AUTONATION INC (AN) Stock Fundamental Analysis
USA - NYSE:AN - US05329W1027 - Common Stock
200.21 USD
-8.46 (-4.05%)
200.21 USD
0 (0%)
AN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. While AN has a great profitability rating, there are quite some concerns on its financial health. AN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AN had positive earnings in the past year.
AN had a negative operating cash flow in the past year.
Each year in the past 5 years AN has been profitable.
Each year in the past 5 years AN had a positive operating cash flow.
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 66.39% of the companies in the same industry.
AN has a better Return On Equity (25.67%) than 83.19% of its industry peers.
The Return On Invested Capital of AN (13.28%) is better than 81.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AN is significantly above the industry average of 11.91%.
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
AN's Profit Margin of 2.31% is fine compared to the rest of the industry. AN outperforms 63.03% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
AN has a better Operating Margin (5.12%) than 67.23% of its industry peers.
In the last couple of years the Operating Margin of AN has grown nicely.
With a Gross Margin value of 17.91%, AN is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
AN's Gross Margin has improved in the last couple of years.
| 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.
The debt/assets ratio for AN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.27 indicates that AN is not in any danger for bankruptcy at the moment.
AN has a better Altman-Z score (3.27) than 74.79% of its industry peers.
AN has a Debt/Equity ratio of 1.89. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.89, AN is doing worse than 68.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.27 |
ROIC/WACC1.33
WACC9.95%
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 84.87% of its industry peers.
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 has a Quick ratio of 0.21. This is amonst the worse of the industry: AN underperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
AN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.84%, which is quite good.
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 -0.68%.
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)-0.68%
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 12.28% yearly.
AN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.74% yearly.
EPS Next Y17.4%
EPS Next 2Y11.51%
EPS Next 3Y11.48%
EPS Next 5Y12.28%
Revenue Next Year4.63%
Revenue Next 2Y3.4%
Revenue Next 3Y3.57%
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
A Price/Earnings ratio of 9.95 indicates a reasonable valuation of AN.
Based on the Price/Earnings ratio, AN is valued cheaper than 84.03% of the companies in the same industry.
AN is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.22 indicates a reasonable valuation of AN.
Based on the Price/Forward Earnings ratio, AN is valued cheaply inside the industry as 84.87% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AN to the average of the S&P500 Index (22.92), we can say AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than 69.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
AN's 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)0.57
PEG (5Y)0.33
EPS Next 2Y11.51%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
No dividends for AN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
200.21
-8.46 (-4.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners75.52%
Inst Owner Change0.77%
Ins Owners1.12%
Ins Owner Change-0.02%
Market Cap7.55B
Revenue(TTM)26.77B
Net Income(TTM)633.80M
Analysts80
Price Target230.32 (15.04%)
Short Float %3.59%
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)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)1.14%
PT rev (3m)8.4%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)6.15%
EPS NY rev (1m)0%
EPS NY rev (3m)6.91%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.22 | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.06 | ||
| P/tB | 39.49 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)20.12
EY10.05%
EPS(NY)21.72
Fwd EY10.85%
FCF(TTM)-11.99
FCFYN/A
OCF(TTM)-3.99
OCFYN/A
SpS728.3
BVpS65.49
TBVpS5.07
PEG (NY)0.57
PEG (5Y)0.33
Graham Number172.18
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%
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 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 | 3.27 |
F-Score3
WACC9.95%
ROIC/WACC1.33
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 Y17.4%
EPS Next 2Y11.51%
EPS Next 3Y11.48%
EPS Next 5Y12.28%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.85%
Revenue Next Year4.63%
Revenue Next 2Y3.4%
Revenue Next 3Y3.57%
Revenue Next 5Y4.74%
EBIT growth 1Y1.46%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year25.72%
EBIT Next 3Y11.66%
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%
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 17.4% in the next year.