AUTONATION INC (AN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AN - US05329W1027 - Common Stock
220.63 USD
+5.34 (+2.48%)
220.63 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. While AN has a great profitability rating, there are quite some concerns on its financial health. AN is valued quite cheap, while showing a decent growth score. This is a good 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.
- AN had positive earnings in each of the past 5 years.
- AN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 4.67%, AN is doing good in the industry, outperforming 66.12% of the companies in the same industry.
- AN has a Return On Equity of 26.40%. This is amongst the best in the industry. AN outperforms 85.95% of its industry peers.
- AN's Return On Invested Capital of 8.73% is fine compared to the rest of the industry. AN outperforms 71.07% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AN is above the industry average of 12.37%.
- 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
- AN's Profit Margin of 2.38% is fine compared to the rest of the industry. AN outperforms 62.81% of its industry peers.
- AN's Profit Margin has improved in the last couple of years.
- AN has a Operating Margin of 5.09%. This is in the better half of the industry: AN outperforms 66.94% of its industry peers.
- In the last couple of years the Operating Margin of AN has grown nicely.
- With a Gross Margin value of 17.82%, AN is not doing good in the industry: 80.17% of the companies in the same industry are doing better.
- 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.
- 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 Altman-Z score of 3.17 indicates that AN is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.17, AN is doing good in the industry, outperforming 74.38% 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.
- 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 73.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.17 |
ROIC/WACC0.99
WACC8.84%
2.3 Liquidity
- A Current Ratio of 0.79 indicates that AN may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.79, AN is doing worse than 85.95% 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.
- AN has a Quick ratio of 0.20. This is amonst the worse of the industry: AN underperforms 87.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
- AN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.84%, which is quite good.
- AN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.42% yearly.
- Looking at the last year, AN shows a small growth in Revenue. The Revenue has grown by 6.06% in the last 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 Year5.55%
Revenue Next 2Y4.13%
Revenue Next 3Y3.95%
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
- Based on the Price/Earnings ratio of 10.97, the valuation of AN can be described as reasonable.
- AN's Price/Earnings ratio is rather cheap when compared to the industry. AN is cheaper than 83.47% of the companies in the same industry.
- AN is valuated cheaply when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- AN is valuated reasonably with a Price/Forward Earnings ratio of 10.12.
- Based on the Price/Forward Earnings ratio, AN is valued cheaply inside the industry as 85.12% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, AN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than 70.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.86 |
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)0.61
PEG (5Y)0.36
EPS Next 2Y11.72%
EPS Next 3Y11.25%
5. Dividend
5.1 Amount
- AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
220.63
+5.34 (+2.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)02-06 2026-02-06/amc
Inst Owners76.19%
Inst Owner Change-0.28%
Ins Owners1.16%
Ins Owner Change0.03%
Market Cap8.05B
Revenue(TTM)27.92B
Net Income(TTM)663.10M
Analysts79.05
Price Target243.3 (10.28%)
Short Float %4.36%
Short Ratio4.16
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)-0.01%
PT rev (3m)5.64%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.12 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | 72.36 | ||
| P/B | 3.2 | ||
| P/tB | 76.56 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)20.12
EY9.12%
EPS(NY)21.8
Fwd EY9.88%
FCF(TTM)-4.89
FCFYN/A
OCF(TTM)3.05
OCFY1.38%
SpS765.43
BVpS68.87
TBVpS2.88
PEG (NY)0.61
PEG (5Y)0.36
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 | 3.17 |
F-Score3
WACC8.84%
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%
EPS Next 2Y11.72%
EPS Next 3Y11.25%
EPS Next 5Y11.64%
Revenue 1Y (TTM)6.06%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.85%
Revenue Next Year5.55%
Revenue Next 2Y4.13%
Revenue Next 3Y3.95%
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% in the next year.