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If You Invested $1000 in Asbury Automotive Group a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Asbury Automotive Group (ABG - Free Report) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today?
Asbury Automotive Group's Business In-Depth
With that in mind, let's take a look at Asbury Automotive Group's main business drivers.
Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. As of December 31, 2021, Asbury owned 205 new vehicle franchises at 155 locations. It also operates 35 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The company offers 31 automotive brands including Lexus, Mercedes-Benz, Acura, BMW, Genesis, Infiniti, Jaguar, Land Rover, Lincoln, Porsche, Volvo, Audi, Bentley, Toyota, Honda, Nissan, Hyundai, Sprinter, Volkswagen, Subaru, Fiat, Kia, MINI, Isuzu, Dodge, Chrysler, Jeep, Ford, Chevrolet, Buick and GMC.
Apart from a wide range of new and used vehicles, the company provides finance and insurance products, and automotive repair and maintenance services. Asbury’s omni-channel platform is designed to increase its market share through digital innovation. In December 2020, Asbury introduced Clicklane, the online shopping platform, which ensures a true online car-buying and selling experience.
Asbury’s business mix consisted of New Vehicles (accounted for about 50% of the company’s revenues in 2021), Used Vehicles (34%), Parts and Services (12%), and Finance and insurance (4%).
Last year, Asbury acquired Larry H. Miller Dealerships, the eighth largest dealership in the United States, adding 54 new vehicle dealerships, seven used cars stores, 11 collision centers, a used vehicle wholesale business to its existing portfolio. Additionally, Asbury acquired Total Care Auto (TCA), a leading provider of service contracts and other vehicle protection products. Subsequent to the Larry H. Miller buyout closed in December 2021, Asbury will now have two reportable segments: Dealerships and TCA. The Dealerships segment revenues would be derived primarily from the sale of new vehicles, sale of used vehicles to retail customers and dealers, repair and maintenance services, and the arrangement of third-party vehicle financing. Revenues from the TCA segment, reflected in F&I Revenues, will be derived from the vehicle service contracts, guaranteed asset protection insurance, prepaid maintenance contracts, vehicle theft assistance contracts and appearance protection contracts.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Asbury Automotive Group, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in August 2012 would be worth $6,751.78, or a gain of 575.18%, as of August 9, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 195.25% and the price of gold increased 6.18% over the same time frame in comparison.
Analysts are anticipating more upside for ABG.
Asbury posted record EPS in the second quarter. Strategic buyouts are helping the auto retailer increase its market share and boost portfolio. Acquisition of Larry H. Miller Dealerships in 2021 has added nearly $5.7 billion in expected annualized revenues, giving Asbury an edge to execute its five-year plan. Its ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The company’s end-to-end e-commerce platform, Clicklane. Is also set to buyo prospects. However, Asbury exited second quarter of 2022 with new vehicle inventory of 13 days’ supply. The company anticipates new inventory levels to remain low through 2022. Rising operating expenses and weak balance sheet (with elevated leverage and low cash/cash equivalents) and also raise concerns. As such, investors are advised to wait for a better entry point.
The stock has jumped 10.34% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2022; the consensus estimate has moved up as well.
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If You Invested $1000 in Asbury Automotive Group a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Asbury Automotive Group (ABG - Free Report) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today?
Asbury Automotive Group's Business In-Depth
With that in mind, let's take a look at Asbury Automotive Group's main business drivers.
Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. As of December 31, 2021, Asbury owned 205 new vehicle franchises at 155 locations. It also operates 35 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The company offers 31 automotive brands including Lexus, Mercedes-Benz, Acura, BMW, Genesis, Infiniti, Jaguar, Land Rover, Lincoln, Porsche, Volvo, Audi, Bentley, Toyota, Honda, Nissan, Hyundai, Sprinter, Volkswagen, Subaru, Fiat, Kia, MINI, Isuzu, Dodge, Chrysler, Jeep, Ford, Chevrolet, Buick and GMC.
Apart from a wide range of new and used vehicles, the company provides finance and insurance products, and automotive repair and maintenance services. Asbury’s omni-channel platform is designed to increase its market share through digital innovation. In December 2020, Asbury introduced Clicklane, the online shopping platform, which ensures a true online car-buying and selling experience.
Asbury’s business mix consisted of New Vehicles (accounted for about 50% of the company’s revenues in 2021), Used Vehicles (34%), Parts and Services (12%), and Finance and insurance (4%).
Last year, Asbury acquired Larry H. Miller Dealerships, the eighth largest dealership in the United States, adding 54 new vehicle dealerships, seven used cars stores, 11 collision centers, a used vehicle wholesale business to its existing portfolio. Additionally, Asbury acquired Total Care Auto (TCA), a leading provider of service contracts and other vehicle protection products. Subsequent to the Larry H. Miller buyout closed in December 2021, Asbury will now have two reportable segments: Dealerships and TCA. The Dealerships segment revenues would be derived primarily from the sale of new vehicles, sale of used vehicles to retail customers and dealers, repair and maintenance services, and the arrangement of third-party vehicle financing. Revenues from the TCA segment, reflected in F&I Revenues, will be derived from the vehicle service contracts, guaranteed asset protection insurance, prepaid maintenance contracts, vehicle theft assistance contracts and appearance protection contracts.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Asbury Automotive Group, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in August 2012 would be worth $6,751.78, or a gain of 575.18%, as of August 9, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 195.25% and the price of gold increased 6.18% over the same time frame in comparison.
Analysts are anticipating more upside for ABG.
Asbury posted record EPS in the second quarter. Strategic buyouts are helping the auto retailer increase its market share and boost portfolio. Acquisition of Larry H. Miller Dealerships in 2021 has added nearly $5.7 billion in expected annualized revenues, giving Asbury an edge to execute its five-year plan. Its ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The company’s end-to-end e-commerce platform, Clicklane. Is also set to buyo prospects. However, Asbury exited second quarter of 2022 with new vehicle inventory of 13 days’ supply. The company anticipates new inventory levels to remain low through 2022. Rising operating expenses and weak balance sheet (with elevated leverage and low cash/cash equivalents) and also raise concerns. As such, investors are advised to wait for a better entry point.
The stock has jumped 10.34% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2022; the consensus estimate has moved up as well.