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ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis

NYSE:ABG - New York Stock Exchange, Inc. - US0434361046 - Common Stock

256.92  +12.14 (+4.96%)

After market: 256.92 0 (0%)

Fundamental Rating

5

ABG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 119 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 has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year ABG was profitable.
ABG had a positive operating cash flow in the past year.
Each year in the past 5 years ABG has been profitable.
ABG had a positive operating cash flow in each of the past 5 years.
ABG Yearly Net Income VS EBIT VS OCF VS FCFABG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

1.2 Ratios

ABG has a Return On Assets of 3.51%. This is in the better half of the industry: ABG outperforms 63.79% of its industry peers.
ABG has a better Return On Equity (10.62%) than 67.24% of its industry peers.
The Return On Invested Capital of ABG (8.09%) is better than 68.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABG is below the industry average of 12.38%.
Industry RankSector Rank
ROA 3.51%
ROE 10.62%
ROIC 8.09%
ROA(3y)8.34%
ROA(5y)7.65%
ROE(3y)26.02%
ROE(5y)26.92%
ROIC(3y)10.15%
ROIC(5y)9.94%
ABG Yearly ROA, ROE, ROICABG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

1.3 Margins

With a Profit Margin value of 2.16%, ABG perfoms like the industry average, outperforming 59.48% of the companies in the same industry.
In the last couple of years the Profit Margin of ABG has grown nicely.
Looking at the Operating Margin, with a value of 5.90%, ABG is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
In the last couple of years the Operating Margin of ABG has grown nicely.
ABG has a worse Gross Margin (17.41%) than 84.48% of its industry peers.
In the last couple of years the Gross Margin of ABG has grown nicely.
Industry RankSector Rank
OM 5.9%
PM (TTM) 2.16%
GM 17.41%
OM growth 3Y8.4%
OM growth 5Y9.56%
PM growth 3Y4.55%
PM growth 5Y10.74%
GM growth 3Y2.78%
GM growth 5Y3.02%
ABG Yearly Profit, Operating, Gross MarginsABG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

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3

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.
ABG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABG has more shares outstanding
The debt/assets ratio for ABG is higher compared to a year ago.
ABG Yearly Shares OutstandingABG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ABG Yearly Total Debt VS Total AssetsABG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

ABG has an Altman-Z score of 2.85. 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.
Looking at the Altman-Z score, with a value of 2.85, ABG is in the better half of the industry, outperforming 64.66% of the companies in the same industry.
The Debt to FCF ratio of ABG is 19.60, which is on the high side as it means it would take ABG, 19.60 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 19.60, ABG perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
ABG has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
ABG has a worse Debt to Equity ratio (1.42) than 64.66% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.42
Debt/FCF 19.6
Altman-Z 2.85
ROIC/WACC0.94
WACC8.65%
ABG Yearly LT Debt VS Equity VS FCFABG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

ABG has a Current Ratio of 1.20. 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 worse Current ratio (1.20) than 61.21% of its industry peers.
ABG has a Quick Ratio of 1.20. 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 0.41, ABG perfoms like the industry average, outperforming 43.10% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 0.41
ABG Yearly Current Assets VS Current LiabilitesABG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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6

3. Growth

3.1 Past

ABG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.64%.
Measured over the past years, ABG shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.06% on average per year.
Looking at the last year, ABG shows a quite strong growth in Revenue. The Revenue has grown by 12.24% in the last year.
Measured over the past years, ABG shows a quite strong growth in Revenue. The Revenue has been growing by 16.58% on average per year.
EPS 1Y (TTM)-21.64%
EPS 3Y36.37%
EPS 5Y31.06%
EPS Q2Q%-21.8%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y27.56%
Revenue growth 5Y16.58%
Sales Q2Q%15.56%

3.2 Future

The Earnings Per Share is expected to grow by 8.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.51% on average over the next years. This is quite good.
EPS Next Y-19.34%
EPS Next 2Y-7.97%
EPS Next 3Y-0.79%
EPS Next 5Y8.65%
Revenue Next Year14.17%
Revenue Next 2Y8.93%
Revenue Next 3Y6.67%
Revenue Next 5Y10.51%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
ABG Yearly Revenue VS EstimatesABG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B
ABG Yearly EPS VS EstimatesABG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10 20 30 40

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.49, which indicates a very decent valuation of ABG.
Based on the Price/Earnings ratio, ABG is valued cheaply inside the industry as 91.38% of the companies are valued more expensively.
ABG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 9.32, the valuation of ABG can be described as reasonable.
89.66% of the companies in the same industry are more expensive than ABG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ABG to the average of the S&P500 Index (24.44), we can say ABG is valued rather cheaply.
Industry RankSector Rank
PE 9.49
Fwd PE 9.32
ABG Price Earnings VS Forward Price EarningsABG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ABG is valued a bit cheaper than 74.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABG is valued a bit cheaper than the industry average as 71.55% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 20.26
EV/EBITDA 7.74
ABG Per share dataABG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600 800

4.3 Compensation for Growth

The decent profitability rating of ABG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-7.97%
EPS Next 3Y-0.79%

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0

5. Dividend

5.1 Amount

No dividends for ABG!.
Industry RankSector Rank
Dividend Yield N/A

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ASBURY AUTOMOTIVE GROUP

NYSE:ABG (1/21/2025, 8:04:00 PM)

After market: 256.92 0 (0%)

256.92

+12.14 (+4.96%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-29 2024-10-29/bmo
Earnings (Next)01-30 2025-01-30/amc
Inst Owners110.03%
Inst Owner Change-1.04%
Ins Owners0.5%
Ins Owner Change-3.17%
Market Cap5.03B
Analysts69.23
Price Target264.56 (2.97%)
Short Float %11.22%
Short Ratio13.41
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.68
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.99%
Min EPS beat(2)-13.59%
Max EPS beat(2)-4.4%
EPS beat(4)0
Avg EPS beat(4)-8.52%
Min EPS beat(4)-13.59%
Max EPS beat(4)-4.4%
EPS beat(8)3
Avg EPS beat(8)-2.21%
EPS beat(12)6
Avg EPS beat(12)1.56%
EPS beat(16)10
Avg EPS beat(16)7.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)-2.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)2.96%
Revenue beat(8)1
Avg Revenue beat(8)-2.72%
Revenue beat(12)3
Avg Revenue beat(12)-1.64%
Revenue beat(16)7
Avg Revenue beat(16)0.12%
PT rev (1m)0%
PT rev (3m)6.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.97%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-2%
Valuation
Industry RankSector Rank
PE 9.49
Fwd PE 9.32
P/S 0.31
P/FCF 20.26
P/OCF 10.06
P/B 1.5
P/tB N/A
EV/EBITDA 7.74
EPS(TTM)27.08
EY10.54%
EPS(NY)27.58
Fwd EY10.73%
FCF(TTM)12.68
FCFY4.94%
OCF(TTM)25.53
OCFY9.94%
SpS842.05
BVpS171.64
TBVpS-30.91
PEG (NY)N/A
PEG (5Y)0.31
Profitability
Industry RankSector Rank
ROA 3.51%
ROE 10.62%
ROCE 12.84%
ROIC 8.09%
ROICexc 8.15%
ROICexgc 14.59%
OM 5.9%
PM (TTM) 2.16%
GM 17.41%
FCFM 1.51%
ROA(3y)8.34%
ROA(5y)7.65%
ROE(3y)26.02%
ROE(5y)26.92%
ROIC(3y)10.15%
ROIC(5y)9.94%
ROICexc(3y)10.4%
ROICexc(5y)10.09%
ROICexgc(3y)20.85%
ROICexgc(5y)17.45%
ROCE(3y)15.07%
ROCE(5y)16.37%
ROICexcg growth 3Y5.66%
ROICexcg growth 5Y7.64%
ROICexc growth 3Y-2.09%
ROICexc growth 5Y-2.19%
OM growth 3Y8.4%
OM growth 5Y9.56%
PM growth 3Y4.55%
PM growth 5Y10.74%
GM growth 3Y2.78%
GM growth 5Y3.02%
F-Score5
Asset Turnover1.62
Health
Industry RankSector Rank
Debt/Equity 1.42
Debt/FCF 19.6
Debt/EBITDA 4.58
Cap/Depr 345.41%
Cap/Sales 1.53%
Interest Coverage 4.03
Cash Conversion 47.82%
Profit Quality 69.58%
Current Ratio 1.2
Quick Ratio 0.41
Altman-Z 2.85
F-Score5
WACC8.65%
ROIC/WACC0.94
Cap/Depr(3y)360.14%
Cap/Depr(5y)281.05%
Cap/Sales(3y)1.57%
Cap/Sales(5y)1.28%
Profit Quality(3y)83.28%
Profit Quality(5y)127.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.64%
EPS 3Y36.37%
EPS 5Y31.06%
EPS Q2Q%-21.8%
EPS Next Y-19.34%
EPS Next 2Y-7.97%
EPS Next 3Y-0.79%
EPS Next 5Y8.65%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y27.56%
Revenue growth 5Y16.58%
Sales Q2Q%15.56%
Revenue Next Year14.17%
Revenue Next 2Y8.93%
Revenue Next 3Y6.67%
Revenue Next 5Y10.51%
EBIT growth 1Y-14%
EBIT growth 3Y38.27%
EBIT growth 5Y27.72%
EBIT Next Year-13.32%
EBIT Next 3Y-2.49%
EBIT Next 5Y3.95%
FCF growth 1Y-67.82%
FCF growth 3Y-34.36%
FCF growth 5YN/A
OCF growth 1Y-42.47%
OCF growth 3Y-21.72%
OCF growth 5Y98.72%