AUTONATION INC (AN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AN - US05329W1027 - Common Stock
215.92 USD
+0.79 (+0.37%)
215.92 USD
0 (0%)
Taking everything into account, AN scores 5 out of 10 in our fundamental rating. AN was compared to 122 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
In the past year AN was profitable.
AN had a positive operating cash flow in the past year.
AN had positive earnings in each of the past 5 years.
Each year in the past 5 years AN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AN (4.67%) is better than 66.39% of its industry peers.
AN's Return On Equity of 26.40% is amongst the best of the industry. AN outperforms 86.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.73%, AN is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AN is above the industry average of 11.71%.
The last Return On Invested Capital (8.73%) for AN is well below the 3 year average (14.61%), 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 | 8.73% |
ROA(3y)9.18%
ROA(5y)9.35%
ROE(3y)47.19%
ROE(5y)42.23%
ROIC(3y)14.61%
ROIC(5y)15.84%
1.3 Margins
AN has a better Profit Margin (2.38%) than 63.93% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
AN has a Operating Margin of 5.09%. This is in the better half of the industry: AN outperforms 67.21% of its industry peers.
AN's Operating Margin has improved in the last couple of years.
AN has a Gross Margin of 17.82%. This is amonst the worse of the industry: AN underperforms 81.15% of its industry peers.
AN's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AN is still creating some value.
AN has less shares outstanding than it did 1 year ago.
AN has less shares outstanding than it did 5 years ago.
AN has a better debt/assets ratio than last year.
2.2 Solvency
AN has an Altman-Z score of 3.17. This indicates that AN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.17, AN is doing good in the industry, outperforming 77.05% of the companies in the same industry.
AN has a Debt/Equity ratio of 3.52. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AN (3.52) is worse than 72.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.17 |
ROIC/WACC0.89
WACC9.84%
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 85.25% of its industry peers.
A Quick Ratio of 0.20 indicates that AN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.20, AN is doing worse than 87.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.2 |
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.
Measured over the past years, AN shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.42% on average per year.
The Revenue has been growing slightly by 6.06% in the past year.
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)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
Based on estimates for the next years, AN will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.61% on average per year.
AN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y18.31%
EPS Next 2Y11.77%
EPS Next 3Y11.16%
EPS Next 5Y12.61%
Revenue Next Year5.56%
Revenue Next 2Y4.05%
Revenue Next 3Y3.85%
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
A Price/Earnings ratio of 10.73 indicates a reasonable valuation of AN.
Based on the Price/Earnings ratio, AN is valued cheaply inside the industry as 82.79% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.46, AN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.89, 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 86.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AN to the average of the S&P500 Index (36.10), we can say AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than the industry average as 69.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.87 |
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)0.59
PEG (5Y)0.35
EPS Next 2Y11.77%
EPS Next 3Y11.16%
5. Dividend
5.1 Amount
No dividends for AN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
215.92
+0.79 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners76.45%
Inst Owner Change-3%
Ins Owners1.16%
Ins Owner Change0%
Market Cap7.87B
Revenue(TTM)27.92B
Net Income(TTM)663.10M
Analysts80
Price Target243.34 (12.7%)
Short Float %4.23%
Short Ratio3.5
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)4.44%
PT rev (3m)6.4%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 9.89 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | 70.81 | ||
| P/B | 3.14 | ||
| P/tB | 74.92 | ||
| EV/EBITDA | 7.87 |
EPS(TTM)20.12
EY9.32%
EPS(NY)21.82
Fwd EY10.11%
FCF(TTM)-4.89
FCFYN/A
OCF(TTM)3.05
OCFY1.41%
SpS765.43
BVpS68.87
TBVpS2.88
PEG (NY)0.59
PEG (5Y)0.35
Graham Number176.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 26.4% | ||
| ROCE | 17.12% | ||
| ROIC | 8.73% | ||
| ROICexc | 8.8% | ||
| ROICexgc | 10.96% | ||
| 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)14.61%
ROIC(5y)15.84%
ROICexc(3y)14.74%
ROICexc(5y)16.23%
ROICexgc(3y)20.49%
ROICexgc(5y)23.24%
ROCE(3y)25.25%
ROCE(5y)24.86%
ROICexgc growth 3Y-29.93%
ROICexgc growth 5Y-7.61%
ROICexc growth 3Y-26.45%
ROICexc growth 5Y-3.33%
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 | 3.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.29 | ||
| 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 | 3.17 |
F-Score3
WACC9.84%
ROIC/WACC0.89
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 Y18.31%
EPS Next 2Y11.77%
EPS Next 3Y11.16%
EPS Next 5Y12.61%
Revenue 1Y (TTM)6.06%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.85%
Revenue Next Year5.56%
Revenue Next 2Y4.05%
Revenue Next 3Y3.85%
Revenue Next 5Y5.1%
EBIT growth 1Y7.07%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year22.24%
EBIT Next 3Y9.89%
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 18.31% in the next year.