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Fundamental analysis: Asbury Automotive Group, Inc. (ABG)

Awarener score: 6.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Modest) and growth (Very good), and the company's inclination to return cash to the stockholders (Poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

  • Business has been growing at a very good pace. It's been almost average when measured against peer companies.
  • Asbury Automotive Group, Inc. business trend isn't so stable. The higher the stability, the lower the risk. It looks mediocre against rivals.

Margins score: 5.5

  • ABG profit margins -on goods and services sold- are usually very poor. They stand slightly better than rival companies.
  • Business profit on sales tends to be good. It's encouraging in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain rather normal in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still well ranked against similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain encouraging in relation to rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 8.1

  • Asbury Automotive Group, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been in good shape compared to competitors.
  • In recent years, earnings -on operations- have been growing at a very good step, which has been slightly better than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares almost average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be rather normal in relation to similar stocks.
  • In past years, profits -before income taxes- grew at an excellent speed. It was slightly better than rivals.
  • In the previous years, growth trend on total net profit has been very good, and more than average in relation to peer companies.
  • Earnings per share have grown at a very good rhythm in past years. It's been excellent in relation to industry peers.

Miscellaneous score: 4.0

  • ABG had to pay substantial income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.2

  • Asbury Automotive Group, Inc. usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
  • The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
  • Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
  • In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.0

  • ABG usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands top tier when measured against rival firms.
  • The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is below average when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a slight portion of genuine fund generation to reward investors. The company is usually improving its financial position, and could most likely increase stockholder rewards if it wished to do so. It still looks encouraging in relation to competitors.

Balance Sheet score: 5.2

  • Asbury Automotive Group, Inc. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
  • The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a weak position compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains slightly worse than rival firms.
  • Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's close to average when compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is slightly worse than similar enterprises.
  • Usually, sales are mostly on cash. It still ranks encouraging in relation to peers.
  • Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as in good shape compared to competitors.
  • On average, it takes close to one month from the purchase to charging customers. It happens to be better than most peers.
  • Pays suppliers mostly in cash. It ranks more than average in relation to industry peers.
  • The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's excellent in relation to similar companies.
  • Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat worse than rival firms.
  • Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
  • Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 6.7

  • Asbury Automotive Group, Inc. looks cheap in relation to profits and financial position. It happens to be encouraging in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands somewhat better than similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still encouraging in relation to industry firms.
  • In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up lacking compared to peer ventures.
  • The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks slightly worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks encouraging in relation to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks close to average when compared to rival firms.
  • The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly worse than peer firms.
  • In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.4


ABG logos

Company at a glance: Asbury Automotive Group, Inc. (ABG)

Sector, industry: Consumer Cyclical, Auto & Truck Dealerships

Market Cap: 3.50 billions

Revenues TTM: 12.92 billions

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.

Awarener score: 6.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Modest) and growth (Very good), and the company's inclination to return cash to the stockholders (Poor).