AUTONATION INC (AN) Stock Fundamental Analysis
USA - NYSE:AN - US05329W1027 - Common Stock
217.82 USD
-3.28 (-1.48%)
217.82 USD
0 (0%)
Overall AN gets a fundamental rating of 5 out of 10. We evaluated AN against 121 industry peers in the Specialty Retail industry. AN scores excellent on profitability, but there are concerns on its financial health. AN is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years AN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AN (4.67%) is better than 66.94% of its industry peers.
The Return On Equity of AN (25.67%) is better than 83.47% of its industry peers.
With an excellent Return On Invested Capital value of 13.28%, AN belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AN is significantly above the industry average of 12.16%.
The last Return On Invested Capital (13.28%) 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 | 4.67% | ||
| ROE | 25.67% | ||
| ROIC | 13.28% |
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
The Profit Margin of AN (2.31%) is better than 63.64% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 5.12%, AN is doing good in the industry, outperforming 68.59% of the companies in the same industry.
In the last couple of years the Operating Margin of AN has grown nicely.
AN's Gross Margin of 17.91% is on the low side compared to the rest of the industry. AN is outperformed by 81.82% of its industry peers.
In the last couple of years the Gross Margin of AN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.12% | ||
| PM (TTM) | 2.31% | ||
| GM | 17.91% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AN is creating value.
Compared to 1 year ago, AN has less shares outstanding
The number of shares outstanding for AN has been reduced compared to 5 years ago.
Compared to 1 year ago, AN has an improved debt to assets ratio.
2.2 Solvency
AN has an Altman-Z score of 3.30. This indicates that AN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AN (3.30) is better than 71.90% of its industry peers.
A Debt/Equity ratio of 1.89 is on the high side and indicates that AN has dependencies on debt financing.
AN has a worse Debt to Equity ratio (1.89) than 69.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.3 |
ROIC/WACC1.32
WACC10.09%
2.3 Liquidity
AN has a Current Ratio of 0.81. 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 0.81 is on the low side compared to the rest of the industry. AN is outperformed by 85.12% of its industry peers.
A Quick Ratio of 0.21 indicates that AN may have some problems paying its short term obligations.
AN has a Quick ratio of 0.21. This is amonst the worse of the industry: AN underperforms 87.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
AN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.47%.
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.
Looking at the last year, AN shows a small growth in Revenue. The Revenue has grown by 3.15% 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)0.47%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%36.84%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%7.62%
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 12.28% yearly.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y17.63%
EPS Next 2Y11.15%
EPS Next 3Y10.98%
EPS Next 5Y12.28%
Revenue Next Year4.19%
Revenue Next 2Y3.26%
Revenue Next 3Y3.36%
Revenue Next 5Y4.74%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.39, the valuation of AN can be described as reasonable.
Based on the Price/Earnings ratio, AN is valued cheaply inside the industry as 83.47% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.38. AN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.09, the valuation of AN can be described as reasonable.
83.47% of the companies in the same industry are more expensive than AN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AN to the average of the S&P500 Index (22.86), we can say AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
AN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AN is cheaper than 71.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.08 |
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.
The excellent profitability rating of AN may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)0.37
EPS Next 2Y11.15%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
No dividends for AN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
217.82
-3.28 (-1.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.13%
Inst Owner Change2.87%
Ins Owners1.12%
Ins Owner Change-0.02%
Market Cap8.21B
Analysts80.91
Price Target227.71 (4.54%)
Short Float %3.72%
Short Ratio2.96
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)7.75%
Min EPS beat(2)2.96%
Max EPS beat(2)12.53%
EPS beat(4)3
Avg EPS beat(4)4.45%
Min EPS beat(4)-10.87%
Max EPS beat(4)13.19%
EPS beat(8)4
Avg EPS beat(8)0.72%
EPS beat(12)7
Avg EPS beat(12)1.26%
EPS beat(16)11
Avg EPS beat(16)3.38%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-1.13%
Revenue beat(4)1
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)3.05%
Revenue beat(8)1
Avg Revenue beat(8)-2.08%
Revenue beat(12)1
Avg Revenue beat(12)-2.24%
Revenue beat(16)3
Avg Revenue beat(16)-2%
PT rev (1m)1.56%
PT rev (3m)8.74%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)7%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 10.09 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.33 | ||
| P/tB | 42.96 | ||
| EV/EBITDA | 8.08 |
EPS(TTM)19.13
EY8.78%
EPS(NY)21.58
Fwd EY9.91%
FCF(TTM)-11.99
FCFYN/A
OCF(TTM)-3.99
OCFYN/A
SpS728.3
BVpS65.49
TBVpS5.07
PEG (NY)0.65
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 25.67% | ||
| ROCE | 17.87% | ||
| ROIC | 13.28% | ||
| ROICexc | 13.38% | ||
| ROICexgc | 18.76% | ||
| OM | 5.12% | ||
| PM (TTM) | 2.31% | ||
| GM | 17.91% | ||
| 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-Score3
Asset Turnover2.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 121.48% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 3.3 |
F-Score3
WACC10.09%
ROIC/WACC1.32
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)0.47%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%36.84%
EPS Next Y17.63%
EPS Next 2Y11.15%
EPS Next 3Y10.98%
EPS Next 5Y12.28%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%7.62%
Revenue Next Year4.19%
Revenue Next 2Y3.26%
Revenue Next 3Y3.36%
Revenue Next 5Y4.74%
EBIT growth 1Y1.46%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year25.5%
EBIT Next 3Y12.03%
EBIT Next 5Y7.88%
FCF growth 1Y-149.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-111.76%
OCF growth 3Y-42.18%
OCF growth 5Y-16.37%