AUTONATION INC (AN) Stock Fundamental Analysis
NYSE:AN - New York Stock Exchange, Inc. - US05329W1027 - Common Stock - Currency: USD
AN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. AN scores excellent on profitability, but there are concerns on its financial health. AN has a correct valuation and a medium growth rate.
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.
In the past 5 years AN always reported a positive cash flow from operatings.
1.2 Ratios
AN has a Return On Assets of 4.67%. This is in the better half of the industry: AN outperforms 67.48% of its industry peers.
AN's Return On Equity of 25.67% is amongst the best of the industry. AN outperforms 82.11% 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.
The Average Return On Invested Capital over the past 3 years for AN is significantly above the industry average of 12.05%.
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.
Looking at the Operating Margin, with a value of 5.12%, AN is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
In the last couple of years the Operating Margin of AN has grown nicely.
The Gross Margin of AN (17.91%) is worse than 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
AN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
AN has a better debt/assets ratio than last year.
2.2 Solvency
AN has an Altman-Z score of 3.23. This indicates that AN is financially healthy and has little risk of bankruptcy at the moment.
AN's Altman-Z score of 3.23 is fine compared to the rest of the industry. AN outperforms 73.17% 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's Debt to Equity ratio of 1.89 is on the low side compared to the rest of the industry. AN is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.23 |
ROIC/WACC1.43
WACC9.29%
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.
The Current ratio of AN (0.81) is worse than 85.37% 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 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.47% over the past year.
The Earnings Per Share has been growing by 30.42% on average over the past years. This is a very strong growth
Looking at the last year, AN shows a small growth in Revenue. The Revenue has grown by 3.15% in the last year.
The Revenue has been growing slightly by 4.64% on average over the past years.
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
Based on estimates for the next years, AN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.43% on average per year.
Based on estimates for the next years, AN will show a small growth in Revenue. The Revenue will grow by 7.34% on average per year.
EPS Next Y9.94%
EPS Next 2Y8.63%
EPS Next 3Y9.95%
EPS Next 5Y11.43%
Revenue Next Year3.63%
Revenue Next 2Y3.08%
Revenue Next 3Y3.49%
Revenue Next 5Y7.34%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.10, the valuation of AN can be described as reasonable.
83.74% of the companies in the same industry are more expensive than AN, based on the Price/Earnings ratio.
AN is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
AN is valuated reasonably with a Price/Forward Earnings ratio of 9.37.
AN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AN is cheaper than 83.74% of the companies in the same industry.
AN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AN indicates a somewhat cheap valuation: AN is cheaper than 67.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.35 |
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)1.02
PEG (5Y)0.33
EPS Next 2Y8.63%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:AN (8/5/2025, 11:39:14 AM)
193.225
+3.95 (+2.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.24%
Inst Owner Change-0.09%
Ins Owners1.12%
Ins Owner Change0.11%
Market Cap7.29B
Analysts80.91
Price Target215.03 (11.28%)
Short Float %3.23%
Short Ratio2.52
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)1.21%
PT rev (3m)6.23%
EPS NQ rev (1m)4.73%
EPS NQ rev (3m)0.96%
EPS NY rev (1m)0.05%
EPS NY rev (3m)2.73%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.37 | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.95 | ||
| P/tB | 38.11 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)19.13
EY9.9%
EPS(NY)20.62
Fwd EY10.67%
FCF(TTM)-11.99
FCFYN/A
OCF(TTM)-3.99
OCFYN/A
SpS728.3
BVpS65.49
TBVpS5.07
PEG (NY)1.02
PEG (5Y)0.33
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 | 3.23 |
F-Score3
WACC9.29%
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)0.47%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%36.84%
EPS Next Y9.94%
EPS Next 2Y8.63%
EPS Next 3Y9.95%
EPS Next 5Y11.43%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%7.62%
Revenue Next Year3.63%
Revenue Next 2Y3.08%
Revenue Next 3Y3.49%
Revenue Next 5Y7.34%
EBIT growth 1Y1.46%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year20.98%
EBIT Next 3Y11.34%
EBIT Next 5Y7.87%
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%