Asbury Automotive Group Inc Common Stock (ABG)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with price versus earning power and asset value. Asbury is an auto retailer with $18.0 billion in revenue in FY2025 (year ended 2025-12-31), up from $17.2 billion in FY2024 (year ended 2024-12-31) and $14.8 billion in FY2023 (year ended 2023-12-31). Net income was $492.0 million in FY2025, above $430.3 million in FY2024 but below $602.5 million in FY2023. Diluted EPS was $25.13, $21.50 and $28.74, respectively. More recently, fiscal Q2 2026 (quarter ended 2026-06-30) had revenue of $4.4 billion and net income of $114.6 million, or diluted EPS $6.25, down from net income of $152.8 million in fiscal Q2 2025 (quarter ended 2025-06-30). This is a cyclical, low-margin business. Dealerships have local scale and recurring parts, service, and finance income, but manufacturer franchises are not a wide moat. The balance sheet is levered: D/E is 1.41 and the Altman Z-Score is 1.10, so debt deserves close attention. Still, trailing free cash flow is $540.6 million, an 18.3% FCF yield; FairStock calculates ROCE of 5.37% and ROE of 13.23%. At the 2026-10-13 close of $164.54, FairStock shows P/B of 0.75 and P/E of 6.12. The Graham Number is $357.33, implying a 53.95% margin of safety, and the Lynch category is ASSET PLAY because it trades at 0.75 times book. The Piotroski F-Score is 7/9. The price looks statistically cheap, but the low multiple may reflect cyclical earnings and leverage. I would want durable cash flow and debt reduction before calling it a high-quality bargain.

In plain English: Asbury sells new and used cars and provides repairs, parts, and financing through dealerships. The business brings in a lot of revenue and cash, but car sales depend on the economy and the company carries a lot of debt; recent quarterly profit was lower than a year earlier. The stock price looks low compared with the company's net assets and earnings, though that may reflect real risks.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer