Asbury Automotive Group Inc

Valuation Analysis

About the Company

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It operates through Dealerships; and Total Care Auto, Powered by Asbury (TCA) segments. The company offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, collision repair, and reconditioning services for used vehicles. It also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended vehicle service contracts, guaranteed asset protection debt cancellation, prepaid maintenance contracts, key replacement contracts, paintless dent repair contracts, appearance protection contracts, tire and wheel,

Asbury Automotive Group Inc Stock at a Glance

Asbury Automotive Group Inc (ABG) is currently trading at $199.53 with a market capitalization of $3.7B. The trailing P/E ratio stands at 7.05x, with a forward P/E of 6.74x. The 52-week range spans from $172.01 to $274.50; the current price is 27.3% below the yearly high. Year-over-year revenue growth stands at -0.9%. The net profit margin stands at 3.05%.

💰 Dividend

Asbury Automotive Group Inc currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

10 analysts rate Asbury Automotive Group Inc (ABG) on consensus: Hold. The average price target is $232.30, implying +16.42% from the current price. Analyst price targets range from $202.00 to $312.00.

Asbury Automotive Group Inc: The Investment Case in Detail

Asbury Automotive Group Inc (ABG) operates in the Consumer Cyclical — specifically Auto & Truck Dealerships — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 47.1% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -0.9% year-over-year — until that trend reverses, valuation is exposed to further downgrades. With a net margin of just 3.05%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Short interest sits at 11.01% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.57, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 8.81x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (11.01%), higher leverage relative to equity.

Trading Data

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