ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
247.57 USD
-0.93 (-0.37%)
247.57 USD
0 (0%)
Overall ABG gets a fundamental rating of 5 out of 10. We evaluated ABG against 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- In the past 5 years ABG always reported a positive cash flow from operatings.
1.2 Ratios
- ABG has a better Return On Assets (4.76%) than 67.21% of its industry peers.
- With a decent Return On Equity value of 14.46%, ABG is doing good in the industry, outperforming 72.13% of the companies in the same industry.
- ABG has a Return On Invested Capital of 7.22%. This is in the better half of the industry: ABG outperforms 65.57% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ABG 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
- With a decent Profit Margin value of 3.15%, ABG is doing good in the industry, outperforming 68.85% 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 5.69%, ABG is in the better half of the industry, outperforming 69.67% of the companies in the same industry.
- ABG's Operating Margin has improved in the last couple of years.
- The Gross Margin of ABG (16.99%) is worse than 81.15% 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
- 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.
- ABG has more shares outstanding than it did 5 years ago.
- ABG has a better debt/assets ratio than last year.
2.2 Solvency
- ABG has an Altman-Z score of 2.59. 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.
- The Altman-Z score of ABG (2.59) is comparable to the rest of the industry.
- 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 58.20% of its industry peers.
- ABG has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
- ABG's Debt to Equity ratio of 1.45 is on the low side compared to the rest of the industry. ABG is outperformed by 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.81
WACC8.91%
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.
- 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.
- With a Quick ratio value of 0.30, ABG is not doing good in the industry: 72.13% of the companies in the same industry are doing better.
| 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
- The Revenue has grown by 8.07% in the past year. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 11.91% on average over the next years. This is quite good.
- Based on estimates for the next years, ABG will show a quite strong growth in Revenue. The Revenue will grow by 8.28% on average per year.
EPS Next Y4.65%
EPS Next 2Y2.17%
EPS Next 3Y6.1%
EPS Next 5Y11.91%
Revenue Next Year7.67%
Revenue Next 2Y7.65%
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
- A Price/Earnings ratio of 8.63 indicates a reasonable valuation of ABG.
- Compared to the rest of the industry, the Price/Earnings ratio of ABG indicates a rather cheap valuation: ABG is cheaper than 93.44% 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 27.47.
- The Price/Forward Earnings ratio is 8.71, which indicates a very decent valuation of ABG.
- ABG's Price/Forward 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/Forward Earnings ratio is at 24.26. ABG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABG is valued a bit cheaper than 72.13% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ABG is valued cheaper than 89.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.65 | ||
| EV/EBITDA | 7.67 |
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)1.86
PEG (5Y)0.37
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% |
247.57
-0.93 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-05 2026-02-05/amc
Inst Owners106.84%
Inst Owner Change0.04%
Ins Owners0.58%
Ins Owner Change-0.92%
Market Cap4.81B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts69.23
Price Target254.71 (2.88%)
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)-2.46%
PT rev (3m)-3.59%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 8.71 | ||
| P/S | 0.27 | ||
| P/FCF | 7.65 | ||
| P/OCF | 5.55 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.67 |
EPS(TTM)28.68
EY11.58%
EPS(NY)28.41
Fwd EY11.48%
FCF(TTM)32.36
FCFY13.07%
OCF(TTM)44.62
OCFY18.03%
SpS917.03
BVpS199.49
TBVpS-33.7
PEG (NY)1.86
PEG (5Y)0.37
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 | 2.59 |
F-Score6
WACC8.91%
ROIC/WACC0.81
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 Year7.67%
Revenue Next 2Y7.65%
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.
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 8.63 and the Price/Book (PB) ratio is 1.24.