y4.29%
PM growth 3Y-22.64%
PM growth 5Y-0.38%
GM growth 3Y-3.91%
GM growth 5Y1.13%
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.
ABG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ABG has been increased compared to 5 years ago.
ABG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.93 indicates that ABG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.93, ABG is doing good in the industry, outperforming 65.57% of the companies in the same industry.
ABG has a debt to FCF ratio of 9.51. This is a negative value and a sign of low solvency as ABG would need 9.51 years to pay back of all of its debts.
The Debt to FCF ratio of ABG (9.51) is comparable to the rest of the industry.
ABG has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.24, ABG is not doing good in the industry: 61.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 9.51 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.93
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.25 indicates that ABG should not have too much problems paying its short term obligations.
ABG has a Current ratio (1.25) which is in line with its industry peers.
ABG has a Quick Ratio of 1.25. This is a bad value and indicates that ABG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.55, ABG is in line with its industry, outperforming 54.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for ABG have decreased strongly by -14.55% in the last year.
The Earnings Per Share has been growing by 23.59% on average over the past years. This is a very strong growth
ABG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.12%.
Measured over the past years, ABG shows a quite strong growth in Revenue. The Revenue has been growing by 18.98% on average per year.
EPS 1Y (TTM)-14.55%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)11.12%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%-1.25%
3.2 Future
The Earnings Per Share is expected to grow by 12.06% on average over the next years. This is quite good.
Based on estimates for the next years, ABG will show a quite strong growth in Revenue. The Revenue will grow by 8.20% on average per year.
EPS Next Y-0.2%
EPS Next 2Y-0.95%
EPS Next 3Y7.53%
EPS Next 5Y12.06%
Revenue Next Year6.15%
Revenue Next 2Y5.5%
Revenue Next 3Y6.12%
Revenue Next 5Y8.2%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.57, which indicates a very decent valuation of ABG.
Compared to the rest of the industry, the Price/Earnings ratio of ABG indicates a rather cheap valuation: ABG is cheaper than 90.98% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, ABG is valued rather cheaply.
A Price/Forward Earnings ratio of 8.61 indicates a reasonable valuation of ABG.
ABG's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 84.43% of the companies in the same industry.
ABG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABG is valued a bit cheaper than 70.49% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABG is valued cheaper than 85.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.37 | ||
| EV/EBITDA | 7.17 |
4.3 Compensation for Growth
The decent profitability rating of ABG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-0.95%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
229.96
+0.44 (+0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners109.31%
Inst Owner Change0%
Ins Owners0.6%
Ins Owner Change5.15%
Market Cap4.52B
Analysts69.23
Price Target253.47 (10.22%)
Short Float %5.32%
Short Ratio7.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.06%
Min EPS beat(2)1.09%
Max EPS beat(2)19.03%
EPS beat(4)2
Avg EPS beat(4)0.54%
Min EPS beat(4)-13.59%
Max EPS beat(4)19.03%
EPS beat(8)3
Avg EPS beat(8)-1.4%
EPS beat(12)6
Avg EPS beat(12)1.19%
EPS beat(16)10
Avg EPS beat(16)6.68%
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-5.2%
Max Revenue beat(2)7.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-5.2%
Max Revenue beat(4)7.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)3
Avg Revenue beat(12)-1.91%
Revenue beat(16)6
Avg Revenue beat(16)-0.19%
PT rev (1m)0.68%
PT rev (3m)-12.29%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)2.41%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.61 | ||
| P/S | 0.26 | ||
| P/FCF | 9.37 | ||
| P/OCF | 6.29 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.17 |
EPS(TTM)26.83
EY11.67%
EPS(NY)26.71
Fwd EY11.61%
FCF(TTM)24.55
FCFY10.67%
OCF(TTM)36.58
OCFY15.91%
SpS871.61
BVpS184.31
TBVpS-8.63
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.46% | ||
| ROCE | 12.75% | ||
| ROIC | 8.02% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 14.13% | ||
| OM | 5.67% | ||
| PM (TTM) | 2.42% | ||
| GM | 17.06% | ||
| FCFM | 2.82% |
ROA(3y)7.51%
ROA(5y)7.22%
ROE(3y)21.73%
ROE(5y)23.68%
ROIC(3y)9.95%
ROIC(5y)9.48%
ROICexc(3y)10.15%
ROICexc(5y)9.64%
ROICexgc(3y)19.39%
ROICexgc(5y)17.84%
ROCE(3y)15.35%
ROCE(5y)14.97%
ROICexcg growth 3Y-8.23%
ROICexcg growth 5Y3.87%
ROICexc growth 3Y-2.42%
ROICexc growth 5Y-4.41%
OM growth 3Y-10.52%
OM growth 5Y4.29%
PM growth 3Y-22.64%
PM growth 5Y-0.38%
GM growth 3Y-3.91%
GM growth 5Y1.13%
F-Score7
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 9.51 | ||
| Debt/EBITDA | 4.28 | ||
| Cap/Depr | 313.25% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 3.45 | ||
| Cash Conversion | 68.72% | ||
| Profit Quality | 116.21% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.93 |
F-Score7
WACC8.63%
ROIC/WACC0.93
Cap/Depr(3y)264.46%
Cap/Depr(5y)326.79%
Cap/Sales(3y)1.17%
Cap/Sales(5y)1.45%
Profit Quality(3y)56.3%
Profit Quality(5y)113.82%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.55%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%-5.41%
EPS Next Y-0.2%
EPS Next 2Y-0.95%
EPS Next 3Y7.53%
EPS Next 5Y12.06%
Revenue 1Y (TTM)11.12%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%-1.25%
Revenue Next Year6.15%
Revenue Next 2Y5.5%
Revenue Next 3Y6.12%
Revenue Next 5Y8.2%
EBIT growth 1Y-8.14%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year6.25%
EBIT Next 3Y5.77%
EBIT Next 5Y8%
FCF growth 1Y35.41%
FCF growth 3Y-25.95%
FCF growth 5Y4.77%
OCF growth 1Y56.77%
OCF growth 3Y-16.76%
OCF growth 5Y13.92%