Asbury Automotive Group, Inc. (ABG)

Asbury Automotive Group, Inc. (ABG) Consumer Business Overview

Asbury Automotive Group, Inc. is a leading automotive retailer in the U.S., providing a comprehensive suite of services from new and used vehicle sales to maintenance and financing. With a wide network of dealerships and collision centers, Asbury leverages its scale and brand portfolio to capture market share in the fragmented auto retail sector.

What Is the Investment Thesis for ABG?

Asbury Automotive Group presents a compelling investment case based on its established market position and growth potential within the automotive retail sector. With a P/E ratio of 6.3 and a market capitalization of $3.83B, Asbury demonstrates solid financial performance. Key value drivers include the company's ability to generate revenue through new and used vehicle sales, service and parts, and finance and insurance products. Growth catalysts include strategic acquisitions to expand its dealership network and leveraging digital platforms to enhance customer experience and drive sales. However, investors may want to evaluate potential risks such as economic downturns impacting consumer spending on vehicles and increasing competition from online car retailers. The company's beta of 0.77 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

ABG Key Highlights

• Operates 155 dealership locations with 205 new vehicle franchises representing 31 brands as of December 31, 2021, showcasing a diverse brand portfolio.
• Maintains 35 collision centers, providing a comprehensive suite of repair services and contributing to overall revenue.
• Profit margin of 2.3% indicates profitability in a competitive industry.
• Gross margin of 16.9% reflects the company's ability to manage costs and maintain pricing power.
• Beta of 0.77 suggests lower volatility compared to the overall market, appealing to risk-averse investors.

Who Are ABG's Competitors?

ABG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ABG's Key Strengths?

• Extensive network of dealerships and collision centers.
• Diversified brand portfolio.
• Comprehensive service offerings.
• Established relationships with manufacturers.

What Are ABG's Weaknesses?

• Dependence on economic cycles.
• Exposure to manufacturer recalls.
• High capital expenditure requirements.
• Intense competition in the auto retail market.

What Could Drive ABG Stock Higher?

• Strategic acquisitions to expand dealership network.
• Investments in digital platforms to enhance customer experience.
• Growth in service and parts revenue.
• Potential partnerships with electric vehicle manufacturers.

What Are the Key Risks for ABG?

• Economic downturns impacting consumer spending on vehicles.
• Increasing competition from online car retailers.
• Changes in manufacturer relationships.
• Rising interest rates affecting vehicle financing.

What Are the Growth Opportunities for ABG?

• Expansion through Acquisitions: Asbury can continue to grow by acquiring additional dealerships in strategic markets. The fragmented nature of the auto retail industry provides ample opportunities for consolidation. By acquiring well-performing dealerships, Asbury can increase its market share, expand its geographic footprint, and realize synergies through economies of scale. This strategy allows Asbury to quickly add new brands and locations to its network, driving revenue growth and enhancing its competitive position. The market for dealership acquisitions is estimated to be worth several billion dollars annually.
• Digital Transformation: Investing in digital platforms and online sales channels can enhance the customer experience and drive sales growth. By offering online vehicle configuration, virtual test drives, and online financing options, Asbury can attract a broader customer base and streamline the sales process. Enhancing its online presence can also improve customer engagement and loyalty. The e-commerce auto market is projected to grow significantly over the next few years, presenting a substantial opportunity for Asbury to capture additional market share.
• Service and Parts Revenue: Increasing focus on service and parts revenue can provide a stable and recurring revenue stream. As vehicles become more complex, the demand for specialized repair and maintenance services is growing. By expanding its service offerings, investing in technician training, and promoting its service centers, Asbury can attract more customers and increase its service revenue. The automotive service market is a multi-billion dollar industry, offering a significant opportunity for Asbury to grow its service and parts business.
• Finance and Insurance Products: Expanding the offerings of finance and insurance products can increase profitability. By partnering with third-party lenders and insurance providers, Asbury can offer a comprehensive suite of financing and insurance options to its customers. This can include vehicle financing, extended service contracts, guaranteed asset protection, and credit life and disability insurance. These products provide additional revenue streams and enhance customer satisfaction. The finance and insurance market in the auto industry is a substantial revenue generator, offering significant growth potential for Asbury.
• Used Vehicle Sales: Focusing on used vehicle sales can provide higher margins and attract price-sensitive customers. The used vehicle market is typically less affected by economic downturns than the new vehicle market. By offering a wide selection of certified pre-owned vehicles and providing attractive financing options, Asbury can increase its used vehicle sales and improve its overall profitability. The used vehicle market is a large and growing segment of the auto industry, offering a significant opportunity for Asbury to expand its market share and increase its revenue.

What Opportunities Does ABG Have?

• Expansion through acquisitions.
• Growth in online sales channels.
• Increasing demand for electric vehicles.
• Expansion of service and parts offerings.

What Threats Does ABG Face?

• Economic downturns impacting consumer spending.
• Increasing competition from online car retailers.
• Changes in manufacturer relationships.
• Rising interest rates affecting vehicle financing.

What Are ABG's Competitive Advantages?

• Extensive dealership network provides a wide geographic reach.
• Diversified brand portfolio reduces reliance on any single manufacturer.
• Established relationships with manufacturers and lenders.
• Comprehensive service offerings enhance customer loyalty.

What Does ABG Do?

Asbury Automotive Group, Inc. was founded in 1996 and has grown to become one of the largest automotive retailers in the United States. Headquartered in Duluth, Georgia, the company operates through a network of 155 dealership locations and 35 collision centers as of December 31, 2021. These locations represent 205 new vehicle franchises across 31 different automobile brands. Asbury offers a broad range of automotive products and services, including new and used vehicle sales, vehicle repair and maintenance, replacement parts, and collision repair services. Additionally, the company provides finance and insurance products, such as arranging vehicle financing through third-party lenders, and aftermarket products, including extended service contracts, guaranteed asset protection, prepaid maintenance, and credit life and disability insurance. Asbury's business model focuses on providing a comprehensive customer experience, leveraging its scale to achieve operational efficiencies and build strong relationships with both customers and manufacturers. The company's growth strategy includes acquisitions and organic expansion, allowing it to increase its market presence and diversify its brand portfolio. Asbury aims to capitalize on the fragmented auto retail market by consolidating dealerships and implementing best practices across its network.

What Products and Services Does ABG Offer?

• Sells new vehicles from various manufacturers.
• Offers a wide selection of used vehicles.
• Provides vehicle repair and maintenance services.
• Sells replacement parts for vehicles.
• Offers collision repair services.
• Arranges vehicle financing through third parties.
• Provides aftermarket products like extended service contracts.
• Offers guaranteed asset protection and prepaid maintenance.

How Does ABG Make Money?

• Generates revenue from the sale of new and used vehicles.
• Earns income from providing vehicle repair and maintenance services.
• Receives commissions from arranging vehicle financing and insurance products.
• Sells aftermarket products such as extended service contracts and prepaid maintenance.

What Industry Does ABG Operate In?

The automotive retail industry is characterized by fragmentation, with numerous independent dealerships and a few large national players like Asbury Automotive Group, Inc. The industry is influenced by economic cycles, consumer confidence, and technological advancements. Online car retailers are emerging as competitors, but traditional dealerships maintain an advantage through their service offerings and established customer relationships. The industry is also adapting to the increasing demand for electric vehicles and advanced driver-assistance systems. Asbury's diversified brand portfolio and focus on customer service position it well to navigate these trends and maintain a competitive edge.

Who Are ABG's Key Customers?

• Individual consumers looking to purchase new or used vehicles.
• Vehicle owners in need of repair and maintenance services.
• Customers seeking financing options for vehicle purchases.
• Customers interested in aftermarket products and services.

Net buyingInsider Activity

Over the past six months, Asbury Automotive Group, Inc. insiders filed 28 SEC Form 4 transactions — 18 sales and 10 purchases. On net that is roughly 20K shares acquired (about $957K) — insiders putting money in tends to read as conviction.

FY2026 estForward Outlook

Wall Street analysts project Asbury Automotive Group, Inc. revenue of about $18.07B for fiscal 2026, with EPS near $25.91. The estimate reflects 8 contributing analysts.

F-Score 6/9Financial Health

Asbury Automotive Group, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.63 places it in the grey zone, a middle ground that warrants monitoring.

ROE 14%Key Financial Metrics

Return on equity for Asbury Automotive Group, Inc. stands at 14.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.5%, showing how much profit it generates from its asset base. ABG trades at a trailing price-to-earnings ratio of 6.34, below the Consumer Cyclical sector average of ~39x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.94 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

Asbury Automotive Group, Inc. (ABG) Valuation Context

Valued at $3.83B, ABG is classified as a mid-cap stock. Relative to its peer group, ABG's quantitative score of 73/100 is roughly in line with the peer average of 72/100.

ABG Revenue & Earnings Trend

In Q1 2026, ABG generated $4.11B in top-line revenue, marking a sequential decrease of 12.1%. The company recorded net income of $187.8M, with diluted EPS of $9.88. Revenue has contracted over three consecutive quarters, which investors in this mid-cap Consumer Cyclical stock should monitor closely. Across the four most recent quarters, ABG averaged $7.06 in diluted EPS.

Company Profile

Asbury Automotive Group, Inc. operates in the Auto - Dealerships industry within the Consumer Cyclical sector. It is headquartered in Duluth, US. The company is led by CEO Daniel E. Clara. ABG has traded publicly since 2002.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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