Asbury Automotive Group (NYSE:ABG) - Share price, News & Analysis

ABG fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	5/6
Financial Health	4/6
Dividends	0/6

ABG Overview

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States.

Rewards

Trading at 46% below our estimate of its fair value

Earnings are forecast to grow 12.75% per year

Earnings grew by 172.8% over the past year

Risk Analysis

Has a high level of debt

Asbury Automotive Group Competitors

Carvana

NYSE:CVNA

US$51.8b

Shift Technologies

NasdaqCM:SFT

US$578.3m

CarGurus

NasdaqGS:CARG

US$4.1b

Price History & Performance

Summary of all time highs, changes and price drops for Asbury Automotive Group
Historical stock prices
Current Share Price	US$208.80
52 Week High	US$99.65
52 Week Low	US$230.97
Beta	1.6
1 Month Change	6.51%
3 Month Change	7.29%
1 Year Change	96.91%
3 Year Change	220.79%
5 Year Change	318.02%
Change since IPO	1,142.86%

Recent News & Updates

Oct 26

Asbury Automotive: Extending Growth Runway With Latest Transformative Acquisition

Asbury Automotive is acquiring Larry H. Miller dealerships and Total Care Auto. The deal adds significant scale to its existing operation and should prove accretive over the medium to longer term as well. However, the pending equity offering could weigh on the shares in the meantime, keeping me on the sidelines.

Oct 21

Is Asbury Automotive Group, Inc. (NYSE:ABG) Trading At A 45% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Asbury Automotive...

Sep 11

At US$171, Is It Time To Put Asbury Automotive Group, Inc. (NYSE:ABG) On Your Watch List?

Asbury Automotive Group, Inc. ( NYSE:ABG ), is not the largest company out there, but it received a lot of attention...

Aug 30

Does Asbury Automotive Group (NYSE:ABG) Deserve A Spot On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	ABG	US Specialty Retail	US Market
7D	-2.1%	1.4%	0.9%
1Y	96.9%	45.7%	33.4%

Return vs Industry: ABG exceeded the US Specialty Retail industry which returned 45.7% over the past year.

Return vs Market: ABG exceeded the US Market which returned 33.4% over the past year.

Price Volatility

Is ABG's price volatile compared to industry and market?
ABG volatility
ABG Beta	1.6
Industry Beta	1.55
Market Beta	1

Stable Share Price: ABG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ABG's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	7,750	David Hult	https://www.asburyauto.com

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services. The company also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, prepaid maintenance, and credit life and disability insurance.

Asbury Automotive Group Fundamentals Summary

How do Asbury Automotive Group's earnings and revenue compare to its market cap?
ABG fundamental statistics
Market Cap	US$4.04b
Earnings (TTM)	US$430.20m
Revenue (TTM)	US$8.86b

9.4x

P/E Ratio

0.5x

P/S Ratio

Is ABG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABG income statement (TTM)
Revenue	US$8.86b
Cost of Revenue	US$7.27b
Gross Profit	US$1.59b
Expenses	US$1.16b
Earnings	US$430.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)	22.24
Gross Margin	17.93%
Net Profit Margin	4.86%
Debt/Equity Ratio	150.9%

How did ABG perform over the long term?

See historical performance and comparison

Valuation

Is Asbury Automotive Group undervalued compared to its fair value and its price relative to the market?

46.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ABG ($208.8) is trading below our estimate of fair value ($386.74)

Significantly Below Fair Value: ABG is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: ABG is good value based on its PE Ratio (9.4x) compared to the US Specialty Retail industry average (9.9x).

PE vs Market: ABG is good value based on its PE Ratio (9.4x) compared to the US market (18.1x).

Price to Earnings Growth Ratio

PEG Ratio: ABG is good value based on its PEG Ratio (0.7x)

Price to Book Ratio

PB vs Industry: ABG is overvalued based on its PB Ratio (3.5x) compared to the US Specialty Retail industry average (2.9x).

Future Growth

How is Asbury Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABG's forecast earnings growth (12.8% per year) is above the savings rate (2%).

Earnings vs Market: ABG's earnings (12.8% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: ABG's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABG's revenue (22.2% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: ABG's revenue (22.2% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ABG's Return on Equity is forecast to be high in 3 years time (20.6%)

Past Performance

How has Asbury Automotive Group performed over the past 5 years?

15.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABG has high quality earnings.

Growing Profit Margin: ABG's current net profit margins (4.9%) are higher than last year (2.3%).

Past Earnings Growth Analysis

Earnings Trend: ABG's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: ABG's earnings growth over the past year (172.8%) exceeds its 5-year average (15.4% per year).

Earnings vs Industry: ABG earnings growth over the past year (172.8%) exceeded the Specialty Retail industry 158.2%.

Return on Equity

High ROE: Whilst ABG's Return on Equity (37.46%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Asbury Automotive Group's financial position?

Financial Position Analysis

Short Term Liabilities: ABG's short term assets ($1.1B) exceed its short term liabilities ($759.3M).

Long Term Liabilities: ABG's short term assets ($1.1B) do not cover its long term liabilities ($1.6B).

Debt to Equity History and Analysis

Debt Level: ABG's debt to equity ratio (150.9%) is considered high.

Reducing Debt: ABG's debt to equity ratio has reduced from 835.2% to 150.9% over the past 5 years.

Debt Coverage: ABG's debt is well covered by operating cash flow (39.5%).

Interest Coverage: ABG's interest payments on its debt are well covered by EBIT (8.9x coverage).

Balance Sheet

Dividend

What is Asbury Automotive Group current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ABG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ABG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ABG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ABG's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ABG's dividend in 3 years as they are not forecast to pay a notable one for the US market.

Next Steps

Explore strong dividend paying companies in the Retail industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure

CEO

David Hult (55 yo)

3.75yrs

Tenure

US$6,454,000

Compensation

Mr. David W. Hult has been Chief Executive Officer, President and Director at Asbury Automotive Group, Inc. since January 1, 2018. Mr. Hult serves as Chief Executive Officer and President at Precision Moto...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD6.45M) is about average for companies of similar size in the US market ($USD5.21M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ABG's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: ABG's board of directors are considered experienced (3.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2021/10/26 22:30
End of Day Share Price	2021/10/26 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data