Asbury Automotive Group Inc Common Stock (ABG)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $88 million in annual free cash flow (2.3% yield on market cap)
• Solid return on equity of 13.3% above cost of capital
• Established organization with 15,000 employees providing operational scale

Concerns

• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Asbury Automotive Group Inc Common Stock is a small-cap consumer cyclical company valued at $3.8 billion. The business generates $18.0 billion in annual revenue with a 0.3% net margin and $88 million in free cash flow. From a quality standpoint, Asbury shows distressed Altman Z-Score of 1.2 warrants caution and adequate 13% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 8.0x, with offers a 41% margin of safety vs Graham Number of $338. Growth dynamics show revenue growing at 3.8% and profit growth of -53.4%. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Asbury's consistent 13% ROE at just 8x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $88 million in annual free cash flow (2.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer