AUTONATION INC (AN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AN - US05329W1027 - Common Stock
221.71 USD
+6.06 (+2.81%)
221.71 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AN. AN was compared to 121 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
AN had positive earnings in the past year.
In the past year AN had a positive cash flow from operations.
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's Return On Assets of 4.67% is fine compared to the rest of the industry. AN outperforms 66.12% of its industry peers.
AN has a Return On Equity of 26.40%. This is amongst the best in the industry. AN outperforms 85.95% of its industry peers.
With a decent Return On Invested Capital value of 8.73%, AN is doing good in the industry, outperforming 71.07% of the companies in the same industry.
AN had an Average Return On Invested Capital over the past 3 years of 14.61%. This is above the industry average of 12.23%.
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
Looking at the Profit Margin, with a value of 2.38%, AN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
AN's Profit Margin has improved in the last couple of years.
AN's Operating Margin of 5.09% is fine compared to the rest of the industry. AN outperforms 66.94% of its industry peers.
AN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.82%, AN is not doing good in the industry: 80.99% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AN has grown nicely.
| 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.
AN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AN has less shares outstanding
The debt/assets ratio for AN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.17 indicates that AN is not in any danger for bankruptcy at the moment.
AN has a Altman-Z score of 3.17. This is in the better half of the industry: AN outperforms 76.03% of its industry peers.
A Debt/Equity ratio of 3.52 is on the high side and indicates that AN has dependencies on debt financing.
The Debt to Equity ratio of AN (3.52) is worse than 73.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.17 |
ROIC/WACC1
WACC8.71%
2.3 Liquidity
AN has a Current 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 has a worse Current ratio (0.79) than 85.12% 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 has a worse Quick ratio (0.20) than 87.60% 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.
The Earnings Per Share has been growing by 30.42% on average over the past years. This is a very strong growth
AN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.06%.
The Revenue has been growing slightly by 4.64% on average over the past years.
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
The Earnings Per Share is expected to grow by 12.61% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y18.31%
EPS Next 2Y11.77%
EPS Next 3Y11.16%
EPS Next 5Y12.61%
Revenue Next Year5.56%
Revenue Next 2Y4.05%
Revenue Next 3Y3.85%
Revenue Next 5Y5.1%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 11.02, the valuation of AN can be described as reasonable.
82.64% of the companies in the same industry are more expensive than AN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.29, AN is valued rather cheaply.
A Price/Forward Earnings ratio of 10.16 indicates a reasonable valuation of AN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AN indicates a rather cheap valuation: AN is cheaper than 86.78% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.51. AN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
68.59% of the companies in the same industry are more expensive than AN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.86 |
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)0.6
PEG (5Y)0.36
EPS Next 2Y11.77%
EPS Next 3Y11.16%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
221.71
+6.06 (+2.81%)
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 Cap8.09B
Revenue(TTM)27.92B
Net Income(TTM)663.10M
Analysts80
Price Target243.34 (9.76%)
Short Float %4.23%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)4.44%
PT rev (3m)6.4%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 10.16 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | 72.71 | ||
| P/B | 3.22 | ||
| P/tB | 76.93 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)20.12
EY9.07%
EPS(NY)21.82
Fwd EY9.84%
FCF(TTM)-4.89
FCFYN/A
OCF(TTM)3.05
OCFY1.38%
SpS765.43
BVpS68.87
TBVpS2.88
PEG (NY)0.6
PEG (5Y)0.36
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 | 3.17 |
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 2Y11.77%
EPS Next 3Y11.16%
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 for 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.
What is the financial health of AUTONATION INC (AN) stock?
The financial health rating of AUTONATION INC (AN) is 3 / 10.
What is the earnings growth outlook for AUTONATION INC?
The Earnings per Share (EPS) of AUTONATION INC (AN) is expected to grow by 18.31% in the next year.