ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
251.44 USD
-4.59 (-1.79%)
251.44 USD
0 (0%)
Taking everything into account, ABG scores 5 out of 10 in our fundamental rating. ABG was compared to 122 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 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 67.21% of the companies in the same industry.
The Return On Equity of ABG (14.46%) is better than 72.13% of its industry peers.
ABG's Return On Invested Capital of 7.22% is fine compared to the rest 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
Looking at the Profit Margin, with a value of 3.15%, ABG is in the better half of 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.
With a decent Operating Margin value of 5.69%, ABG is doing good in the industry, outperforming 69.67% of the companies in the same industry.
ABG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 16.99%, ABG is not doing good in the industry: 81.15% of the companies in the same industry are doing better.
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
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.
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 2.60 indicates that ABG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ABG (2.60) is comparable to the rest of the 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.
ABG has a Debt to FCF ratio (9.11) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.45 is on the high side and indicates that ABG has dependencies on debt 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 | 2.6 |
ROIC/WACC0.81
WACC8.87%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ABG may have some problems paying its short term obligations.
ABG's Current ratio of 0.99 is on the low side compared to the rest of the industry. ABG is outperformed by 75.41% of its industry peers.
A Quick Ratio of 0.30 indicates that ABG may have some problems paying its short term obligations.
The Quick ratio of ABG (0.30) is worse than 72.13% of its industry peers.
| 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
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 Year7.8%
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.
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
Based on the Price/Earnings ratio of 8.77, the valuation of ABG can be described as reasonable.
ABG's Price/Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 92.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, ABG is valued rather cheaply.
A Price/Forward Earnings ratio of 8.85 indicates a reasonable valuation of ABG.
Based on the Price/Forward Earnings ratio, ABG is valued cheaply inside the industry as 90.98% of the companies are valued more expensively.
ABG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 8.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABG is valued a bit cheaper than 71.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABG is valued cheaper than 90.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ABG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.89
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% |
251.44
-4.59 (-1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.84%
Inst Owner Change0.04%
Ins Owners0.58%
Ins Owner Change-0.92%
Market Cap4.89B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts69.23
Price Target254.71 (1.3%)
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)0%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 8.85 | ||
| P/S | 0.27 | ||
| P/FCF | 7.77 | ||
| P/OCF | 5.63 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.74 |
EPS(TTM)28.68
EY11.41%
EPS(NY)28.41
Fwd EY11.3%
FCF(TTM)32.36
FCFY12.87%
OCF(TTM)44.62
OCFY17.75%
SpS917.03
BVpS199.49
TBVpS-33.7
PEG (NY)1.89
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 | 2.6 |
F-Score6
WACC8.87%
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 Year7.8%
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.
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 8.77 and the Price/Book (PB) ratio is 1.26.