📊 ABG Key Takeaways
Is Asbury Automotive Group Inc. (ABG) a Good Investment?
Asbury demonstrates strong earnings momentum with net income growing 14.3% YoY and expanding margins, supported by positive free cash flow of $80.9M. However, critical liquidity constraints—current ratio of 0.94x and quick ratio of 0.29x—combined with dangerously thin interest coverage of 1.2x, create significant financial vulnerability that offsets near-term operational gains.
Asbury Automotive Group shows solid fundamental execution with mid-single-digit revenue growth translating into faster net income and EPS growth, indicating improving earnings quality and operating leverage. Free cash flow is strong relative to earnings, and leverage appears manageable, but the business still operates with thin margins and tight liquidity typical of auto retail, which tempers conviction.
Asbury Automotive Group Inc. Key Strengths (ABG)
- Net income growth (14.3% YoY) exceeding revenue growth (4.7% YoY) demonstrates operational leverage and margin expansion
- Positive free cash flow generation of $80.9M proves underlying business generates cash despite asset-heavy model
- Moderate debt/equity ratio of 0.78x maintains some deleveraging capacity
- Net income and diluted EPS are growing materially faster than revenue, suggesting better operating efficiency and disciplined capital allocation
- Free cash flow of $632.90M and operating cash flow of $775.20M provide meaningful internal funding capacity
- ROE of 12.6% and interest coverage of 5.2x indicate acceptable profitability and debt-service ability
ABG Stock Risks: Asbury Automotive Group Inc. Investment Risks
- Current ratio of 0.94x indicates current liabilities exceed current assets—potential liquidity crisis if operating cash flow stalls
- Quick ratio of 0.29x is critically low; minimal liquid assets available for obligations, creating cyclical vulnerability
- Interest coverage ratio of 1.2x leaves virtually no margin for error—any operational deterioration risks debt covenant breaches
- Severely depressed returns (ROE 4.8%, ROA 1.7%) indicate poor capital efficiency and capital-intensive model
- Minimal cash position ($25.3M) relative to $3.1B debt burden and $4.1B revenue creates refinancing risk
- Liquidity is tight with a 0.95x current ratio, 0.35x quick ratio, and only $40.40M of cash on hand
- Margins remain structurally thin at 4.8% operating margin and 2.7% net margin, leaving limited room for operating shocks
- Long-term debt of $3.09B creates refinancing and cyclical demand risk if auto retail conditions weaken
Key Metrics to Watch
- Interest coverage ratio—must improve above 2.0x to reduce financial distress risk
- Liquidity position (current ratio target: >1.2x)—critical for cyclical automotive sector exposure
- Free cash flow sustainability—verify cash generation continues if revenue growth moderates
- Debt reduction trajectory—essential given thin coverage ratios
- Free cash flow conversion and operating cash flow trend
- Interest coverage and liquidity ratios
Asbury Automotive Group Inc. (ABG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.0% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ABG Profit Margin, ROE & Profitability Analysis
ABG vs Automotive Sector: How Asbury Automotive Group Inc. Compares
How Asbury Automotive Group Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Asbury Automotive Group Inc. Stock Overvalued? ABG Valuation Analysis 2026
Based on fundamental analysis, Asbury Automotive Group Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Asbury Automotive Group Inc. Balance Sheet: ABG Debt, Cash & Liquidity
ABG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Asbury Automotive Group Inc.'s revenue has grown significantly by 138% over the 5-year period, indicating strong business expansion. The most recent EPS of $28.74 reflects profitable operations.
ABG Revenue Growth, EPS Growth & YoY Performance
ABG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2024 | $3.6B | $147.1M | $7.21 |
| Q3 2023 | $3.7B | $169.2M | $8.19 |
| Q2 2023 | $3.7B | $181.4M | $9.07 |
| Q1 2023 | $3.6B | $181.4M | $8.37 |
| Q3 2022 | $2.4B | $92.8M | $7.54 |
| Q2 2022 | $2.6B | $92.8M | $7.80 |
| Q1 2022 | $2.2B | $92.8M | $4.78 |
| Q3 2021 | $1.8B | $19.5M | $4.96 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Asbury Automotive Group Inc. Dividends, Buybacks & Capital Allocation
ABG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Asbury Automotive Group Inc. (CIK: 0001144980)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ABG
What is the AI rating for ABG?
Asbury Automotive Group Inc. (ABG) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ABG's key strengths?
Claude: Net income growth (14.3% YoY) exceeding revenue growth (4.7% YoY) demonstrates operational leverage and margin expansion. Positive free cash flow generation of $80.9M proves underlying business generates cash despite asset-heavy model. ChatGPT: Net income and diluted EPS are growing materially faster than revenue, suggesting better operating efficiency and disciplined capital allocation. Free cash flow of $632.90M and operating cash flow of $775.20M provide meaningful internal funding capacity.
What are the risks of investing in ABG?
Claude: Current ratio of 0.94x indicates current liabilities exceed current assets—potential liquidity crisis if operating cash flow stalls. Quick ratio of 0.29x is critically low; minimal liquid assets available for obligations, creating cyclical vulnerability. ChatGPT: Liquidity is tight with a 0.95x current ratio, 0.35x quick ratio, and only $40.40M of cash on hand. Margins remain structurally thin at 4.8% operating margin and 2.7% net margin, leaving limited room for operating shocks.
What is ABG's revenue and growth?
Asbury Automotive Group Inc. reported revenue of $4.1B.
Does ABG pay dividends?
Asbury Automotive Group Inc. does not currently pay dividends.
Where can I find ABG SEC filings?
Official SEC filings for Asbury Automotive Group Inc. (CIK: 0001144980) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ABG's EPS?
Asbury Automotive Group Inc. has a diluted EPS of $9.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ABG's fundamental grade?
Based on our AI fundamental analysis in June 2026, Asbury Automotive Group Inc. has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ABG stock overvalued or undervalued?
Valuation metrics for ABG: ROE of 4.8% (sector avg: 12%), net margin of 4.6% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is ABG's AI grade for 2026?
Our dual AI analysis gives Asbury Automotive Group Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ABG's free cash flow?
Asbury Automotive Group Inc.'s operating cash flow is $223.2M, with capital expenditures of $142.3M. FCF margin is 2.0%.
How does ABG compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 4.6% (avg: 6%), ROE 4.8% (avg: 12%), current ratio 0.94 (avg: 1.2).