ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
236.52 USD
-3.29 (-1.37%)
236.52 USD
0 (0%)
Overall ABG gets a fundamental rating of 5 out of 10. We evaluated ABG against 123 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 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.
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
With a decent Return On Assets value of 4.76%, ABG is doing good in the industry, outperforming 67.48% of the companies in the same industry.
The Return On Equity of ABG (14.46%) is better than 72.36% of its industry peers.
ABG has a Return On Invested Capital of 7.22%. This is in the better half of the industry: ABG outperforms 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABG is below the industry average of 12.14%.
| 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 69.11% 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.
With a decent Operating Margin value of 5.69%, ABG is doing good in the industry, outperforming 69.92% of the companies in the same industry.
ABG's Operating Margin has improved in the last couple of years.
ABG has a Gross Margin of 16.99%. This is amonst the worse of the industry: ABG underperforms 82.11% 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.
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 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's Altman-Z score of 2.58 is in line compared to the rest of the industry. ABG outperforms 57.72% 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 of 9.11. This is comparable to the rest of the industry: ABG outperforms 58.54% of its industry peers.
A Debt/Equity ratio of 1.45 is on the high side and indicates that ABG has dependencies on debt financing.
With a Debt to Equity ratio value of 1.45, ABG is not doing good in the industry: 64.23% 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
WACC8.77%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ABG may have some problems paying its short term obligations.
With a Current ratio value of 0.99, ABG is not doing good in the industry: 76.42% 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.
Looking at the Quick ratio, with a value of 0.30, ABG is doing worse than 73.17% of the companies in the same industry.
| 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.
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 11.91% 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 Y4.65%
EPS Next 2Y2.17%
EPS Next 3Y6.1%
EPS Next 5Y11.91%
Revenue Next Year7.8%
Revenue Next 2Y7.78%
Revenue Next 3Y5.67%
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
ABG is valuated reasonably with a Price/Earnings ratio of 8.25.
Based on the Price/Earnings ratio, ABG is valued cheaply inside the industry as 91.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.84, ABG is valued rather cheaply.
A Price/Forward Earnings ratio of 8.32 indicates a reasonable valuation of ABG.
91.06% of the companies in the same industry are more expensive than ABG, based on the Price/Forward Earnings ratio.
ABG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
73.17% of the companies in the same industry are more expensive than ABG, based on the Enterprise Value to EBITDA ratio.
91.06% of the companies in the same industry are more expensive than ABG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.31 | ||
| EV/EBITDA | 7.54 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ABG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)0.35
EPS Next 2Y2.17%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
ABG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
236.52
-3.29 (-1.37%)
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 Cap4.60B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts71.43
Price Target254.71 (7.69%)
Short Float %5.47%
Short Ratio5.82
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)-3.59%
PT rev (3m)-3.15%
EPS NQ rev (1m)-1.57%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)0.79%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 8.32 | ||
| P/S | 0.26 | ||
| P/FCF | 7.31 | ||
| P/OCF | 5.3 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.54 |
EPS(TTM)28.68
EY12.13%
EPS(NY)28.41
Fwd EY12.01%
FCF(TTM)32.36
FCFY13.68%
OCF(TTM)44.62
OCFY18.87%
SpS917.03
BVpS199.49
TBVpS-33.7
PEG (NY)1.77
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 | 2.58 |
F-Score6
WACC8.77%
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 Y4.65%
EPS Next 2Y2.17%
EPS Next 3Y6.1%
EPS Next 5Y11.91%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%13.32%
Revenue Next Year7.8%
Revenue Next 2Y7.78%
Revenue Next 3Y5.67%
Revenue Next 5Y8.28%
EBIT growth 1Y4.2%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year11.39%
EBIT Next 3Y4.84%
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 8.25 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.