AUTONATION INC (AN) Stock Fundamental Analysis
NYSE:AN - New York Stock Exchange, Inc. - US05329W1027 - Common Stock - Currency: USD
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 scores excellent on profitability, but there are concerns on its financial health. AN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AN was profitable.
AN had a negative operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 5.08%, AN is in the better half of the industry, outperforming 68.59% of the companies in the same industry.
With an excellent Return On Equity value of 28.20%, AN belongs to the best of the industry, outperforming 85.12% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.93%, AN belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AN is significantly above the industry average of 12.74%.
The last Return On Invested Capital (12.93%) 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 | 5.08% | ||
| 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%
1.3 Margins
AN has a Profit Margin of 2.51%. This is in the better half of the industry: AN outperforms 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 4.94%, AN is doing good in the industry, outperforming 67.77% of the companies in the same industry.
AN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.82%, AN is not doing good in the industry: 83.47% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AN has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AN is creating some value.
AN has less shares outstanding than it did 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 Altman-Z score of 3.19 indicates that AN is not in any danger for bankruptcy at the moment.
AN has a Altman-Z score of 3.19. This is in the better half of the industry: AN outperforms 75.21% 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.
With a Debt to Equity ratio value of 1.87, AN is not doing good in the industry: 69.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.19 |
ROIC/WACC1.27
WACC10.15%
2.3 Liquidity
A Current Ratio of 0.77 indicates that AN may have some problems paying its short term obligations.
With a Current ratio value of 0.77, AN is not doing good in the industry: 86.78% of the companies in the same industry are doing better.
AN has a Quick 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.
With a Quick ratio value of 0.22, AN is not doing good in the industry: 85.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.22 |
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.
AN shows a decrease in Revenue. In the last year, the revenue decreased by -0.24%.
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
The Earnings Per Share is expected to grow by 13.01% on average over the next years. This is quite good.
AN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y8.81%
EPS Next 2Y8.46%
EPS Next 3Y9.72%
EPS Next 5Y13.01%
Revenue Next Year2.88%
Revenue Next 2Y2.73%
Revenue Next 3Y3.39%
Revenue Next 5Y5.04%
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
The Price/Earnings ratio is 10.32, which indicates a very decent valuation of AN.
AN's Price/Earnings ratio is rather cheap when compared to the industry. AN is cheaper than 83.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. AN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.87, which indicates a very decent valuation of AN.
AN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AN is cheaper than 82.64% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AN to the average of the S&P500 Index (21.76), we can say AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
AN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AN is cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.3 |
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)1.17
PEG (5Y)0.34
EPS Next 2Y8.46%
EPS Next 3Y9.72%
5. Dividend
5.1 Amount
No dividends for AN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
182.21
+1.62 (+0.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.8%
Inst Owner Change-3.91%
Ins Owners0.79%
Ins Owner Change0.06%
Market Cap6.87B
Analysts80.91
Price Target204.51 (12.24%)
Short Float %3.47%
Short Ratio2.09
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)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)-5.82%
PT rev (3m)-2.95%
EPS NQ rev (1m)5.66%
EPS NQ rev (3m)5.82%
EPS NY rev (1m)1.67%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)1.93%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.25 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.3 |
EPS(TTM)17.66
EY9.69%
EPS(NY)20.55
Fwd EY11.28%
FCF(TTM)-9.08
FCFYN/A
OCF(TTM)-0.86
OCFYN/A
SpS715.39
BVpS63.75
TBVpS-0.42
PEG (NY)1.17
PEG (5Y)0.34
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.19 |
F-Score2
WACC10.15%
ROIC/WACC1.27
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 5Y13.01%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%3.16%
Revenue Next Year2.88%
Revenue Next 2Y2.73%
Revenue Next 3Y3.39%
Revenue Next 5Y5.04%
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%