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 Analysis

Solid track record with adequate balance sheet.


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

Stable Share Price: ABG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-23.8%

ABG

-10.0%

US Specialty Retail

-3.8%

US Market


1 Year Return

-41.7%

ABG

-33.8%

US Specialty Retail

-15.9%

US Market

Return vs Industry: ABG underperformed the US Specialty Retail industry which returned -32.1% over the past year.

Return vs Market: ABG underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

ABGIndustryMarket
7 Day-23.8%-10.0%-3.8%
30 Day-51.6%-29.3%-17.4%
90 Day-59.4%-38.2%-24.1%
1 Year-41.7%-41.7%-32.8%-33.8%-14.1%-15.9%
3 Year-28.6%-28.6%-9.2%-13.6%10.0%2.8%
5 Year-50.7%-50.7%-9.1%-16.2%27.6%13.5%

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?

4.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABG ($42.1) is trading above our estimate of fair value ($11.5)

Significantly Below Fair Value: ABG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABG is good value based on its PE Ratio (4.4x) compared to the Specialty Retail industry average (6.5x).

PE vs Market: ABG is good value based on its PE Ratio (4.4x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: ABG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ABG is overvalued based on its PB Ratio (1.3x) compared to the US Specialty Retail industry average (0.7x).


Next Steps

Future Growth

How is Asbury Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABG's earnings are forecast to decline over the next 3 years (-5.9% per year).

Earnings vs Market: ABG's earnings are forecast to decline over the next 3 years (-5.9% per year).

High Growth Earnings: ABG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ABG's revenue is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: ABG's revenue is forecast to decline over the next 3 years (-1.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABG's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

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

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABG has high quality earnings.

Growing Profit Margin: ABG's current net profit margins (2.6%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: ABG's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: ABG's earnings growth over the past year (9.8%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: ABG earnings growth over the past year (9.8%) exceeded the Specialty Retail industry 6.9%.


Return on Equity

High ROE: Whilst ABG's Return on Equity (28.53%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Asbury Automotive Group's financial position?


Financial Position Analysis

Short Term Liabilities: ABG's short term assets ($1.6B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: ABG's short term assets ($1.6B) exceed its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: ABG's debt to equity ratio (278%) is considered high.

Reducing Debt: ABG's debt to equity ratio has reduced from 347.2% to 278% over the past 5 years.

Debt Coverage: ABG's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: ABG's interest payments on its debt are well covered by EBIT (3.6x 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 0.9x debt).


Next Steps

Dividend

What is Asbury Automotive Group's 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 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.


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: 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

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

2.3yrs

Average management tenure


CEO

David Hult (53yo)

2.25s

Tenure

US$5,459,308

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 ($USD5.46M) is above average for companies of similar size in the US market ($USD3.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Hult
President2.25yrsUS$5.46m0.38% $3.1m
William Stax
VP, Controller0.42yrUS$437.63k0.020% $160.4k
George Villasana
Senior VP8yrsUS$1.74m0.056% $454.3k
Jed Milstein
Senior VP & Chief Human Resources Officer2.25yrsUS$1.36m0.062% $504.8k
Daniel Clara
Senior Vice President of Operations0.25yrno data0.088% $713.1k
Barry Cohen
Chief Information Officer & VPno datano datano data
Barbara Jesup
Chief Audit & Risk Executiveno datano datano data
Matthew Pettoni
VP of Finance & Treasurerno datano datano data

2.3yrs

Average Tenure

50yo

Average Age

Experienced Management: ABG's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Hult
President2.25yrsUS$5.46m0.38% $3.1m
Thomas Reddin
Independent Non-Executive Chairman1yrUS$331.33k0.040% $327.4k
Thomas DeLoach
Independent Director13.25yrsUS$317.66k0.089% $720.5k
Juanita James
Independent Director12.5yrsUS$260.96k0.042% $338.1k
Bridget Ryan-Berman
Independent Director2yrsUS$251.07k0.021% $169.1k
Philip Maritz
Independent Director18yrsUS$242.90k0.055% $442.4k
Eugene Katz
Independent Director13.25yrsUS$278.68k0.10% $843.6k
Joel Alsfine
Independent Director5.25yrsUS$259.72k0.037% $301.9k
Maureen Morrison
Independent Director1.25yrsUS$250.68k0.014% $110.5k

5.3yrs

Average Tenure

58yo

Average Age

Experienced Board: ABG's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: 1996
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$811.628m
  • Shares outstanding: 19.28m
  • 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 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. As of December 31, 2019, the company owned and operated 107 new vehicle franchises representing 31 brands of automobiles at 88 dealership locations; and 25 collision centers in the United States. Asbury Automotive Group, Inc. was founded in 1996 and is headquartered in Duluth, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 03:39
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.