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    Jeff Liquid

    Managing Director and Senior Equity Research Analyst at Stephens Inc.

    Jeff Lick is a Managing Director and Senior Equity Research Analyst at Stephens Inc., specializing in coverage of the auto ecosystem, hardlines, leisure, and the broader consumer sector. He currently follows over 22 public companies and maintains a 43% recommendation success rate, with an average return per transaction of 7.4%, as measured by TipRanks. Lick began his equity research career at B. Riley Securities, later founding and managing Galt Investments, a $100 million consumer-focused hedge fund, and has held significant investing and analytical roles at PAR Capital Management, Gordon Brothers Group, Triumph Capital, and GE Capital before joining Stephens in 2024. He holds a B.S. in finance from Miami University and an MBA from MIT, and is registered with FINRA and appropriately licensed for securities analysis.

    Jeff Liquid's questions to ASBURY AUTOMOTIVE GROUP (ABG) leadership

    Jeff Liquid's questions to ASBURY AUTOMOTIVE GROUP (ABG) leadership • Q3 2024

    Question

    Jeff Liquid questioned the future trajectory of SG&A as a percentage of gross profit, especially with the planned Tekion DMS rollout, and asked if the current F&I PVR represents a new base level given headwinds from the Total Care Auto (TCA) business.

    Answer

    SVP & CFO Michael Welch projected SG&A to remain in the mid-60s in the near term but anticipates long-term benefits from Tekion driving the metric into the 50s by late 2026 or 2027. Welch and President & CEO David Hult clarified that the F&I PVR will face significant headwinds in 2025 and 2026 due to TCA's deferred revenue model, with a notable impact expected in the second half of 2025.

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