ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
232.53 USD
-3.99 (-1.69%)
232.53 USD
0 (0%)
ABG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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
The Return On Assets of ABG (4.76%) is better than 67.48% of its industry peers.
ABG's Return On Equity of 14.46% is fine compared to the rest of the industry. ABG outperforms 72.36% of its industry peers.
ABG's Return On Invested Capital of 7.22% is fine compared to the rest of the industry. ABG outperforms 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABG is below the industry average of 12.14%.
| 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 69.11% 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.
The Operating Margin of ABG (5.69%) is better than 69.92% of its industry peers.
In the last couple of years the Operating Margin of ABG has grown nicely.
The Gross Margin of ABG (16.99%) is worse than 81.30% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABG is 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.
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's Altman-Z score of 2.57 is in line compared to the rest of the industry. ABG outperforms 58.54% 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 of 9.11. This is comparable to the rest of the industry: ABG outperforms 58.54% 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 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.82
WACC8.78%
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.
Looking at the Current ratio, with a value of 0.99, ABG is doing worse than 75.61% of the companies in the same industry.
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 72.36% 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.
ABG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.59% yearly.
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
ABG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.91% yearly.
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
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.
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
ABG is valuated reasonably with a Price/Earnings ratio of 8.11.
Based on the Price/Earnings ratio, ABG is valued cheaper than 91.87% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. ABG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.18, the valuation of ABG can be described as very reasonable.
91.87% of the companies in the same industry are more expensive than ABG, based on the Price/Forward Earnings ratio.
ABG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
73.17% of the companies in the same industry are more expensive than ABG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ABG is valued cheaper than 91.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ABG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)0.34
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% |
232.53
-3.99 (-1.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.05%
Inst Owner Change-0.46%
Ins Owners0.58%
Ins Owner Change-0.94%
Market Cap4.52B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts71.43
Price Target254.71 (9.54%)
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)-3.59%
PT rev (3m)-3.15%
EPS NQ rev (1m)-1.57%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)0.79%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 8.18 | ||
| P/S | 0.25 | ||
| P/FCF | 7.19 | ||
| P/OCF | 5.21 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.41 |
EPS(TTM)28.68
EY12.33%
EPS(NY)28.41
Fwd EY12.22%
FCF(TTM)32.36
FCFY13.91%
OCF(TTM)44.62
OCFY19.19%
SpS917.03
BVpS199.49
TBVpS-33.7
PEG (NY)1.74
PEG (5Y)0.34
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
WACC8.78%
ROIC/WACC0.82
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 8.11 and the Price/Book (PB) ratio is 1.17.