(ABG) Asbury Automotive - Ratings and Ratios

Asbury Automotive Group, Inc. (NYSE:ABG) stands as a prominent player in the U.S. automotive retail sector, operating an extensive network of dealerships across multiple states. With a market capitalization of approximately $5.94 billion, the company demonstrates a strong financial foundation. Established in 1996 and headquartered in Duluth, Georgia, Asbury has cultivated a robust presence through both organic growth and strategic acquisitions.

The companys revenue is diversified across several streams: new vehicle sales, which account for a significant portion; used vehicle sales, offering higher margins; parts and service, providing steady, high-margin income; and finance and insurance (F&I) products. The F&I segment contributes notably to profitability through extended warranties and insurance products.

Asburys growth strategy is marked by a dual approach—organic expansion within existing markets and targeted acquisitions to enter new, high-growth regions. This strategy underscores their commitment to scaling operations while maintaining operational efficiency.

From a financial perspective, Asburys trailing P/E ratio of 14.09 and forward P/E of 10.22 suggest expectations of future earnings growth. The price-to-book ratio of 1.70 indicates a modest premium on book value, while the price-to-sales ratio of 0.36 highlights a reasonable valuation relative to revenue.