AUTONATION INC (AN)
US05329W1027 - Common Stock
Overall AN gets a fundamental rating of 5 out of 10. We evaluated AN against 125 industry peers in the Specialty Retail industry. While AN has a great profitability rating, there are some minor concerns on its financial health. AN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year AN was profitable.
In the past year AN had a positive cash flow from operations.
AN had positive earnings in each of the past 5 years.
In the past 5 years AN always reported a positive cash flow from operatings.
1.2 Ratios
AN's Return On Assets of 8.52% is fine compared to the rest of the industry. AN outperforms 79.20% of its industry peers.
With an excellent Return On Equity value of 46.17%, AN belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
AN has a better Return On Invested Capital (18.20%) than 87.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AN is significantly above the industry average of 14.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.52% | ||
| ROE | 46.17% | ||
| ROIC | 18.2% |
ROA(3y)12.52%
ROA(5y)9.14%
ROE(3y)57.06%
ROE(5y)39.44%
ROIC(3y)21.15%
ROIC(5y)17.33%
1.3 Margins
With a decent Profit Margin value of 3.79%, AN is doing good in the industry, outperforming 70.40% of the companies in the same industry.
AN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.13%, AN is doing good in the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AN has grown nicely.
AN has a worse Gross Margin (19.04%) than 81.60% of its industry peers.
AN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.13% | ||
| PM (TTM) | 3.79% | ||
| GM | 19.04% |
OM growth 3Y9.79%
OM growth 5Y11.88%
PM growth 3Y26.46%
PM growth 5Y15.43%
GM growth 3Y2.88%
GM growth 5Y3.72%
2. Health
2.1 Basic Checks
AN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AN has less shares outstanding
AN has less shares outstanding than it did 5 years ago.
AN has a better debt/assets ratio than last year.
2.2 Solvency
AN has an Altman-Z score of 3.51. This indicates that AN is financially healthy and has little risk of bankruptcy at the moment.
AN has a Altman-Z score of 3.51. This is in the better half of the industry: AN outperforms 76.80% of its industry peers.
The Debt to FCF ratio of AN is 13.67, which is on the high side as it means it would take AN, 13.67 years of fcf income to pay off all of its debts.
AN's Debt to FCF ratio of 13.67 is in line compared to the rest of the industry. AN outperforms 49.60% of its industry peers.
A Debt/Equity ratio of 1.73 is on the high side and indicates that AN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.73, AN is doing worse than 65.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | 3.51 |
ROIC/WACC2.02
WACC9.01%
2.3 Liquidity
AN has a Current Ratio of 0.77. This is a bad value and indicates that AN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AN (0.77) is worse than 94.40% of its industry peers.
AN has a Quick Ratio of 0.77. 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 has a Quick ratio of 0.23. This is amonst the worse of the industry: AN underperforms 84.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The earnings per share for AN have decreased by -8.18% in the last year.
Measured over the past years, AN shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.02% on average per year.
Looking at the last year, AN shows a decrease in Revenue. The Revenue has decreased by -0.13% in the last year.
The Revenue has been growing slightly by 4.71% on average over the past years.
EPS 1Y (TTM)-8.18%
EPS 3Y47.54%
EPS 5Y39.02%
EPS growth Q2Q-21.19%
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y9.74%
Revenue growth 5Y4.71%
Revenue growth Q2Q1.05%
3.2 Future
AN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.14% yearly.
AN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.41% yearly.
EPS Next Y-14.23%
EPS Next 2Y-4.64%
EPS Next 3Y0.61%
EPS Next 5Y1.14%
Revenue Next Year1.36%
Revenue Next 2Y1.89%
Revenue Next 3Y2.83%
Revenue Next 5Y7.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AN is valuated cheaply with a Price/Earnings ratio of 6.75.
Based on the Price/Earnings ratio, AN is valued cheaply inside the industry as 96.80% of the companies are valued more expensively.
AN is valuated cheaply when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.87, the valuation of AN can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AN indicates a rather cheap valuation: AN is cheaper than 91.20% of the companies listed 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 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.75 | ||
| Fwd PE | 7.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AN is valued cheaper than 80.80% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AN indicates a somewhat cheap valuation: AN is cheaper than 61.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.54 | ||
| EV/EBITDA | 5.41 |
4.3 Compensation for Growth
AN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-4.64%
EPS Next 3Y0.61%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AUTONATION INC
NYSE:AN (4/18/2024, 6:00:00 PM)
After market: 154.62 0 (0%)154.62
+2.29 (+1.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.75 | ||
| Fwd PE | 7.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.52% | ||
| ROE | 46.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.13% | ||
| PM (TTM) | 3.79% | ||
| GM | 19.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.18%
EPS 3Y47.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y9.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y