Asbury (ABG)
NYSE:ABG
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Asbury
(NYSE:ABG)
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Rating:62Neutral
Price Target:
$216.00
▲(4.99% Upside)
Action:ReiteratedDate:02/10/26
The score is driven primarily by healthy (but cyclical) fundamentals—strong scale, improved 2025 profitability, and solid cash generation—tempered by leverage and margin normalization. Valuation is supportive with a low P/E, but technical indicators remain bearish with the stock trading below key moving averages and negative MACD. Earnings call commentary was net-positive on cash flow, divestitures, and a de-leveraging plan, while flagging near-term cost and demand headwinds.
Positive Factors
Revenue Growth & Scale
Multi-year revenue expansion to ~$18B by 2025 demonstrates durable scale across new, used and service operations. Scale supports dealer-level purchasing, OEM relationships and diversification of revenue streams, reducing single-market exposure and enabling fixed-cost absorption over cycles.
Negative Factors
Elevated Leverage
Material absolute debt and a ~3.2x transaction-adjusted leverage level leave the company exposed to demand or margin shocks. Deleveraging plans require sustained multi-year cash flow and successful divestitures; high leverage raises refinancing and cyclicality risk for a retail auto model.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Scale
Multi-year revenue expansion to ~$18B by 2025 demonstrates durable scale across new, used and service operations. Scale supports dealer-level purchasing, OEM relationships and diversification of revenue streams, reducing single-market exposure and enabling fixed-cost absorption over cycles.
Read all positive factors
Asbury (ABG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.94B
Dividend YieldN/A
Average Volume (3M)215.13K
Price to Earnings (P/E)9.2
Beta (1Y)1.06
Revenue Growth8.07%
EPS Growth60.95%
CountryUS
Employees15,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)6.67
Shares Outstanding19,295,721
10 Day Avg. Volume141,409
30 Day Avg. Volume215,126
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)1.16
Price to Sales (P/S)0.25
P/FCF Ratio7.82
Enterprise Value/Market Cap2.54
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda9.79
Forecast
1Y Price Target
$235.80Price Target Upside14.62% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)26.53
Revenue Forecast (FY)$18.87B
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 serv...
How the Company Makes Money
Asbury makes money primarily through a mix of vehicle retailing, aftersales service, and finance-related income generated at its dealerships. (1) New-vehicle sales: The company earns revenue from selling new vehicles from OEM brands it represents;...
Asbury Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operational and financial strengths: record Q4 revenue and gross profit, improved used vehicle profitability, strong cash flow generation, progress on strategic divestitures, de-leveraging to 3.2x, ongoing share repurchases, and demonstrable early benefits from the Techeon DMS rollout. Offsetting these positives were near-term headwinds including a 6% decline in same-store new vehicle revenue, higher SG&A as a percent of gross profit (up 162 bps), implementation and dual-DMS duplication costs in early 2026, noncash impairments and TCA deferral impacts, and temporary softness in customer-pay spend for parts & service. On balance the company presented disciplined capital allocation, improving portfolio composition and runway to reduce leverage while acknowledging short-term transition and market challenges.Positive Updates
Record Fourth-Quarter Revenue and Gross Profit
Generated record Q4 revenue of $4.7 billion and record Q4 gross profit of $793 million. Gross profit margin expanded 31 basis points to 17%. Delivered adjusted operating margin of 5.4% and adjusted EBITDA of $250 million.
Negative Updates
New Vehicle Revenue and Volume Pressure
Same-store new vehicle revenue declined 6% year-over-year (against a SAAR contraction of ~5%). Management noted a tough prior-year post-election comparable and market disruptions in some DC markets; expects near-term headwinds and a bumpy first half of 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Fourth-Quarter Revenue and Gross Profit
Generated record Q4 revenue of $4.7 billion and record Q4 gross profit of $793 million. Gross profit margin expanded 31 basis points to 17%. Delivered adjusted operating margin of 5.4% and adjusted EBITDA of $250 million.
Read all positive updates
Company Guidance
The company guided to a steadying of profitability and disciplined capital allocation while completing key technology and portfolio actions: Q4 results included $4.7B revenue, $793M gross profit (17%, +31 bps), adjusted operating margin 5.4%, adjusted EBITDA $250M, adjusted net income $109M and adjusted EPS $6.67 ($6.98 ex‑TCA $0.31 deferral); TCA generated $12M pretax and a $8M noncash deferral in Q4. Management reiterated a long‑run new‑vehicle PVR of $2,500–$3,000 (current new avg $3,135), reported used retail PVR $1,749 (+18% YoY), total front‑end yield per vehicle $4,897, used DSI 35 days, new day supply 49 days, F&I PVR $2,335 ($2,440 ex‑TCA), parts & service margin 58.1% (+13 bps) and same‑store adjusted SG&A at 4.1% of gross profit (up 162 bps). Capital allocation and balance‑sheet targets include 2025 CapEx $186M, projected CapEx ~$250M in both 2026 and 2027, 2025 adjusted operating cash flow $651M, adjusted free cash flow $465M, year‑end liquidity $927M, transaction‑adjusted net leverage 3.2x (vs. prior forecast 3.5x) with a goal to get below 3.0x by summer/YE 2026, divestitures (4 stores this quarter, ~$150M annualized revenue, nine more closing in Q1 to help reach 13 deals representing ~$750M annualized), and continued share repurchases ($50M Q4, $100M full year) with pace tied to share price and leverage. Techeon rollout is underway (≈46 stores, >25% of portfolio, ~125 stores remain, completion by Q3), with expected duplicated DMS costs in H1 and net SG&A/efficiency benefits in H2 and beyond.Asbury Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.00B | 17.19B | 14.80B | 15.43B | 9.84B |
| Gross Profit | 2.99B | 2.95B | 2.76B | 3.10B | 1.90B |
| EBITDA | 1.02B | 919.30M | 1.03B | 1.55B | 841.70M |
| Net Income | 492.00M | 430.30M | 602.50M | 997.30M | 532.40M |
Balance Sheet | |||||
| Total Assets | 11.77B | 10.34B | 10.16B | 8.02B | 8.00B |
| Cash, Cash Equivalents and Short-Term Investments | 40.90M | 83.80M | 51.90M | 240.70M | 189.90M |
| Total Debt | 6.33B | 5.28B | 5.48B | 3.69B | 4.56B |
| Total Liabilities | 7.88B | 6.83B | 6.92B | 5.12B | 5.89B |
| Stockholders Equity | 3.89B | 3.50B | 3.24B | 2.90B | 2.12B |
Cash Flow | |||||
| Free Cash Flow | 576.60M | 363.00M | 170.70M | 588.10M | 1.08B |
| Operating Cash Flow | 781.90M | 671.20M | 313.00M | 696.00M | 1.16B |
| Investing Cash Flow | -1.46B | -137.20M | -1.68B | 464.70M | -3.92B |
| Financing Cash Flow | 646.30M | -510.30M | 1.18B | -1.10B | 2.93B |
Asbury Technical Analysis
Negative
205.73
Price Trends
209.32
Negative
223.82
Negative
232.64
Negative
Market Momentum
-1.50
Negative
57.75
Neutral
92.65
Negative
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 205.73 is above the 20-day moving average (MA) of 194.70, below the 50-day MA of 209.32, and below the 200-day MA of 232.64, indicating a neutral trend. The MACD of -1.50 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 92.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABG.
Asbury Risk Analysis
Asbury disclosed 28 risk factors in its most recent earnings report. Asbury reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Asbury Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.26B | 11.20 | 16.04% | 3.14% | 2.25% | 8.92% | |
62 Neutral | $3.94B | 9.17 | 9.29% | ― | 8.07% | 60.95% | |
62 Neutral | $4.01B | 15.78 | 10.85% | 0.49% | 19.45% | -24.27% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $6.36B | 10.30 | 12.08% | 0.64% | 8.56% | 17.84% | |
58 Neutral | $6.96B | 12.12 | 26.70% | ― | 6.06% | -1.71% | |
56 Neutral | $2.28B | 11.15 | 11.15% | 2.27% | 9.09% | -33.59% |
* Consumer Cyclical Sector Average
ABG
Asbury
205.73
-16.43
-7.40%
AN
AutoNation
202.25
38.35
23.40%
GPI
Group 1 Automotive
338.02
-55.18
-14.03%
LAD
Lithia Motors
279.06
-9.60
-3.33%
PAG
Penske Automotive Group
156.80
10.91
7.47%
SAH
Sonic Automotive
68.07
10.88
19.02%
Asbury Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Asbury Lowers Special Meeting Threshold Amid Board Refresh
Positive
Feb 4, 2026
On January 29, 2026, Asbury’s board appointed American Securities partner Christopher DiSantis as an independent director effective March 1, 2026, giving him seats on the audit and compensation committees and expanding the board to eleven me...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.