AUTONATION INC (AN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AN - US05329W1027 - Common Stock
215.93 USD
+1.74 (+0.81%)
215.93 USD
0 (0%)
AN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. AN scores excellent on profitability, but there are 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
- AN has a Return On Assets of 4.67%. This is in the better half of the industry: AN outperforms 66.39% of its industry peers.
- With an excellent Return On Equity value of 26.40%, AN belongs to the best of the industry, outperforming 86.07% of the companies in the same industry.
- With a decent Return On Invested Capital value of 8.73%, AN is doing good in the industry, outperforming 71.31% of the companies in the same industry.
- AN had an Average Return On Invested Capital over the past 3 years of 14.61%. This is above the industry average of 12.24%.
- The 3 year average ROIC (14.61%) for AN is well above the current ROIC(8.73%). The reason for the recent decline needs to be investigated.
| 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.
- The Gross Margin of AN (17.82%) is worse than 80.33% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AN is creating some value.
- The number of shares outstanding for AN has been reduced compared to 1 year ago.
- 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 3.17. 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 3.17, AN is in the better half of the industry, outperforming 75.41% 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.
- AN's Debt to Equity ratio of 3.52 is on the low side compared to the rest of the industry. AN is outperformed by 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.17 |
ROIC/WACC1
WACC8.76%
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.
- A Quick Ratio of 0.20 indicates that AN may have some problems paying its short term obligations.
- With a Quick ratio value of 0.20, AN is not doing good in the industry: 87.70% of the companies in the same industry are doing better.
| 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.
- 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
- AN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.64% yearly.
- AN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.66% yearly.
EPS Next Y18%
EPS Next 2Y11.72%
EPS Next 3Y11.25%
EPS Next 5Y11.64%
Revenue Next Year5.62%
Revenue Next 2Y4.18%
Revenue Next 3Y4.05%
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.
- 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
- With a Price/Earnings ratio of 10.73, the valuation of AN can be described as very reasonable.
- AN's Price/Earnings ratio is rather cheap when compared to the industry. AN is cheaper than 83.61% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, AN is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.90, the valuation of AN can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, AN is valued cheaper than 85.25% of the companies in the same industry.
- AN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 9.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than the industry average as 70.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.83 |
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)0.6
PEG (5Y)0.35
EPS Next 2Y11.72%
EPS Next 3Y11.25%
5. Dividend
5.1 Amount
- No dividends for AN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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% in the next year.