AUTONATION INC (AN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AN - US05329W1027 - Common Stock
213.67 USD
+0.85 (+0.4%)
213.67 USD
0 (0%)
Overall AN gets a fundamental rating of 5 out of 10. We evaluated AN against 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
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
AN has a better Return On Assets (4.67%) than 66.39% of its industry peers.
AN has a better Return On Equity (26.40%) than 86.07% of its industry peers.
AN's Return On Invested Capital of 8.73% is fine compared to the rest of the industry. AN outperforms 71.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AN is above the industry average of 12.24%.
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
Looking at the Profit Margin, with a value of 2.38%, AN is in the better half of the industry, outperforming 62.30% of the companies in the same industry.
AN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.09%, AN is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
In the last couple of years the Operating Margin of AN has grown nicely.
With a Gross Margin value of 17.82%, AN is not doing good in the industry: 80.33% 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 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AN is creating some 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.
AN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.16 indicates that AN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, AN is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
A Debt/Equity ratio of 3.52 is on the high side and indicates that AN has dependencies on debt financing.
The Debt to Equity ratio of AN (3.52) is worse than 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.16 |
ROIC/WACC0.99
WACC8.79%
2.3 Liquidity
AN has a Current Ratio of 0.79. This is a bad value and indicates that AN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.79, AN is doing worse than 86.07% of the companies in the same industry.
AN has a Quick Ratio of 0.79. 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 Quick ratio of AN (0.20) is worse than 87.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.84% over the past year.
AN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.42% yearly.
The Revenue has been growing slightly by 6.06% in the past year.
The Revenue has been growing slightly by 4.64% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.64% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.66% on average over the next years.
EPS Next Y18.31%
EPS Next 2Y11.85%
EPS Next 3Y11.24%
EPS Next 5Y11.64%
Revenue Next Year5.56%
Revenue Next 2Y4.05%
Revenue Next 3Y3.85%
Revenue Next 5Y7.66%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AN is valuated reasonably with a Price/Earnings ratio of 10.62.
83.61% of the companies in the same industry are more expensive than AN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. AN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.78, which indicates a very decent valuation of AN.
Based on the Price/Forward Earnings ratio, AN is valued cheaply inside the industry as 87.70% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AN to the average of the S&P500 Index (24.04), we can say AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
69.67% of the companies in the same industry are more expensive than AN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.8 |
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)0.58
PEG (5Y)0.35
EPS Next 2Y11.85%
EPS Next 3Y11.24%
5. Dividend
5.1 Amount
No dividends for AN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
213.67
+0.85 (+0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners76.19%
Inst Owner Change-0.19%
Ins Owners1.16%
Ins Owner Change0.03%
Market Cap7.79B
Revenue(TTM)27.92B
Net Income(TTM)663.10M
Analysts79.05
Price Target242.99 (13.72%)
Short Float %4.03%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-0.14%
PT rev (3m)5.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | 70.08 | ||
| P/B | 3.1 | ||
| P/tB | 74.14 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)20.12
EY9.42%
EPS(NY)21.86
Fwd EY10.23%
FCF(TTM)-4.89
FCFYN/A
OCF(TTM)3.05
OCFY1.43%
SpS765.43
BVpS68.87
TBVpS2.88
PEG (NY)0.58
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 | 3.16 |
F-Score3
WACC8.79%
ROIC/WACC0.99
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 2Y11.85%
EPS Next 3Y11.24%
EPS Next 5Y11.64%
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 5Y7.66%
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 of AUTONATION INC (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.
Can you provide the financial health for AN stock?
The financial health rating of AUTONATION INC (AN) is 3 / 10.
What is the expected EPS growth for AUTONATION INC (AN) stock?
The Earnings per Share (EPS) of AUTONATION INC (AN) is expected to grow by 18.31% in the next year.