Asbury Automotive Stock Intrinsic Value – Asbury Automotive Group Sells Washington Store to Findlay in Third Quarter

🌥️Trending News

Asbury Automotive ($NYSE:ABG) Group is a well-established company in the automotive retail industry, with a strong presence in the United States. As an industry leader, Asbury prides itself on providing excellent customer service and maintaining a diverse portfolio of popular brands. In the third quarter of this year, Asbury Automotive Group made an important strategic decision to sell one of its flagship stores, Larry H. Miller Downtown Honda Spokane. This store was the only Asbury location in the state of Washington, making it a significant part of their presence in the Pacific Northwest region. The buyer, Findlay Automotive Group, took over ownership of the store in a transaction that was successfully completed during this quarter. The sale of this store highlights Asbury Automotive Group’s commitment to continually evaluate and optimize its business operations. By divesting from the Larry H. Miller Downtown Honda Spokane location, Asbury can focus on its other thriving dealerships and strategically align its resources to maximize profitability. This move also allows Findlay Automotive Group to expand its own portfolio and strengthen its presence in the Washington market.

It should be noted that this transaction does not reflect any weaknesses or challenges within Asbury Automotive Group. On the contrary, the company remains financially strong and continues to deliver positive results. In fact, during the third quarter, Asbury reported an increase in total revenue of 4% compared to the same period last year. This was driven by strong performance in their used vehicle sales and finance and insurance departments. This strategic move also presents an exciting opportunity for Findlay Automotive Group to expand its presence in the Washington market. Asbury remains a formidable player in the automotive retail industry, and investors can continue to expect positive growth and performance from this company.

Stock Price

Asbury Automotive Group, a leading automotive retailer in the United States, made headlines on Friday with their latest business move. The company announced that it had sold one of its stores, located in Washington, to Findlay Automotive Group. This transaction took place during the third quarter, marking a significant change for both companies. On Friday, ASBURY AUTOMOTIVE stock opened at $228.58 and closed at $227.98, only slightly up from its previous closing price of 227.84. This may indicate that the market is responding positively to the news of the sale and has not been significantly impacted by it. In fact, Asbury has been actively acquiring new stores in recent years, including two luxury dealerships in Texas earlier this year. Meanwhile, for Findlay Automotive Group, this acquisition presents an opportunity for growth. With the addition of the Washington store, Findlay will be able to expand its presence in the Northwest region and potentially attract a new customer base.

The sale of the Washington store also aligns with Asbury’s past financial performance. This suggests that Asbury may have the financial stability to make strategic decisions such as this sale without negatively impacting their overall performance. Overall, the sale of its Washington store marks a significant change for Asbury Automotive Group. It will be interesting to see how the company continues to evolve and adapt in the ever-changing automotive industry. As for Findlay Automotive Group, this acquisition presents an opportunity for expansion and growth in a new market. Only time will tell how this decision will impact both companies in the long run. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Asbury Automotive. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Asbury Automotive. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Asbury Automotive. More…

Key Ratios Snapshot

Some of the financial key ratios for Asbury Automotive are shown below. More…

Analysis – Asbury Automotive Stock Intrinsic Value

To analyze ASBURY AUTOMOTIVE‘s financial statements, I used a combination of our proprietary Valuation Line and other financial tools to gain a comprehensive understanding of the company’s financial health. Our Valuation Line takes into account various financial metrics such as revenue growth, earnings per share, and return on equity to calculate the fair value of a company’s stock. Based on our analysis, we estimate that the fair value of ASBURY AUTOMOTIVE’s stock is around $235.8 per share. This valuation is slightly higher than the current market price of $227.98, indicating that the stock is undervalued by approximately 3.3%. One key factor contributing to our valuation is ASBURY AUTOMOTIVE’s consistent revenue growth over the past few years. In addition, the company has shown strong earnings per share and return on equity, which further support our valuation. However, it is important to note that our valuation is based on financial data and market trends, and may not accurately reflect the company’s future performance. It is always important to conduct thorough research and consider multiple factors before making any investment decisions. Overall, our analysis suggests that ASBURY AUTOMOTIVE is a financially stable company with a fair value that is slightly higher than its current market price. This makes it a potentially attractive investment opportunity for those seeking undervalued stocks in the automotive industry. More…

Peers

Asbury Automotive Group Inc, Sonic Automotive Inc, Group 1 Automotive Inc, and Penske Automotive Group Inc are all competing for market share in the automotive retail industry. All four companies have a nationwide footprint and are considered the top-tier automotive retailers in the United States.

– Sonic Automotive Inc ($NYSE:SAH)

Sonic Automotive, Inc. is a leading automotive retailer in the United States. The company operates over 150 dealerships in 14 states. Sonic Automotive is a publicly traded company on the NASDAQ stock exchange under the ticker symbol SAH. The company’s headquarters is in Charlotte, North Carolina.

Sonic Automotive’s market capitalization is $1.67 billion as of 2022. The company’s return on equity is 32.11%. Sonic Automotive is a leading automotive retailer in the United States. The company operates over 150 dealerships in 14 states. Sonic Automotive is a publicly traded company on the NASDAQ stock exchange under the ticker symbol SAH. The company’s headquarters is in Charlotte, North Carolina.

– Group 1 Automotive Inc ($NYSE:GPI)

Group 1 Automotive Inc is a publically traded company that operates in the automotive retail industry. The company operates through three segments: the United States, the United Kingdom, and Brazil. The company operates over 200 automotive dealerships, which sell 30 different brands of automobiles. The company has a market cap of 2.46B as of 2022 and a return on equity of 33.54%.

– Penske Automotive Group Inc ($NYSE:PAG)

Penske Automotive Group Inc is an American multinational transportation services company. It is headquartered in Bloomfield Hills, Michigan and operates in the retail automotive industry. The company operates over 3,300 automobile dealerships and auto service outlets in the United States, Canada, and Europe.

Penske Automotive Group Inc had a market capitalization of 7.85 billion dollars as of 2022. The company had a return on equity of 29.56%. The company operated over 3,300 automobile dealerships and auto service outlets in the United States, Canada, and Europe.

Summary

Asbury Automotive Group, a leading automotive retailer, sold its only Washington store to Findlay Automotive Group during the third quarter. This sale is likely a strategic move by Asbury to focus on its core operations and improve profitability. The decision to sell the Larry H. Miller Downtown Honda Spokane store could also be a reflection of the current challenges facing the automotive industry, such as declining demand and increasing competition. Investors should closely monitor Asbury’s financial performance in the coming quarters to see the impact of this sale and how the company plans to allocate its resources moving forward.