Asbury Automotive Group, Inc.
$186.92
-1.2%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 7.4).
Valuation inputs: P/E 7.4, earnings yield +13.5%, momentum -1.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +12.6%, ROIC +6.8%).
Profitability stack: net margin +2.7%, ROE +12.6%, ROIC +6.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +66.9%, momentum -1.2%, net margin +2.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Asbury Automotive Group, Inc. Market vs Earnings Trajectory
Loading price and EPS data...
Asbury Automotive Group, Inc. Fair Value Envelope
Asbury Automotive Group, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
Asbury Automotive Group, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Asbury Automotive Group, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.
Asbury Automotive Group, Inc. Street Expectations Map
Wall Street analysts project that ABG stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 226.50, with estimates ranging from a low of 202.00 to a high of 254.00.
The consensus 1-year price target stands at 226.50, with estimates ranging from a low of 202.00 to a high of 254.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Asbury Automotive Group, Inc. Insider Positioning
During the last 12 months, insiders have purchased $11.30M and sold $1.01M worth of ABG shares, resulting in $10.29M of net buying activity.
3 Months
3.6K
726.94K
0
0.00
+727K
+$727K
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
0
0.00
1.1K
266.31K
-266K
-$266K
9-12 Months
47.0K
10.57M
3.0K
745.50K
+9.8M
+$9.83M
Top Buyers
Abrams Capital Management, L.P.
10 Percent Owner
$10.57M
Hult David W
Director, Officer: President & Ceo
$698K
Disantis B. Christopher
Director
$29K
Top Sellers
Milstein Jed
Officer: Svp & Chro
$553K
Morrison Maureen F
Director
$204K
James Juanita T
Director
$153K
Calloway Dean
Officer: Svp, General Counsel & Sec
$102K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $10.29M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
4 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Strong confluence of bullish signals: High buy/sell ratio, multiple insiders participating, and recent buying momentum all point to significant insider confidence. This level of coordinated buying often precedes positive developments.
No Dividend Yield Data
ABG has not reported any dividend yield values in the available annual periods.
abg Dividend History
Learning Layer
Related Guides
Build conviction on ABG by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.