ABG

ASBURY AUTOMOTIVE GROUP INC

Consumer Discretionary • CIK: 0001144980

Market Cap

$4.53B

P/E (TTM)

9.2x

Rev Growth (TTM)

+4.7%

Net Margin (TTM)

2.7%

FCF Yield (TTM)

17.1%

FCF Margin (TTM)

4.3%

Filing Intelligence

4.0/10

10-K filed Feb 20, 2026 • FY 2025

Executive Summary

New vehicle sales saw higher unit volumes and revenue per vehicle, but a decrease in gross profit per vehicle, indicating margin normalization from prior highs.. The company is involved in a...

Key Concerns

●Despite revenue growth, overall gross profit margin slightly declined due to softening new vehicle margins, though parts and service showed...
●Significant impairment charges ($141M in 2025) on franchise rights intangible assets, indicating potential issues with prior valuations or...
●The company relies on estimates and assumptions for critical areas like inventory valuation and chargeback reserves, which could be subject...

Key Strengths

●Revenue grew 5% to $18 billion, primarily driven by the Herb Chambers acquisition and increased sales in new vehicles and parts/service.
●Operating income and net income saw solid increases, boosted by higher gross profit, a decrease in asset impairments, and a significant...
●Parts and service segment performed strongly, with revenue and gross profit growth, and improved margins, supported by customers retaining...

View Full Quarterly Insights →

LATEST EARNINGS

•

Q4 2025

•

about 2 months ago

•View source

Revenue

$4.68B

—

Net Income

$60.00M

-53.4%

EPS

$3.10

-52.5%

Gross

17.0%↑ +0.3%

Operating

2.7%↓ -2.6%

Net

1.3%↓ -1.6%

•Achieved all-time record annual revenue of $18 billion, a 5% increase year-over-year.
•Fourth quarter revenue reached a record $4.7 billion, up 4% year-over-year.
•Fourth quarter gross profit increased 6% to $793 million, with gross margin improving 31 bps to 17.0%.
•Same store Used Retail Gross Profit increased 4% to $51 million, with GPU up 18% to $1,749.

View Full Earnings →

Cash Flow Health

Free Cash Flow7/8 positive

TTM$775M

Q4 '25

$152M-51%

Q3 '25

$307M+236%

FCF Margin

TTM4.3%

Q4 '253.2%-49%

Sector: 2.7%Above Avg

OCF Margin4.3%

OCF/NI1.58x

CapEx Coverage–

FCF Yield17.1%

FCF Growth (2Y)+4%

Cash Conversion Cycle

55 days

DSO: 6+DIO: 50−DPO: 0

View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Accumulating Cash

Total Shareholder YieldTTM

TTM0.3%

Div Yield0.0%

Buyback (TTM)0.3%

Limited capital returns

Dividend & Payout Metrics

Dividend Yield (TTM)0.0%

Free Cash Flow (TTM)$775.2M

Stock Repurchases (TTM)$12.8M

Capital Return / FCF1.7%

Est. Dividends Paid (TTM)$0

Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM

9.3%

Stable

-0.0% YoY-1.6%

P25MedianP75

75th pctl (med: 0.1%)

DuPont BreakdownROIC = Margin × Turn × (1+D/E)

NOPAT Margin

3.6%

8Q: 4.0%

Asset Turnover

1.67x

8Q: 1.66x

Leverage (1+D/E)

1.79x

D/E: 0.79x

DuPont: 10.7% ≈ 9.3% ROIC

Asset & CapEx Efficiency

Fixed Asset Turn

6.62x

8Q:7.00x

-72.0%

Invested Cap Turn

3.34x

8Q:3.37x

-2.6%

Asset-based ROIC formula

Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

Metric	TTM	Q4 2025	Q3 2025	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024
Revenue	$18.0B	$4.7B↓2.6%	$4.8B↑9.8%	$4.4B↑5.4%	$4.1B↓7.9%	$4.5B↑6.3%	$4.2B↓0.2%	$4.2B↑1.1%	$4.2B
Operating Income	$860.6M	$126.3M↓47.9%	$242.6M↓5.7%	$257.4M↑9.9%	$234.3M↓2.2%	$239.6M↑3.0%	$232.7M↑131.5%	$100.5M↓61.8%	$262.8M
Net Income	$492.0M	$60.0M↓59.2%	$147.1M↓3.7%	$152.8M↑15.7%	$132.1M↑2.6%	$128.8M↑2.0%	$126.3M↑349.5%	$28.1M↓80.9%	$147.1M
Operating Cash Flow	$775.2M	$151.9M↓50.5%	$306.9M↑235.8%	$91.4M↓59.4%	$225.0M↓7.9%	$244.2M↓39.6%	$404.3M↑361.9%	$-154.4M↓187.2%	$177.1M
Free Cash Flow	$775.2M	$151.9M↓50.5%	$306.9M↑235.8%	$91.4M↓59.4%	$225.0M↓7.9%	$244.2M↓39.6%	$404.3M↑361.9%	$-154.4M↓187.2%	$177.1M
Total Equity	N/A

Income Statement Cash Flow Statement Balance Sheet

Valuation Analysis

Fair Value

Price-to-EarningsTTM

9.2x

Volatile

8Q: 35.0x-3237%

Valuation Lenses

Earnings

9.2x

vs – sector

Cash Flow

9.8x

EV/FCF vs –

Growth-Adj

0.5xPEG

Undervalued for growth

Quality-Adj

1.0P/E per %ROIC

ROIC: 9.3%

Shareholder Returns

Dividend

–

Buyback

0.3%

Total Yield

0.3%

Market Cap$4.53B

EV$7.60B

Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score

78/100

High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg

13.1%

8Q:–

Return on Invested Capital (ROIC)Top 25%

9.3%

8Q:–

Flat

vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 3.6%

Asset Turnover: 1.67x

Earnings Quality

Cash Conversion

1.58x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin17.1%

Capital Efficiency

Invested Capital Turnover3.34x

Working Capital

Cash Conversion Cycle55 days

Growth Quality & Momentum

Moderate Growth

Growth Quality Score

57/100

Growth 40%

Margins 30%

FCF 20%

Consistency 10%

Growth Rates

Revenue Growth YoY

4.7%

OpInc Growth YoY

-47.3%

EPS Growth YoY

17.0%

FCF 3Y CAGR

3.7%

Margin Quality & Sustainability

Low Quality

Profitability Cascade

Gross

17.1%

Operating

4.8%

Above Avg in sector

Net

2.7%

Margins Unknown

Earnings Quality Signals

SBC / Revenue

—

FCF vs Net Gap

+1.6 pts

FCF: 4.3% | Net: 2.7%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate

Net Debt / EBITDA

–Net Debt: $3.05B

Interest Coverage

–

Balance sheet risk & solvency analysis