(ABG) Asbury Automotive - Overview
Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NYSE (USA) | Market Cap: 3.495m USD | Total Return: -17% in 12m
Avg Turnover: 48.8M
EPS Trend: -83.6%
Qual. Beats: 0
Rev. Trend: 97.0%
Qual. Beats: -2
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Asbury Automotive Group (ABG) is a major U.S. automotive retailer headquartered in Atlanta, Georgia. The company operates through two primary segments: Dealerships and Total Care Auto (TCA), providing a comprehensive suite of products including new and used vehicle sales, parts and service, and collision repair.
The business model relies heavily on high-margin variable and fixed operations, which include vehicle financing and aftermarket insurance products like extended service contracts and maintenance plans. In the automotive retail sector, service and parts departments typically generate disproportionately high gross profit margins compared to new vehicle sales, providing a buffer against cyclical fluctuations in consumer demand.
Asbury distributes its inventory to retail customers, wholesalers, and through auctions across its dealership network. Investors may find additional data-driven insights by exploring the company’s performance metrics on ValueRay. The firm has expanded significantly through acquisitions, a common strategy in the highly fragmented U.S. auto dealership industry where scale allows for greater leverage with manufacturers and lenders.
- Acquisition strategy drives market share expansion and consolidated revenue growth
- High-margin parts and services revenue offsets volatile new vehicle sales
- Financing and insurance product penetration significantly impacts overall net profit margins
- Elevated interest rates increase floorplan financing costs and reduce consumer demand
- Used vehicle inventory valuations and turnover rates dictate quarterly gross margins
| Net Income: 547.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 1.60 > 1.0 |
| NWC/Revenue: -1.00% < 20% (prev 3.73%; Δ -4.73% < -1%) |
| CFO/TA 0.07 > 3% & CFO 774.9m > Net Income 547.7m |
| Net Debt (5.64b) to EBITDA (1.11b): 5.09 < 3 |
| Current Ratio: 0.94 > 1.5 & < 3 |
| Outstanding Shares: last quarter (19.0m) vs 12m ago -3.55% < -2% |
| Gross Margin: 17.11% > 18% (prev 0.17%; Δ 1.69k% > 0.5%) |
| Asset Turnover: 166.9% > 50% (prev 167.7%; Δ -0.74% > 0%) |
| Interest Coverage Ratio: 3.59 > 6 (EBITDA TTM 1.11b / Interest Expense TTM 284.6m) |
| A: -0.02 (Total Current Assets 3.04b - Total Current Liabilities 3.22b) / Total Assets 11.3b |
| B: 0.32 (Retained Earnings 3.67b / Total Assets 11.3b) |
| C: 0.09 (EBIT TTM 1.02b / Avg Total Assets 10.8b) |
| D: 0.50 (Book Value of Equity 3.70b / Total Liabilities 7.37b) |
| Altman-Z'' = 2.12 = BBB |
| DSRI: 0.79 (Receivables 441.3m/531.1m, Revenue 18.0b/17.1b) |
| GMI: 1.00 (GM 17.11% / 17.06%) |
| AQI: 1.04 (AQ_t 0.44 / AQ_t-1 0.42) |
| SGI: 1.05 (Revenue 18.0b / 17.1b) |
| TATA: -0.02 (NI 547.7m - CFO 774.9m) / TA 11.3b) |
| Beneish M = -3.16 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 187.71 with a total of 217,698 shares traded.
Over the past week, the price has changed by +1.26%,
over one month by -6.79%,
over three months by -12.19% and
over the past year by -17.03%.
Asbury Automotive has received a consensus analysts rating of 3.13. Therefore, it is recommended to hold ABG.
- StrongBuy: 0
- Buy: 1
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 235.7 | 25.6% |
P/E Trailing = 6.6356
P/E Forward = 7.148
P/S = 0.1946
P/B = 0.8889
P/EG = 0.5335
Revenue TTM = 18.0b USD
EBIT TTM = 1.02b USD
EBITDA TTM = 1.11b USD
Long Term Debt = 3.07b USD (from longTermDebt, last quarter)
Short Term Debt = 2.15b USD (from shortTermDebt, last quarter)
Debt = 5.67b USD (from shortLongTermDebtTotal, last quarter) + Leases 239.5m
Net Debt = 5.64b USD (calculated: Debt 5.67b - CCE 27.5m)
Enterprise Value = 9.14b USD (3.50b + Debt 5.67b - CCE 27.5m)
Interest Coverage Ratio = 3.59 (Ebit TTM 1.02b / Interest Expense TTM 284.6m)
EV/FCF = 15.19x (Enterprise Value 9.14b / FCF TTM 601.6m)
FCF Yield = 6.58% (FCF TTM 601.6m / Enterprise Value 9.14b)
FCF Margin = 3.35% (FCF TTM 601.6m / Revenue TTM 18.0b)
Net Margin = 3.05% (Net Income TTM 547.7m / Revenue TTM 18.0b)
Gross Margin = 17.11% ((Revenue TTM 18.0b - Cost of Revenue TTM 14.9b) / Revenue TTM)
Gross Margin QoQ = 17.67% (prev 16.96%)
Tobins Q-Ratio = 0.81 (Enterprise Value 9.14b / Total Assets 11.3b)
Interest Expense / Debt = 5.02% (Interest Expense 284.6m / Debt 5.67b)
Taxrate = 25.06% (62.8m / 250.6m)
NOPAT = 765.8m (EBIT 1.02b * (1 - 25.06%))
Current Ratio = 0.94 (Total Current Assets 3.04b / Total Current Liabilities 3.22b)
Debt / Equity = 1.44 (Debt 5.67b / totalStockholderEquity, last quarter 3.93b)
Debt / EBITDA = 5.09 (Net Debt 5.64b / EBITDA 1.11b)
Debt / FCF = 9.38 (Net Debt 5.64b / FCF TTM 601.6m)
Total Stockholder Equity = 3.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.09% (Net Income 547.7m / Total Assets 11.3b)
RoE = 14.15% (Net Income TTM 547.7m / Total Stockholder Equity 3.87b)
RoCE = 14.73% (EBIT 1.02b / Capital Employed (Equity 3.87b + L.T.Debt 3.07b))
RoIC = 7.51% (NOPAT 765.8m / Invested Capital 10.2b)
WACC = 6.17% (E(3.50b)/V(9.16b) * Re(10.08%) + D(5.67b)/V(9.16b) * Rd(5.02%) * (1-Tc(0.25)))
Discount Rate = 10.08% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -71.49 | Cagr: -4.35%
[DCF] Terminal Value 77.97% ; FCFF base≈513.3m ; Y1≈588.4m ; Y5≈866.0m
[DCF] Fair Price = 397.0 (EV 13.0b - Net Debt 5.64b = Equity 7.39b / Shares 18.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -83.57 | EPS CAGR: -9.04% | SUE: -0.61 | # QB: 0
Revenue Correlation: 97.01 | Revenue CAGR: 8.77% | SUE: -1.60 | # QB: -2
EPS current Quarter (2026-06-30): EPS=6.49 | Chg30d=-4.08% | Revisions=-45% | Analysts=9
EPS next Quarter (2026-09-30): EPS=6.88 | Chg30d=-2.13% | Revisions=-64% | Analysts=9
EPS current Year (2026-12-31): EPS=25.81 | Chg30d=-2.19% | Revisions=-38% | GrowthEPS=-8.2% | GrowthRev=+0.3%
EPS next Year (2027-12-31): EPS=29.59 | Chg30d=+0.05% | Revisions=+9% | GrowthEPS=+14.7% | GrowthRev=+4.8%
[Analyst] Revisions Ratio: -64%