ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABG - US0434361046 - Common Stock
240.19 USD
+5.43 (+2.31%)
240.19 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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
Each year in the past 5 years ABG has 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.
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.
Looking at the Return On Invested Capital, with a value of 7.22%, ABG is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
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
ABG's Profit Margin of 3.15% is fine compared to the rest of the industry. ABG outperforms 68.85% of its industry peers.
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 69.67% of its industry peers.
ABG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.99%, ABG is doing worse than 81.15% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABG is creating some value.
Compared to 1 year ago, ABG has less shares outstanding
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
An Altman-Z score of 2.58 indicates that ABG is not a great score, but indicates only limited risk for bankruptcy at the moment.
ABG has a Altman-Z score (2.58) which is in line with 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.
With a Debt to FCF ratio value of 9.11, ABG perfoms like the industry average, outperforming 58.20% of the companies in the same industry.
A Debt/Equity ratio of 1.45 is on the high side and indicates that ABG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.45, ABG is doing worse than 63.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.82
WACC8.83%
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.
With a Current ratio value of 0.99, ABG is not doing good in the industry: 75.41% of the companies in the same industry are doing better.
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.
ABG's Quick ratio of 0.30 is on the low side compared to the rest of the industry. ABG is outperformed by 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.
Measured over the past years, ABG shows a quite strong growth in Revenue. The Revenue has been growing by 18.98% on average per year.
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.
The Revenue is expected to grow by 8.28% on average over the next years. This is quite good.
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
The Price/Earnings ratio is 8.37, which indicates a very decent valuation of ABG.
91.80% of the companies in the same industry are more expensive than ABG, based on the Price/Earnings ratio.
ABG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.87.
The Price/Forward Earnings ratio is 8.45, which indicates a very decent valuation of ABG.
Based on the Price/Forward Earnings ratio, ABG is valued cheaper than 91.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ABG to the average of the S&P500 Index (23.46), we can say ABG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
72.13% of the companies in the same industry are more expensive than ABG, based on the Enterprise Value to EBITDA ratio.
ABG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABG is cheaper than 90.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | 7.54 |
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)1.8
PEG (5Y)0.36
EPS Next 2Y2.17%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
240.19
+5.43 (+2.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.84%
Inst Owner Change0%
Ins Owners0.58%
Ins Owner Change-0.92%
Market Cap4.67B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts71.43
Price Target254.71 (6.05%)
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)-3.59%
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 | 8.37 | ||
| Fwd PE | 8.45 | ||
| P/S | 0.26 | ||
| P/FCF | 7.42 | ||
| P/OCF | 5.38 | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.54 |
EPS(TTM)28.68
EY11.94%
EPS(NY)28.41
Fwd EY11.83%
FCF(TTM)32.36
FCFY13.47%
OCF(TTM)44.62
OCFY18.58%
SpS917.03
BVpS199.49
TBVpS-33.7
PEG (NY)1.8
PEG (5Y)0.36
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 | 2.58 |
F-Score6
WACC8.83%
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 8.37 and the Price/Book (PB) ratio is 1.2.