ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - NYSE:ABG - US0434361046 - Common Stock
241.2 USD
-4.25 (-1.73%)
241.201 USD
0 (0%)
Taking everything into account, ABG scores 5 out of 10 in our fundamental rating. ABG was compared to 121 industry peers in the Specialty Retail industry. ABG has only an average score on both its financial health and profitability. ABG may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ABG suitable for value investing!
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.
Each year in the past 5 years ABG had a positive operating cash flow.
1.2 Ratios
ABG has a Return On Assets of 5.33%. This is in the better half of the industry: ABG outperforms 71.07% of its industry peers.
ABG has a better Return On Equity (14.30%) than 71.07% of its industry peers.
ABG has a Return On Invested Capital of 8.25%. This is in the better half of the industry: ABG outperforms 70.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABG is below the industry average of 12.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 14.3% | ||
| ROIC | 8.25% |
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
Looking at the Profit Margin, with a value of 3.13%, ABG is in the better half of the industry, outperforming 68.59% 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's Operating Margin of 5.75% is fine compared to the rest of the industry. ABG outperforms 71.90% of its industry peers.
ABG's Operating Margin has improved in the last couple of years.
ABG has a Gross Margin of 17.05%. This is amonst the worse of the industry: ABG underperforms 82.64% 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 | 5.75% | ||
| PM (TTM) | 3.13% | ||
| GM | 17.05% |
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.
The number of shares outstanding for ABG has been reduced compared to 1 year ago.
ABG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ABG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.05 indicates that ABG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.05, ABG is in the better half of the industry, outperforming 71.07% of the companies in the same industry.
The Debt to FCF ratio of ABG is 5.94, which is a neutral value as it means it would take ABG, 5.94 years of fcf income to pay off all of its debts.
ABG's Debt to FCF ratio of 5.94 is fine compared to the rest of the industry. ABG outperforms 61.16% of its industry peers.
ABG has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ABG (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 5.94 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.93
WACC8.87%
2.3 Liquidity
ABG has a Current Ratio of 1.30. This is a normal value and indicates that ABG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.30, ABG is in line with its industry, outperforming 48.76% of the companies in the same industry.
ABG has a Quick Ratio of 1.30. 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 0.49, ABG is in line with its industry, outperforming 48.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
ABG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.43%.
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.
ABG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.40%.
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)-3.43%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%16.09%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%2.99%
3.2 Future
ABG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.76% yearly.
ABG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.83% yearly.
EPS Next Y3.15%
EPS Next 2Y1.69%
EPS Next 3Y6.67%
EPS Next 5Y11.76%
Revenue Next Year8.72%
Revenue Next 2Y8.82%
Revenue Next 3Y6.12%
Revenue Next 5Y7.83%
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.
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 8.66, 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 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, ABG is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.57, the valuation of ABG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABG indicates a rather cheap valuation: ABG is cheaper than 89.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, ABG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
76.03% of the companies in the same industry are more expensive than ABG, based on the Enterprise Value to EBITDA ratio.
96.69% 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 | 6.5 | ||
| EV/EBITDA | 7.31 |
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)2.75
PEG (5Y)0.37
EPS Next 2Y1.69%
EPS Next 3Y6.67%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
241.2
-4.25 (-1.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners108.44%
Inst Owner Change-4.94%
Ins Owners0.6%
Ins Owner Change-0.69%
Market Cap4.74B
Analysts70.77
Price Target262.99 (9.03%)
Short Float %5.34%
Short Ratio5.77
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)4.14%
Min EPS beat(2)1.09%
Max EPS beat(2)7.19%
EPS beat(4)3
Avg EPS beat(4)5.73%
Min EPS beat(4)-4.4%
Max EPS beat(4)19.03%
EPS beat(8)3
Avg EPS beat(8)-1.44%
EPS beat(12)6
Avg EPS beat(12)0.73%
EPS beat(16)10
Avg EPS beat(16)3.92%
Revenue beat(2)0
Avg Revenue beat(2)-3.98%
Min Revenue beat(2)-5.2%
Max Revenue beat(2)-2.76%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-5.2%
Max Revenue beat(4)7.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-2.16%
Revenue beat(16)5
Avg Revenue beat(16)-0.87%
PT rev (1m)2.04%
PT rev (3m)4.46%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)4.18%
EPS NY rev (1m)3.36%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)6.96%
Revenue NY rev (1m)2.75%
Revenue NY rev (3m)2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.27 | ||
| P/FCF | 6.5 | ||
| P/OCF | 4.91 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.31 |
EPS(TTM)27.86
EY11.55%
EPS(NY)28.15
Fwd EY11.67%
FCF(TTM)37.13
FCFY15.39%
OCF(TTM)49.07
OCFY20.35%
SpS878.07
BVpS192.12
TBVpS-0.74
PEG (NY)2.75
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 14.3% | ||
| ROCE | 12.84% | ||
| ROIC | 8.25% | ||
| ROICexc | 8.31% | ||
| ROICexgc | 14.4% | ||
| OM | 5.75% | ||
| PM (TTM) | 3.13% | ||
| GM | 17.05% | ||
| FCFM | 4.23% |
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-Score8
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 5.94 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 307.86% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 3.74 | ||
| Cash Conversion | 90.28% | ||
| Profit Quality | 135.17% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 3.05 |
F-Score8
WACC8.87%
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)-3.43%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%16.09%
EPS Next Y3.15%
EPS Next 2Y1.69%
EPS Next 3Y6.67%
EPS Next 5Y11.76%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%2.99%
Revenue Next Year8.72%
Revenue Next 2Y8.82%
Revenue Next 3Y6.12%
Revenue Next 5Y7.83%
EBIT growth 1Y-1.26%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year10%
EBIT Next 3Y7.95%
EBIT Next 5Y7.62%
FCF growth 1Y134.09%
FCF growth 3Y-25.95%
FCF growth 5Y4.77%
OCF growth 1Y129.17%
OCF growth 3Y-16.76%
OCF growth 5Y13.92%