AUTONATION INC (AN) Stock Fundamental Analysis
NYSE:AN - New York Stock Exchange, Inc. - US05329W1027 - Common Stock - Currency: USD
Overall AN gets a fundamental rating of 5 out of 10. We evaluated AN against 121 industry peers in the Specialty Retail industry. While AN belongs to the best of the industry regarding profitability, there are concerns on its financial health. AN has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years AN has been profitable.
Each year in the past 5 years AN had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.32%, AN is doing good in the industry, outperforming 68.59% of the companies in the same industry.
AN has a Return On Equity of 28.17%. This is amongst the best in the industry. AN outperforms 85.12% of its industry peers.
AN has a better Return On Invested Capital (13.79%) than 82.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AN is significantly above the industry average of 13.08%.
The last Return On Invested Capital (13.79%) for AN is well below the 3 year average (18.17%), which needs to be investigated, but indicates that AN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 28.17% | ||
| ROIC | 13.79% |
ROA(3y)9.18%
ROA(5y)9.35%
ROE(3y)47.19%
ROE(5y)42.23%
ROIC(3y)18.17%
ROIC(5y)17.97%
1.3 Margins
Looking at the Profit Margin, with a value of 2.59%, AN is in the better half of the industry, outperforming 65.29% of the companies in the same industry.
AN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.99%, AN is in the better half of the industry, outperforming 67.77% of the companies in the same industry.
AN's Operating Margin has improved in the last couple of years.
AN's Gross Margin of 17.88% is on the low side compared to the rest of the industry. AN is outperformed by 83.47% of its industry peers.
In the last couple of years the Gross Margin of AN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.99% | ||
| PM (TTM) | 2.59% | ||
| GM | 17.88% |
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 well above the Cost of Capital (WACC), so AN is creating value.
The number of shares outstanding for AN has been reduced compared to 1 year ago.
The number of shares outstanding for AN has been reduced compared to 5 years ago.
The debt/assets ratio for AN has been reduced compared to a year ago.
2.2 Solvency
AN has an Altman-Z score of 3.21. This indicates that AN is financially healthy and has little risk of bankruptcy at the moment.
AN's Altman-Z score of 3.21 is fine compared to the rest of the industry. AN outperforms 74.38% of its industry peers.
AN has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
AN has a worse Debt to Equity ratio (1.64) than 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.21 |
ROIC/WACC1.43
WACC9.62%
2.3 Liquidity
A Current Ratio of 0.74 indicates that AN may have some problems paying its short term obligations.
The Current ratio of AN (0.74) is worse than 88.43% of its industry peers.
AN has a Quick Ratio of 0.74. 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 0.21 is on the low side compared to the rest of the industry. AN is outperformed by 85.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The earnings per share for AN have decreased strongly by -17.24% in the last year.
AN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.42% yearly.
Looking at the last year, AN shows a decrease in Revenue. The Revenue has decreased by -0.24% in the last 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)-17.24%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%4.23%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%3.16%
3.2 Future
Based on estimates for the next years, AN will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.01% on average per year.
Based on estimates for the next years, AN will show a small growth in Revenue. The Revenue will grow by 5.04% on average per year.
EPS Next Y7.03%
EPS Next 2Y9.22%
EPS Next 3Y11.3%
EPS Next 5Y13.01%
Revenue Next Year2.75%
Revenue Next 2Y2.55%
Revenue Next 3Y3.63%
Revenue Next 5Y5.04%
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
With a Price/Earnings ratio of 9.86, the valuation of AN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AN indicates a rather cheap valuation: AN is cheaper than 83.47% of the companies listed in the same industry.
AN is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.36, which indicates a very decent 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 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 8.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than 66.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.81 |
4.3 Compensation for Growth
AN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.4
PEG (5Y)0.32
EPS Next 2Y9.22%
EPS Next 3Y11.3%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
174.15
-0.16 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.8%
Inst Owner Change0.28%
Ins Owners0.79%
Ins Owner Change0.08%
Market Cap6.84B
Analysts80
Price Target202.41 (16.23%)
Short Float %3.62%
Short Ratio2.33
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)1
Avg EPS beat(2)1.16%
Min EPS beat(2)-10.87%
Max EPS beat(2)13.19%
EPS beat(4)2
Avg EPS beat(4)-1.57%
Min EPS beat(4)-10.87%
Max EPS beat(4)13.19%
EPS beat(8)4
Avg EPS beat(8)-0.51%
EPS beat(12)7
Avg EPS beat(12)0.64%
EPS beat(16)11
Avg EPS beat(16)9.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)3.05%
Revenue beat(4)1
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-6.42%
Max Revenue beat(4)3.05%
Revenue beat(8)1
Avg Revenue beat(8)-2.61%
Revenue beat(12)2
Avg Revenue beat(12)-2.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.32%
PT rev (1m)-5.55%
PT rev (3m)2.19%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 21.72 | ||
| P/B | 2.78 | ||
| P/tB | 69.39 | ||
| EV/EBITDA | 6.81 |
EPS(TTM)17.66
EY10.14%
EPS(NY)20.84
Fwd EY11.97%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)8.02
OCFY4.6%
SpS681.92
BVpS62.61
TBVpS2.51
PEG (NY)1.4
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 28.17% | ||
| ROCE | 19.98% | ||
| ROIC | 13.79% | ||
| ROICexc | 13.91% | ||
| ROICexgc | 20.6% | ||
| OM | 4.99% | ||
| PM (TTM) | 2.59% | ||
| GM | 17.88% | ||
| FCFM | N/A |
ROA(3y)9.18%
ROA(5y)9.35%
ROE(3y)47.19%
ROE(5y)42.23%
ROIC(3y)18.17%
ROIC(5y)17.97%
ROICexc(3y)18.34%
ROICexc(5y)18.39%
ROICexgc(3y)27.57%
ROICexgc(5y)27.49%
ROCE(3y)25.25%
ROCE(5y)24.86%
ROICexcg growth 3Y-15.44%
ROICexcg growth 5Y3.42%
ROICexc growth 3Y-15.61%
ROICexc growth 5Y4.99%
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-Score4
Asset Turnover2.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 136.48% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 3.41 | ||
| Cash Conversion | 19.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 3.21 |
F-Score4
WACC9.62%
ROIC/WACC1.43
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)-17.24%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%4.23%
EPS Next Y7.03%
EPS Next 2Y9.22%
EPS Next 3Y11.3%
EPS Next 5Y13.01%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%3.16%
Revenue Next Year2.75%
Revenue Next 2Y2.55%
Revenue Next 3Y3.63%
Revenue Next 5Y5.04%
EBIT growth 1Y-19.09%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year23.35%
EBIT Next 3Y11.98%
EBIT Next 5Y7.87%
FCF growth 1Y-104.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-56.53%
OCF growth 3Y-42.18%
OCF growth 5Y-16.37%