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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ABG had positive earnings in the past year.
In the past year ABG had a positive cash flow from operations.
In the past 5 years ABG has always been profitable.
ABG had a positive operating cash flow in each of the past 5 years.

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.
With a decent Return On Invested Capital value of 7.22%, ABG is doing good in the industry, outperforming 65.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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.
ABG has a worse Gross Margin (16.99%) than 81.15% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABG is still creating some value.
The number of shares outstanding for ABG has been reduced compared to 1 year ago.
The number of shares outstanding for ABG has been increased compared to 5 years ago.
ABG has a better debt/assets ratio than last year.

2.2 Solvency

ABG has an Altman-Z score of 2.57. 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 2.57, ABG is in line with its industry, outperforming 57.38% of the companies in the same industry.
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.
The Debt to FCF ratio of ABG (9.11) 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.
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	2.57

ROIC/WACC0.82

WACC8.79%

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.
The Current ratio of ABG (0.99) is worse than 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

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WACC

Debt/Equity

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Altman-Z score

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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%.
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%.
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 Y4.24%

EPS Next 2Y1.99%

EPS Next 3Y6.06%

EPS Next 5Y11.91%

Revenue Next Year7.67%

Revenue Next 2Y7.56%

Revenue Next 3Y5.58%

Revenue Next 5Y8.28%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.18, the valuation of ABG can be described as very reasonable.
Based on the Price/Earnings ratio, ABG is valued cheaper than 93.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.30. ABG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.28, the valuation of ABG can be described as reasonable.
Based on the Price/Forward Earnings ratio, ABG is valued cheaper than 91.80% of the companies in the same industry.
ABG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	8.18
Fwd PE	8.28

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 72.13% of the companies listed in the same industry.
90.16% 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	7.25
EV/EBITDA	7.49

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.
ABG has a very decent profitability rating, which may justify a higher PE ratio.