olivLaw · US equity research
Asbury Automotive Group, Inc. ABG
Retail-Auto Dealers & Gasoline Stations · SIC 5500 · Vertical: Retail-Auto Dealers & Gasoline Stations (SIC 5500)
Asbury Automotive Group is one of the largest franchised auto retailers in the United States, selling new and used vehicles, service, parts and finance and insurance products through its dealership network and TCA. The company completed the Herb Chambers acquisition in 2025, and in Q2 2026 its net income fell from a year earlier as it migrated its dealer management system to Tekion. Revenue reached $18.00 billion in fiscal 2025 and $4.4 billion in the second quarter of 2026.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Asbury Automotive Group, Inc. (ABG) stock was 208.88 USD (+5.62% on the day), with market capitalisation 3.8 bn USD, P/E 8.3 on diluted EPS of 25.02 USD over the last 12 months, beta 0.95, 52-week range 161.97–256.03 USD. Latest reported quarter (Q3 2026): revenue of 4.4 bn USD (−8.1% YoY), net income of 105.1 m USD (−28.6% YoY), diluted EPS 5.84 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 66.5
- strong (55–70)
- Bollinger (20, 2)
- 148.50 – 210.63
- in the upper half of the band · %B 0.97 · band width 34.6%
- SMA 50 / 200
- 188.41 / 203.28
- mixed trend
- MACD (12, 26, 9)
- 5.62 / 0.87
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +21.6% | −1.1% | +22.7 pp | — |
| 3 months | −4.8% | −0.5% | −4.4 pp | — |
| 6 months | +5.7% | +4.4% | +1.3 pp | — |
| Year to date | −10.2% | +12.3% | −22.5 pp | — |
| 1 year | −9.4% | +13.5% | −22.9 pp | +0.3% |
| 3 years | −0.5% | +76.4% | −77.0 pp | +18.2% |
| 5 years | +14.7% | +63.7% | −48.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.5 bn | 4.1 bn | 4.4 bn | 4.8 bn | 4.7 bn | 4.1 bn | 4.4 bn | 4.4 bn |
| Cost of revenue | 3.8 bn | 3.4 bn | 3.6 bn | 4.0 bn | 3.9 bn | 3.4 bn | 3.6 bn | 3.7 bn |
| Gross profit | 749.8 m | 724.2 m | 751.9 m | 802.5 m | 793.1 m | 726.9 m | 753.1 m | 731.5 m |
| SG&A | 476.9 m | 456.4 m | 475.5 m | 527.1 m | 528.7 m | 510.4 m | 506.4 m | 501.2 m |
| Operating income | 239.6 m | 234.3 m | 257.4 m | 242.6 m | 126.3 m | 193.9 m | 219.5 m | 206.6 m |
| Depreciation & amortisation | 19.2 m | 19.2 m | 19.0 m | 21.2 m | 23.0 m | 22.6 m | 23.1 m | 23.7 m |
| Pre-tax income | 171.7 m | 175.4 m | 203.8 m | 200.2 m | 82.7 m | 250.6 m | 151.3 m | 139.1 m |
| Income tax | 42.9 m | 43.3 m | 51.0 m | 53.1 m | 22.7 m | 62.8 m | 36.7 m | 34.0 m |
| Net income | 128.8 m | 132.1 m | 152.8 m | 147.1 m | 60.0 m | 187.8 m | 114.6 m | 105.1 m |
| Diluted EPS | 6.54 ≈ | 6.71 | 7.76 | 7.52 | 3.06 ≈ | 9.87 | 6.25 | 5.84 |
| Operating cash flow | 244.2 m | 225.0 m | 91.4 m ≈ | 306.9 m ≈ | 151.9 m | 223.2 m | 129.4 m ≈ | 265.1 m ≈ |
| Share repurchases | -171.9 m | 0 | 0 ≈ | 50.0 m | -37.2 m | 147.0 m | 130.6 m | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 55 percentile of its own 40-quarter history (min 4.0, median 8.2, max 13.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 6.9 bn | 7.2 bn | 7.1 bn | 9.8 bn | 15.4 bn | 14.8 bn | 17.2 bn | 18.0 bn |
| Revenue YoY | +6.5% | +4.9% | −1.1% | +37.9% | +56.9% | −4.1% | +16.1% | +4.7% |
| Net income | 168.0 m | 184.4 m | 254.4 m | 532.4 m | 997.3 m | 602.5 m | 430.3 m | 492.0 m |
| Net income YoY | +20.8% | +9.8% | +38.0% | +109.3% | +87.3% | −39.6% | −28.6% | +14.3% |
| Diluted EPS | 8.28 | 9.55 | 13.18 | 26.49 | 44.61 | 28.74 | 21.50 | 25.13 |
| Diluted EPS YoY | +25.1% | +15.3% | +38.0% | +101.0% | +68.4% | −35.6% | −25.2% | +16.9% |
| net % | 2.4% | 2.6% | 3.6% | 5.4% | 6.5% | 4.1% | 2.5% | 2.7% |
| Free cash flow | -30.2 m | 292.2 m | unavailable | 1.1 bn | 601.4 m | 170.7 m | unavailable | unavailable |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 40.4 m USD
- Financial debt
- 479.2 m USD
- Net debt
- 438.8 m USD
- Equity
- 3.9 bn USD
- Total assets
- 11.6 bn USD
- Debt / equity
- 0.12x
- Current ratio
- 0.95x
- ROE
- 13.3%
- ROA
- 4.5%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 7.1 bn | 9.8 bn | 15.4 bn | 14.8 bn | 17.2 bn | 18.0 bn | SEC (XBRL)· 20 Feb 2026verified |
| Cost of revenue | 5.9 bn | 7.9 bn | 12.3 bn | 12.0 bn | 14.2 bn | 14.9 bn | SEC (XBRL)· 20 Feb 2026verified |
| Gross profit | 1.2 bn | 1.9 bn | 3.1 bn | 2.8 bn | 2.9 bn | 3.1 bn | SEC (XBRL)· 20 Feb 2026verified |
| SG&A | 781.9 m | 1.1 bn | 1.8 bn | 1.6 bn | 1.9 bn | 2.0 bn | SEC (XBRL)· 20 Feb 2026verified |
| Operating income | 370.8 m | 791.8 m | 1.3 bn | 953.5 m | 835.6 m | 860.6 m | SEC (XBRL)· 20 Feb 2026verified |
| Depreciation & amortisation | 38.5 m | 41.9 m | 69.0 m | 67.7 m | 75.0 m | 82.4 m | SEC (XBRL)· 20 Feb 2026verified |
| EBITDA | 409.3 m ≈ | 833.7 m ≈ | 1.3 bn ≈ | 1.0 bn ≈ | 910.6 m ≈ | 943.0 m ≈ | SEC (XBRL)· 20 Feb 2026derived |
| Interest expense | — | 102.1 m | 160.6 m | 165.7 m | — | — | SEC (XBRL)· 29 Feb 2024verified |
| Pre-tax income | 338.1 m | 697.7 m | 1.3 bn | 801.3 m | 575.3 m | 662.2 m | SEC (XBRL)· 20 Feb 2026verified |
| Income tax | 83.8 m | 165.3 m | 321.8 m | 198.8 m | 145.0 m | 170.2 m | SEC (XBRL)· 20 Feb 2026verified |
| Net income | 254.4 m | 532.4 m | 997.3 m | 602.5 m | 430.3 m | 492.0 m | SEC (XBRL)· 20 Feb 2026verified |
| Diluted EPS | 13.18 | 26.49 | 44.61 | 28.74 | 21.50 | 25.13 | SEC (XBRL)· 20 Feb 2026verified |
| Weighted average diluted shares | 19.3 m | 20.1 m | 22.4 m | 21.0 m | 20.0 m | 19.6 m | SEC (XBRL)· 20 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.4 m | 178.9 m | 235.3 m | 45.7 m | 69.4 m | 40.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Inventories | 875.2 m | 718.4 m | 959.2 m | 1.8 bn | 2.0 bn | 2.1 bn | SEC (XBRL)· 20 Feb 2026verified |
| Current assets | 1.4 bn | 1.9 bn | 1.9 bn | 3.1 bn | 3.1 bn | 3.4 bn | SEC (XBRL)· 20 Feb 2026verified |
| Property, plant & equipment, net | 956.2 m | 2.0 bn | 1.9 bn | 2.3 bn | 2.6 bn | 3.1 bn | SEC (XBRL)· 20 Feb 2026verified |
| Goodwill | 562.2 m | 2.3 bn | 1.8 bn | 2.0 bn | 2.0 bn | 2.3 bn | SEC (XBRL)· 20 Feb 2026verified |
| Total assets | 3.7 bn | 8.0 bn | 8.0 bn | 10.2 bn | 10.3 bn | 11.6 bn | SEC (XBRL)· 20 Feb 2026verified |
| Accounts payable | 97.6 m | 163.9 m | 147.4 m | 155.6 m | 169.1 m | 152.3 m | SEC (XBRL)· 20 Feb 2026verified |
| Short-term debt | 36.6 m | 62.5 m | 84.5 m | 84.9 m | 114.7 m | 479.2 m | SEC (XBRL)· 20 Feb 2026verified |
| Long-term debt | 1.2 bn | 3.4 bn | 3.3 bn | 2.2 bn | — | — | SEC (XBRL)· 26 Apr 2024verified |
| Current liabilities | 1.2 bn | 1.6 bn | 1.0 bn | 2.9 bn | 2.8 bn | 3.6 bn | SEC (XBRL)· 20 Feb 2026verified |
| Equity | 905.5 m | 2.1 bn | 2.9 bn | 3.2 bn | 3.5 bn | 3.9 bn † | SEC (XBRL)· 20 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 652.5 m | 1.2 bn | 696.0 m | 313.0 m | 671.2 m | 775.2 m | SEC (XBRL)· 20 Feb 2026verified |
| Capex | — | 74.2 m | 94.6 m | 142.3 m | — | — | SEC (XBRL)· 29 Feb 2024verified |
| Free cash flow | — | 1.1 bn ≈ | 601.4 m ≈ | 170.7 m ≈ | — | — | SEC (XBRL)· 29 Feb 2024derived |
| Investing cash flow | -820.8 m | -3.9 bn | 464.7 m | -1.7 bn | -137.2 m | -1.5 bn | SEC (XBRL)· 20 Feb 2026verified |
| Financing cash flow | 166.2 m | 2.9 bn | -1.1 bn | 1.2 bn | -510.3 m | 653.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Share repurchases | 5.1 m | 10.4 m | 9.2 m | 11.4 m | 10.2 m | 12.8 m | SEC (XBRL)· 20 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 57 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.8 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation92
- Returns92
- Quality45
- Balance sheet45
- Growth22
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 242.58 – 548.50 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
- Peers: EV/EBITDA259.67 – 466.71 (Mid 308.94)3 companies used · median multiple 7.0x · quartiles 6.0x – 10.4xCWH, MUSA, OPLN
- Peers: P/E242.58 – 548.50 (Mid 352.40)11 companies used · median multiple 14.1x · quartiles 9.7x – 21.9xAN, CASY, CPRT, GPI, KMX, LAD, MUSA, OPLN, PAG, RUSHA, SAH
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 57/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 13.4% | 38 (vs peers) | 14% |
| Net margin · Quality | 2.7% | 59 (vs peers) | 8% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 5.3% | 44 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | -17.4% | 0 (on a fixed band) | 11% |
| Net debt / EBITDA · Balance sheet | 0.4x | 60 (vs peers) | 14% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.9x | 9 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 8.3x | 92 (vs peers) | 14% |
| EV/EBITDA · Valuation | 4.9x | 92 (on a fixed band) | 14% |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 6.4% | 92 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet45/100 · 2/3 factors with a value
- Growth22/100 · 2/2 factors with a value
- Quality45/100 · 2/3 factors with a value
- Returns· partial92/100 · 1/2 factors with a value
- Valuation92/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ASBURY AUTOMOTIVE GROUP, INC. (ABG). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 18.0 bn USD in 2025; YoY growth 4.7%; net margin 2.7%; ROE 11.8%; net debt/EBITDA 0.4x.
The estimated value range is 251.12–507.60 USD per share (median of 2 methods, agreement: same basis (multiples on one peer group, not independent confirmations)); assumptions are illustrative. Against the central value of 330.67 USD, the price of 208.88 USD leaves a potential of 58.3% (value / price − 1) and a margin of safety of 36.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 57/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- P/E (TTM): 8.3x
- EV/EBITDA: 4.9x
- Shareholder yield (distributions): 6.4%
- The price is below the estimated value range
What contradicts it
- EPS CAGR 3Y: -17.4%
- Current ratio: 0.9x
Not assessed (insufficient data or a ratio without meaning): FCF conversion, Interest coverage, FCF yield, Payout ratio (FCF).
Versus the vertical median
Retail-Auto Dealers & Gasoline Stations (SIC 5500) · same industry (4-digit SIC) · compared with 18 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CPRTCopart, Inc. | 30.2 bn | 21.0 | 16.2% | 31.8% | +0.4% | −16% / −35% |
| CASYCasey’s General Stores, Inc. | 24.9 bn | 32.5 | 20.0% | 4.1% | +10.2% | +18% / +145% |
| PAGPenske Automotive Group, Inc. | 13.9 bn | 15.5 | 15.5% | 2.8% | −0.2% | +31% / +42% |
| MUSAMurphy USA Inc. | 9.1 bn | 14.1 | 99.0% | 2.9% | −4.2% | +30% / +36% |
| KMXCarmax, Inc. | 7.8 bn | 26.9 | 4.7% | 1.1% | −1.8% | +43% / −14% |
| LADLithia Motors, Inc. | 6.8 bn | 9.1 | 11.8% | 2.1% | +4.0% | −1% / +18% |
| ANAutonation, Inc. | 5.9 bn | 8.8 | 30.2% | 2.6% | +3.2% | −13% / +36% |
| OPLNOPENLANE, Inc. | 4.5 bn | 22.8 | 13.1% | 9.2% | +8.2% | +44% / +151% |
| ABGAsbury Automotive Group, Inc. | 3.8 bn | 8.3 | 11.8% | 2.7% | +4.7% | −9% / −1% |
| GPIGroup 1 Automotive, Inc | 3.3 bn | 8.6 | 12.4% | 1.7% | +13.2% | −32% / −3% |
| NXXTNextnrg, Inc. | 427.3 m | — | — | -61.3% | +194.7% | +108% / −43% |
| VRMVroom, Inc. | 36.5 m | — | -45.0% | — | −54.2% | −66% / unavailable |
| KXINKaixin Holdings | 12.2 m | — | -307.2% | -41,788.4% | unavailable | −96% / −100% |
| CRMTAmerica’s Car-Mart, Inc. | 10.5 m | — | -43.0% | -18.6% | −7.9% | −94% / −98% |
| JZXNJiuzi Holdings Inc. | 1.4 m | — | -90.7% | -353.5% | +105.9% | −86% / −100% |
| RUSHARush Enterprises, Inc. | — | 14.0 | 11.8% | 3.7% | −4.7% | +33% / +75% |
| CVNACarvana Co. | 0 | 0.0 | 51.5% | 6.2% | +48.6% | +4% / +1,138% |
| CWHCamping World Holdings, Inc. | 0 | — | -33.2% | -1.6% | +4.4% | −52% / −74% |
| SAHSonic Automotive, Inc. | — | 10.3 | 19.4% | 1.3% | +6.5% | +2% / +25% |
1- and 3-year price returns: for ABG from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 129.46 Total return -38% · Per year -38% | 228.80 Total return 10% · Per year 10% | 344.52 Total return 65% · Per year 65% |
| 3 years | 127.57 Total return -39% · Per year -15% | 253.50 Total return 21% · Per year 7% | 418.83 Total return 101% · Per year 26% |
| 5 years | 125.70 Total return -40% · Per year -10% | 280.86 Total return 34% · Per year 6% | 509.18 Total return 144% · Per year 20% |
- Exit P/E± 63.37
- Net margin± 44.36
- Annual revenue growth± 36.15
- Annual dilution± 3.73
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (27 Oct 2026 · results).
In brief
Asbury Automotive Group is one of the largest franchised auto retailers in the United States, selling new and used vehicles, service, parts and finance and insurance products through its dealership network and TCA. The company completed the Herb Chambers acquisition in 2025, and in Q2 2026 its net income fell from a year earlier as it migrated its dealer management system to Tekion. Revenue reached $18.00 billion in fiscal 2025 and $4.4 billion in the second quarter of 2026.
SWOT
Strengths
- Diversification across brands and regions, and steady service and parts revenue, reduce dependence on new vehicle sales 1.
- The TCA segment offers an in-house F&I product line with potentially higher margins than third-party products 1.
- Parts and service gross profit grew and the company kept repurchasing shares, which signals financial flexibility 12.
Weaknesses
- Net income in Q2 2026 fell from a year earlier, and the operating margin stayed below the prior-year level 3.
- Elevated debt after acquisitions limited available liquidity, and the company recorded asset impairments in 2025 13.
- The company depends on manufacturers for new vehicle and parts inventory, so delivery delays feed directly into sales 1.
Opportunities
- Completing the Tekion migration could, over the long term, deliver a more personalised customer experience and lower costs 3.
- Extending TCA across the whole dealership portfolio could raise F&I penetration and profitability 12.
- Better operational efficiency and dealership portfolio refinement could support margins over the medium term 1.
Threats
Risks
- Dependence on vehicle manufacturershigh
The company relies exclusively on manufacturers for new vehicle and parts inventory, and supply disruptions at those manufacturers could affect revenue 1.
- Acquisitions and integrationmedium
Integrating acquired dealerships could bring unexpected costs and delay expected benefits, especially after the Herb Chambers acquisition 1.
- DMS migrationmedium
Converting the dealer management system could disrupt operations and raise expenses during the transition period 3.
- Debt and leveragemedium
High leverage could limit financial flexibility if interest rates rise or if covenants are not met 23.
- Tariffs and trade policyhigh
Changes in trade policy could raise vehicle and parts costs and reduce the company's competitiveness 12.
Investment thesis
What would need to be true (bull case)
- If service, parts and F&I revenue keeps growing faster than vehicle sales, the company's margins could improve.
- Completing the Tekion migration could lower operating costs and improve the customer experience once the transition ends.
- The share repurchase programme and available liquidity could support shareholder value if operating results stabilise.
What would break the thesis
- If net income keeps falling and margins in new vehicle sales continue to shrink, results could stay below expectations.
- Tariffs and trade uncertainty could raise costs and reduce demand for vehicles and parts.
- High leverage and acquisition-related amortisation could limit the company's flexibility if the market weakens.
What to watch
- Completion of the Tekion migration and its effect on expenses and productivityfall 2026
- Trend in the transaction-adjusted net leverage ratio, reported at 3.4xQ3 2026
- Trend in gross profit from new vehicle sales and from serviceQ3 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (27 Oct 2026 · results).
The business
The product range covers the full vehicle ownership lifecycle: new and used vehicles, parts and service (including collision repair) and finance and insurance products, from third-party financing to extended service contracts, GAP and prepaid maintenance 1. The company seeks a diversified mix of brands and regions so it does not rely on any one manufacturer. New vehicle sales generated about half of revenue in 2025, while parts and services contributed nearly half of gross profit, a structure less sensitive to the car sales cycle.
Segments
Dealerships
The Dealerships segment earns revenue from new and used vehicle sales, service and parts, and commissions on finance and insurance products. In 2025 new vehicle revenue reached $9.5 billion, while parts and service brought in $2.5 billion 1. The segment also includes used vehicle sales to retail customers and at auction.
TCA
The TCA segment sells vehicle service contracts, prepaid maintenance, protection plans and other vehicle protection products through the company's dealerships. Revenue is recognized over the life of each contract, and results depend on claims expense and the performance of the investment portfolio 1. The company says TCA margins could be higher than those of products sold through third parties over the long term.
Market context
The US retail auto market is fragmented, and franchised dealers compete for sales and service with regional and local groups. The company describes the industry as mature, with sales sensitive to economic conditions, interest rates, consumer confidence and credit availability 1. Service revenue has proven steadier than vehicle sales, because the number of vehicles on the road keeps rising and vehicles grow more technically complex 1.
On the sales side, demand has been shaped by manufacturer supply and US tariffs. The company notes that a 25% tariff on imported automobiles could raise vehicle prices and costs, affecting new vehicle sales and related F&I sales 1. In the short term, market conditions are driven by supply chains, interest rates and consumer confidence.
Trends
- Dealer management system migration to Tekionmixed
The company had converted about 70% of its stores to the new Tekion dealer management system as of July 28, 2026, and says it remains on schedule to finish this fall. The conversion carries immediate costs, but management believes it could bring long-term benefits 3.
- Growth through acquisitionsmixed
The Koons and Herb Chambers acquisitions expanded the dealership footprint but also raised debt. The transaction-adjusted net leverage ratio was 3.4x at June 30, 2026 3.
- Tariffs and acquisition costsheadwind
Tariffs on imported vehicles and parts could raise vehicle prices and inventory costs, which could hurt sales and margins if they remain in place 1.
Competitive position
In acquisitions, the company competes with other dealer groups and financial buyers, some with greater resources, which could limit expansion opportunities 1. Margin pressure in new vehicle sales is evident in the decline in that segment's gross profit in 2025 1.
- AutoNation, Inc.AN
Another large franchised auto retailer in the United States, in the same industry category; the analysed sources do not name it directly, so this note is generic.
- Lithia Motors, Inc.LAD
A national dealer group in the same franchised auto retail category; it is not named in the analysed sources.
- Penske Automotive Group, Inc.PAG
An auto dealer group operating in the United States in the same industry; it is not named in the analysed sources.
- Regional and local dealer groups
The company says it faces regional and local dealer groups and independent repair shops.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report30 Oct 2026
- Current report27 Oct 2026Results of operations · Financial statements and exhibits
- Current report (amendment)31 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report31 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Current report25 Aug 2026Departure or appointment of officers
- Quarterly report31 Jul 2026
- Current report28 Jul 2026Results of operations · Financial statements and exhibits
- Current report (amendment)06 May 2026Departure or appointment of officers · Financial statements and exhibits
- Current report06 May 2026Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
- Quarterly report01 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Asbury Automotive Group, Inc. · 20 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Asbury Automotive Group, Inc. · 31 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Asbury Automotive Group, Inc. · 28 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.