Asbury Automotive Group Inc
ABG: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| zjy | LOCK|YPp?w | LOCK|$r$@!n |
Asbury Can Focus on Overhead Cost Leverage Now That the Tekion Conversion is Done
Business Strategy and Outlook
Although no auto dealer is immune to macroeconomic risks, Asbury Automotive Group's size, focused acquisition strategy, technology to leverage overhead, and diverse revenue streams should allow the firm to keep growing at the expense of smaller dealers. The new Tekion dealer management system should help lower overhead costs as a percent of gross profit by enabling more productivity per salesperson or technician.
