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AUTONATION INC (AN) Stock Fundamental Analysis

NYSE:AN - New York Stock Exchange, Inc. - US05329W1027 - Common Stock - Currency: USD

192.91  +2.44 (+1.28%)

After market: 192.91 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AN. AN was compared to 121 industry peers in the Specialty Retail industry. AN has an excellent profitability rating, but there are concerns on its financial health. AN is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year AN was profitable.
In the past year AN has reported a negative cash flow from operations.
Each year in the past 5 years AN has been profitable.
AN had a positive operating cash flow in each of the past 5 years.
AN Yearly Net Income VS EBIT VS OCF VS FCFAN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

1.2 Ratios

AN's Return On Assets of 5.08% is fine compared to the rest of the industry. AN outperforms 68.59% of its industry peers.
AN's Return On Equity of 28.20% is amongst the best of the industry. AN outperforms 85.12% of its industry peers.
AN's Return On Invested Capital of 12.93% is amongst the best of the industry. AN outperforms 80.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AN is significantly above the industry average of 13.03%.
The 3 year average ROIC (18.17%) for AN is well above the current ROIC(12.93%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 5.08%
ROE 28.2%
ROIC 12.93%
ROA(3y)9.18%
ROA(5y)9.35%
ROE(3y)47.19%
ROE(5y)42.23%
ROIC(3y)18.17%
ROIC(5y)17.97%
AN Yearly ROA, ROE, ROICAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

AN has a better Profit Margin (2.51%) than 62.81% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
AN has a better Operating Margin (4.94%) than 67.77% of its industry peers.
AN's Operating Margin has improved in the last couple of years.
AN's Gross Margin of 17.82% is on the low side compared to the rest of the industry. AN is outperformed by 83.47% of its industry peers.
AN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 4.94%
PM (TTM) 2.51%
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%
AN Yearly Profit, Operating, Gross MarginsAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AN is creating value.
The number of shares outstanding for AN has been reduced compared to 1 year ago.
Compared to 5 years ago, AN has less shares outstanding
Compared to 1 year ago, AN has an improved debt to assets ratio.
AN Yearly Shares OutstandingAN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
AN Yearly Total Debt VS Total AssetsAN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 3.21 indicates that AN is not in any danger for bankruptcy at the moment.
The Altman-Z score of AN (3.21) is better than 74.38% of its industry peers.
AN has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AN (1.87) is worse than 69.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.87
Debt/FCF N/A
Altman-Z 3.21
ROIC/WACC1.3
WACC9.96%
AN Yearly LT Debt VS Equity VS FCFAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

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.
AN's Current ratio of 0.77 is on the low side compared to the rest of the industry. AN is outperformed by 87.60% of its industry peers.
A Quick Ratio of 0.22 indicates that AN may have some problems paying its short term obligations.
AN's Quick ratio of 0.22 is on the low side compared to the rest of the industry. AN is outperformed by 85.95% of its industry peers.
Industry RankSector Rank
Current Ratio 0.77
Quick Ratio 0.22
AN Yearly Current Assets VS Current LiabilitesAN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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4

3. Growth

3.1 Past

AN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.24%.
AN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.42% yearly.
The Revenue has decreased by -0.24% in the past year.
The Revenue has been growing slightly by 4.64% on average over the past years.
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

The Earnings Per Share is expected to grow by 11.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.34% on average over the next years.
EPS Next Y8.81%
EPS Next 2Y8.46%
EPS Next 3Y9.72%
EPS Next 5Y11.43%
Revenue Next Year3.02%
Revenue Next 2Y2.76%
Revenue Next 3Y3.39%
Revenue Next 5Y7.34%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
AN Yearly Revenue VS EstimatesAN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
AN Yearly EPS VS EstimatesAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30

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6

4. Valuation

4.1 Price/Earnings Ratio

AN is valuated reasonably with a Price/Earnings ratio of 10.92.
Compared to the rest of the industry, the Price/Earnings ratio of AN indicates a rather cheap valuation: AN is cheaper than 82.64% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. AN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.39, the valuation of AN can be described as reasonable.
Based on the Price/Forward Earnings ratio, AN is valued a bit cheaper than 77.69% of the companies in the same industry.
AN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.92
Fwd PE 9.39
AN Price Earnings VS Forward Price EarningsAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

AN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AN is cheaper than 66.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.55
AN Per share dataAN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AN may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)0.36
EPS Next 2Y8.46%
EPS Next 3Y9.72%

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0

5. Dividend

5.1 Amount

AN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AUTONATION INC

NYSE:AN (6/18/2025, 8:04:00 PM)

After market: 192.91 0 (0%)

192.91

+2.44 (+1.28%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-25 2025-04-25/bmo
Earnings (Next)07-29 2025-07-29/bmo
Inst Owners69.24%
Inst Owner Change-3.91%
Ins Owners1.12%
Ins Owner Change0.06%
Market Cap7.27B
Analysts80.91
Price Target209.41 (8.55%)
Short Float %4.13%
Short Ratio3
Dividend
Industry RankSector 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)8.08%
Min EPS beat(2)2.96%
Max EPS beat(2)13.19%
EPS beat(4)2
Avg EPS beat(4)-1.36%
Min EPS beat(4)-10.87%
Max EPS beat(4)13.19%
EPS beat(8)4
Avg EPS beat(8)-0.44%
EPS beat(12)7
Avg EPS beat(12)0.32%
EPS beat(16)11
Avg EPS beat(16)6.79%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)3.05%
Revenue beat(4)1
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-6.42%
Max Revenue beat(4)3.05%
Revenue beat(8)1
Avg Revenue beat(8)-2.1%
Revenue beat(12)1
Avg Revenue beat(12)-2.54%
Revenue beat(16)4
Avg Revenue beat(16)-1.31%
PT rev (1m)2.39%
PT rev (3m)-2.29%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)4.41%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.5%
Valuation
Industry RankSector Rank
PE 10.92
Fwd PE 9.39
P/S 0.27
P/FCF N/A
P/OCF N/A
P/B 3.03
P/tB N/A
EV/EBITDA 7.55
EPS(TTM)17.66
EY9.15%
EPS(NY)20.55
Fwd EY10.65%
FCF(TTM)-9.08
FCFYN/A
OCF(TTM)-0.86
OCFYN/A
SpS715.39
BVpS63.75
TBVpS-0.42
PEG (NY)1.24
PEG (5Y)0.36
Profitability
Industry RankSector Rank
ROA 5.08%
ROE 28.2%
ROCE 17.9%
ROIC 12.93%
ROICexc 13.05%
ROICexgc 19.01%
OM 4.94%
PM (TTM) 2.51%
GM 17.82%
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-Score2
Asset Turnover2.02
Health
Industry RankSector Rank
Debt/Equity 1.87
Debt/FCF N/A
Debt/EBITDA 2.84
Cap/Depr 126.95%
Cap/Sales 1.15%
Interest Coverage 3.43
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.77
Quick Ratio 0.22
Altman-Z 3.21
F-Score2
WACC9.96%
ROIC/WACC1.3
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 Y8.81%
EPS Next 2Y8.46%
EPS Next 3Y9.72%
EPS Next 5Y11.43%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%3.16%
Revenue Next Year3.02%
Revenue Next 2Y2.76%
Revenue Next 3Y3.39%
Revenue Next 5Y7.34%
EBIT growth 1Y-13.98%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year20.98%
EBIT Next 3Y11.34%
EBIT Next 5Y7.87%
FCF growth 1Y-129.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-102.1%
OCF growth 3Y-42.18%
OCF growth 5Y-16.37%