ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
235.81 USD
-8.08 (-3.31%)
Overall ABG gets a fundamental rating of 5 out of 10. We evaluated ABG against 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
- ABG had positive earnings in each of the past 5 years.
- Each year in the past 5 years ABG had a positive operating cash flow.
1.2 Ratios
- ABG's Return On Assets of 4.76% is fine compared to the rest of the industry. ABG outperforms 67.21% of its industry peers.
- ABG has a Return On Equity of 14.46%. This is in the better half of the industry: ABG outperforms 72.13% of its industry peers.
- ABG's Return On Invested Capital of 7.22% is fine compared to the rest of the industry. ABG outperforms 65.57% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ABG is below the industry average of 12.24%.
| 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 68.85% 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.
- Looking at the Operating Margin, with a value of 5.69%, ABG is in the better half of the industry, outperforming 69.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of ABG has grown nicely.
- ABG's Gross Margin of 16.99% is on the low side compared to the rest of the industry. ABG is outperformed by 81.15% 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.
- The number of shares outstanding for ABG has been reduced compared to 1 year ago.
- Compared to 5 years ago, ABG has more shares outstanding
- Compared to 1 year ago, ABG has an improved debt to assets ratio.
2.2 Solvency
- ABG has an Altman-Z score of 2.58. This is not the best score and indicates that ABG is in the grey zone with still only limited risk for bankruptcy at the moment.
- ABG has a Altman-Z score (2.58) which is in line with 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 58.20% of the companies in the same industry.
- ABG has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.45, ABG is not doing good in the industry: 63.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.82
WACC8.83%
2.3 Liquidity
- ABG has a Current 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 Current ratio of ABG (0.99) is worse than 75.41% of its industry peers.
- A Quick Ratio of 0.30 indicates that ABG may have some problems paying its short term obligations.
- ABG has a Quick ratio of 0.30. This is in the lower half of the industry: ABG underperforms 72.13% 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.
- ABG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.59% yearly.
- Looking at the last year, ABG shows a quite strong growth in Revenue. The Revenue has grown by 8.07% in the last year.
- 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
- ABG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.91% yearly.
- The Revenue is expected to grow by 8.28% on average over the next years. This is quite good.
EPS Next Y4.24%
EPS Next 2Y1.99%
EPS Next 3Y6.06%
EPS Next 5Y11.91%
Revenue Next Year7.67%
Revenue Next 2Y7.56%
Revenue Next 3Y5.58%
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.
- 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 8.22, which indicates a very decent valuation of ABG.
- Based on the Price/Earnings ratio, ABG is valued cheaper than 93.44% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ABG to the average of the S&P500 Index (28.60), we can say ABG is valued rather cheaply.
- ABG is valuated reasonably with a Price/Forward Earnings ratio of 8.33.
- Based on the Price/Forward Earnings ratio, ABG is valued cheaply inside the industry as 91.80% of the companies are valued more expensively.
- ABG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.22 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABG is valued a bit cheaper than 72.95% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ABG is valued cheaply inside the industry as 89.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of ABG may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)0.35
EPS Next 2Y1.99%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
- No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ASBURY AUTOMOTIVE GROUP / ABG FAQ
What is the fundamental rating for ABG stock?
ChartMill assigns a fundamental rating of 5 / 10 to ABG.
What is the valuation status for ABG stock?
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 8.22 and the Price/Book (PB) ratio is 1.18.