Asbury Automotive Stock Analysis, Valuation (NYSE:ABG)

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$74.55 $0.45 (0.6%) ABG stock closing price Aug 13, 2018 (Closing)

View the Asbury Automotive stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for ABG stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Asbury Automotive Group, Inc. Stock Rating 2.8/5

Amigobulls ABG stock analysis takes into account various financial ratios like relative valuation, Asbury Automotive revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Asbury Automotive dividend performance. Asbury Automotive valuation forms a crucial part of our stock analysis. Asbury Automotive stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy ABG stock?

  • The Asbury Automotive stock currently trades at a price to earnings ratio of 10.2, compared to the sector average of 21. We rate this as a positive.
  • When compared with the Retail-Wholesale sector average PS ratio of 0.8, the price-to-sales ratio of 0.2 for ABG stock is attractive.
  • The LTM ROE of 40.5 for Asbury Automotive is attractive.

Should you sell ABG stock?

  • With a debt/equity ratio of 3.87, Asbury Automotive is highly leveraged in comparison to Retail-Wholesale peers.
  • The company's operations consume more cash than it generates. This is not a healthy sign.
  • The company has a negative free cash flow margin of -0.9.

Comments on this video and Asbury Automotive stock

Amigobulls Asbury Automotive stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Asbury Automotive revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about ABG stock.