AUTONATION INC (AN) Stock Fundamental Analysis
NYSE:AN - US05329W1027 - Common Stock
221.655 USD
-0.43 (-0.19%)
Taking everything into account, AN scores 5 out of 10 in our fundamental rating. AN was compared to 123 industry peers in the Specialty Retail industry. While AN has a great profitability rating, there are quite some 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.
In the past 5 years AN has always been profitable.
AN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.67%, AN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
AN has a better Return On Equity (25.67%) than 82.93% of its industry peers.
AN's Return On Invested Capital of 13.28% is amongst the best of the industry. AN outperforms 82.11% 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 11.94%.
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 62.60% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
AN's Operating Margin of 5.12% is fine compared to the rest of the industry. AN outperforms 68.29% of its industry peers.
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 82.11% 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.
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.
Compared to 1 year ago, AN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.30 indicates that AN is not in any danger for bankruptcy at the moment.
The Altman-Z score of AN (3.30) is better than 73.98% 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.
Looking at the Debt to Equity ratio, with a value of 1.89, AN is doing worse than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.3 |
ROIC/WACC1.34
WACC9.88%
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.
With a Current ratio value of 0.81, AN is not doing good in the industry: 83.74% of the companies in the same industry are doing better.
AN has a Quick 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 Quick ratio of 0.21 is on the low side compared to the rest of the industry. AN is outperformed by 85.37% 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%.
AN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.42% yearly.
AN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.15%.
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
The Earnings Per Share is expected to grow by 12.28% on average over the next years. This is quite good.
Based on estimates for the next years, AN will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
EPS Next Y17.63%
EPS Next 2Y11.15%
EPS Next 3Y10.98%
EPS Next 5Y12.28%
Revenue Next Year4.12%
Revenue Next 2Y3.17%
Revenue Next 3Y3.36%
Revenue Next 5Y4.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 11.59, the valuation of AN can be described as very reasonable.
Based on the Price/Earnings ratio, AN is valued cheaper than 83.74% of the companies in the same industry.
When comparing the Price/Earnings ratio of AN to the average of the S&P500 Index (27.14), we can say AN is valued rather cheaply.
AN is valuated reasonably with a Price/Forward Earnings ratio of 10.27.
84.55% of the companies in the same industry are more expensive than AN, based on the Price/Forward Earnings ratio.
AN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
69.92% 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 | 8.1 |
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)0.66
PEG (5Y)0.38
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 |
NYSE:AN (8/28/2025, 3:08:17 PM)
221.655
-0.43 (-0.19%)
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 Change0.15%
Market Cap8.36B
Analysts80.91
Price Target228.71 (3.18%)
Short Float %3.12%
Short Ratio2.34
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)6.36%
PT rev (3m)11.83%
EPS NQ rev (1m)7.34%
EPS NQ rev (3m)4.65%
EPS NY rev (1m)7%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)1.34%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.27 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.38 | ||
| P/tB | 43.72 | ||
| EV/EBITDA | 8.1 |
EPS(TTM)19.13
EY8.63%
EPS(NY)21.58
Fwd EY9.74%
FCF(TTM)-11.99
FCFYN/A
OCF(TTM)-3.99
OCFYN/A
SpS728.3
BVpS65.49
TBVpS5.07
PEG (NY)0.66
PEG (5Y)0.38
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
WACC9.88%
ROIC/WACC1.34
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 Year4.12%
Revenue Next 2Y3.17%
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%