Asbury (ABG) AI Stock Analysis

• Market Cap: $4.57B
• Dividend Yield: N/A
• Average Volume (3M): 117.54K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.13
• Revenue Growth: 11.11%
• EPS Growth: -23.41%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Dealerships
• EPS (TTM): 6.82
• Shares Outstanding: 19,659,160
• 10 Day Avg. Volume: 114,228
• 30 Day Avg. Volume: 117,539
• PEG Ratio: 0.06
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.80
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: 2.21
• 1Y Price Target: $254.20
• Price Target Upside: 9.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $260.00 ▲(11.83%Upside)

Asbury's overall score is driven by stable financial performance and strong cash flow, coupled with strategic growth initiatives like the Herb Chambers acquisition. While technical indicators and valuation present some caution, the company's strategic positioning and operational strengths provide a solid outlook.

Asbury Business Overview & Revenue Model

Company Description

Asbury Automotive Group, Inc. (ABG) is a leading automotive retailer in the United States, operating a wide network of franchised dealerships. The company offers a broad range of automotive products and services, including the sale of new and used vehicles, vehicle maintenance and repair services, financing, and insurance products. Asbury's core operations are centered around providing customers with a comprehensive automotive buying experience across multiple brands and regions.

How the Company Makes Money

Asbury Automotive Group makes money through several key revenue streams. The primary source of revenue is the sale of new and used vehicles, which accounts for a significant portion of the company's earnings. In addition to vehicle sales, Asbury generates income through finance and insurance (F&I) products, where it earns commissions on loans and insurance products sold through its dealerships. The company also benefits from its parts and service departments, which provide maintenance and repair services to customers. Strong manufacturer partnerships and strategic acquisitions of dealerships further bolster Asbury's revenue generation capabilities, allowing it to expand its market reach and enhance its service offerings.

Asbury Financial Statement Overview

Summary

Asbury's financial health is stable with strong cash flow generation and a solid equity base. The company maintains healthy profitability margins, although revenue growth has been stagnant, and net profit margins have declined. Moderate leverage requires monitoring.

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	1.57B	838.60M	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
131.20M	83.80M	51.90M	240.70M	189.90M	1.40M
	Total Assets
10.22B	10.34B	10.16B	8.02B	8.00B	3.68B
	Total Debt
4.82B	5.28B	5.48B	3.69B	4.56B	2.37B
	Net Debt
4.69B	5.21B	5.43B	3.45B	4.38B	2.36B
	Total Liabilities
6.60B	6.83B	6.92B	5.12B	5.89B	2.77B
	Stockholders Equity
3.62B	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: 232.49
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 232.49 is above the 20-day moving average (MA) of 232.03, above the 50-day MA of 226.38, and below the 200-day MA of 243.09, indicating a neutral trend. The MACD of 2.73 indicates Negative momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 60.63 is Neutral, 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
LAD	80 Outperform	$8.43B	10.20	12.95%	0.68%	12.96%	-6.25%
GPI	77 Outperform	$5.50B	11.97	16.25%	0.47%	15.13%	-15.98%
ABG	74 Outperform	$4.57B	11.06	11.92%	―	11.11%	-23.41%
AN	72 Outperform	$7.15B	11.22	28.45%	―	-0.24%	-19.76%
SAH	72 Outperform	$2.55B	10.71	24.52%	1.86%	1.59%	43.91%
RUSHA	70 Outperform	$3.88B	13.89	14.28%	1.45%	-1.29%	-9.44%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%

Asbury Corporate Events

Asbury Announces Acquisition of Herb Chambers Dealerships

On June 6, 2025, Asbury Automotive Group announced that its acquisition of The Herb Chambers Companies’ automotive dealerships is expected to close by the end of July 2025, pending customary closing conditions and regulatory approvals. This acquisition is a strategic move for Asbury, potentially enhancing its market position and operational scale within the automotive retail sector.

The most recent analyst rating on (ABG) stock is a Hold with a $260.00 price target. To see the full list of analyst forecasts on Asbury stock, see the ABG Stock Forecast page.

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.