Asbury (AWG) AI Stock Analysis

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Asbury

(Frankfurt:AWG)

Rating:―N/A

Action:N/A

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Positive Factors

Technology-enabled efficiencyCompleted deployment of one platform across every active store, with early locations showing higher repair productivity and technician output. If these gains scale after the transition, Tekion can support durable labor efficiency, service capacity, and SG&A leverage.

Negative Factors

Margin compressionProfitability has fallen materially from prior peaks even though net income remains positive. Lower margins reduce earnings resilience when vehicle demand or pricing weakens, and they leave less operating cushion to absorb cost inflation or invest aggressively in growth.

Asbury (AWG) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 3.58B
Dividend Yield: ―
Average Volume (3M): 140
Price to Earnings (P/E): 8.0
Beta (1Y): 0.62
Revenue Growth: -6.14%
EPS Growth: -16.56%
Country: Germany
Employees: 15,000
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Dealerships

Asbury Business Overview & Revenue Model

Company Description

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It operates through Dealerships; and Total Care Auto, Powered by Asbury (TCA) segments. The company offers a range of automotive p...

Asbury Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:20.81%|Next Earnings Date:Feb 04, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Management highlighted completion of the companywide Tekion and TCA rollouts, early productivity gains at seasoned Tekion stores, improving used-vehicle performance, strong cash generation, and a path toward lower SG&A and leverage. These positives were tempered by declines in new-vehicle units and EV sales, weak current parts-and-service gross profit, temporary Tekion-related disruption, TCA accounting headwinds, and leverage still above target.

Positive Updates

Companywide Tekion Rollout Completed

Every active Asbury store is now operating on Tekion, with 47 stores converted in the third quarter—the company's largest single-quarter rollout—and the final 10 dealerships completed in October. The company now operates on one technology platform.

Negative Updates

New Vehicle Unit Decline

Same-store new vehicle units declined 8% year over year against a difficult comparison. Management said the expiration of federal and state BEV tax-credit eligibility in 2025 accounted for 5% of the decline.

Company Guidance

For 2026, Asbury expects CapEx of approximately $270 million to $275 million and an effective tax rate for the full year of approximately 24.8%; it expects SG&A leverage to improve in the fourth quarter, with SG&A reaching the low-60% range by the end of 2027, starting off mid-60s and working its way down. Management expects new vehicle volume in 2027 to be similar, with PVRs in the range of $2.75 thousand to 3 thousand; used volume to increase on a year-over-year basis in the fourth quarter while PVRs remain in the 1.75 thousand range; fixed ops growth in the mid single digit range next year; F&I dealership improvements offset by continued TCA headwinds; and the transaction adjusted net leverage ratio to reach below 3x by mid-2027.

Asbury Risk Analysis

Asbury disclosed 28 risk factors in its most recent earnings report. Asbury reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Asbury Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:AWG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PAG	61Neutral	$14.07B	15.56	16.40%	2.68%	6.12%	-3.41%
AN	58Neutral	$5.99B	8.63	31.76%	―	-1.77%	22.76%
GPI	54Neutral	$3.23B	8.18	13.03%	0.84%	-3.41%	11.11%
SAH	53Neutral	$2.00B	9.55	19.94%	2.63%	2.01%	64.76%
LAD	51Neutral	$6.75B	8.51	12.12%	0.86%	1.46%	0.70%

* Consumer Cyclical Sector Average

Performance Comparison

DE:AWG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:AWG	Asbury Automotive	180.00	-6.00	-3.23%
AN	AutoNation Inc	180.51	-12.69	-6.57%
GPI	Group 1 Automotive	257.29	-123.36	-32.41%
LAD	Driveway Vehicle Solutions	297.17	14.27	5.04%
PAG	Penske Automotive	213.25	61.19	40.24%
SAH	Sonic Automotive	60.18	0.36	0.61%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Asbury AI Stock Analysis