Asbury (ABG) AI Stock Analysis

• Market Cap: $4.52B
• Dividend Yield: N/A
• Average Volume (3M): 174.46K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.12
• 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: 145,012
• 30 Day Avg. Volume: 174,458
• 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: 2.38
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 10.03
• 1Y Price Target: $258.40
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 28.22
• Revenue Forecast (FY): $18.24B

• Rating: 67 Neutral
• Price Target: $229.00 ▼(-1.54% Downside)

Asbury's overall stock score reflects a strong financial foundation with consistent revenue growth and profitability. The valuation is attractive due to a low P/E ratio, suggesting potential undervaluation. However, technical analysis indicates bearish momentum, which could pose short-term risks. The earnings call provided a balanced view with record achievements but highlighted challenges in the market environment. The absence of significant corporate events leaves the focus on financial performance and strategic initiatives.

Positive Factors

Revenue Growth

Record revenue achievement indicates strong market demand and effective sales strategies, supporting long-term growth prospects.

Acquisition Integration

Successful integration of acquisitions enhances operational efficiency and expands market reach, contributing to sustainable growth.

Cash Flow Generation

Strong cash flow generation supports financial flexibility and investment capacity, crucial for long-term strategic initiatives.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, necessitating careful debt management to ensure long-term stability.

Used Vehicle Sales Decline

Declining used vehicle sales may impact overall revenue and profitability, highlighting a need for strategic adjustments in this segment.

Softening Market Expectations

Market softening and affordability issues may pressure sales and margins, requiring strategic focus to navigate economic challenges.

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, which constitutes a significant portion of its income. The company earns additional revenue from its finance and insurance (F&I) operations, where it offers vehicle financing options and insurance products to customers. Asbury also profits from its service and parts departments, which provide maintenance and repair services. Key partnerships with automotive manufacturers and financial institutions further enhance its revenue streams, allowing the company to offer competitive financing options and access to exclusive vehicle inventory. Overall, Asbury's diversified approach in the automotive sector, along with its strategic dealership network, contributes substantially to its earnings.

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	33.10M	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	688.50M	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: Neutral
• Last Price: 232.57
• 50DMA: Negative
• 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 Neutral. The current price of 232.57 is above the 20-day moving average (MA) of 225.63, below the 50-day MA of 236.14, and below the 200-day MA of 238.84, indicating a neutral trend. The MACD of -2.33 indicates Negative momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 77.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ABG.

Asbury Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAD	69 Neutral	$7.73B	9.22	13.44%	0.68%	8.56%	17.84%
PAG	68 Neutral	$10.65B	11.39	17.30%	3.20%	2.25%	8.92%
ABG	67 Neutral	$4.52B	8.16	15.49%	―	8.07%	60.95%
GPI	66 Neutral	$5.07B	14.11	12.27%	0.50%	19.45%	-24.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAH	61 Neutral	$2.15B	17.03	12.51%	1.84%	9.09%	-33.59%
AN	55 Neutral	$7.71B	12.43	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.