AllAnalyst Report
logoMorningstarOctober 26, 2021

Asbury Automotive Group, Inc.: Asbury Is About to Get a Lot Bigger With the Purchase of Larry H. Miller

Symbols
ABG
Sector(s)
Consumer Cyclical
Rating
Current Price
$173.23
Fair Value
Economic Moat
Stewardship
Summary

Asbury Automotive Group is a regional collection of automobile dealerships that went public in March 2002. The company operates over 90 stores (will be over 150 with the Larry H. Miller acquisition) with associated parts and service departments and 25 collision centers (36 with Miller). About 80% of new-vehicle revenue is from luxury and import brands. Asbury also offers third-party financing and insurance products. Asbury operates in nine states (mostly Texas and the Southeast) and entered Colorado in 2019. Larry H. Miller stores will bring the total to 15 states. Asbury store brands include David McDavid and Park Place in Texas, Plaza in Missouri, and Nalley and Crown in the Southeastern U.S. Asbury generated $7.1 billion of revenue in 2020 and is based in the Atlanta area.

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Analyst Profile

David Whiston

Sector Strategist
David Whiston, CFA, CPA, CFE, is an industrials strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers the automotive industry, including dealerships, parts manufacturers, and automakers. He has covered the automotive industry since joining Morningstar in 2007.Before Morningstar, Whiston spent four years in PricewaterhouseCoopers’ New York real estate audit practice and one year in its Chicago office working on real estate acquisition due diligence.Whiston holds a bachelor’s degree in business administration with a concentration in accounting from the University of Richmond. He also holds a master’s degree in business administration with concentrations in finance, economics, and organizational behavior from the University of Chicago Booth School of Business. He holds the Chartered Financial Analyst® designation, and he is a Certified Public Accountant and a Certified Fraud Examiner. In 2012, he ranked first in the specialty retailers and services industry in The Wall Street Journal’s annual “Best on the Street” analysts survey. He ranked first in the same industry in 2011.