Autosports Group: The 337% Gainer You Can't Ignore!

Ladies and gentlemen, buckle up! We're diving into the world of Autosports Group Limited (ASX:ASG), a stock that has left investors screaming with joy. If you had invested in Autosports Group five years ago, you'd be sitting on a 337% return! That's right, folks, 337%! This isn't just a stock; it's a rocket ship to the moon!

Let's break it down. Autosports Group has been on a tear, with its share price soaring 233% over the past half decade. But here's the kicker: the total shareholder return (TSR) over the same period was a whopping 337%! That's because Autosports Group has been generous with its dividends, and those dividends have been fully franked, adding even more value to shareholders.

Now, you might be thinking, "Why the heck did this happen?" Well, let me tell you, it's all about the fundamentals, baby! Autosports Group became profitable during this period, and profitability is like the holy grail for investors. It signals fast earnings growth to come, and that's exactly what we've seen. The company's earnings per share (EPS) growth has been a staggering 49.3% annually, outpacing the Specialty Retail industry's growth rate of 7.2% annually.

But it's not just about the earnings. Autosports Group has made some strategic acquisitions that have boosted its revenue. The acquisition of the Stillwell Motor Group, for example, contributed $80 million in revenue since its settlement in October 2024. And the company isn't stopping there; it's expanding its brand portfolio with the addition of luxury brands Pulsar and Zika, aligning with its luxury growth strategy.

Now, let's talk about the elephant in the room. The new vehicle market has been challenging, with a 7.4% decline overall and a 13% retreat in the luxury segment. But Autosports Group has navigated these challenges like a pro. The company successfully reduced its inventory by $47.2 million during the first half of FY25, improving its positioning for future financial periods. And despite the challenging market conditions, Autosports Group achieved a total revenue growth of 2.1% in the first half of FY25.

But here's where it gets interesting. While the broader market gained around 4.6% in the last year, Autosports Group shareholders lost 27% (even including dividends). But don't let that fool you, folks! Longer-term investors wouldn't be so upset, since they would have made 34%, each year, over five years. This recent sell-off could be an opportunity, so it may be worth checking the fundamental data for signs of a long-term growth trend.

So, what's the takeaway? Autosports Group is a stock that has delivered massive returns to investors over the past five years. Its dividend policy, strategic acquisitions, and effective management have all contributed to its success. But remember, folks, past performance is not indicative of future results. You need to do your own research and make your own investment decisions.

But if you're looking for a stock with a proven track record of growth and a generous dividend policy, Autosports Group is definitely one to consider. So, do yourself a favor and take a closer look at Autosports Group Limited (ASX:ASG). It could be the next big winner in your portfolio!