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 120 industry peers in the Specialty Retail industry. While AN belongs to the best of the industry regarding profitability, 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.
AN had a positive operating cash flow in the past year.
AN had positive earnings in each of the past 5 years.
In the past 5 years AN always reported a positive cash flow from operatings.
1.2 Ratios
AN's Return On Assets of 5.32% is fine compared to the rest of the industry. AN outperforms 69.23% of its industry peers.
AN has a better Return On Equity (28.17%) than 83.76% of its industry peers.
The Return On Invested Capital of AN (13.79%) is better than 82.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AN is significantly above the industry average of 12.30%.
The 3 year average ROIC (18.17%) for AN is well above the current ROIC(13.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 28.17% | ||
| ROIC | 13.79% |
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 Profit Margin of 2.59%. This is in the better half of the industry: AN outperforms 63.25% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
The Operating Margin of AN (4.99%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of AN has grown nicely.
With a Gross Margin value of 17.88%, AN is not doing good in the industry: 83.76% 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 | 4.99% | ||
| PM (TTM) | 2.59% | ||
| GM | 17.88% |
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
AN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AN has been reduced compared to 1 year ago.
Compared to 5 years ago, AN has less shares outstanding
The debt/assets ratio for AN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.23 indicates that AN is not in any danger for bankruptcy at the moment.
AN has a Altman-Z score of 3.23. This is in the better half of the industry: AN outperforms 71.79% of its industry peers.
AN has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.64, AN is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.23 |
ROIC/WACC1.3
WACC10.58%
2.3 Liquidity
A Current Ratio of 0.74 indicates that AN may have some problems paying its short term obligations.
The Current ratio of AN (0.74) is worse than 90.60% of its industry peers.
AN has a Quick Ratio of 0.74. 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 0.21. This is amonst the worse of the industry: AN underperforms 86.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The earnings per share for AN have decreased strongly by -23.71% in the last year.
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 decrease in Revenue. In the last year, the revenue decreased by -0.68%.
The Revenue has been growing slightly by 4.64% on average over the past years.
EPS 1Y (TTM)-23.71%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%-1%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.59%
3.2 Future
Based on estimates for the next years, AN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.27% on average per year.
Based on estimates for the next years, AN will show a small growth in Revenue. The Revenue will grow by 2.43% on average per year.
EPS Next Y8.62%
EPS Next 2Y10.56%
EPS Next 3Y12.17%
EPS Next 5Y15.27%
Revenue Next Year3.72%
Revenue Next 2Y3.3%
Revenue Next 3Y3.36%
Revenue Next 5Y2.43%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.38, the valuation of AN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AN indicates a rather cheap valuation: AN is cheaper than 88.03% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AN to the average of the S&P500 Index (29.63), we can say AN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.56, the valuation of AN can be described as very reasonable.
86.32% of the companies in the same industry are more expensive than AN, based on the Price/Forward Earnings ratio.
AN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
AN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AN is cheaper than 76.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
The 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.
AN's earnings are expected to grow with 12.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)0.34
EPS Next 2Y10.56%
EPS Next 3Y12.17%
5. Dividend
5.1 Amount
No dividends for AN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
181.36
-7.8 (-4.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.8%
Inst Owner Change-90.85%
Ins Owners0.79%
Ins Owner Change-4.67%
Market Cap7.07B
Analysts80
Price Target210.73 (16.19%)
Short Float %5.39%
Short Ratio3.82
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)1
Avg EPS beat(2)1.16%
Min EPS beat(2)-10.87%
Max EPS beat(2)13.19%
EPS beat(4)2
Avg EPS beat(4)-1.57%
Min EPS beat(4)-10.87%
Max EPS beat(4)13.19%
EPS beat(8)4
Avg EPS beat(8)-0.51%
EPS beat(12)7
Avg EPS beat(12)0.64%
EPS beat(16)11
Avg EPS beat(16)9.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)3.05%
Revenue beat(4)1
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-6.42%
Max Revenue beat(4)3.05%
Revenue beat(8)1
Avg Revenue beat(8)-2.61%
Revenue beat(12)2
Avg Revenue beat(12)-2.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.32%
PT rev (1m)6.39%
PT rev (3m)3.01%
EPS NQ rev (1m)-2.26%
EPS NQ rev (3m)-9.76%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)1.3%
Revenue NQ rev (3m)-2.76%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 9.56 | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 22.48 | ||
| P/B | 2.88 | ||
| P/tB | 71.81 | ||
| EV/EBITDA | 6.96 |
EPS(TTM)17.47
EY9.63%
EPS(NY)18.98
Fwd EY10.46%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)8.07
OCFY4.45%
SpS686.29
BVpS63.01
TBVpS2.53
PEG (NY)1.2
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 28.17% | ||
| ROCE | 19.98% | ||
| ROIC | 13.79% | ||
| ROICexc | 13.91% | ||
| ROICexgc | 20.6% | ||
| OM | 4.99% | ||
| PM (TTM) | 2.59% | ||
| GM | 17.88% | ||
| 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-Score4
Asset Turnover2.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 136.48% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 3.41 | ||
| Cash Conversion | 19.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 3.23 |
F-Score4
WACC10.58%
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)-23.71%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%-1%
EPS Next Y8.62%
EPS Next 2Y10.56%
EPS Next 3Y12.17%
EPS Next 5Y15.27%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.59%
Revenue Next Year3.72%
Revenue Next 2Y3.3%
Revenue Next 3Y3.36%
Revenue Next 5Y2.43%
EBIT growth 1Y-19.09%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year25.06%
EBIT Next 3Y11.42%
EBIT Next 5Y8.15%
FCF growth 1Y-104.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-56.53%
OCF growth 3Y-42.18%
OCF growth 5Y-16.37%