ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
240.04 USD
+1.5 (+0.63%)
Taking everything into account, ABG scores 5 out of 10 in our fundamental rating. ABG was compared to 122 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
- ABG had positive earnings in the past year.
- 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
- ABG has a better Return On Assets (4.76%) than 67.21% of its industry peers.
- Looking at the Return On Equity, with a value of 14.46%, ABG is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
- The Return On Invested Capital of ABG (7.22%) is better than 65.57% of its industry peers.
- ABG had an Average Return On Invested Capital over the past 3 years of 9.95%. This 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
- Looking at the Profit Margin, with a value of 3.15%, ABG is in the better half of the industry, outperforming 68.85% of the companies in the same industry.
- ABG's Profit Margin has been stable in the last couple of years.
- ABG has a better Operating Margin (5.69%) than 69.67% of its industry peers.
- In the last couple of years the Operating Margin of ABG has grown nicely.
- With a Gross Margin value of 16.99%, ABG is not doing good in the industry: 81.15% of the companies in the same industry are doing better.
- ABG's Gross Margin has been stable in the last couple of years.
| 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
- ABG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for ABG has been reduced compared to 1 year ago.
- The number of shares outstanding for ABG has been increased compared to 5 years ago.
- ABG has a better debt/assets ratio than last year.
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 of 2.58. This is comparable to the rest of the industry: ABG outperforms 56.56% of its industry peers.
- 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 comparable to the rest of the industry.
- ABG has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
- ABG has a Debt to Equity ratio of 1.45. This is in the lower half of the industry: ABG underperforms 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.82
WACC8.82%
2.3 Liquidity
- A Current Ratio of 0.99 indicates that ABG may have some problems paying its short term obligations.
- ABG has a Current ratio of 0.99. This is in the lower half of the industry: ABG underperforms 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's Quick ratio of 0.30 is on the low side compared to the rest of the industry. ABG is outperformed by 72.13% 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.
- The Revenue has grown by 8.07% in the past year. This is quite good.
- The Revenue has been growing by 18.98% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 11.91% on average over the next years. This is quite good.
- 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 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
- 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
- The Price/Earnings ratio is 8.37, 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 93.44% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. ABG is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 8.48, the valuation of ABG can be described as reasonable.
- ABG's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 92.62% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ABG to the average of the S&P500 Index (25.98), we can say ABG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 8.48 |
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 72.95% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ABG is valued cheaply inside the industry as 90.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | 7.51 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABG does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of ABG may justify a higher PE ratio.
PEG (NY)1.97
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 8.37 and the Price/Book (PB) ratio is 1.2.