Asbury (ABG) AI Stock Analysis

• Market Cap: $5.06B
• Dividend Yield: N/A
• Average Volume (3M): 198.34K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.21
• Revenue Growth: 8.39%
• EPS Growth: 40.35%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Dealerships
• EPS (TTM): 7.43
• Shares Outstanding: 19,660,639
• 10 Day Avg. Volume: 149,461
• 30 Day Avg. Volume: 198,339
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 2.52
• Enterprise Value/Ebitda: 8.84
• 1Y Price Target: $243.67
• Price Target Upside: -5.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $270.00 ▲(4.86% Upside)

Asbury's strong financial performance, attractive valuation, and strategic acquisitions drive a positive outlook. Challenges such as high leverage and potential overbought technical indicators are notable risks.

Asbury Business Overview & Revenue Model

Company Description

Asbury (ABG) is a leading automotive retail and service company in the United States, specializing in the sale of new and used vehicles, as well as providing automotive repair and maintenance services. The company operates a network of dealerships representing various automotive brands, offering customers a wide range of vehicles and comprehensive automotive solutions. Asbury is committed to delivering an exceptional customer experience through its innovative sales processes and technology-driven service offerings.

How the Company Makes Money

Asbury generates revenue primarily through the sale of new and used vehicles, along with financing and insurance products associated with these sales. The company earns significant income from its service department, which includes routine maintenance, repairs, and parts sales. Additionally, Asbury benefits from ancillary products like vehicle warranties and service contracts. Key revenue streams include gross profit from vehicle sales, service and parts revenue, and F&I (finance and insurance) income. The company also engages in strategic partnerships with automotive manufacturers and financial institutions, enhancing its product offerings and securing additional revenue opportunities.

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, healthy profitability margins and moderate leverage support growth initiatives. Continued focus on improving net income and managing debt levels is crucial.

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	21.41B	17.19B	14.80B	15.43B	9.84B	7.13B
Gross Profit	3.65B	2.95B	2.76B	3.10B	1.90B	1.22B
EBITDA	1.04B	885.00M	1.15B	1.55B	838.60M	448.50M
Net Income	540.00M	430.30M	602.50M	997.30M	532.40M	254.40M
Balance Sheet
Total Assets	10.13B	10.34B	10.16B	8.02B	8.00B	3.68B
Cash, Cash Equivalents and Short-Term Investments	54.80M	83.80M	51.90M	240.70M	189.90M	1.40M
Total Debt	4.55B	5.28B	5.48B	3.69B	4.56B	2.37B
Total Liabilities	6.35B	6.83B	6.92B	5.12B	5.89B	2.77B
Stockholders Equity	3.78B	3.50B	3.24B	2.90B	2.12B	905.50M
Cash Flow
Free Cash Flow	789.50M	363.00M	170.70M	588.10M	1.08B	603.70M
Operating Cash Flow	964.90M	671.20M	313.00M	696.00M	1.16B	652.50M
Investing Cash Flow	9.90M	-137.20M	-1.68B	464.70M	-3.92B	-820.80M
Financing Cash Flow	-987.10M	-510.30M	1.18B	-1.10B	2.93B	166.20M

Asbury Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 257.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 257.48 is above the 20-day moving average (MA) of 246.13, above the 50-day MA of 242.54, and above the 200-day MA of 245.62, indicating a bullish trend. The MACD of 5.74 indicates Negative momentum. The RSI at 62.60 is Neutral, neither overbought nor oversold. The STOCH value of 69.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABG.

Asbury Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAG	80 Outperform	$12.39B	13.07	18.11%	2.66%	2.39%	5.84%
ABG	75 Outperform	$5.06B	9.40	15.19%	―	8.39%	40.35%
GPI	75 Outperform	$6.26B	13.40	15.72%	0.41%	19.75%	-10.74%
LAD	73 Outperform	$8.74B	10.10	13.34%	0.63%	10.25%	9.08%
AN	70 Outperform	$8.55B	14.21	27.24%	―	3.15%	-12.49%
SAH	68 Neutral	$2.84B	18.50	15.99%	1.62%	4.48%	-16.26%
Sector *	61 Neutral	$17.92B	12.81	-3.11%	2.97%	1.30%	-14.28%

Asbury Corporate Events

Asbury Completes Acquisition of Herb Chambers Companies

On July 21, 2025, Asbury Automotive Group completed the acquisition of The Herb Chambers Companies, a major privately-owned dealership group in the U.S., for approximately $1.45 billion. This acquisition, funded through credit facilities and cash, adds 33 dealerships and 52 franchises to Asbury’s portfolio, expanding its presence into the Northeastern U.S. and is expected to generate significant value for shareholders.

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.