Asbury Automotive Group, Inc. (ABG) AI Stock Analysis
ABG AI stock analysis summary
AI ResearchAsbury Automotive Group, Inc. (ABG) is an automotive retailer operating dealerships that provide new and used vehicles, maintenance, parts, and financing services across the United States. In FY2025, the company achieved $18.00B in revenue and $492.0M in net income, continuing a 5-year revenue CAGR of 20.3%. However, the company maintains significant leverage, carrying $5.53B in total debt and a current ratio of 0.91 as of June 30, 2026.
- Market cap
- $3.05B
- Revenue (TTM)
- $17.97B
- P/E
- 6.4x fwd 6.4x
- 1Y return
- -30.5% S&P 500 16.8%
- Avg. target
- $232.00 36.4% vs last close
Bull case
- The stock trades at a trailing P/E of 6.4x and a forward P/E of 6.4x, well below the median of its US-listed Consumer Cyclical peers at 18.0x and 14.1x.
- Asbury Automotive Group produced $569.9M in free cash flow and $775.2M in operating cash flow during FY2025.
- Wall Street analysts maintain a mean price target of $232.00, implying a 36.4% potential gain from the last close of $170.05.
Bear case
- The company carries $5.53B in total debt against just $35.7M in cash and short-term investments as of June 30, 2026.
- Quarterly earnings fell 19.4% year-over-year in the latest quarter ended June 30, 2026.
- Over the past year, the stock dropped 30.5%, significantly underperforming the S&P 500 return of 16.8%.
What Asbury Automotive does
Established in 1996 and based in Duluth, Georgia, Asbury Automotive Group, Inc. is an automotive retailer operating across the United States. The company provides a broad range of automotive products and services, including new and used vehicle sales, replacement parts, maintenance and repair services, and collision repair solutions. In addition, Asbury Automotive Group offers finance and insurance products by facilitating vehicle financing through third-party arrangements. Its aftermarket offerings include extended service contracts, guaranteed asset protection, prepaid maintenance plans, and disability and accident insurance to support customer coverage across its dealership network.
Growth and profitability
Asbury Automotive Group increased its revenue from $9.84B in FY2021 to $15.43B in FY2022 and $18.00B in FY2025, reflecting a 5-year revenue CAGR of 20.3%. Net income peaked at $997.3M in FY2022 before declining to $430.3M in FY2024 and rebounding to $492.0M in FY2025. Over the same timeframe, net margin narrowed from 6.5% in FY2022 to 2.7% in FY2025, while operating margin shifted from 8.2% to 5.6%. In the latest quarter ended June 30, 2026, quarterly revenue rose 0.3% year-over-year, while quarterly earnings fell 19.4%. Trailing twelve months revenue reached $17.97B with an operating margin of 5.1% and EPS of $26.44.
Balance sheet and cash flow
As of June 30, 2026, Asbury Automotive Group held $35.7M in cash and short-term investments against $5.53B in total debt, resulting in net debt of $5.49B. Shareholders' equity stood at $3.92B, producing a debt-to-equity ratio of 1.41 and a current ratio of 0.91. For FY2025, the company generated $775.2M in operating cash flow and $569.9M in free cash flow. Capital allocation during FY2025 included $205.3M in capital expenditures and $112.7M in share buybacks, contributing to a 12.8% reduction in share count over 5 years.
Valuation and performance
At a last close of $170.05, Asbury Automotive Group trades at a market capitalization of $3.05B and an enterprise value of $8.75B. The stock carries a trailing P/E of 6.4x and a forward P/E of 6.4x, both lower than the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its EV to EBITDA multiple of 8.3x also sits below the peer median of 11.1x. Over the past year, ABG shares declined 30.5%, trailing the S&P 500 (SPY) gain of 16.8%.
What analysts expect
Wall Street analysts hold 3 Strong Buy, 1 Buy, 6 Hold, 1 Sell, and 0 Strong Sell ratings on the stock. The mean price target is $232.00, representing a 36.4% premium over the last close of $170.05. For the current fiscal year ending December 31, 2026, consensus estimates project EPS to decline 8.6% to $25.69 on revenue of $17.66B. Looking ahead to next fiscal year, 11 analysts expect EPS to rise 13.2% to $29.07 on revenue of $18.39B. Asbury Automotive Group topped EPS expectations in 3 of the last 4 quarters, with its next earnings release scheduled for October 27, 2026.
Key risks and what to watch
- Net debt of $5.49B and a current ratio of 0.91 as of June 30, 2026, highlight elevated balance sheet leverage and tight short-term liquidity.
- Operating margins contracted from 8.2% in FY2022 to 5.6% in FY2025 and 5.1% over the trailing twelve months.
- Analyst estimates indicate an 8.6% drop in EPS to $25.69 for the current fiscal year ending December 31, 2026.
- Short interest represents 12.9% of the float, indicating meaningful market skepticism regarding near-term performance.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ABG AI stock analysis
This page is an AI-written research summary of Asbury Automotive Group, Inc. (ABG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ABG income statement, ABG balance sheet, ABG key metrics, ABG analyst forecast, ABG chart. See the ABG stock overview for the latest quote and news.
ABG AI stock analysis FAQ
What were Asbury Automotive Group's revenue and net income in FY2025?
In FY2025, Asbury Automotive Group generated revenue of $18.00B, representing 4.7% growth, and net income of $492.0M, with a net margin of 2.7%.
Does Asbury Automotive Group pay a dividend?
The company does not report dividend payments, allocating its capital instead toward items such as $205.3M in capex and $112.7M in share buybacks in FY2025.
What is Asbury Automotive Group's debt position?
As of June 30, 2026, the company held $5.53B in total debt and $35.7M in cash and short-term investments, yielding net debt of $5.49B and a debt-to-equity ratio of 1.41.
What are analysts forecasting for Asbury Automotive Group?
For the current fiscal year, analysts expect EPS of $25.69 on $17.66B in revenue, followed by next fiscal year estimates of $29.07 in EPS on $18.39B in revenue from 11 analysts.
When does Asbury Automotive Group report earnings next?
The company's next earnings date is scheduled for October 27, 2026.