NYSE:ABG

Stock Analysis Report

Asbury Automotive Group

Executive Summary

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

Snowflake

Fundamentals

Good value with proven track record.


Similar Companies

Share Price & News

How has Asbury Automotive Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

ABG

1.5%

US Specialty Retail

0.5%

US Market


1 Year Return

72.9%

ABG

7.6%

US Specialty Retail

6.8%

US Market

Return vs Industry: ABG exceeded the US Specialty Retail industry which returned 7.6% over the past year.

Return vs Market: ABG exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

ABGIndustryMarket
7 Day3.5%1.5%0.5%
30 Day2.4%4.8%-0.8%
90 Day22.3%4.5%-0.9%
1 Year72.9%72.9%9.4%7.6%9.2%6.8%
3 Year94.6%94.6%42.6%35.3%45.6%36.2%
5 Year55.2%55.2%57.5%43.6%63.2%45.4%

Price Volatility Vs. Market

How volatile is Asbury Automotive Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABG ($103.32) is trading below our estimate of fair value ($210.45)

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 (11.2x) compared to the Specialty Retail industry average (15.4x).

PE vs Market: ABG is good value based on its PE Ratio (11.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ABG is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: ABG is overvalued based on its PB Ratio (3.6x) compared to the US Specialty Retail industry average (1.4x).


Next Steps

Future Growth

How is Asbury Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABG's forecast earnings growth (1.6% per year) is below the savings rate (2.7%).

Earnings vs Market: ABG's earnings (1.6% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: ABG's revenue (0.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ABG's revenue (0.3% per year) is forecast to grow slower 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 (24.6%)


Next Steps

Past Performance

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

6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ABG's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: ABG's earnings growth over the past year (15.3%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: ABG earnings growth over the past year (15.3%) exceeded the Specialty Retail industry 8.3%.


Return on Equity

High ROE: Whilst ABG's Return on Equity (32.45%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: ABG has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: ABG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Asbury Automotive Group's financial position?


Financial Position Analysis

Short Term Liabilities: ABG's short term assets ($1.5B) exceeds its short term liabilities ($1.3B)

Long Term Liabilities: ABG's short term assets (1.5B) exceeds its long term liabilities (985.1M)


Debt to Equity History and Analysis

Debt Level: ABG's debt to equity ratio (342%) is considered high

Reducing Debt: ABG's debt to equity ratio has increased from 219.7% to 342% over the past 5 years.

Debt Coverage: ABG's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: ABG's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: ABG has a high level of physical assets or inventory.

Debt Coverage by Assets: ABG's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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: ABG is not paying a notable dividend for the US market.


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

Management

What is the CEO of Asbury Automotive Group's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

David Hult (53yo)

1.8yrs

Tenure

US$4,983,416

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.2yrs

Average Tenure

52yo

Average Age

Experienced Management: ABG's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: ABG's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: ABG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$182,00028 Aug 19
Thomas DeLoach
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$91.00
SellUS$92,21009 Aug 19
Juanita James
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$92.21
SellUS$83,26806 Aug 19
Jed Milstein
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares900
Max PriceUS$92.52
SellUS$733,68002 Aug 19
Thomas DeLoach
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$91.71
SellUS$38,30801 Aug 19
William Stax
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares424
Max PriceUS$90.35
SellUS$242,10008 May 19
Eugene Katz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$80.70
SellUS$263,16101 May 19
Sean Goodman
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares3,299
Max PriceUS$79.77
SellUS$714,51001 May 19
George Villasana
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares9,000
Max PriceUS$79.39
SellUS$1,188,75426 Apr 19
David Hult
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceUS$80.11
SellUS$101,86826 Apr 19
Jed Milstein
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares1,300
Max PriceUS$78.36
SellUS$79,15026 Apr 19
William Stax
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares1,000
Max PriceUS$79.15
SellUS$1,200,00026 Apr 19
Thomas DeLoach
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$80.00
SellUS$69,41013 Mar 19
Jed Milstein
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares1,000
Max PriceUS$69.41
SellUS$355,00025 Feb 19
Eugene Katz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$71.00
SellUS$70,69025 Feb 19
Juanita James
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$70.69
SellUS$1,422,08221 Feb 19
Dennis Clements
EntityIndividual
Shares20,000
Max PriceUS$71.12
SellUS$645,06015 Feb 19
Thomas DeLoach
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,000
Max PriceUS$72.01
SellUS$420,00014 Feb 19
Thomas DeLoach
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$70.00

Ownership Breakdown


Management Team

  • David Hult (53yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$4.98m
  • George Villasana (51yo)

    Senior VP

    • Tenure: 7.5yrs
    • Compensation: US$1.44m
  • Jed Milstein (50yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.8yrs
    • Compensation: US$1.25m
  • Matt Pettoni

    VP of Finance & Treasurer

    • Tenure: 0yrs
  • William Stax (47yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 4.3yrs
    • Compensation: US$947.14k
  • Barry Cohen

    Chief Information Officer & VP

    • Tenure: 0yrs
  • Barbara Jesup

    Chief Audit & Risk Executive

    • Tenure: 0yrs
  • Sean Goodman (54yo)

    Senior VP & CFO

    • Tenure: 2.3yrs
    • Compensation: US$1.65m
  • John Hartman (56yo)

    Senior Vice President of Operations

    • Tenure: 2.1yrs
    • Compensation: US$1.40m

Board Members

  • Tom Reddin (58yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: US$228.23k
  • Tom DeLoach (71yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$356.27k
  • Juanita James (66yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$238.97k
  • Bridget Ryan-Berman (58yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$146.55k
  • Flip Maritz (58yo)

    Independent Director

    • Tenure: 17.5yrs
    • Compensation: US$219.73k
  • David Hult (53yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$4.98m
  • Gene Katz (73yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$251.41k
  • Joel Alsfine (49yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$212.51k
  • Maureen Morrison (65yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Asbury Automotive Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Asbury Automotive Group, Inc.
  • Ticker: ABG
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$1.999b
  • Shares outstanding: 19.35m
  • Website: https://www.asburyauto.com

Number of Employees


Location

  • Asbury Automotive Group, Inc.
  • 2905 Premiere Parkway, NW
  • Suite 300
  • Duluth
  • Georgia
  • 30097
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABGNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2002
AWGDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2002

Biography

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 vehicle ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:32
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.