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 firm's product mix, weighted toward import and luxury brands, brings more affluent consumers to the dealership, which partially mitigates the sales decline during cyclical downturns that auto sales typically experience. Most Clicklane digital customers are also of a higher credit quality and wealth than the company had in the past.
The company is switching all its stores to a new dealer management system from Tekion that could bring a hard learning curve for a few months and hurt near-term expense leverage but probably help long-term expense leverage.
|
Metric
|
ABG
|
BRK.B
|
KMX
|
|---|---|---|---|
Price/Earnings (Normalized) | 6.86 | 22.51 | 18.07 |
Price/Book Value | 0.82 | 1.44 | 1.26 |
Price/Sales | 0.19 | 2.46 | 0.29 |
Price/Cash Flow | 4.91 | 26.53 | 2.83 |
|
Metric
|
ABG
|
BRK.B
|
KMX
|
|---|---|---|---|
Quick Ratio | 0.14 | — | 0.18 |
Current Ratio | 0.91 | — | 2.33 |
Interest Coverage | 3.33 | 21.59 | −0.57 |
|
Metric
|
ABG
|
BRK.B
|
KMX
|
|---|---|---|---|
Return on Assets (Normalized) | 6.30% | 7.02% | 1.90% |
Return on Equity (Normalized) | 18.26% | 12.09% | 8.17% |
Return on Invested Capital (Normalized) | 9.86% | 10.72% | −0.45% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Carvana Co Class A
CVNA
| — | LOCK|Q$Jv | $69B | |||
| Penske Automotive Group Inc
PAG
| LOCK|#gd&%sr | LOCK|>%vh | $13B | |||
| D'Ieteren Group ADR
SIETY
| — | LOCK|Wq%@R | $10B | |||
| D'Ieteren Group
SIEVF
| — | LOCK|&qft | $10B | |||
| CarMax Inc
KMX
| LOCK|KG%<Fk& | LOCK|%$Mrg | $8B | |||
| Lithia Motors Inc Class A
LAD
| LOCK|?vtWp> | LOCK|$!D# | $7B | |||
| AutoNation Inc
AN
| LOCK|%<?@^^ | LOCK|nZLY | $5B | |||
| Group 1 Automotive Inc
GPI
| LOCK|d&$?l< | LOCK|c$Z^P | $3B | |||
| Sonic Automotive Inc Class A
SAH
| LOCK|t?&?l# | LOCK|&xL!% | $2B |
United States