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Asbury Automotive Group, Inc.
$4.3B
Market Cap
9.3
P/E
1.58
PEG
7.0%
ROCE
13.3%
ROE
1.37
D/E
4.8%
OPM
-19.0%
% from 52W High
28
α RS
🔍 ABG is showing a notable setup because it's within 16.8% of its 52-week high and it's hugging the 21 EMA. Net: Partial signal stack, not a recommendation. ? 52W High Technicals
Sources
16.8% from 52W high · hugging 21 EMA
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Currency-adjusted total returns for ABG including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
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About

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States.

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📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Mixed ~ Volatile 4 quarters Full tone analysis in Intelligence →
Mixed quarter Investor Presentation One-Pager? Q1 2026
Revenue
$4.1B
N/A
Net Income
$188M
+42% YoY
Adjusted EPS
$5.37
-24% YoY
Adjusted Operating Margin
5.0%
N/A
What Went Right
  • Used vehicle retail gross profit per unit rose 16% year-over-year to $1,847.
  • March adjusted SG&A as a percentage of gross profit fell to low 60s, indicating underlying efficiency.
  • Repurchased 678,000 shares for $147 million, returning capital to shareholders.
What to Watch
  • Adverse weather reduced gross profit by $19 million and EPS by $0.56.
  • Tekion conversion creates 4–6 months of operational disruption and elevated implementation costs.
  • Stellantis inventory headwinds pressure domestic new vehicle GPU and margin.
Management Guidance
  • Parts and service gross profit expected to grow at a mid-single digit rate over time.
  • Capital expenditure expected to be approximately $250 million for both 2026 and 2027.
  • Full year 2026 effective tax rate expected to be approximately 25%.
Investor Lens
The thesis appears balanced — near-term pain from weather and Tekion transition is offset by strategic progress in portfolio optimization and technology adoption. Used car profitability is strong, and SG&A trends suggest efficiency improvements post-conversion. However, softening demand due to geopolitical events and Stellantis drag keep the outlook cautious. The elevated share repurchase activity signals management's confidence in intrinsic value, but leverage at 3.2x limits balance sheet flexibility.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Mixed Q1: weather and DMS transition mask underlying gains
Revenue
Total revenue was $4.1 billion. Same-store new vehicle revenue fell 9% year-over-year, while used retail revenue declined in volume but gross profit per unit improved. Parts and service revenue was impacted by weather and Tekion disruption.
Profitability
Reported net income of $188 million increased 42% from $132 million a year ago, helped by a $94 million net gain on divestitures. Adjusted net income of $102 million was down 24% from $134 million. Adjusted EPS was $5.37, down from $6.82.
Margins
Adjusted operating margin was 5.0% for the quarter. Gross margin improved 22 basis points to 17.7%. Adjusted same-store SG&A as a percent of gross profit was 66.9%, but March exited in the low 60s, suggesting improving efficiency.
Balance Sheet
Liquidity stood at $1.2 billion. The company spent $46 million on CapEx in Q1 and repurchased $147 million of stock. Net leverage was 3.2x. Adjusted free cash flow was $120 million.
Key Risks
Management cited adverse weather as a $19 million gross profit headwind and a $0.56 EPS impact. The Tekion conversion creates short-term disruption expected to peak in late Q2/Q3. Stellantis brand weakness continues to pressure domestic new vehicle GPU. Geopolitical uncertainty and rising gas prices may dampen consumer demand.
Outlook
No specific revenue or earnings guidance provided for Q2 or full year. Management expects fixed operations gross profit to grow at mid-single digits over time and believes Tekion efficiencies will begin to materialize in the back half of 2026.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-28
Q2 2026 saw $4.4B revenue, 17.2% gross margin, and 70% Tekion rollout completion, driving operational gains. Used vehicle strategy shift and disciplined capital allocation supported strong liquidity and share buybacks. SG&A leverage and efficiency improvements are expected to continue.
Q1 2026 Q1 2026 2026-04-28
Q1 2026 results showed revenue of $4.1B and adjusted EPS of $5.37, with performance impacted by weather, Tekion rollout, and moderated demand. Portfolio optimization and share repurchases were key, while full Tekion conversion and efficiency gains are expected by year-end.
Q4 2025 Q4 2025 2026-02-05
Record Q4 revenue and gross profit were achieved, with strong used vehicle and parts/service performance. Strategic divestitures and disciplined capital allocation improved leverage, while Tekion rollout and efficiency initiatives are expected to drive future gains.
Q3 2025 Q3 2025 2025-10-28
Q3 saw record revenue and strong growth in new vehicles and parts/service, aided by the Chambers acquisition and robust luxury demand. Margins held firm, but used vehicle volumes declined. TCA earnings accretion is delayed due to lower SAAR forecasts, and capital allocation now prioritizes share repurchases and deleveraging.
Q2 2025 Q2 2025 2025-07-29
Q2 2025 saw strong revenue and margin performance, driven by operational efficiency, portfolio optimization, and the Herb Chambers acquisition. Focus remains on cost discipline, leverage reduction, and technology investments, with tariff and market uncertainties monitored closely.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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