Asbury (ABG) AI Stock Analysis

• Market Cap: $4.43B
• Dividend Yield: N/A
• Average Volume (3M): 210.33K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.13
• Revenue Growth: 11.11%
• EPS Growth: -23.41%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Auto - Dealerships
• EPS (TTM): 6.82
• Shares Outstanding: 19,659,160
• 10 Day Avg. Volume: 128,253
• 30 Day Avg. Volume: 210,327
• PEG Ratio: -4.42
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $236.50
• Price Target Upside: 5.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $251.00 ▲( 11.46% Upside)

Asbury's strong cash flow and strategic growth plans through acquisitions contribute positively to its stock score. Technical indicators and valuation suggest moderate attractiveness, while challenges in used vehicle sales and tariff impacts pose risks.

Asbury Business Overview & Revenue Model

Company Description

Asbury Automotive Group, Inc. (ABG) is a leading automotive retailer in the United States. The company operates a broad network of dealerships, offering a diverse range of new and used cars, trucks, and SUVs. Asbury also provides a variety of automotive-related services, including vehicle maintenance and repair, financing, and insurance products. The company is dedicated to delivering an exceptional customer experience and maintaining a strong commitment to operational excellence.

How the Company Makes Money

Asbury Automotive Group generates revenue primarily through the sale of new and used vehicles. This includes a significant portion from retail sales at its dealership locations. Additionally, Asbury earns revenue from its parts and service departments, which provide maintenance and repair services. The company also profits from its finance and insurance operations, where it facilitates vehicle financing, insurance products, and extended service contracts for customers. These diverse revenue streams, along with strategic partnerships with vehicle manufacturers and financial institutions, contribute to Asbury's financial success.

Asbury Financial Statement Overview

Summary

Asbury's financial health is stable with strong cash flow generation and a solid equity base. Despite stagnant revenue growth, the company maintains healthy profitability margins. The balance sheet shows moderate leverage, requiring monitoring but supporting growth initiatives. Continued focus on improving net income and managing debt levels will be crucial for sustained financial stability.

Income Statement

Asbury's income statement reflects a stable financial performance with a steady gross profit margin of approximately 17% for TTM (Trailing-Twelve-Months). However, the net profit margin has declined to 2.4% from 3.5% a year earlier, indicating pressure on net profitability. The revenue growth rate over the past year was negative at -0.3%, suggesting a need for improvement in sales growth. EBIT and EBITDA margins remain healthy, contributing positively to the overall score.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 1.33, indicating moderate leverage, which is common in the auto dealership industry. Stockholders' equity increased slightly, enhancing the equity ratio to 35.4% of total assets, reflecting a solid capital base. However, the significant total debt level remains a risk factor.

Cash Flow

Asbury's cash flow statement is strong, with the operating cash flow to net income ratio at 1.98, suggesting efficient cash generation from operations. Free cash flow increased by 61.2% year-over-year, improving liquidity and financial flexibility. Despite the strong cash position, attention to capital expenditures is needed.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.14B	17.19B	14.80B	15.43B	9.84B	7.13B
	Gross Profit
2.90B	2.95B	2.76B	3.10B	1.90B	1.22B
	EBIT
807.20M	835.60M	1.07B	1.27B	791.80M	370.80M
	EBITDA
877.90M	885.00M	1.03B	1.34B	846.40M	448.50M
	Net Income Common Stockholders
415.30M	430.30M	602.50M	997.30M	532.40M	254.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.80M	83.80M	51.90M	240.70M	189.90M	1.40M
	Total Assets
10.34B	10.34B	10.16B	8.02B	8.00B	3.68B
	Total Debt
5.28B	5.28B	5.48B	3.69B	4.56B	2.37B
	Net Debt
5.21B	5.21B	5.43B	3.45B	4.38B	2.36B
	Total Liabilities
6.83B	6.83B	6.92B	5.12B	5.89B	2.77B
	Stockholders Equity
3.50B	3.50B	3.24B	2.90B	2.12B	905.50M
Cash Flow		Free Cash Flow
585.30M	363.00M	170.70M	588.10M	1.08B	603.70M
	Operating Cash Flow
821.80M	671.20M	313.00M	696.00M	1.16B	652.50M
	Investing Cash Flow
-124.10M	-137.20M	-1.68B	464.70M	-3.92B	-820.80M
	Financing Cash Flow
-509.80M	-510.30M	1.18B	-1.10B	2.93B	166.20M

Asbury Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 225.19
• 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 225.19 is below the 20-day moving average (MA) of 226.60, below the 50-day MA of 225.96, and below the 200-day MA of 243.01, indicating a bearish trend. The MACD of 0.76 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 19.50 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
GPI	76 Outperform	$5.51B	12.00	16.25%	0.45%	15.13%	-15.98%
LAD	75 Outperform	$8.11B	9.81	12.95%	0.68%	12.96%	-6.25%
ABG	72 Outperform	$4.43B	10.72	11.92%	―	11.11%	-23.41%
AN	72 Outperform	$6.87B	10.78	28.45%	―	-0.24%	-19.76%
RUSHA	68 Neutral	$3.86B	13.67	14.28%	1.45%	-1.29%	-9.44%
SAH	68 Neutral	$2.28B	9.58	24.52%	1.94%	1.59%	43.91%
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%

Asbury Corporate Events

Asbury Holds Annual Stockholders Meeting, Key Proposals Passed

On May 13, 2025, Asbury Automotive Group, Inc. held its annual meeting of stockholders where several key proposals were voted upon. The stockholders elected ten director nominees to serve until the 2026 meeting, approved an advisory resolution on executive compensation, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm, and passed a proposal regarding a simple majority vote. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future direction and stakeholder interests.

The most recent analyst rating on (ABG) stock is a Buy with a $305.00 price target. To see the full list of analyst forecasts on Asbury stock, see the ABG Stock Forecast page.

Asbury Reports Record Q1 Earnings Amid Growth Plans

On April 29, 2025, Asbury Automotive Group reported its first quarter earnings, highlighting a record gross profit in its parts and service business and a 97% increase in customer pay gross profit over a decade. The company is navigating tariff impacts with a significant portion of its vehicles produced in America, thus insulated from potential price increases. Asbury is also expanding its Tekion implementation and planning to acquire the Herb Chambers Automotive Group, aiming for long-term growth and reduced leverage. The company posted $4.1 billion in revenue with a gross profit margin of 17.5% and an adjusted earnings per share of $6.82.