Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. Fundamental Analysis
Asbury Automotive Group, Inc. (ABG) shows moderate financial fundamentals with a PE ratio of 6.40, profit margin of 3.05%, and ROE of 14.15%. The company generates $17.6B in annual revenue with moderate year-over-year growth of 4.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ABG's fundamental strength across five key dimensions:
Efficiency Score
WeakABG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentABG trades at attractive valuation levels.
Growth Score
ModerateABG shows steady but slowing expansion.
Financial Health Score
WeakABG carries high financial risk with limited liquidity.
Profitability Score
WeakABG struggles to sustain strong margins.
Key Financial Metrics
Is ABG Expensive or Cheap?
P/E Ratio
ABG trades at 6.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ABG's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values Asbury Automotive Group, Inc. at 0.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.78 times EBITDA. This is generally considered low.
How Well Does ABG Make Money?
Net Profit Margin
For every $100 in sales, Asbury Automotive Group, Inc. keeps $3.05 as profit after all expenses.
Operating Margin
Core operations generate 5.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.15 in profit for every $100 of shareholder equity.
ROA
Asbury Automotive Group, Inc. generates $4.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Asbury Automotive Group, Inc. generates limited operating cash flow of $759.35M, signaling weaker underlying cash strength.
Free Cash Flow
Asbury Automotive Group, Inc. produces free cash flow of $589.53M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $31.66 in free cash annually.
FCF Yield
ABG converts 17.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ABG Stacks Against Its Sector Peers
| Metric | ABG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.40 | 24.05 | Better (Cheaper) |
| ROE | 14.15% | 1156.00% | Weak |
| Net Margin | 3.05% | 2538.00% | Weak |
| Debt/Equity | 1.38 | 0.72 | Weak (High Leverage) |
| Current Ratio | 0.94 | 2.85 | Weak Liquidity |
| ROA | 4.85% | 829.00% | Weak |
ABG outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Asbury Automotive Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
149.77%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
91.40%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
18.60%
Industry Style: Cyclical, Growth, Discretionary
High Growth