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AUTONATION INC (AN) Stock Fundamental Analysis

NYSE:AN - New York Stock Exchange, Inc. - US05329W1027 - Common Stock

185.19  -0.06 (-0.03%)

After market: 185.19 0 (0%)

Fundamental Rating

5

Taking everything into account, AN scores 5 out of 10 in our fundamental rating. AN was compared to 119 industry peers in the Specialty Retail industry. AN scores excellent on profitability, but there are concerns on its financial health. AN has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year AN was profitable.
In the past year AN had a positive cash flow from operations.
AN had positive earnings in each of the past 5 years.
AN had a positive operating cash flow in each of the past 5 years.
AN Yearly Net Income VS EBIT VS OCF VS FCFAN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

1.2 Ratios

The Return On Assets of AN (5.60%) is better than 71.55% of its industry peers.
Looking at the Return On Equity, with a value of 30.46%, AN belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.
AN's Return On Invested Capital of 13.69% is amongst the best of the industry. AN outperforms 81.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AN is significantly above the industry average of 12.38%.
The last Return On Invested Capital (13.69%) for AN is well below the 3 year average (21.15%), which needs to be investigated, but indicates that AN had better years and this may not be a problem.
Industry RankSector Rank
ROA 5.6%
ROE 30.46%
ROIC 13.69%
ROA(3y)12.52%
ROA(5y)9.14%
ROE(3y)57.06%
ROE(5y)39.44%
ROIC(3y)21.15%
ROIC(5y)17.33%
AN Yearly ROA, ROE, ROICAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

1.3 Margins

AN has a Profit Margin of 2.74%. This is in the better half of the industry: AN outperforms 64.66% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
The Operating Margin of AN (5.04%) is better than 66.38% of its industry peers.
In the last couple of years the Operating Margin of AN has grown nicely.
With a Gross Margin value of 18.08%, AN is not doing good in the industry: 83.62% 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 RankSector Rank
OM 5.04%
PM (TTM) 2.74%
GM 18.08%
OM growth 3Y9.79%
OM growth 5Y11.88%
PM growth 3Y26.46%
PM growth 5Y15.43%
GM growth 3Y2.88%
GM growth 5Y3.72%
AN Yearly Profit, Operating, Gross MarginsAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

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3

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.
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.
Compared to 1 year ago, AN has an improved debt to assets ratio.
AN Yearly Shares OutstandingAN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
AN Yearly Total Debt VS Total AssetsAN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

AN has an Altman-Z score of 3.24. This indicates that AN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.24, AN is in the better half of the industry, outperforming 70.69% of the companies in the same industry.
AN has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
AN has a worse Debt to Equity ratio (1.73) than 68.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.73
Debt/FCF N/A
Altman-Z 3.24
ROIC/WACC1.35
WACC10.11%
AN Yearly LT Debt VS Equity VS FCFAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

AN has a Current Ratio of 0.80. 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 worse Current ratio (0.80) than 89.66% of its industry peers.
AN has a Quick Ratio of 0.80. 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 0.20. This is amonst the worse of the industry: AN underperforms 87.07% of its industry peers.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.2
AN Yearly Current Assets VS Current LiabilitesAN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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3

3. Growth

3.1 Past

The earnings per share for AN have decreased strongly by -27.75% in the last year.
AN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.02% yearly.
AN shows a decrease in Revenue. In the last year, the revenue decreased by -2.08%.
Measured over the past years, AN shows a small growth in Revenue. The Revenue has been growing by 4.71% on average per year.
EPS 1Y (TTM)-27.75%
EPS 3Y47.54%
EPS 5Y39.02%
EPS Q2Q%-27.44%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y9.74%
Revenue growth 5Y4.71%
Sales Q2Q%-4.45%

3.2 Future

AN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.77% yearly.
The Revenue is expected to grow by 3.51% on average over the next years.
EPS Next Y-24.33%
EPS Next 2Y-9.01%
EPS Next 3Y-2.31%
EPS Next 5Y2.77%
Revenue Next Year-2.23%
Revenue Next 2Y-0.09%
Revenue Next 3Y1.06%
Revenue Next 5Y3.51%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AN Yearly Revenue VS EstimatesAN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
AN Yearly EPS VS EstimatesAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.57 indicates a reasonable valuation of AN.
Based on the Price/Earnings ratio, AN is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AN to the average of the S&P500 Index (28.29), we can say AN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.77, the valuation of AN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AN is valued cheaply inside the industry as 87.07% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AN to the average of the S&P500 Index (24.44), we can say AN is valued rather cheaply.
Industry RankSector Rank
PE 10.57
Fwd PE 9.77
AN Price Earnings VS Forward Price EarningsAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300

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 78.45% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.37
AN Per share dataAN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600

4.3 Compensation for Growth

AN has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as AN's earnings are expected to decrease with -2.31% in the coming years.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-9.01%
EPS Next 3Y-2.31%

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0

5. Dividend

5.1 Amount

No dividends for AN!.
Industry RankSector Rank
Dividend Yield N/A

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AUTONATION INC

NYSE:AN (1/21/2025, 8:04:00 PM)

After market: 185.19 0 (0%)

185.19

-0.06 (-0.03%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-25 2024-10-25/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners74.51%
Inst Owner Change-0.12%
Ins Owners7.84%
Ins Owner Change-4.75%
Market Cap7.34B
Analysts81.9
Price Target198.08 (6.96%)
Short Float %5.79%
Short Ratio4.17
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-10.8%
Min EPS beat(2)-10.87%
Max EPS beat(2)-10.74%
EPS beat(4)1
Avg EPS beat(4)-5.23%
Min EPS beat(4)-10.87%
Max EPS beat(4)2.12%
EPS beat(8)4
Avg EPS beat(8)-1.4%
EPS beat(12)7
Avg EPS beat(12)0.6%
EPS beat(16)11
Avg EPS beat(16)9.64%
Revenue beat(2)0
Avg Revenue beat(2)-5.57%
Min Revenue beat(2)-6.42%
Max Revenue beat(2)-4.73%
Revenue beat(4)0
Avg Revenue beat(4)-4.03%
Min Revenue beat(4)-6.42%
Max Revenue beat(4)-1.86%
Revenue beat(8)0
Avg Revenue beat(8)-3.03%
Revenue beat(12)2
Avg Revenue beat(12)-2.49%
Revenue beat(16)5
Avg Revenue beat(16)-0.45%
PT rev (1m)0%
PT rev (3m)-0.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.49%
Valuation
Industry RankSector Rank
PE 10.57
Fwd PE 9.77
P/S 0.28
P/FCF N/A
P/OCF 58.14
P/B 3.1
P/tB 7342.78
EV/EBITDA 7.37
EPS(TTM)17.52
EY9.46%
EPS(NY)18.96
Fwd EY10.24%
FCF(TTM)-6.56
FCFYN/A
OCF(TTM)3.19
OCFY1.72%
SpS663.8
BVpS59.8
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.27
Profitability
Industry RankSector Rank
ROA 5.6%
ROE 30.46%
ROCE 19.09%
ROIC 13.69%
ROICexc 13.81%
ROICexgc 20.53%
OM 5.04%
PM (TTM) 2.74%
GM 18.08%
FCFM N/A
ROA(3y)12.52%
ROA(5y)9.14%
ROE(3y)57.06%
ROE(5y)39.44%
ROIC(3y)21.15%
ROIC(5y)17.33%
ROICexc(3y)21.36%
ROICexc(5y)17.75%
ROICexgc(3y)31.98%
ROICexgc(5y)26.78%
ROCE(3y)29.28%
ROCE(5y)23.81%
ROICexcg growth 3Y11.18%
ROICexcg growth 5Y11.86%
ROICexc growth 3Y9.96%
ROICexc growth 5Y12.71%
OM growth 3Y9.79%
OM growth 5Y11.88%
PM growth 3Y26.46%
PM growth 5Y15.43%
GM growth 3Y2.88%
GM growth 5Y3.72%
F-Score4
Asset Turnover2.04
Health
Industry RankSector Rank
Debt/Equity 1.73
Debt/FCF N/A
Debt/EBITDA 2.62
Cap/Depr 163.15%
Cap/Sales 1.47%
Interest Coverage 3.5
Cash Conversion 8.08%
Profit Quality N/A
Current Ratio 0.8
Quick Ratio 0.2
Altman-Z 3.24
F-Score4
WACC10.11%
ROIC/WACC1.35
Cap/Depr(3y)153.97%
Cap/Depr(5y)137.91%
Cap/Sales(3y)1.19%
Cap/Sales(5y)1.12%
Profit Quality(3y)76.94%
Profit Quality(5y)123.44%
High Growth Momentum
Growth
EPS 1Y (TTM)-27.75%
EPS 3Y47.54%
EPS 5Y39.02%
EPS Q2Q%-27.44%
EPS Next Y-24.33%
EPS Next 2Y-9.01%
EPS Next 3Y-2.31%
EPS Next 5Y2.77%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y9.74%
Revenue growth 5Y4.71%
Sales Q2Q%-4.45%
Revenue Next Year-2.23%
Revenue Next 2Y-0.09%
Revenue Next 3Y1.06%
Revenue Next 5Y3.51%
EBIT growth 1Y-23.21%
EBIT growth 3Y20.48%
EBIT growth 5Y17.15%
EBIT Next Year-6.48%
EBIT Next 3Y2.12%
EBIT Next 5Y2.22%
FCF growth 1Y-121.31%
FCF growth 3Y-33.18%
FCF growth 5Y20.4%
OCF growth 1Y-91.65%
OCF growth 3Y-15.68%
OCF growth 5Y7.22%