ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - NYSE:ABG - US0434361046 - Common Stock
222.93 USD
+11.99 (+5.68%)
222.93 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ABG. ABG was compared to 122 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
ABG had positive earnings in the past year.
ABG had a positive operating cash flow in the past year.
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 has a better Return On Assets (4.76%) than 67.21% of its industry peers.
ABG's Return On Equity of 14.46% is fine compared to the rest of the industry. ABG outperforms 73.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.22%, ABG is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABG is in line with the industry average of 11.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 14.46% | ||
| ROIC | 7.22% |
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
ABG's Profit Margin of 3.15% is fine compared to the rest of the industry. ABG outperforms 69.67% of its industry peers.
In the last couple of years the Profit Margin of ABG has remained more or less at the same level.
ABG's Operating Margin of 5.69% is fine compared to the rest of the industry. ABG outperforms 68.85% of its industry peers.
In the last couple of years the Operating Margin of ABG has grown nicely.
Looking at the Gross Margin, with a value of 16.99%, ABG is doing worse than 82.79% of the companies in the same industry.
In the last couple of years the Gross Margin of ABG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.69% | ||
| PM (TTM) | 3.15% | ||
| GM | 16.99% |
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.
Compared to 5 years ago, ABG has more shares outstanding
ABG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.54 indicates that ABG is not a great score, but indicates only limited risk for bankruptcy at the moment.
ABG's Altman-Z score of 2.54 is in line compared to the rest of the industry. ABG outperforms 59.84% of its industry peers.
ABG has a debt to FCF ratio of 9.11. This is a negative value and a sign of low solvency as ABG would need 9.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.11, ABG is in line with its industry, outperforming 57.38% of the companies in the same industry.
A Debt/Equity ratio of 1.45 is on the high side and indicates that ABG has dependencies on debt financing.
With a Debt to Equity ratio value of 1.45, ABG is not doing good in the industry: 64.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.86
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ABG may have some problems paying its short term obligations.
ABG's Current ratio of 0.99 is on the low side compared to the rest of the industry. ABG is outperformed by 74.59% of its industry peers.
ABG has a Quick Ratio of 0.99. This is a bad value and indicates that ABG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ABG (0.30) is worse than 74.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.91% over the past year.
Measured over the past years, ABG shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.59% on average per year.
The Revenue has grown by 8.07% in the past year. This is quite good.
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)5.91%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%12.91%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%13.32%
3.2 Future
Based on estimates for the next years, ABG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.91% on average per year.
Based on estimates for the next years, ABG will show a quite strong growth in Revenue. The Revenue will grow by 8.28% on average per year.
EPS Next Y3.83%
EPS Next 2Y1.74%
EPS Next 3Y6.56%
EPS Next 5Y11.91%
Revenue Next Year8.07%
Revenue Next 2Y8.38%
Revenue Next 3Y6.27%
Revenue Next 5Y8.28%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.77, which indicates a rather cheap valuation of ABG.
Based on the Price/Earnings ratio, ABG is valued cheaply inside the industry as 92.62% of the companies are valued more expensively.
ABG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
With a Price/Forward Earnings ratio of 7.91, the valuation of ABG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABG indicates a rather cheap valuation: ABG is cheaper than 90.16% of the companies listed 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 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABG is valued a bit cheaper than 68.85% of the companies in the same industry.
ABG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABG is cheaper than 95.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.97 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ABG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)0.33
EPS Next 2Y1.74%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
222.93
+11.99 (+5.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.95%
Inst Owner Change-0.43%
Ins Owners0.58%
Ins Owner Change-1.7%
Market Cap4.38B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts72.31
Price Target259.95 (16.61%)
Short Float %5.32%
Short Ratio6.15
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)5.66%
Min EPS beat(2)4.13%
Max EPS beat(2)7.19%
EPS beat(4)4
Avg EPS beat(4)7.86%
Min EPS beat(4)1.09%
Max EPS beat(4)19.03%
EPS beat(8)4
Avg EPS beat(8)-0.33%
EPS beat(12)7
Avg EPS beat(12)1.15%
EPS beat(16)10
Avg EPS beat(16)3.14%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)-1.86%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-5.2%
Max Revenue beat(4)7.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.89%
Revenue beat(12)2
Avg Revenue beat(12)-2.04%
Revenue beat(16)4
Avg Revenue beat(16)-1.4%
PT rev (1m)-1.6%
PT rev (3m)0.87%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)0.56%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.25 | ||
| P/FCF | 6.97 | ||
| P/OCF | 5.05 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.06 |
EPS(TTM)28.68
EY12.87%
EPS(NY)28.17
Fwd EY12.64%
FCF(TTM)31.99
FCFY14.35%
OCF(TTM)44.13
OCFY19.79%
SpS906.77
BVpS197.25
TBVpS-33.33
PEG (NY)2.03
PEG (5Y)0.33
Graham Number356.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 14.46% | ||
| ROCE | 12.05% | ||
| ROIC | 7.22% | ||
| ROICexc | 7.24% | ||
| ROICexgc | 12.74% | ||
| OM | 5.69% | ||
| PM (TTM) | 3.15% | ||
| GM | 16.99% | ||
| FCFM | 3.53% |
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%
ROICexgc growth 3Y-8.23%
ROICexgc 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-Score6
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Debt/EBITDA | 5.14 | ||
| Cap/Depr | 303.44% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 3.75 | ||
| Cash Conversion | 79.4% | ||
| Profit Quality | 112.16% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 2.54 |
F-Score6
WACC8.41%
ROIC/WACC0.86
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)5.91%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%12.91%
EPS Next Y3.83%
EPS Next 2Y1.74%
EPS Next 3Y6.56%
EPS Next 5Y11.91%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%13.32%
Revenue Next Year8.07%
Revenue Next 2Y8.38%
Revenue Next 3Y6.27%
Revenue Next 5Y8.28%
EBIT growth 1Y4.2%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year11.07%
EBIT Next 3Y5.77%
EBIT Next 5Y8.05%
FCF growth 1Y293.86%
FCF growth 3Y-25.95%
FCF growth 5Y4.77%
OCF growth 1Y219.64%
OCF growth 3Y-16.76%
OCF growth 5Y13.92%
ASBURY AUTOMOTIVE GROUP / ABG FAQ
What is the fundamental rating for ABG stock?
ChartMill assigns a fundamental rating of 5 / 10 to ABG.
Can you provide the valuation status for ASBURY AUTOMOTIVE GROUP?
ChartMill assigns a valuation rating of 8 / 10 to ASBURY AUTOMOTIVE GROUP (ABG). This can be considered as Undervalued.
What is the profitability of ABG stock?
ASBURY AUTOMOTIVE GROUP (ABG) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for ABG stock?
The Price/Earnings (PE) ratio for ASBURY AUTOMOTIVE GROUP (ABG) is 7.77 and the Price/Book (PB) ratio is 1.13.
How financially healthy is ASBURY AUTOMOTIVE GROUP?
The financial health rating of ASBURY AUTOMOTIVE GROUP (ABG) is 2 / 10.