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Asbury (ABG)
NYSE:ABG
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Asbury
(NYSE:ABG)72Outperform
Asbury (ABG) vs. S&P 500 (SPY)
Market Cap
$5.27B
Dividend YieldN/A
Average Volume (3M)203.13K
Price to Earnings (P/E)12.1
Beta (1Y)1.31
Revenue Growth16.11%
EPS Growth-24.72%
CountryUS
Employees15,000
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)21.52
Shares Outstanding19,645,447
10 Day Avg. Volume152,398
30 Day Avg. Volume203,127
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.31
Price to Cash Flow (P/CF)5.40
P/FCF Ratio6.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$283.33Price Target Upside10.94% Upside
Rating ConsensusHold
Number of Analyst Covering4
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 |
| 919.30M | 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 |
| 5.06B | 5.48B | 3.69B | 4.56B | 2.37B | Net Debt |
| 4.99B | 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 | |||
| 671.20M | 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
255.40
Price Trends
266.71
Negative
256.40
Positive
245.55
Positive
Market Momentum
-1.41
Positive
35.65
Neutral
4.04
Positive
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 255.4 is below the 20-day moving average (MA) of 288.08, below the 50-day MA of 266.71, and above the 200-day MA of 245.55, indicating a neutral trend. The MACD of -1.41 indicates Positive momentum. The RSI at 35.65 is Neutral, neither overbought nor oversold. The STOCH value of 4.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABG.
Asbury Risk Analysis
Asbury disclosed 26 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $11.26B | 12.28 | 17.64% | 2.63% | 3.14% | -11.22% | |
74 Outperform | $6.09B | 12.49 | 16.75% | 0.41% | 11.53% | -13.75% | |
73 Outperform | $8.36B | 10.75 | 12.05% | 0.64% | 16.75% | -18.09% | |
72 Outperform | $5.27B | 12.06 | 12.29% | ― | 16.11% | -24.72% | |
68 Neutral | $2.30B | 11.04 | 20.33% | 1.89% | -1.03% | 24.64% | |
63 Neutral | $7.12B | 10.35 | 28.17% | ― | -0.68% | -25.24% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
ABG
Asbury
255.40
48.98
23.73%
AN
AutoNation
171.69
26.51
18.26%
GPI
Group 1 Automotive
440.56
180.25
69.24%
LAD
Lithia Motors
318.10
25.89
8.86%
PAG
Penske Automotive Group
163.75
15.38
10.37%
SAH
Sonic Automotive
66.09
15.75
31.29%
Asbury Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -6.89% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with record revenue and profit growth, driven by effective cost management and operational improvements. However, challenges persist in the Stellantis brand performance and the used vehicle market. Despite these challenges, the overall sentiment was optimistic, especially with expectations of continued growth and efficiency improvements.Highlights
Record Revenue and Profit Growth
Asbury Automotive Group generated a record $4.5 billion in revenue, up 18% year-over-year, and a gross profit of $750 million, up 11%, with a gross profit margin of 16.6% for Q4 2024.
Strong Same-Store Performance
Same-store new vehicle volume was up 7% year-over-year, with a 12% sequential increase. Same-store gross profit for fixed operations business was up 11% and the Customer Pay segment was up 13%.
SG&A Cost Improvement
SG&A costs as a percent of gross profit fell to 63% on an adjusted basis, marking the second consecutive quarter of improvement.
Clicklane Sales Increase
The Clicklane platform retailed approximately 12,000 sales in the fourth quarter, a 6% increase year-over-year, contributing to a total of over 51,000 units for the year, a 13% increase from 2023.
Lowlights
Stellantis Headwinds
Stellantis brand performance was significantly down year-over-year, impacting overall gross per unit and contributing to a challenging inventory situation.
Used Vehicle Market Challenges
Used vehicle unit volume was down slightly versus prior year results, despite an increase in gross profit per unit.
Hurricane and Asset Impairments
Fourth quarter results were affected by $11 million of non-cash asset impairments and $5 million of losses related to Hurricane Milton.
Company Guidance
During Asbury Automotive Group's fourth quarter 2024 earnings call, the company provided detailed guidance and key metrics for the upcoming year. They reported a same-store new vehicle volume increase of 7% year-over-year and 12% sequentially, with gross profit per new vehicle rising by $149 compared to Q3 2024. For 2025, they expect new vehicle gross profit per vehicle to range from $2,500 to $3,000. Used vehicle performance showed flat volume but an increase in gross profit per unit for the second consecutive quarter. In Parts and Service, same-store gross profit for fixed operations rose by 11%, with the Customer Pay segment up 13%, projecting sustainable mid-single-digit growth. SG&A costs fell to 63% of gross profit on an adjusted basis. Consolidated Q4 revenue reached a record $4.5 billion, up 18% year-over-year, with gross profit at $750 million and a margin of 16.6%. Adjusted earnings per share were $7.26, with adjusted EBITDA of $254 million. The company remains focused on cost discipline and operational efficiency, highlighted by a 4-store Tekion pilot aimed at enhancing the guest experience.Asbury Corporate Events
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.