ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
NYSE:ABG - New York Stock Exchange, Inc. - US0434361046 - Common Stock - Currency: USD
Overall ABG gets a fundamental rating of 5 out of 10. We evaluated ABG against 121 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
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.
Each year in the past 5 years ABG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ABG (4.06%) is better than 64.46% of its industry peers.
Looking at the Return On Equity, with a value of 11.46%, ABG is in the better half of the industry, outperforming 68.59% of the companies in the same industry.
ABG's Return On Invested Capital of 8.02% is fine compared to the rest of the industry. ABG outperforms 68.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABG is below the industry average of 12.74%.
| 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
ABG has a Profit Margin of 2.42%. This is in the better half of the industry: ABG outperforms 61.98% 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 has a better Operating Margin (5.67%) than 69.42% of its industry peers.
In the last couple of years the Operating Margin of ABG has grown nicely.
ABG's Gross Margin of 17.06% is on the low side compared to the rest of the industry. ABG is outperformed by 85.12% 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
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.
Compared to 1 year ago, ABG has an improved debt to assets ratio.
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 67.77% of the companies in the same industry.
The Debt to FCF ratio of ABG is 9.51, which is on the high side as it means it would take ABG, 9.51 years of fcf income to pay off all of its debts.
ABG's Debt to FCF ratio of 9.51 is in line compared to the rest of the industry. ABG outperforms 50.41% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that ABG has dependencies on debt financing.
With a Debt to Equity ratio value of 1.24, ABG is not doing good in the industry: 62.81% 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/WACC0.91
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.25 indicates that ABG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.25, ABG perfoms like the industry average, outperforming 40.50% of the companies in the same industry.
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 50.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
ABG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.55%.
ABG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.59% yearly.
The Revenue has grown by 11.12% 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)-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
Based on estimates for the next years, ABG will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.95% 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 8.41% on average per year.
EPS Next Y-0.53%
EPS Next 2Y-1.42%
EPS Next 3Y7.53%
EPS Next 5Y14.95%
Revenue Next Year6.05%
Revenue Next 2Y5.1%
Revenue Next 3Y6.12%
Revenue Next 5Y8.41%
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.
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
With a Price/Earnings ratio of 8.39, the valuation of ABG can be described as very reasonable.
ABG's Price/Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 88.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. ABG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.51, which indicates a very decent valuation of ABG.
Based on the Price/Forward Earnings ratio, ABG is valued cheaper than 85.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ABG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 8.51 |
4.2 Price Multiples
65.29% of the companies in the same industry are more expensive than ABG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ABG is valued cheaper than 83.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.17 | ||
| EV/EBITDA | 7.12 |
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-1.42%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
225.19
-1.42 (-0.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.04%
Inst Owner Change-1.81%
Ins Owners0.49%
Ins Owner Change4.23%
Market Cap4.43B
Analysts52
Price Target253.47 (12.56%)
Short Float %5.39%
Short Ratio4.1
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)-12.29%
PT rev (3m)-3.18%
EPS NQ rev (1m)2.6%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)0.83%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 8.51 | ||
| P/S | 0.26 | ||
| P/FCF | 9.17 | ||
| P/OCF | 6.16 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.12 |
EPS(TTM)26.83
EY11.91%
EPS(NY)26.45
Fwd EY11.75%
FCF(TTM)24.55
FCFY10.9%
OCF(TTM)36.58
OCFY16.24%
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
WACC8.79%
ROIC/WACC0.91
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-0.53%
EPS Next 2Y-1.42%
EPS Next 3Y7.53%
EPS Next 5Y14.95%
Revenue 1Y (TTM)11.12%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%-1.25%
Revenue Next Year6.05%
Revenue Next 2Y5.1%
Revenue Next 3Y6.12%
Revenue Next 5Y8.41%
EBIT growth 1Y-8.14%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year1.8%
EBIT Next 3Y10.29%
EBIT Next 5Y8.22%
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%