ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - NYSE:ABG - US0434361046 - Common Stock
234.6 USD
-3.62 (-1.52%)
234.6 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ABG. ABG was compared to 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of ABG get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on ABG. This makes ABG very considerable 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.
ABG had positive earnings in each of the past 5 years.
In the past 5 years ABG always reported a positive cash flow from operatings.
1.2 Ratios
ABG has a Return On Assets of 5.33%. This is in the better half of the industry: ABG outperforms 70.25% of its industry peers.
ABG has a Return On Equity of 14.30%. This is in the better half of the industry: ABG outperforms 71.90% of its industry peers.
The Return On Invested Capital of ABG (8.25%) is better than 68.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABG is in line with the industry average of 11.81%.
| 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.
Looking at the Operating Margin, with a value of 5.75%, ABG is in the better half of the industry, outperforming 70.25% 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 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.
Compared to 1 year ago, ABG has less shares outstanding
Compared to 5 years ago, ABG has more shares outstanding
ABG has a better debt/assets ratio than last year.
2.2 Solvency
ABG has an Altman-Z score of 3.04. This indicates that ABG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ABG (3.04) is better than 70.25% of its industry peers.
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 has a Debt to FCF ratio of 5.94. This is in the better half of the industry: ABG outperforms 60.33% 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 | 3.04 |
ROIC/WACC0.97
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.30 indicates that ABG should not have too much problems paying its short term obligations.
ABG's Current ratio of 1.30 is in line compared to the rest of the industry. ABG outperforms 49.59% of its industry peers.
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.
ABG has a Quick ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.91% over the past year.
The Earnings Per Share has been growing by 23.59% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, ABG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.76% on average per year.
Based on estimates for the next years, ABG will show a small growth in Revenue. The Revenue will grow by 7.83% on average per year.
EPS Next Y3.07%
EPS Next 2Y1.4%
EPS Next 3Y6.03%
EPS Next 5Y11.76%
Revenue Next Year8.49%
Revenue Next 2Y8.51%
Revenue Next 3Y6.04%
Revenue Next 5Y7.83%
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
ABG is valuated reasonably with a Price/Earnings ratio of 8.18.
Compared to the rest of the industry, the Price/Earnings ratio of ABG indicates a rather cheap valuation: ABG is cheaper than 90.08% of the companies listed in the same industry.
ABG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.10.
With a Price/Forward Earnings ratio of 8.38, the valuation of ABG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ABG is valued cheaply inside the industry as 90.08% 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 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 8.38 |
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 71.90% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABG indicates a rather cheap valuation: ABG is cheaper than 93.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.32 | ||
| EV/EBITDA | 7.18 |
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)2.67
PEG (5Y)0.35
EPS Next 2Y1.4%
EPS Next 3Y6.03%
5. Dividend
5.1 Amount
ABG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
234.6
-3.62 (-1.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.95%
Inst Owner Change0.02%
Ins Owners0.58%
Ins Owner Change-0.69%
Market Cap4.61B
Revenue(TTM)17.83B
Net Income(TTM)540.00M
Analysts70.77
Price Target259.95 (10.81%)
Short Float %5.22%
Short Ratio6.84
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)0.45%
PT rev (3m)4.23%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)5.01%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)3.27%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)7.42%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.27 | ||
| P/FCF | 6.32 | ||
| P/OCF | 4.78 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.18 |
EPS(TTM)28.68
EY12.23%
EPS(NY)27.98
Fwd EY11.93%
FCF(TTM)37.13
FCFY15.83%
OCF(TTM)49.07
OCFY20.92%
SpS878.07
BVpS192.12
TBVpS-0.74
PEG (NY)2.67
PEG (5Y)0.35
Graham Number352.1
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%
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-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 | 3.04 |
F-Score8
WACC8.55%
ROIC/WACC0.97
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 Y3.07%
EPS Next 2Y1.4%
EPS Next 3Y6.03%
EPS Next 5Y11.76%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%13.32%
Revenue Next Year8.49%
Revenue Next 2Y8.51%
Revenue Next 3Y6.04%
Revenue Next 5Y7.83%
EBIT growth 1Y-1.26%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year11.07%
EBIT Next 3Y5.77%
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%
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 8.18 and the Price/Book (PB) ratio is 1.22.
How financially healthy is ASBURY AUTOMOTIVE GROUP?
The financial health rating of ASBURY AUTOMOTIVE GROUP (ABG) is 5 / 10.