| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 7.8x | 17.8x | Top tier | |
Growth | 44 | 4.1% | 7.1% | Around median | |
Quality | 50 | 8.3% | 4.5% | Around median | |
Safety | 50 | 4.2x | 2.6x | Around median | |
Capital Return | 51 | — | 2.12% | Around median | |
Momentum | 45 | -17.1% | 2.9% | Around median | |
Sentiment | 62 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Asbury Automotive Group operates as an automotive dealership group, generating revenue from the sale of new and used vehicles, along with financing and insurance, parts and service, and Total Care Auto products. In Q2 FY2026, new-vehicle gross profit per vehicle retailed was $2.9 thousand on a same-store basis, used-vehicle gross profit per vehicle retailed was $1.93 thousand, and financing and insurance gross profit per vehicle retailed was $2.21 thousand, bringing total front-end gross profit per vehicle retailed to $4.7 thousand.
In Q2 FY2026, the company reported revenue of $4.4 billion and gross profit of $753.1 million, with a gross margin of 17.2%. Net income according to EDGAR was approximately $114.6 million, and earnings per share were $6.25, while management reported adjusted net income of $125 million, adjusted earnings per share of $6.82, and an adjusted operating margin of 5.3%.
The business mix showed clear divergence in Q2 FY2026; same-store new-vehicle units declined 6%, used-vehicle volume declined 14%, while customer-pay service activity was flat and total parts and service gross profit declined slightly. Within new vehicles, luxury volume declined 10% and domestic volume declined 16%, while imports were flat, and new- and used-vehicle inventories stood at 53 days and 37 days, respectively.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $247.25, within a wide range of $220 to $265, while the highest target is near and slightly above the 52-week range high of $262.67, and the range low is $172.01. The Neutral consensus rating and wide target range indicate that the analyst community is balancing Tekion gains and share repurchases on one side against weak vehicle volumes, transformation costs, and leverage on the other; the absence of a reliable price-to-earnings ratio also prevents anchoring the valuation to a specific earnings multiple.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Asbury generated revenue of $4.4 billion and gross profit of $753.1 million, with a margin of 17.2% in Q2 FY2026. Net income according to EDGAR was approximately $114.6 million and earnings per share were $6.25, while adjusted earnings per share were $6.82. Declines of 6% in new-vehicle units and 14% in used-vehicle units pressured volume, but the improvement in adjusted selling, general, and administrative expenses to 66% of gross profit supported the adjusted operating margin of 5.3%.
Tekion was implemented in 70% of stores as of July 28, 2026, and management expected to complete the rollout by October 2026. In markets that were more than five months beyond conversion, units per salesperson increased 12% and dollars per technician increased 10% during June 2026, while sales manager and financing and insurance manager productivity at Koons improved 14.2% and 15.2%, respectively. The company is targeting a reduction in selling, general, and administrative expenses as a percentage of gross profit to the low 60s by the end of 2027, but Q3 FY2026 remains an execution-intensive period.
In May 2026, the company began gradually shifting from a focus on maximizing profit per unit to increasing volume while maintaining a healthy return. It purchased approximately 6.5 thousand vehicles from auctions in Q2 FY2026, increasing used-vehicle inventory from 30 to 37 days, while 70% of it remained less than 30 days old. Management expects year-over-year growth in used-vehicle volume to emerge in Q4 FY2026, also benefiting from lease returns and certified loaner vehicles.
Customer-pay service activity remained flat year over year and total parts and service gross profit declined slightly in Q2 FY2026. However, same-store fixed gross profit grew 4% in June 2026, and management reported that July 2026 performance was close to that pace. The company expects low- to mid-single-digit growth in customer-pay service during Q3 FY2026, with stores typically needing five or six months after the Tekion conversion to show improvement.
The company purchased 668 thousand shares for $131 million in Q2 FY2026, bringing the first-half total to 1.35 million shares for $278 million. Meanwhile, the adjusted transaction net leverage ratio was 3.4 times at quarter-end, compared with a target of 3.0 times that the company plans to reach in early to mid-2027. This plan is supported by liquidity of $966 million and adjusted free cash flow of $188 million during the first half of FY2026, with expected annual capital expenditures of $250 million.
The average analyst price target is $247.25, with targets ranging from $220 to $265, compared with a 52-week range of $172.01 to $262.67, while the consensus rating is Neutral. This divergence reflects a balance between potential Tekion savings and weak volume, as new-vehicle units declined 6% and used-vehicle units declined 14% in Q2 FY2026. The 3.4 times leverage ratio, the $0.66 per-share non-cash Total Care Auto impact in the quarter, and the absence of a reliable price-to-earnings ratio in the provided data should also be monitored.
