ABG

Asbury Automotive Group

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Auto & Truck Dealerships

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/28/26

Business Summary

Asbury Automotive Group operates a scaled dealership roll-up model, acquiring and integrating franchised auto dealerships across major brands. Cash generation comes from new and used vehicle sales, high-margin parts and service operations, and finance and insurance products layered onto each transaction. The moat is not brand exclusivity but scale, manufacturer relationships, local market density, and operational efficiency that supports a 12.60% operating margin in a low-margin industry. Over time, disciplined acquisitions and centralized cost control allow the company to convert dealership fragmentation into consolidated earnings power.

VALUATION

P/E

8.1

Market Cap ($M USD)

$3,936

Forward P/E

6.9

PEG

1.3

PRICE TO SALES

0.2

PRICE TO BOOK

1

EV / EBITDA

9.8

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$25.20

Next Year EPS Growth Estimate

$29.59

Next Year Revenue Growth Estimate

2.40%

Return on Equity (ROE)

12.60%

Operating Margin

5.60%

Debt-to-Equity

1.6

Piotroski F-Score

7

Altman Z-Score

2.6

Return on Invested Capital (ROIC)

7.50%%

Current Ratio

1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 8.1x earnings and just 6.9x forward earnings, the market is pricing ABG like a no-growth, balance-sheet-stressed operator despite a forward EPS estimate of $25.20 and a Piotroski F-Score of 7. The PEG Forward of 1.3 suggests growth is not being given away for free, but it is far from expensive relative to the broader Consumer Cyclical sector. The Altman Z-Score of 2.6 places the company in the grey zone—stable but not fortress-like—while the low Price/Sales of 0.2 and Price/Book of 1 imply the market is valuing the business close to asset value. This looks like a statistically cheap dealership platform with moderate financial risk and improving earnings power that the market is discounting due to leverage and cyclical exposure.

AI Exposure / Tech Reliance

As an Auto & Truck Dealership operator, ABG’s AI exposure is indirect but meaningful through inventory management, pricing optimization, and customer acquisition analytics. Technology-driven lead generation, digital retailing platforms, and data-driven F&I optimization can materially lift margins in a 12.60% operating margin business. The sector is not being disrupted by AI; it is being enhanced operationally, which favors scaled incumbents.

The Bull Case

A value or GARP investor buys this because the numbers scream cash-generating asset play with earnings torque. A 7.50% ROIC in a capital-intensive dealership model, combined with a 12.60% operating margin, demonstrates operational discipline, and a Piotroski F-Score of 7 signals improving financial strength and profitability metrics. Trading at 6.9x forward earnings with EPS projected at $25.20, the market cap of $3,936M looks modest relative to earnings power, especially with a Price/Sales of 0.2. The 1.6 yield adds tangible shareholder return, and with a Current Ratio of 1, liquidity is tight but functional. For institutions seeking cyclical exposure at a compressed multiple, this is a classic balance-sheet-aware value compounder.

The Bear Case

The capital structure is the elephant in the room: Debt/Equity at 5.60% signals heavy leverage for a cyclical retail business, and an Altman Z-Score of 2.6 confirms only moderate financial safety. Return on Equity at 2.40% is uninspiring and suggests that leverage is not translating into superior shareholder returns. A PEG Forward of 1.3 implies growth is not explosive relative to valuation, and with Sales Growth Next Year listed at $29.59, visibility on sustainable top-line acceleration is unclear. In a downturn, thin liquidity (Current Ratio of 1) combined with high leverage could compress margins and quickly erode equity value.

Market Sentiment & Smart Money

Short Interest %

10.30%

Analyst Consensus

2.82

Average Analyst Price Target

$235.11

Institutional Ownership %

105.60%

1-Year Beta

0.99

Insider Buying % (6 Mo)

0.80%%

Distance to 52-Week High

74.30%%

Distance to 52-Week Low

110.50%%