ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
USA - NYSE:ABG - US0434361046 - Common Stock
222.09 USD
-1.19 (-0.53%)
222.09 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ABG. ABG was compared to 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.
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.
In the past 5 years ABG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.76%, ABG is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
ABG has a Return On Equity of 14.46%. This is in the better half of the industry: ABG outperforms 72.95% of its industry peers.
With a decent Return On Invested Capital value of 7.22%, ABG is doing good in the industry, outperforming 67.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABG is in line with the industry average of 11.80%.
| 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
The Profit Margin of ABG (3.15%) is better than 69.67% of its industry peers.
ABG's Profit Margin has been stable in the last couple of years.
ABG has a Operating Margin of 5.69%. This is in the better half of the industry: ABG outperforms 68.85% of its industry peers.
ABG's Operating Margin has improved in the last couple of years.
The Gross Margin of ABG (16.99%) is worse than 82.79% 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.
Compared to 1 year ago, ABG has less shares outstanding
Compared to 5 years ago, ABG has more shares outstanding
Compared to 1 year ago, ABG has an improved debt to assets ratio.
2.2 Solvency
ABG has an Altman-Z score of 2.56. 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.
ABG has a Altman-Z score (2.56) 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.
ABG has a Debt to FCF ratio (9.11) which is in line with its industry peers.
A Debt/Equity ratio of 1.45 is on the high side and indicates that ABG has dependencies on debt financing.
ABG has a worse Debt to Equity ratio (1.45) than 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.85
WACC8.47%
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 74.59% of the companies in the same industry.
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 76.23% 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%.
Measured over the past years, ABG shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.59% on average per year.
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
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 Y3.83%
EPS Next 2Y1.74%
EPS Next 3Y6.56%
EPS Next 5Y11.91%
Revenue Next Year8.07%
Revenue Next 2Y8.38%
Revenue Next 3Y6.27%
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.
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 cheaply with a Price/Earnings ratio of 7.74.
91.80% of the companies in the same industry are more expensive than ABG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, ABG is valued rather cheaply.
The Price/Forward Earnings ratio is 7.88, which indicates a rather cheap 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 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.88 |
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 68.85% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABG indicates a rather cheap valuation: ABG is cheaper than 94.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.94 | ||
| EV/EBITDA | 7.29 |
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)2.02
PEG (5Y)0.33
EPS Next 2Y1.74%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
222.09
-1.19 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.95%
Inst Owner Change1.17%
Ins Owners0.58%
Ins Owner Change-0.69%
Market Cap4.37B
Revenue(TTM)17.83B
Net Income(TTM)560.80M
Analysts72.31
Price Target259.95 (17.05%)
Short Float %5.22%
Short Ratio6.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-1.6%
PT rev (3m)0.87%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)0.56%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.88 | ||
| P/S | 0.24 | ||
| P/FCF | 6.94 | ||
| P/OCF | 5.03 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.29 |
EPS(TTM)28.68
EY12.91%
EPS(NY)28.17
Fwd EY12.69%
FCF(TTM)31.99
FCFY14.41%
OCF(TTM)44.13
OCFY19.87%
SpS906.77
BVpS197.25
TBVpS-33.33
PEG (NY)2.02
PEG (5Y)0.33
Graham Number356.77
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 | 2.56 |
F-Score6
WACC8.47%
ROIC/WACC0.85
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 Y3.83%
EPS Next 2Y1.74%
EPS Next 3Y6.56%
EPS Next 5Y11.91%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%13.32%
Revenue Next Year8.07%
Revenue Next 2Y8.38%
Revenue Next 3Y6.27%
Revenue Next 5Y8.28%
EBIT growth 1Y4.2%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year11.07%
EBIT Next 3Y5.77%
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.
Can you provide the valuation status for ASBURY AUTOMOTIVE GROUP?
ChartMill assigns a valuation rating of 8 / 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 7.74 and the Price/Book (PB) ratio is 1.13.
How financially healthy is ASBURY AUTOMOTIVE GROUP?
The financial health rating of ASBURY AUTOMOTIVE GROUP (ABG) is 2 / 10.