ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
236.9 USD
+0.77 (+0.33%)
236.9 USD
0 (0%)
Taking everything into account, ABG scores 5 out of 10 in our fundamental rating. ABG was compared to 123 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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
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
Looking at the Return On Assets, with a value of 4.76%, ABG is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.46%, ABG is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
ABG has a Return On Invested Capital of 7.22%. This is in the better half of the industry: ABG outperforms 66.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABG is below the industry average of 12.18%.
| 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
ABG has a better Profit Margin (3.15%) than 70.16% of its industry peers.
In the last couple of years the Profit Margin of ABG has remained more or less at the same level.
With a decent Operating Margin value of 5.69%, ABG is doing good in the industry, outperforming 70.16% of the companies in the same industry.
In the last couple of years the Operating Margin of ABG has grown nicely.
ABG has a Gross Margin of 16.99%. This is amonst the worse of the industry: ABG underperforms 82.26% 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.
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
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.
Looking at the Altman-Z score, with a value of 2.57, ABG is in line with its industry, outperforming 58.06% of the companies in the same industry.
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.
The Debt to Equity ratio of ABG (1.45) is worse than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.82
WACC8.76%
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.
With a Current ratio value of 0.99, ABG is not doing good in the industry: 75.81% 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.
The Quick ratio of ABG (0.30) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
ABG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.91%.
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.
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)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
Based on estimates for the next years, ABG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.91% on average per year.
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 Y5.05%
EPS Next 2Y2.78%
EPS Next 3Y6.79%
EPS Next 5Y11.91%
Revenue Next Year8.09%
Revenue Next 2Y8.29%
Revenue Next 3Y6.21%
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
ABG is valuated reasonably with a Price/Earnings ratio of 8.26.
93.55% of the companies in the same industry are more expensive than ABG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ABG to the average of the S&P500 Index (26.39), we can say ABG is valued rather cheaply.
ABG is valuated reasonably with a Price/Forward Earnings ratio of 8.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABG indicates a rather cheap valuation: ABG is cheaper than 92.74% of the companies listed in the same industry.
ABG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABG is valued a bit cheaper than 72.58% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABG is valued cheaper than 91.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ABG may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)0.35
EPS Next 2Y2.78%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
ABG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
236.9
+0.77 (+0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.05%
Inst Owner Change-0.46%
Ins Owners0.58%
Ins Owner Change-0.94%
Market Cap4.61B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts71.43
Price Target261.12 (10.22%)
Short Float %5.3%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.45%
PT rev (3m)-0.71%
EPS NQ rev (1m)-1.57%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)1.17%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 8.24 | ||
| P/S | 0.26 | ||
| P/FCF | 7.32 | ||
| P/OCF | 5.31 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.48 |
EPS(TTM)28.68
EY12.11%
EPS(NY)28.76
Fwd EY12.14%
FCF(TTM)32.36
FCFY13.66%
OCF(TTM)44.62
OCFY18.84%
SpS917.03
BVpS199.49
TBVpS-33.7
PEG (NY)1.64
PEG (5Y)0.35
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
WACC8.76%
ROIC/WACC0.82
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 Y5.05%
EPS Next 2Y2.78%
EPS Next 3Y6.79%
EPS Next 5Y11.91%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%13.32%
Revenue Next Year8.09%
Revenue Next 2Y8.29%
Revenue Next 3Y6.21%
Revenue Next 5Y8.28%
EBIT growth 1Y4.2%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year11.71%
EBIT Next 3Y5.39%
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 8.26 and the Price/Book (PB) ratio is 1.19.
How financially healthy is ASBURY AUTOMOTIVE GROUP?
The financial health rating of ASBURY AUTOMOTIVE GROUP (ABG) is 2 / 10.