ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
238.9 USD
+5 (+2.14%)
238.9 USD
0 (0%)
ABG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 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. ABG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
ABG had positive earnings in the past year.
ABG had a positive operating cash flow in the past year.
In the past 5 years ABG has always been profitable.
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 68.03% of the companies in the same industry.
ABG has a better Return On Equity (14.46%) than 73.77% of its industry peers.
The Return On Invested Capital of ABG (7.22%) is better than 67.21% 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 11.71%.
| 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's Profit Margin of 3.15% is fine compared to the rest of the industry. ABG outperforms 69.67% 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 (5.69%) is better than 68.85% of its industry peers.
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 81.97% of its industry peers.
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
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.
The number of shares outstanding for ABG has been increased compared to 5 years ago.
The debt/assets ratio for ABG has been reduced compared to a year ago.
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.
ABG has a Altman-Z score of 2.57. This is comparable to the rest of the industry: ABG outperforms 59.84% of its industry peers.
ABG has a debt to FCF ratio of 9.11. This is a negative value and a sign of low solvency as ABG would need 9.11 years to pay back of 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.
The Debt to Equity ratio of ABG (1.45) is worse than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.84
WACC8.59%
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.
ABG has a worse Current ratio (0.99) than 73.77% of its industry peers.
A Quick Ratio of 0.30 indicates that ABG may have some problems paying its short term obligations.
ABG has a worse Quick ratio (0.30) than 72.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.3 |
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
ABG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.07%.
ABG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.98% yearly.
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.
The Revenue is expected to grow by 8.28% on average over the next years. This is quite good.
EPS Next Y3.83%
EPS Next 2Y1.74%
EPS Next 3Y6.56%
EPS Next 5Y11.91%
Revenue Next Year8.07%
Revenue Next 2Y8.38%
Revenue Next 3Y6.27%
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.
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
With a Price/Earnings ratio of 8.33, the valuation of ABG can be described as very reasonable.
Based on the Price/Earnings ratio, ABG is valued cheaper than 92.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. ABG is valued rather cheaply when compared to this.
ABG is valuated reasonably with a Price/Forward Earnings ratio of 8.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABG indicates a rather cheap valuation: ABG is cheaper than 91.80% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ABG to the average of the S&P500 Index (36.10), we can say ABG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 8.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABG is valued a bit cheaper than the industry average as 72.13% of the companies are valued more expensively.
95.90% 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 | 7.38 | ||
| EV/EBITDA | 7.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ABG may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)0.35
EPS Next 2Y1.74%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
238.9
+5 (+2.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.05%
Inst Owner Change-0.47%
Ins Owners0.58%
Ins Owner Change-0.94%
Market Cap4.64B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts71.43
Price Target261.12 (9.3%)
Short Float %5.46%
Short Ratio6.05
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)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)1.63%
PT rev (3m)-1.77%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)-0.2%
EPS NY rev (1m)0.75%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-2.17%
Revenue NQ rev (3m)-2.8%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 8.48 | ||
| P/S | 0.26 | ||
| P/FCF | 7.38 | ||
| P/OCF | 5.35 | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.43 |
EPS(TTM)28.68
EY12.01%
EPS(NY)28.17
Fwd EY11.79%
FCF(TTM)32.36
FCFY13.54%
OCF(TTM)44.62
OCFY18.68%
SpS917.03
BVpS199.49
TBVpS-33.7
PEG (NY)2.17
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
WACC8.59%
ROIC/WACC0.84
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 Y3.83%
EPS Next 2Y1.74%
EPS Next 3Y6.56%
EPS Next 5Y11.91%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%13.32%
Revenue Next Year8.07%
Revenue Next 2Y8.38%
Revenue Next 3Y6.27%
Revenue Next 5Y8.28%
EBIT growth 1Y4.2%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year11.07%
EBIT Next 3Y5.77%
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 8.33 and the Price/Book (PB) ratio is 1.2.
How financially healthy is ASBURY AUTOMOTIVE GROUP?
The financial health rating of ASBURY AUTOMOTIVE GROUP (ABG) is 2 / 10.