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Bonhoeffer Capital - Asbury Automotive: 4X Return Today, 8X Return In Five Years

Dec. 12, 2022 11:00 PM ETAsbury Automotive Group, Inc. (ABG)
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Fund Letter Stock Ideas


  • Asbury’s growth model is through same-store sales growth (4% per year), internet distribution (10% per year), and synergistic M&A (5% per year).
  • ABG has had a per-store growth rate of 67% over the last year.
  • Asbury has the highest margins (due to local clustering) and inventory turns when compared to US companies.
  • Given a conservative projected EPS growth of 5% per year, Asbury should trade at 19x earnings.

Rearview of parked cars


The following segment was excerpted from this fund letter.

Asbury Automotive (NYSE:ABG): The Distribution Theme

Our holdings in car and branded capital equipment dealerships, convenience stores, building product distributors, automobile transportation logistics, and capital equipment leasing firms all fall into the distribution

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