ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
NYSE:ABG - New York Stock Exchange, Inc. - US0434361046 - Common Stock - Currency: USD
Overall ABG gets a fundamental rating of 5 out of 10. We evaluated ABG against 121 industry peers in the Specialty Retail industry. While ABG is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ABG.
1. Profitability
1.1 Basic Checks
In the past year ABG was profitable.
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 each of the past 5 years.
1.2 Ratios
The Return On Assets of ABG (4.06%) is better than 64.46% of its industry peers.
ABG's Return On Equity of 11.46% is fine compared to the rest of the industry. ABG outperforms 68.59% of its industry peers.
With a decent Return On Invested Capital value of 8.02%, ABG is doing good in the industry, outperforming 68.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABG is below the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.46% | ||
| ROIC | 8.02% |
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 (2.42%) than 61.98% of its industry peers.
In the last couple of years the Profit Margin of ABG has remained more or less at the same level.
The Operating Margin of ABG (5.67%) is better than 71.07% of its industry peers.
In the last couple of years the Operating Margin of ABG has grown nicely.
With a Gross Margin value of 17.06%, ABG is not doing good in the industry: 83.47% of the companies in the same industry are doing better.
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 | 5.67% | ||
| PM (TTM) | 2.42% | ||
| GM | 17.06% |
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.
Compared to 1 year ago, ABG has less shares outstanding
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 2.99. 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's Altman-Z score of 2.99 is fine compared to the rest of the industry. ABG outperforms 69.42% of its industry peers.
The Debt to FCF ratio of ABG is 9.51, which is on the high side as it means it would take ABG, 9.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABG (9.51) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.24 is on the high side and indicates that ABG has dependencies on debt financing.
ABG has a Debt to Equity ratio of 1.24. This is in the lower half of the industry: ABG underperforms 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 9.51 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.93
WACC8.62%
2.3 Liquidity
ABG has a Current Ratio of 1.25. This is a normal value and indicates that ABG is financially healthy and should not expect problems in meeting its short term obligations.
ABG has a Current ratio of 1.25. This is comparable to the rest of the industry: ABG outperforms 43.80% of its industry peers.
A Quick Ratio of 0.55 indicates that ABG may have some problems paying its short term obligations.
ABG's Quick ratio of 0.55 is in line compared to the rest of the industry. ABG outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
ABG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.55%.
ABG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.59% yearly.
ABG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.12%.
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)-14.55%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)11.12%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%-1.25%
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 12.06% yearly.
ABG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.20% yearly.
EPS Next Y-0.2%
EPS Next 2Y-0.95%
EPS Next 3Y7.53%
EPS Next 5Y12.06%
Revenue Next Year6.15%
Revenue Next 2Y5.5%
Revenue Next 3Y6.12%
Revenue Next 5Y8.2%
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
A Price/Earnings ratio of 9.64 indicates a reasonable valuation of ABG.
ABG's Price/Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 86.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. ABG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.69 indicates a reasonable valuation of ABG.
Based on the Price/Forward Earnings ratio, ABG is valued cheaply inside the industry as 82.64% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. ABG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
68.59% of the companies in the same industry are more expensive than ABG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ABG is valued cheaply inside the industry as 83.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.54 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
The decent profitability rating of ABG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-0.95%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
258.66
-0.28 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners109.31%
Inst Owner Change-1.79%
Ins Owners0.6%
Ins Owner Change5.18%
Market Cap5.09B
Analysts69.23
Price Target253.47 (-2.01%)
Short Float %5.46%
Short Ratio6.1
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)10.06%
Min EPS beat(2)1.09%
Max EPS beat(2)19.03%
EPS beat(4)2
Avg EPS beat(4)0.54%
Min EPS beat(4)-13.59%
Max EPS beat(4)19.03%
EPS beat(8)3
Avg EPS beat(8)-1.4%
EPS beat(12)6
Avg EPS beat(12)1.19%
EPS beat(16)10
Avg EPS beat(16)6.68%
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-5.2%
Max Revenue beat(2)7.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-5.2%
Max Revenue beat(4)7.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)3
Avg Revenue beat(12)-1.91%
Revenue beat(16)6
Avg Revenue beat(16)-0.19%
PT rev (1m)0%
PT rev (3m)-12.29%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.3 | ||
| P/FCF | 10.54 | ||
| P/OCF | 7.07 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.72 |
EPS(TTM)26.83
EY10.37%
EPS(NY)26.71
Fwd EY10.32%
FCF(TTM)24.55
FCFY9.49%
OCF(TTM)36.58
OCFY14.14%
SpS871.61
BVpS184.31
TBVpS-8.63
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.46% | ||
| ROCE | 12.75% | ||
| ROIC | 8.02% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 14.13% | ||
| OM | 5.67% | ||
| PM (TTM) | 2.42% | ||
| GM | 17.06% | ||
| FCFM | 2.82% |
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-Score7
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 9.51 | ||
| Debt/EBITDA | 4.28 | ||
| Cap/Depr | 313.25% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 3.45 | ||
| Cash Conversion | 68.72% | ||
| Profit Quality | 116.21% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.99 |
F-Score7
WACC8.62%
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)-14.55%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%-5.41%
EPS Next Y-0.2%
EPS Next 2Y-0.95%
EPS Next 3Y7.53%
EPS Next 5Y12.06%
Revenue 1Y (TTM)11.12%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%-1.25%
Revenue Next Year6.15%
Revenue Next 2Y5.5%
Revenue Next 3Y6.12%
Revenue Next 5Y8.2%
EBIT growth 1Y-8.14%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year6.25%
EBIT Next 3Y5.77%
EBIT Next 5Y8%
FCF growth 1Y35.41%
FCF growth 3Y-25.95%
FCF growth 5Y4.77%
OCF growth 1Y56.77%
OCF growth 3Y-16.76%
OCF growth 5Y13.92%