AUTONATION INC (AN) Stock Fundamental Analysis
USA - NYSE:AN - US05329W1027 - Common Stock
193.2 USD
-3.4 (-1.73%)
193.2 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AN. AN was compared to 122 industry peers in the Specialty Retail industry. AN scores excellent on profitability, but there are concerns on its financial health. AN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
AN had positive earnings in the past year.
In the past year AN had a positive cash flow from operations.
In the past 5 years AN has always been profitable.
Each year in the past 5 years AN had a positive operating cash flow.
1.2 Ratios
AN has a Return On Assets of 4.67%. This is in the better half of the industry: AN outperforms 66.39% of its industry peers.
AN has a better Return On Equity (26.40%) than 84.43% of its industry peers.
AN has a Return On Invested Capital of 12.63%. This is amongst the best in the industry. AN outperforms 81.15% of its industry peers.
AN had an Average Return On Invested Capital over the past 3 years of 18.17%. This is significantly above the industry average of 11.81%.
The last Return On Invested Capital (12.63%) 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 | 26.4% | ||
| ROIC | 12.63% |
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 2.38%. This is in the better half of the industry: AN outperforms 63.11% of its industry peers.
In the last couple of years the Profit Margin of AN has grown nicely.
AN's Operating Margin of 5.09% is fine compared to the rest of the industry. AN outperforms 67.21% of its industry peers.
In the last couple of years the Operating Margin of AN has grown nicely.
The Gross Margin of AN (17.82%) is worse than 81.97% of its industry peers.
In the last couple of years the Gross Margin of AN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.09% | ||
| PM (TTM) | 2.38% | ||
| 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
AN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
AN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AN has been reduced compared to 5 years ago.
AN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.14 indicates that AN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.14, AN is in the better half of the industry, outperforming 74.59% of the companies in the same industry.
AN has a Debt/Equity ratio of 2.01. This is a high value indicating a heavy dependency on external financing.
AN has a worse Debt to Equity ratio (2.01) than 69.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.14 |
ROIC/WACC1.3
WACC9.74%
2.3 Liquidity
A Current Ratio of 0.79 indicates that AN may have some problems paying its short term obligations.
The Current ratio of AN (0.79) is worse than 86.07% of its industry peers.
A Quick Ratio of 0.20 indicates that AN may have some problems paying its short term obligations.
The Quick ratio of AN (0.20) is worse than 89.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.84% 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
AN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.06%.
AN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.64% yearly.
EPS 1Y (TTM)14.84%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%24.63%
Revenue 1Y (TTM)6.06%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.85%
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 12.61% yearly.
Based on estimates for the next years, AN will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y18.08%
EPS Next 2Y11.38%
EPS Next 3Y9.37%
EPS Next 5Y12.61%
Revenue Next Year5.43%
Revenue Next 2Y3.98%
Revenue Next 3Y4.05%
Revenue Next 5Y5.1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.60, the valuation of AN can be described as reasonable.
Based on the Price/Earnings ratio, AN is valued cheaply inside the industry as 84.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.56. AN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.91, the valuation of AN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AN is valued cheaper than 86.07% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than the industry average as 67.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.52 |
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)0.53
PEG (5Y)0.32
EPS Next 2Y11.38%
EPS Next 3Y9.37%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
193.2
-3.4 (-1.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners75.52%
Inst Owner Change-2.51%
Ins Owners1.12%
Ins Owner Change0.01%
Market Cap7.29B
Revenue(TTM)27.92B
Net Income(TTM)663.10M
Analysts80
Price Target232.99 (20.6%)
Short Float %3.96%
Short Ratio3.22
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)6.69%
Min EPS beat(2)0.86%
Max EPS beat(2)12.53%
EPS beat(4)4
Avg EPS beat(4)7.39%
Min EPS beat(4)0.86%
Max EPS beat(4)13.19%
EPS beat(8)5
Avg EPS beat(8)1.08%
EPS beat(12)8
Avg EPS beat(12)1.53%
EPS beat(16)11
Avg EPS beat(16)2.3%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)3.05%
Revenue beat(8)1
Avg Revenue beat(8)-2.09%
Revenue beat(12)1
Avg Revenue beat(12)-2.07%
Revenue beat(16)3
Avg Revenue beat(16)-1.91%
PT rev (1m)1.16%
PT rev (3m)3.92%
EPS NQ rev (1m)-1.51%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0.46%
EPS NY rev (3m)7.4%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 8.91 | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 65.52 | ||
| P/B | 2.9 | ||
| P/tB | 69.32 | ||
| EV/EBITDA | 7.52 |
EPS(TTM)20.12
EY10.41%
EPS(NY)21.67
Fwd EY11.22%
FCF(TTM)-4.73
FCFYN/A
OCF(TTM)2.95
OCFY1.53%
SpS740.27
BVpS66.6
TBVpS2.79
PEG (NY)0.53
PEG (5Y)0.32
Graham Number173.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 26.4% | ||
| ROCE | 17.12% | ||
| ROIC | 12.63% | ||
| ROICexc | 12.78% | ||
| ROICexgc | 17.91% | ||
| OM | 5.09% | ||
| PM (TTM) | 2.38% | ||
| 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%
ROICexgc growth 3Y-15.44%
ROICexgc 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 Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.02 | ||
| Cap/Depr | 115.25% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 3.83 | ||
| Cash Conversion | 6.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | 3.14 |
F-Score3
WACC9.74%
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)14.84%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%24.63%
EPS Next Y18.08%
EPS Next 2Y11.38%
EPS Next 3Y9.37%
EPS Next 5Y12.61%
Revenue 1Y (TTM)6.06%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.85%
Revenue Next Year5.43%
Revenue Next 2Y3.98%
Revenue Next 3Y4.05%
Revenue Next 5Y5.1%
EBIT growth 1Y7.07%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year25.72%
EBIT Next 3Y11.66%
EBIT Next 5Y8.04%
FCF growth 1Y-129.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.74%
OCF growth 3Y-42.18%
OCF growth 5Y-16.37%
AUTONATION INC / AN FAQ
Can you provide the ChartMill fundamental rating for AUTONATION INC?
ChartMill assigns a fundamental rating of 5 / 10 to AN.
What is the valuation status for AN stock?
ChartMill assigns a valuation rating of 7 / 10 to AUTONATION INC (AN). This can be considered as Undervalued.
Can you provide the profitability details for AUTONATION INC?
AUTONATION INC (AN) has a profitability rating of 8 / 10.
What is the financial health of AUTONATION INC (AN) stock?
The financial health rating of AUTONATION INC (AN) is 3 / 10.
What is the earnings growth outlook for AUTONATION INC?
The Earnings per Share (EPS) of AUTONATION INC (AN) is expected to grow by 18.08% in the next year.