AUTONATION INC (AN) Stock Fundamental Analysis
NYSE:AN - New York Stock Exchange, Inc. - US05329W1027 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AN. AN was compared to 121 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
In the past year AN was profitable.
In the past year AN has reported a negative 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
The Return On Assets of AN (5.08%) is better than 68.59% of its industry peers.
Looking at the Return On Equity, with a value of 28.20%, AN belongs to the top of the industry, outperforming 85.12% of the companies in the same industry.
AN has a better Return On Invested Capital (12.93%) than 80.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AN is significantly above the industry average of 13.07%.
The last Return On Invested Capital (12.93%) for AN is well below the 3 year average (18.17%), which needs to be investigated, but indicates that AN had better years and this may not be a problem.
| 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's Profit Margin of 2.51% is fine compared to the rest of the industry. AN outperforms 63.64% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.94%, AN is in the better half of the industry, outperforming 67.77% of the companies in the same industry.
AN's Operating Margin has improved in the last couple of years.
The Gross Margin of AN (17.82%) is worse than 82.64% 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.
The number of shares outstanding for AN has been reduced compared to 1 year ago.
AN has less shares outstanding than it did 5 years ago.
AN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.25 indicates that AN is not in any danger for bankruptcy at the moment.
AN has a better Altman-Z score (3.25) than 74.38% 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 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.25 |
ROIC/WACC1.32
WACC9.82%
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 has a worse Current ratio (0.77) than 87.60% of its industry peers.
A Quick Ratio of 0.22 indicates that AN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.22, AN is doing worse than 85.12% of the companies in the same industry.
| 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.
Measured over the past years, AN shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.42% on average per year.
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 Y9.88%
EPS Next 2Y8.47%
EPS Next 3Y9.72%
EPS Next 5Y11.43%
Revenue Next Year3.11%
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.
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
Based on the Price/Earnings ratio of 11.97, the valuation of AN can be described as reasonable.
Based on the Price/Earnings ratio, AN is valued cheaper than 82.64% of the companies in the same industry.
AN is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.28, which indicates a very decent valuation of AN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AN indicates a rather cheap valuation: AN is cheaper than 80.99% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than 66.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AN may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)0.39
EPS Next 2Y8.47%
EPS Next 3Y9.72%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
211.33
-1.17 (-0.55%)
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 Cap7.97B
Analysts80.91
Price Target212.47 (0.54%)
Short Float %4.26%
Short Ratio3.43
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)3.89%
PT rev (3m)-2.16%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)5.13%
EPS NY rev (1m)0.99%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.35%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.02 |
EPS(TTM)17.66
EY8.36%
EPS(NY)20.55
Fwd EY9.73%
FCF(TTM)-9.08
FCFYN/A
OCF(TTM)-0.86
OCFYN/A
SpS715.39
BVpS63.75
TBVpS-0.42
PEG (NY)1.21
PEG (5Y)0.39
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 | 3.25 |
F-Score2
WACC9.82%
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)-17.24%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%4.23%
EPS Next Y9.88%
EPS Next 2Y8.47%
EPS Next 3Y9.72%
EPS Next 5Y11.43%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%3.16%
Revenue Next Year3.11%
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%