AUTONATION INC (AN) Stock Fundamental Analysis
USA - NYSE:AN - US05329W1027 - Common Stock
219.9 USD
-0.22 (-0.1%)
219.9 USD
0 (0%)
AN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 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 has reported a negative cash flow from operations.
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
AN has a better Return On Assets (4.67%) than 66.94% of its industry peers.
AN has a Return On Equity of 25.67%. This is amongst the best in the industry. AN outperforms 83.47% of its industry peers.
AN has a better Return On Invested Capital (13.28%) than 82.64% 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 12.11%.
The 3 year average ROIC (18.17%) for AN is well above the current ROIC(13.28%). The reason for the recent decline needs to be investigated.
| 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 has a better Profit Margin (2.31%) than 62.81% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
AN has a Operating Margin of 5.12%. This is in the better half of the industry: AN outperforms 68.59% of its industry peers.
In the last couple of years the Operating Margin of AN has grown nicely.
AN has a Gross Margin of 17.91%. This is amonst the worse of the industry: AN underperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of AN has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 has an Altman-Z score of 3.30. 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 3.30, AN is in the better half of the industry, outperforming 71.90% of the companies in the same industry.
A Debt/Equity ratio of 1.89 is on the high side and indicates that AN has dependencies on debt financing.
AN has a Debt to Equity ratio of 1.89. This is in the lower half of the industry: AN underperforms 69.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.3 |
ROIC/WACC1.32
WACC10.05%
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.
AN has a Current ratio of 0.81. This is amonst the worse of the industry: AN underperforms 84.30% 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's Quick ratio of 0.21 is on the low side compared to the rest of the industry. AN is outperformed by 87.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
AN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.47%.
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 small growth in Revenue. In the last year, the Revenue has grown by 3.15%.
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)0.47%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%36.84%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%7.62%
3.2 Future
The Earnings Per Share is expected to grow by 12.28% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y17.63%
EPS Next 2Y11.15%
EPS Next 3Y10.98%
EPS Next 5Y12.28%
Revenue Next Year4.19%
Revenue Next 2Y3.26%
Revenue Next 3Y3.36%
Revenue Next 5Y4.74%
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 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 11.50 indicates a reasonable valuation of AN.
Based on the Price/Earnings ratio, AN is valued cheaper than 83.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of AN to the average of the S&P500 Index (27.20), we can say AN is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.19, the valuation of AN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AN is valued cheaper than 84.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.19 |
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 69.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.06 |
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.
AN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)0.38
EPS Next 2Y11.15%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
No dividends for AN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
219.9
-0.22 (-0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.13%
Inst Owner Change2.87%
Ins Owners1.12%
Ins Owner Change-0.02%
Market Cap8.29B
Analysts80.91
Price Target227.71 (3.55%)
Short Float %3.72%
Short Ratio2.96
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)1.56%
PT rev (3m)8.74%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)7%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.19 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.36 | ||
| P/tB | 43.37 | ||
| EV/EBITDA | 8.06 |
EPS(TTM)19.13
EY8.7%
EPS(NY)21.58
Fwd EY9.81%
FCF(TTM)-11.99
FCFYN/A
OCF(TTM)-3.99
OCFYN/A
SpS728.3
BVpS65.49
TBVpS5.07
PEG (NY)0.65
PEG (5Y)0.38
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%
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-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 | 3.3 |
F-Score3
WACC10.05%
ROIC/WACC1.32
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)0.47%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%36.84%
EPS Next Y17.63%
EPS Next 2Y11.15%
EPS Next 3Y10.98%
EPS Next 5Y12.28%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%7.62%
Revenue Next Year4.19%
Revenue Next 2Y3.26%
Revenue Next 3Y3.36%
Revenue Next 5Y4.74%
EBIT growth 1Y1.46%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year25.5%
EBIT Next 3Y12.03%
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%