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Asbury (ABG)
NYSE:ABG
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Asbury
(NYSE:ABG)
74Outperform
Asbury (ABG) vs. S&P 500 (SPY)
Market Cap
$4.37B
Dividend YieldN/A
Average Volume (3M)304.01K
Price to Earnings (P/E)10.6
Beta (1Y)1.13
Revenue Growth11.11%
EPS Growth-23.41%
CountryUS
Employees15,000
SectorConsumer Cyclical
Sector Strength59
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)21.01
Shares Outstanding19,659,160
10 Day Avg. Volume323,403
30 Day Avg. Volume304,015
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.02
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.99
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$242.75Price Target Upside9.18% Upside
Rating ConsensusHold
Number of Analyst Covering5
Asbury Business Overview & Revenue Model
Company DescriptionAsbury 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 MoneyAsbury 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 demonstrates a solid financial position, with notable strengths in cash flow generation and revenue growth. While leverage is on the higher side, the company maintains a strong equity position and profitability metrics. The overall outlook is positive, with potential areas for improvement in net profit margins and operational efficiency.Income Statement
Asbury has shown a robust revenue growth rate from 2023 to 2024, with a significant increase in total revenue. The gross profit margin is high, indicating effective cost management. However, the net profit margin has decreased, reflecting potential challenges in controlling expenses or other operational inefficiencies.75
Positive
Balance Sheet
The debt-to-equity ratio suggests a moderately high leverage, which can be risky but also indicates potential for growth. Return on equity remains strong, showcasing efficient use of shareholder funds. The equity ratio is stable, reflecting a solid asset base against liabilities.70
Positive
Cash Flow
The cash flow statement reveals a strong free cash flow growth, which is a positive sign for liquidity and potential reinvestment. Operating cash flow to net income ratio suggests healthy cash generation relative to profits. The company appears to manage its cash resources effectively.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 17.19B | 14.80B | 15.43B | 9.84B | 7.13B | Gross Profit |
| 2.95B | 2.76B | 3.10B | 1.90B | 1.22B | EBIT |
| 835.60M | 1.07B | 1.27B | 791.80M | 370.80M | EBITDA |
| 885.00M | 1.03B | 1.34B | 846.40M | 448.50M | Net Income Common Stockholders |
| 430.30M | 602.50M | 997.30M | 532.40M | 254.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 83.80M | 51.90M | 240.70M | 189.90M | 1.40M | Total Assets |
| 10.34B | 10.16B | 8.02B | 8.00B | 3.68B | Total Debt |
| 5.28B | 5.48B | 3.69B | 4.56B | 2.37B | Net Debt |
| 5.21B | 5.43B | 3.45B | 4.38B | 2.36B | Total Liabilities |
| 6.83B | 6.92B | 5.12B | 5.89B | 2.77B | Stockholders Equity |
| 3.50B | 3.24B | 2.90B | 2.12B | 905.50M |
| Cash Flow | Free Cash Flow | |||
| 363.00M | 170.70M | 588.10M | 1.08B | 603.70M | Operating Cash Flow |
| 671.20M | 313.00M | 696.00M | 1.16B | 652.50M | Investing Cash Flow |
| -137.20M | -1.68B | 464.70M | -3.92B | -820.80M | Financing Cash Flow |
| -510.30M | 1.18B | -1.10B | 2.93B | 166.20M |
Asbury Technical Analysis
Negative
222.33
Price Trends
236.35
Negative
250.25
Negative
244.76
Negative
Market Momentum
-4.44
Negative
43.91
Neutral
41.73
Neutral
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 222.33 is above the 20-day moving average (MA) of 220.09, below the 50-day MA of 236.35, and below the 200-day MA of 244.76, indicating a bearish trend. The MACD of -4.44 indicates Negative momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 41.73 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.49B | 9.75 | 28.45% | ― | -0.24% | -19.76% | |
74 Outperform | $4.37B | 10.58 | 11.92% | ― | 11.11% | -23.41% | |
73 Outperform | $7.72B | 9.34 | 12.95% | 0.71% | 12.96% | -6.25% | |
73 Outperform | $5.33B | 11.61 | 16.25% | 0.46% | 15.13% | -15.91% | |
70 Outperform | $4.16B | 13.60 | 14.28% | 1.40% | -1.29% | -9.44% | |
68 Neutral | $2.13B | 8.95 | 24.52% | 2.10% | 1.59% | 43.91% | |
61 Neutral | $6.65B | 11.70 | 3.09% | 3.98% | 2.65% | -20.82% |
* Consumer Cyclical Sector Average
Performance Comparison
ABG
Asbury
222.33
0.73
0.33%
AN
AutoNation
176.76
10.32
6.20%
GPI
Group 1 Automotive
412.43
113.58
38.01%
LAD
Lithia Motors
296.50
36.03
13.83%
RUSHA
Rush Enterprises A
50.55
6.93
15.89%
SAH
Sonic Automotive
62.74
6.25
11.06%
Asbury Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -0.94%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance and strategic positioning with record-setting results in parts and service, significant acquisition plans, and robust liquidity. However, uncertainties around tariffs, a decline in used vehicle sales, and market-specific challenges present notable headwinds.Q1-2025 Updates
Positive Updates
Record Gross Profit in Parts and Service
The company posted an all-time record in gross profit for the parts and service business, with same-store gross profit up 5% and customer pay gross up 6%.
Significant Long-term Growth in Customer Pay Gross Profit
Compared to 2014, there has been a 97% increase in customer pay gross profit, demonstrating consistent growth over a ten-year period.
Pending Acquisition of Herb Chambers Automotive Group
Asbury Automotive Group is set to acquire Herb Chambers Automotive Group, a strategic entry into the Boston market expected to close by the end of Q2 2025.
Strong Financial Performance
The company generated $4.1 billion in revenue, a gross profit of $724 million, and adjusted earnings per share of $6.82.
Improvement in Same-Store New Vehicle Sales
Same-store new vehicle revenue increased by 6% year-over-year, with units up 4% due to a boost in March sales.
Liquidity and Capital Allocation
The company ended Q1 with $964 million of liquidity and plans to focus on deleveraging over the next 18 to 24 months.
Negative Updates
Impact of Tariffs
The introduction of new tariffs has created uncertainties, with approximately 56% of new vehicle units shielded, but the full impact on pricing and metrics remains unclear.
Decline in Used Vehicle Sales
Used vehicle unit volume was down 8% year-over-year, although used retail gross profit per unit showed sequential growth.
Weather-related Disruptions
Weather conditions negatively impacted parts and service growth, which could have been higher without these disruptions.
Challenges in Specific Markets
The DC and Baltimore markets showed weakness due to uncertainties around government jobs, impacting overall performance.
Company Guidance
During the Asbury Automotive Group's Q1 2025 earnings call, several key financial metrics were highlighted. The company reported revenue of $4.1 billion and a gross profit of $724 million, resulting in a gross profit margin of 17.5%. Same-store adjusted SG&A was 63.9% of gross profit, while the adjusted operating margin stood at 5.8%. Adjusted earnings per share were reported at $6.82, with an adjusted EBITDA of $240 million. The company achieved a record gross profit in its parts and service business, with same-store gross profit increasing by 5% and customer pay gross profit up by 6%. New vehicle same-store revenue rose by 6%, and units were up by 4%. However, used vehicle unit volume decreased by 8% year-over-year, with a retail gross profit per unit of $1,587. The F&I PVR was $2,263, and the total front-end yield per vehicle was $4,854. On the capital allocation front, Asbury is focused on reducing leverage following the pending acquisition of Herb Chambers Automotive Group, which is valued at $1.34 billion. The transaction adjusted net leverage was 2.75 times at the end of March, with plans to focus on deleveraging over the next eighteen to twenty-four months.Asbury Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Asbury Reports Record Q1 Earnings Amid Growth Plans
Positive
Apr 30, 2025
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.
Spark’s Take on ABG Stock
According to Spark, TipRanks’ AI Analyst, ABG is a Outperform.
Asbury Automotive Group’s stock receives a strong overall score driven by robust financial performance, attractive valuation, and positive corporate developments. The company’s solid cash flow and revenue growth underpin its financial health, while recent acquisitions and leadership changes support strategic growth. Technical indicators present some caution, but the overall outlook remains favorable.
To see Spark’s full report on ABG stock, click here.
Executive/Board ChangesBusiness Operations and Strategy
Asbury Appoints Daniel Clara as New COO
Positive
Feb 19, 2025
On February 13, 2025, Asbury Automotive Group’s Board of Directors appointed Daniel E. Clara as Chief Operating Officer, effective February 17, 2025. Clara, who has been with Asbury since 2002, has significantly contributed to the company’s growth and acquisitions in various roles, most recently as Senior Vice President of Operations. This promotion is expected to further enhance Asbury’s industry-leading guest experience and strategic market positioning, as Clara will now oversee development, innovation, and marketing functions.
M&A TransactionsBusiness Operations and Strategy
Asbury Announces Acquisition of Herb Chambers Group
Positive
Feb 18, 2025
On February 14, 2025, Asbury Automotive Group, Inc. agreed to acquire the Herb Chambers automotive group for approximately $1.34 billion. The acquisition, which includes 33 dealerships, 52 franchises, and three collision centers, represents one of the largest transactions in U.S. auto retail history. The transaction, expected to close in late Q2 2025, aims to expand Asbury’s footprint in the New England region, aligning with their guest-centric retail strategy. Herb Chambers will retain ownership of the Mercedes-Benz dealership in Somerville, Massachusetts, and transition to a Special Advisor role at Asbury.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.