Asbury Automotive Group Inc (ABG) Stock Guide

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36

Before we start: if you're looking for ABG stock price, you can quickly find it out by visiting Finny and typing "ABG quote". If you're looking for a quick scoop on ABG stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "ABG". You'll get all this info in one place. Or you can just type "ABG news" to get the latest stock news.

Looking to buy or sell Asbury Automotive Group Inc (ABG)? Interested in getting the full scoop on ABG, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this ABG stock guide, we'll address key questions about ABG, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are ABG earnings?
2. When is ABG earnings date?
3. What is ABG stock forecast (i.e., prediction)?
4. ABG buy or sell? What is ABG Finny Score?
5. What are the reasons to buy ABG? Why should I buy ABG stock?
6. What are the reasons to sell ABG? Why should I sell ABG stock?
7. What are ABG key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are ABG earnings?

ABG trailing 12-month earnings per share (EPS) is $8.45.

2. When is ABG earnings date?

ABG earnings date is July 24, 2020.

Analyst Predictions

3. What is ABG stock forecast (i.e., prediction)?

Based on ABG analyst price targets, ABG stock forecast is $65.83 (for a year from now). That means the average analyst price target for ABG stock is $65.83. The prediction is based on 10 analyst estimates.

The low price target for ABG is $47.00, while the high price target is $90.00.

ABG analyst rating is Hold.

Analysis

4. ABG buy or sell? What is ABG Finny Score?

Our quantitative analysis shows 4 reasons to buy and 7 reasons to sell ABG, resulting in Finny Score of 36.

5. What are the reasons to buy ABG? Why should I buy ABG stock?

Here are the reasons to buy ABG stock:

  • The firm's product mix, weighted toward luxury and import brands, brings more affluent consumers to the dealership, which partially mitigates the sales decline during cyclical downturns that auto sales typically experience.
  • Auto dealerships are moaty businesses that can maintain a narrow range of operating margins regardless of economic conditions.
  • Sizable dealership companies enjoy economies of scale, albeit limited ones.
  • ABG forward P/E ratio is 8.07, which is low compared to its industry peers’ P/E ratios. See ABG forward P/E ratio chart.
  • ABG Price/Sales ratio is 0.16, which is low compared to its industry peers’ P/S ratios. See ABG forward Price/Sales ratio chart.
  • ABG PEG ratio (P/E adjusted for growth) is 0.67, which is low compared to its industry peers’ PEG ratios. See ABG PEG chart.
  • ABG Enterprise Value/Revenue multiple is 0.45, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See ABG Enterprise Value/Revenue chart.

6. What are the reasons to sell ABG? Why should I sell ABG stock?

Let's look at the reasons to sell ABG stock (i.e., the bear case):

  • Customers could delay maintenance or choose a cheaper independent repair shop instead of going to the dealer for servicing an older vehicle, which would negate the technological advantage that Asbury enjoys over smaller repair shops.
  • Overpaying for acquisitions is a risk and can lead to value destruction for investors.
  • The company's Q auto stand-alone used vehicle store pilot program could prove to be a waste of time and money.
  • ABG quarterly revenue growth was -3.80%, lower than the industry and sector average revenue growth (2.73% and 1.35%, respectively). See ABG revenue growth chart.
  • ABG Price/Book ratio is 1.81, which is high compared to its industry peers’ P/B ratios. See ABG forward Price/Book ratio chart.
  • ABG average analyst price target ($65.83) is below its current price ($72.07). See ABG price target chart.
  • ABG short share of float is 18.04%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See ABG short share of float chart.
  • ABG short interest (days to cover the shorts) ratio is 7.82. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ABG short interest ratio chart.
  • ABG cash to debt ratio is 0.01, lower than the average industry (0.11) and sector (0.14) cash to debt ratio. See ABG cash to debt chart.
  • ABG Enterprise Value/EBITDA multiple is 9.13, which is high compared to its industry peers’ Enterprise Value/EBITDA ratios. See ABG Enterprise Value/EBITDA chart.

Key Stats

7. What are ABG key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for ABG:

Metrics ABG
Price $77.28
Average Price Target / Upside $65.83 / -14.82%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Auto & Truck Dealerships
Sector Consumer Cyclical
Number of Employees 8,200
Market Cap $1.17B
Forward P/E Ratio 8.07
Price/Book Ratio 0.16
Revenue (TTM) $7.15B
YoY Quarterly Revenue Growth -3.80%
Profit Margin 2.28%

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