ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
232.57 USD
-1.93 (-0.82%)
232.57 USD
0 (0%)
Taking everything into account, ABG scores 5 out of 10 in our fundamental rating. ABG was compared to 122 industry peers in the Specialty Retail industry. While ABG is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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 Return On Assets of 4.76%. This is in the better half of the industry: ABG outperforms 68.03% of its industry peers.
Looking at the Return On Equity, with a value of 14.46%, ABG is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
The Return On Invested Capital of ABG (7.22%) is better than 67.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABG is in line with the industry average of 11.71%.
| 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
With a decent Profit Margin value of 3.15%, ABG is doing good in the industry, outperforming 69.67% of the companies in the same industry.
ABG's Profit Margin has been stable in the last couple of years.
ABG's Operating Margin of 5.69% is fine compared to the rest of the industry. ABG outperforms 68.85% of its industry peers.
ABG's Operating Margin has improved in the last couple of years.
ABG's Gross Margin of 16.99% is on the low side compared to the rest of the industry. ABG is outperformed by 81.97% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABG 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 2.57 indicates that ABG is not a great score, but indicates only limited risk for bankruptcy at the moment.
ABG has a Altman-Z score (2.57) which is in line with its industry peers.
The Debt to FCF ratio of ABG is 9.11, which is on the high side as it means it would take ABG, 9.11 years of fcf income to pay off all of its debts.
ABG has a Debt to FCF ratio (9.11) which is in line with its industry peers.
A Debt/Equity ratio of 1.45 is on the high side and indicates that ABG has dependencies on debt financing.
ABG has a Debt to Equity ratio of 1.45. This is in the lower half of the industry: ABG underperforms 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.84
WACC8.6%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ABG may have some problems paying its short term obligations.
With a Current ratio value of 0.99, ABG is not doing good in the industry: 73.77% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.30, ABG is doing worse than 72.95% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 23.59% on average over the past years. This is a very strong growth
The Revenue has grown by 8.07% in the past year. This is quite good.
ABG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.98% yearly.
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
The Earnings Per Share is expected to grow by 11.91% on average over the next years. This is quite good.
ABG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.28% yearly.
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 8.11, which indicates a very decent valuation of ABG.
ABG's Price/Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 91.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. ABG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.25, the valuation of ABG can be described as very reasonable.
ABG's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 91.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. ABG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 8.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABG is valued a bit cheaper than the industry average as 71.31% of the companies are valued more expensively.
95.90% of the companies in the same industry are more expensive than ABG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABG does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ABG may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)0.34
EPS Next 2Y1.74%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
ABG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
232.57
-1.93 (-0.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.95%
Inst Owner Change-0.47%
Ins Owners0.58%
Ins Owner Change-0.71%
Market Cap4.52B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts72.31
Price Target264.18 (13.59%)
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)1.63%
PT rev (3m)-1.77%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)-0.2%
EPS NY rev (1m)0.75%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-2.17%
Revenue NQ rev (3m)-2.8%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 8.25 | ||
| P/S | 0.25 | ||
| P/FCF | 7.19 | ||
| P/OCF | 5.21 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.41 |
EPS(TTM)28.68
EY12.33%
EPS(NY)28.17
Fwd EY12.11%
FCF(TTM)32.36
FCFY13.91%
OCF(TTM)44.62
OCFY19.19%
SpS917.03
BVpS199.49
TBVpS-33.7
PEG (NY)2.12
PEG (5Y)0.34
Graham Number358.79
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 | 2.57 |
F-Score6
WACC8.6%
ROIC/WACC0.84
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 7 / 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 8.11 and the Price/Book (PB) ratio is 1.17.
How financially healthy is ASBURY AUTOMOTIVE GROUP?
The financial health rating of ASBURY AUTOMOTIVE GROUP (ABG) is 3 / 10.