AUTONATION INC (AN) Stock Fundamental Analysis
NYSE:AN - New York Stock Exchange, Inc. - US05329W1027 - Common Stock - Currency: USD
Overall AN gets a fundamental rating of 5 out of 10. We evaluated AN against 122 industry peers in the Specialty Retail industry. AN scores excellent on profitability, but there are concerns on its financial health. AN has a correct valuation and a medium growth rate.
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.
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
The Return On Assets of AN (5.08%) is better than 68.85% of its industry peers.
AN has a Return On Equity of 28.20%. This is amongst the best in the industry. AN outperforms 85.25% of its industry peers.
AN has a better Return On Invested Capital (12.93%) than 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 12.95%.
The 3 year average ROIC (18.17%) for AN is well above the current ROIC(12.93%). The reason for the recent decline needs to be investigated.
| 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 better Profit Margin (2.51%) than 63.11% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
AN's Operating Margin of 4.94% is fine compared to the rest of the industry. AN outperforms 68.03% of its industry peers.
AN's Operating Margin has improved in the last couple of years.
AN's Gross Margin of 17.82% is on the low side compared to the rest of the industry. AN is outperformed by 82.79% of its industry peers.
AN's Gross Margin has improved in the last couple of years.
| 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) well above the Cost of Capital (WACC), AN 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.
Compared to 1 year ago, AN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.22 indicates that AN is not in any danger for bankruptcy at the moment.
The Altman-Z score of AN (3.22) is better than 72.95% 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.
The Debt to Equity ratio of AN (1.87) is worse than 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.22 |
ROIC/WACC1.3
WACC9.97%
2.3 Liquidity
AN has a Current 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.
AN's Current ratio of 0.77 is on the low side compared to the rest of the industry. AN is outperformed by 87.70% of its industry peers.
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.
AN has a Quick ratio of 0.22. This is amonst the worse of the industry: AN underperforms 85.25% of its industry peers.
| 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.
The Earnings Per Share has been growing by 30.42% on average over the past years. This is a very strong growth
Looking at the last year, AN shows a decrease in Revenue. The Revenue has decreased by -0.24% in the last year.
AN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.64% yearly.
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
AN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.43% yearly.
Based on estimates for the next years, AN will show a small growth in Revenue. The Revenue will grow by 7.34% on average per year.
EPS Next Y9.94%
EPS Next 2Y8.63%
EPS Next 3Y9.95%
EPS Next 5Y11.43%
Revenue Next Year3.2%
Revenue Next 2Y2.83%
Revenue Next 3Y3.39%
Revenue Next 5Y7.34%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.14, which indicates a very decent valuation of AN.
Based on the Price/Earnings ratio, AN is valued cheaper than 82.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. AN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.54 indicates a reasonable valuation of AN.
Based on the Price/Forward Earnings ratio, AN is valued cheaply inside the industry as 80.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 9.54 |
4.2 Price Multiples
AN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AN is cheaper than 66.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.63 |
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)1.12
PEG (5Y)0.37
EPS Next 2Y8.63%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
No dividends for AN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
196.76
+0.35 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.24%
Inst Owner Change0%
Ins Owners1.12%
Ins Owner Change0.11%
Market Cap7.42B
Analysts80.91
Price Target212.47 (7.98%)
Short Float %3.88%
Short Ratio3.42
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)1.46%
PT rev (3m)-2.16%
EPS NQ rev (1m)1.53%
EPS NQ rev (3m)8.06%
EPS NY rev (1m)1.04%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 9.54 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.63 |
EPS(TTM)17.66
EY8.98%
EPS(NY)20.62
Fwd EY10.48%
FCF(TTM)-9.08
FCFYN/A
OCF(TTM)-0.86
OCFYN/A
SpS715.39
BVpS63.75
TBVpS-0.42
PEG (NY)1.12
PEG (5Y)0.37
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 | 3.22 |
F-Score2
WACC9.97%
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)-17.24%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%4.23%
EPS Next Y9.94%
EPS Next 2Y8.63%
EPS Next 3Y9.95%
EPS Next 5Y11.43%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%3.16%
Revenue Next Year3.2%
Revenue Next 2Y2.83%
Revenue Next 3Y3.39%
Revenue Next 5Y7.34%
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%