AUTONATION INC (AN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AN - US05329W1027 - Common Stock
206.48 USD
-2.81 (-1.34%)
206.48 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AN. AN was compared to 123 industry peers in the Specialty Retail industry. While AN has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on AN.
1. Profitability
1.1 Basic Checks
In the past year AN was profitable.
AN had a positive operating cash flow in the past year.
AN had positive earnings in each of the past 5 years.
AN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AN has a better Return On Assets (4.67%) than 66.67% of its industry peers.
AN has a better Return On Equity (26.40%) than 86.18% of its industry peers.
AN's Return On Invested Capital of 8.73% is fine compared to the rest of the industry. AN outperforms 71.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AN is above the industry average of 12.14%.
The 3 year average ROIC (14.61%) for AN is well above the current ROIC(8.73%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 26.4% | ||
| ROIC | 8.73% |
ROA(3y)9.18%
ROA(5y)9.35%
ROE(3y)47.19%
ROE(5y)42.23%
ROIC(3y)14.61%
ROIC(5y)15.84%
1.3 Margins
AN has a better Profit Margin (2.38%) than 62.60% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.09%, AN is in the better half of the industry, outperforming 67.48% of the companies in the same industry.
AN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.82%, AN is doing worse than 80.49% of the companies in the same industry.
AN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.09% | ||
| PM (TTM) | 2.38% | ||
| GM | 17.82% |
OM growth 3Y-11.91%
OM growth 5Y5.79%
PM growth 3Y-21.33%
PM growth 5Y4.16%
GM growth 3Y-2.29%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AN is still creating some value.
Compared to 1 year ago, AN has less shares outstanding
AN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.15 indicates that AN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.15, AN is in the better half of the industry, outperforming 76.42% of the companies in the same industry.
AN has a Debt/Equity ratio of 3.52. This is a high value indicating a heavy dependency on external financing.
AN has a Debt to Equity ratio of 3.52. This is in the lower half of the industry: AN underperforms 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.15 |
ROIC/WACC1
WACC8.71%
2.3 Liquidity
A Current Ratio of 0.79 indicates that AN may have some problems paying its short term obligations.
AN's Current ratio of 0.79 is on the low side compared to the rest of the industry. AN is outperformed by 85.37% of its industry peers.
AN has a Quick Ratio of 0.79. This is a bad value and indicates that AN is not financially healthy enough and could expect problems in meeting its short term obligations.
AN's Quick ratio of 0.20 is on the low side compared to the rest of the industry. AN is outperformed by 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
AN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.84%, which is quite good.
Measured over the past years, AN shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.42% on average per year.
The Revenue has been growing slightly by 6.06% in the past year.
Measured over the past years, AN shows a small growth in Revenue. The Revenue has been growing by 4.64% on average per year.
EPS 1Y (TTM)14.84%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%24.63%
Revenue 1Y (TTM)6.06%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.85%
3.2 Future
AN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.61% yearly.
AN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y18.31%
EPS Next 2Y11.85%
EPS Next 3Y11.24%
EPS Next 5Y12.61%
Revenue Next Year5.56%
Revenue Next 2Y4.05%
Revenue Next 3Y3.85%
Revenue Next 5Y5.1%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
AN is valuated reasonably with a Price/Earnings ratio of 10.26.
Compared to the rest of the industry, the Price/Earnings ratio of AN indicates a rather cheap valuation: AN is cheaper than 86.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AN to the average of the S&P500 Index (26.51), we can say AN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.45, which indicates a very decent valuation of AN.
Based on the Price/Forward Earnings ratio, AN is valued cheaper than 87.80% of the companies in the same industry.
AN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
AN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AN is cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.66 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.56
PEG (5Y)0.34
EPS Next 2Y11.85%
EPS Next 3Y11.24%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
206.48
-2.81 (-1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners76.45%
Inst Owner Change-3%
Ins Owners1.16%
Ins Owner Change0%
Market Cap7.53B
Revenue(TTM)27.92B
Net Income(TTM)663.10M
Analysts80
Price Target242.99 (17.68%)
Short Float %4.03%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.69%
Min EPS beat(2)0.86%
Max EPS beat(2)12.53%
EPS beat(4)4
Avg EPS beat(4)7.39%
Min EPS beat(4)0.86%
Max EPS beat(4)13.19%
EPS beat(8)5
Avg EPS beat(8)1.08%
EPS beat(12)8
Avg EPS beat(12)1.53%
EPS beat(16)11
Avg EPS beat(16)2.3%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)3.05%
Revenue beat(8)1
Avg Revenue beat(8)-2.09%
Revenue beat(12)1
Avg Revenue beat(12)-2.07%
Revenue beat(16)3
Avg Revenue beat(16)-1.91%
PT rev (1m)2.94%
PT rev (3m)6.71%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.45 | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | 67.72 | ||
| P/B | 3 | ||
| P/tB | 71.65 | ||
| EV/EBITDA | 7.66 |
EPS(TTM)20.12
EY9.74%
EPS(NY)21.86
Fwd EY10.59%
FCF(TTM)-4.89
FCFYN/A
OCF(TTM)3.05
OCFY1.48%
SpS765.43
BVpS68.87
TBVpS2.88
PEG (NY)0.56
PEG (5Y)0.34
Graham Number176.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 26.4% | ||
| ROCE | 17.12% | ||
| ROIC | 8.73% | ||
| ROICexc | 8.8% | ||
| ROICexgc | 10.96% | ||
| OM | 5.09% | ||
| PM (TTM) | 2.38% | ||
| GM | 17.82% | ||
| FCFM | N/A |
ROA(3y)9.18%
ROA(5y)9.35%
ROE(3y)47.19%
ROE(5y)42.23%
ROIC(3y)14.61%
ROIC(5y)15.84%
ROICexc(3y)14.74%
ROICexc(5y)16.23%
ROICexgc(3y)20.49%
ROICexgc(5y)23.24%
ROCE(3y)25.25%
ROCE(5y)24.86%
ROICexgc growth 3Y-29.93%
ROICexgc growth 5Y-7.61%
ROICexc growth 3Y-26.45%
ROICexc growth 5Y-3.33%
OM growth 3Y-11.91%
OM growth 5Y5.79%
PM growth 3Y-21.33%
PM growth 5Y4.16%
GM growth 3Y-2.29%
GM growth 5Y1.6%
F-Score3
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.29 | ||
| Cap/Depr | 115.25% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 3.83 | ||
| Cash Conversion | 6.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | 3.15 |
F-Score3
WACC8.71%
ROIC/WACC1
Cap/Depr(3y)162.27%
Cap/Depr(5y)135.37%
Cap/Sales(3y)1.32%
Cap/Sales(5y)1.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.84%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%24.63%
EPS Next Y18.31%
EPS Next 2Y11.85%
EPS Next 3Y11.24%
EPS Next 5Y12.61%
Revenue 1Y (TTM)6.06%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.85%
Revenue Next Year5.56%
Revenue Next 2Y4.05%
Revenue Next 3Y3.85%
Revenue Next 5Y5.1%
EBIT growth 1Y7.07%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year22.24%
EBIT Next 3Y9.89%
EBIT Next 5Y8.04%
FCF growth 1Y-129.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.74%
OCF growth 3Y-42.18%
OCF growth 5Y-16.37%
AUTONATION INC / AN FAQ
Can you provide the ChartMill fundamental rating for AUTONATION INC?
ChartMill assigns a fundamental rating of 5 / 10 to AN.
What is the valuation status of AUTONATION INC (AN) stock?
ChartMill assigns a valuation rating of 7 / 10 to AUTONATION INC (AN). This can be considered as Undervalued.
Can you provide the profitability details for AUTONATION INC?
AUTONATION INC (AN) has a profitability rating of 8 / 10.
Can you provide the financial health for AN stock?
The financial health rating of AUTONATION INC (AN) is 3 / 10.
What is the expected EPS growth for AUTONATION INC (AN) stock?
The Earnings per Share (EPS) of AUTONATION INC (AN) is expected to grow by 18.31% in the next year.