Asbury (ABG) AI Stock Analysis

• Market Cap: $4.41B
• Dividend Yield: N/A
• Average Volume (3M): 187.05K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.13
• Revenue Growth: 8.07%
• EPS Growth: 60.95%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 7.17
• Shares Outstanding: 19,440,557
• 10 Day Avg. Volume: 245,374
• 30 Day Avg. Volume: 187,050
• PEG Ratio: -0.45
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 13.32
• Enterprise Value/Market Cap: 2.44
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 10.03
• 1Y Price Target: $258.80
• Price Target Upside: 14.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 28.05
• Revenue Forecast (FY): $18.25B

• Rating: 71 Outperform
• Price Target: $262.00 ▲(15.62% Upside)

Asbury's overall stock score is driven by strong financial performance and attractive valuation, despite technical indicators suggesting bearish momentum. The earnings call provided a balanced view with significant achievements in revenue and profitability, offset by challenges in used vehicle sales and market conditions. The absence of corporate events further concentrates the analysis on these key areas.

Asbury Business Overview & Revenue Model

Company Description

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, 2021, the company owned and operated 205 new vehicle franchises representing 31 brands of automobiles at 155 dealership locations; and 35 collision centers in the United States. Asbury Automotive Group, Inc. was founded in 1996 and is headquartered in Duluth, Georgia.

How the Company Makes Money

Asbury generates revenue primarily through the sale of new and used vehicles, along with financing and insurance products associated with these sales. The company earns significant income from its service department, which includes routine maintenance, repairs, and parts sales. Additionally, Asbury benefits from ancillary products like vehicle warranties and service contracts. Key revenue streams include gross profit from vehicle sales, service and parts revenue, and F&I (finance and insurance) income. The company also engages in strategic partnerships with automotive manufacturers and financial institutions, enhancing its product offerings and securing additional revenue opportunities.

Asbury Financial Statement Overview

Summary

Asbury demonstrates a robust financial performance with consistent revenue growth and stable profitability. The balance sheet shows a balanced capital structure, though the high leverage requires careful management. Cash flow remains healthy despite recent declines in free cash flow growth. Overall, Asbury is well-positioned in the auto dealership industry, with opportunities for margin improvement and leverage management.

Income Statement

Asbury's income statement shows a solid performance with a consistent revenue growth rate of 3.27% in the TTM period. The gross profit margin stands at 16.99%, and the net profit margin is 3.15%, indicating stable profitability. However, there is a slight decline in margins compared to previous years, suggesting potential pressure on profitability. Overall, the company demonstrates a strong revenue base with room for improvement in margin expansion.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 1.54, indicating a relatively high leverage. The return on equity is 15.18%, showing effective use of equity to generate profits. The equity ratio is 32.94%, suggesting a balanced capital structure. While the company maintains a stable equity base, the high leverage poses a potential risk that needs monitoring.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 7.11% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.26, and the free cash flow to net income ratio is 0.85, indicating a reasonable conversion of income to cash. Despite the decline in free cash flow growth, the company maintains a healthy cash flow position, supporting its operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.83B	17.19B	14.80B	15.43B	9.84B	7.13B
Gross Profit	3.03B	2.95B	2.76B	3.10B	1.90B	1.22B
EBITDA	1.07B	919.30M	1.03B	1.55B	841.70M	451.10M
Net Income	421.22M	430.30M	602.50M	997.30M	532.40M	254.40M
Balance Sheet
Total Assets	11.77B	10.34B	10.16B	8.02B	8.00B	3.68B
Cash, Cash Equivalents and Short-Term Investments	32.20M	83.80M	51.90M	240.70M	189.90M	1.40M
Total Debt	5.99B	5.28B	5.48B	3.69B	4.56B	2.37B
Total Liabilities	7.90B	6.83B	6.92B	5.12B	5.89B	2.77B
Stockholders Equity	3.88B	3.50B	3.24B	2.90B	2.12B	905.50M
Cash Flow
Free Cash Flow	733.40M	363.00M	170.70M	588.10M	1.08B	603.70M
Operating Cash Flow	867.50M	671.20M	313.00M	696.00M	1.16B	652.50M
Investing Cash Flow	-1.65B	-137.20M	-1.68B	464.70M	-3.92B	-820.80M
Financing Cash Flow	750.60M	-510.30M	1.18B	-1.10B	2.93B	166.20M

Asbury Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 226.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABG, the sentiment is Negative. The current price of 226.61 is below the 20-day moving average (MA) of 239.08, below the 50-day MA of 243.65, and below the 200-day MA of 243.53, indicating a bearish trend. The MACD of -4.11 indicates Positive momentum. The RSI at 36.27 is Neutral, neither overbought nor oversold. The STOCH value of 12.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABG.

Asbury Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABG	71 Outperform	$4.41B	7.95	15.49%	―	8.07%	60.95%
LAD	69 Neutral	$7.11B	8.48	13.44%	0.74%	8.56%	17.84%
PAG	68 Neutral	$10.20B	10.91	17.30%	3.15%	2.25%	8.92%
GPI	66 Neutral	$4.86B	13.54	12.27%	0.50%	19.45%	-24.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAH	59 Neutral	$2.04B	16.12	12.51%	1.84%	9.09%	-33.59%
AN	55 Neutral	$6.96B	11.41	27.16%	―	6.06%	-1.71%

Asbury Corporate Events

Asbury Automotive Reports Record Q3 2025 Results

Asbury Automotive Group, Inc., headquartered in Sandy Springs, GA, is a leading automotive retailer in the U.S., operating 175 new vehicle dealerships and offering a wide range of automotive products and services, including new and used vehicles, parts and service, and finance and insurance products.

Asbury Automotive’s Earnings Call: Record Revenue Amid Challenges

Asbury Automotive Group’s recent earnings call presented a balanced sentiment, highlighting both achievements and challenges. The company celebrated record revenue and strong gross profit margins, yet faced hurdles in used vehicle sales and adjusted TCA earnings outlook due to macroeconomic conditions.

Asbury Automotive Group Reports Strong Q2 2025 Results

Asbury Automotive Group, Inc., a Fortune 500 company based in Duluth, GA, is a prominent player in the U.S. automotive retail and service industry, operating numerous vehicle dealerships and offering a wide range of automotive products and services.

Asbury Automotive’s Earnings Call Highlights Growth Amid Challenges

The recent earnings call for Asbury Automotive Group painted a picture of robust financial performance, underscored by significant revenue growth and strategic acquisitions. The company showcased its operational efficiencies and successful integration of new acquisitions, although challenges such as declining used vehicle volumes and tariff uncertainties were acknowledged. Overall, the sentiment leaned positively, with the strengths slightly outweighing the concerns.