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 4 out of 10. The analysis compared the fundamentals against 120 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 has a decent growth rate and is not valued too expensively.
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 4 of the past 5 years.
1.2 Ratios
The Return On Assets of ABG (3.51%) is better than 63.25% of its industry peers.
ABG has a better Return On Equity (10.62%) than 67.52% of its industry peers.
With a decent Return On Invested Capital value of 8.05%, ABG is doing good in the industry, outperforming 68.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 10.62% | ||
| ROIC | 8.05% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.16%, ABG is in line with its industry, outperforming 58.12% 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.
ABG has a Operating Margin of 5.90%. This is in the better half of the industry: ABG outperforms 71.79% 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 17.41%, ABG is doing worse than 84.62% 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 | 5.9% | ||
| PM (TTM) | 2.16% | ||
| GM | 17.41% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ABG is destroying value.
ABG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.92 indicates that ABG is not a great score, but indicates only limited risk for bankruptcy at the moment.
ABG has a Altman-Z score of 2.92. This is in the better half of the industry: ABG outperforms 65.81% of its industry peers.
ABG has a debt to FCF ratio of 19.60. This is a negative value and a sign of low solvency as ABG would need 19.60 years to pay back of all of its debts.
ABG has a Debt to FCF ratio (19.60) which is in line with its industry peers.
A Debt/Equity ratio of 1.42 is on the high side and indicates that ABG has dependencies on debt financing.
ABG's Debt to Equity ratio of 1.42 is on the low side compared to the rest of the industry. ABG is outperformed by 64.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 19.6 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.91
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.20 indicates that ABG should not have too much problems paying its short term obligations.
ABG has a Current ratio of 1.20. This is in the lower half of the industry: ABG underperforms 61.54% of its industry peers.
ABG has a Quick Ratio of 1.20. This is a bad value and indicates that ABG is not financially healthy enough and could expect problems in meeting its short term obligations.
ABG has a Quick ratio of 0.41. This is comparable to the rest of the industry: ABG outperforms 41.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for ABG have decreased strongly by -16.40% 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 16.12%.
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)-16.4%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%1.97%
Revenue 1Y (TTM)16.12%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%18.18%
3.2 Future
The Earnings Per Share is expected to grow by 16.00% 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 9.56% on average per year.
EPS Next Y-1.7%
EPS Next 2Y-0.41%
EPS Next 3Y20.11%
EPS Next 5Y16%
Revenue Next Year4.1%
Revenue Next 2Y3.5%
Revenue Next 3Y10.39%
Revenue Next 5Y9.56%
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
A Price/Earnings ratio of 10.15 indicates a reasonable valuation of ABG.
Based on the Price/Earnings ratio, ABG is valued cheaper than 88.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, ABG is valued rather cheaply.
A Price/Forward Earnings ratio of 10.33 indicates a reasonable valuation of ABG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABG indicates a somewhat cheap valuation: ABG is cheaper than 78.63% of the companies listed in the same industry.
ABG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.33 |
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 66.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABG is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.8 | ||
| EV/EBITDA | 8.54 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ABG's earnings are expected to grow with 20.11% in the coming years.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-0.41%
EPS Next 3Y20.11%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
276.37
-11.18 (-3.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.04%
Inst Owner Change-2.28%
Ins Owners0.49%
Ins Owner Change-1.18%
Market Cap5.41B
Analysts69.23
Price Target282.2 (2.11%)
Short Float %9.07%
Short Ratio9.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.68
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.99%
Min EPS beat(2)-13.59%
Max EPS beat(2)-4.4%
EPS beat(4)0
Avg EPS beat(4)-8.52%
Min EPS beat(4)-13.59%
Max EPS beat(4)-4.4%
EPS beat(8)3
Avg EPS beat(8)-2.21%
EPS beat(12)6
Avg EPS beat(12)1.56%
EPS beat(16)10
Avg EPS beat(16)7.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)-2.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)2.96%
Revenue beat(8)1
Avg Revenue beat(8)-2.72%
Revenue beat(12)3
Avg Revenue beat(12)-1.64%
Revenue beat(16)7
Avg Revenue beat(16)0.12%
PT rev (1m)-1.04%
PT rev (3m)3.73%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)-0.3%
EPS NY rev (1m)-2.98%
EPS NY rev (3m)-4.32%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.33 | ||
| P/S | 0.33 | ||
| P/FCF | 21.8 | ||
| P/OCF | 10.82 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.54 |
EPS(TTM)27.22
EY9.85%
EPS(NY)26.76
Fwd EY9.68%
FCF(TTM)12.68
FCFY4.59%
OCF(TTM)25.53
OCFY9.24%
SpS842.05
BVpS171.64
TBVpS-30.91
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 10.62% | ||
| ROCE | 12.84% | ||
| ROIC | 8.05% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 14.51% | ||
| OM | 5.9% | ||
| PM (TTM) | 2.16% | ||
| GM | 17.41% | ||
| FCFM | 1.51% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 19.6 | ||
| Debt/EBITDA | 4.58 | ||
| Cap/Depr | 345.41% | ||
| Cap/Sales | 1.53% | ||
| Interest Coverage | 4.03 | ||
| Cash Conversion | 47.82% | ||
| Profit Quality | 69.58% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 2.92 |
F-Score6
WACC8.81%
ROIC/WACC0.91
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.4%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%1.97%
EPS Next Y-1.7%
EPS Next 2Y-0.41%
EPS Next 3Y20.11%
EPS Next 5Y16%
Revenue 1Y (TTM)16.12%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%18.18%
Revenue Next Year4.1%
Revenue Next 2Y3.5%
Revenue Next 3Y10.39%
Revenue Next 5Y9.56%
EBIT growth 1Y-14%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year3.85%
EBIT Next 3Y11.67%
EBIT Next 5Y9.17%
FCF growth 1Y55.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y84.3%
OCF growth 3YN/A
OCF growth 5YN/A