Asbury Automotive Group Inc (ABG) stock analysis
Close on Nov 12, 2026Market cap $3.58BP/E 8.0Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed9 of 30 checks passed
Asbury Automotive passes 9 of the 30 checks behind our score; 7 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 1/6
- Past performance
- 2/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 20.4% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $207.94 is below our fair value estimate of $261.38.
Earnings grew over 5 years
Net income grew 14.1% a year on average over the last five fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 22.8% of total debt.
What to watch
Return on equity under 15%
Return on equity was 11.8% over the last twelve months and averaged 24.1% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 7.6%, below the 10% that usually covers the cost of capital.
High debt
Debt is 83.6% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew 5.3% a year over the last three fiscal years, short of the 10% we look for.
Valuation4/6
P/E above its 5-year median
Asbury Automotive's P/E of 8.3 is above its own 5-year median of 7.3.
P/E below the industry
Asbury Automotive's P/E of 8.3 is below the Retail-auto dealers & gasoline stations median of 12.5.
EV/EBITDA above its 5-year median
Asbury Automotive's EV/EBITDA of 8.4 is above its 5-year median of 7.7.
P/B below the industry
Asbury Automotive's price-to-book of 0.93 is below the Retail-auto dealers & gasoline stations median of 2.37.
Trading below fair value
The share price of $207.94 is below our fair value estimate of $261.38.
Margin of safety over 20%
The price is 20.4% below fair value, more than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew 5.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -17.4% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -16.6% over the last twelve months, against a 5-year average of 14.1% a year.
Growing slower than the industry
Revenue grew -1.3% over the last twelve months; the Retail-auto dealers & gasoline stations median is 1.5%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin improving
Gross margin was 17.1% over the last twelve months, against 17.0% a year earlier.
Past performance2/6
Return on equity under 15%
Return on equity was 11.8% over the last twelve months and averaged 24.1% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 7.6%, below the 10% that usually covers the cost of capital.
Return on equity below the industry
Asbury Automotive's return on equity of 11.8% is below the Retail-auto dealers & gasoline stations median of 12.4%.
Earnings grew over 5 years
Net income grew 14.1% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 2.7% over the last twelve months, against a 5-year average of 4.2%.
Net margin above the industry
Asbury Automotive's net margin of 2.7% is above the Retail-auto dealers & gasoline stations median of 2.6%.
Financial health2/6
High debt
Debt is 83.6% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 133% five years ago to 83.6%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 22.8% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.91 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.50; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Asbury Automotive has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$261.38
The share price is 20% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 9.9× | 7.3× | 12.5× | $246.79 | 40% |
| EV/EBITDA | 8.2× | 7.7× | 8.7× | $200.09 | 35% |
| P/B | 1.9× | 1.4× | 2.4× | $426.04 | 10% |
| Earnings power | 9.4% cost of equity | – | – | $333.53 | 15% |
| Fair value | $261.38 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 7.3
- Retail-auto dealers & gasoline stations median 12.5
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $61.51M
- Value traded per 1% price move
- $26.89M
Downside
Medium risk
- Typical loss in a bad month
- 19.5%
- Volatility (annualized)
- 37%
- Sharpe ratio, 1 year
- -0.30
- Beta to the S&P 500 (5Y)
- 0.91
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +4.7% | +5.3% | +20.3% | +10.6% | |
| Gross profit | +4.2% | -0.3% | +20.2% | +11.2% | |
| Operating income | +3.0% | -12.2% | +18.3% | +11.1% | |
| Net income | +14.3% | -21.0% | +14.1% | +11.3% | |
| EPS, diluted | +16.9% | -17.4% | +13.8% | +14.6% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 56.3% | 32.8% | 13.3% | |
| Return on assets | 7.2% | 7.7% | 4.5% | |
| Current ratio | 1.21 | 1.15 | 0.95 | |
| Debt to equity | 3.31 | 1.33 | 0.92 | |
| Net debt to EBITDA | 2.81× | 2.93× | 3.75× | |
| Interest coverage | – | – | – | |
| Inventory turnover | 6.0× | 6.4× | 7.3× | |
| Capex to revenue | 1.2% | – | – | |
| Diluted shares | 23M | 19M | 20M |
Cash use needs five years of cash flow figures
Asbury Automotive does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 2.7% | 1.64× | 2.97× | 13.3% |
| FY2024 | 2.5% | 1.68× | 3.04× | 12.8% |
| FY2023 | 4.1% | 1.63× | 2.96× | 19.6% |
| FY2022 | 6.5% | 1.93× | 3.19× | 39.7% |
| FY2021 | 5.4% | 1.68× | 3.87× | 35.2% |
| FY2020 | 3.6% | 2.17× | 4.25× | 32.8% |
| FY2019 | 2.6% | 2.57× | 5.01× | 32.9% |
| FY2018 | 2.4% | 2.72× | 5.82× | 38.7% |
| FY2017 | 2.2% | 2.75× | 6.96× | 41.3% |
| FY2016 | 2.6% | 2.82× | 7.79× | 56.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$492.00M
- Cash generatingOperating cash flow above zero$775.20M
- Return on assets improvedROA up on the prior year4.2% → 4.8%
- Earnings backed by cashOperating cash flow above net income$775.20M vs $492.00M
- Less leverageLong-term debt to assets fell29.3% → 26.6%
- Better liquidityCurrent ratio rose1.11 → 0.95
- No dilutionShare count did not rise20M → 20M
- Gross margin improvedGross margin up on the prior year17.15% → 17.07%
- More efficientAsset turnover rose1.69 → 1.74
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