AUTONATION INC (AN) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AN • US05329W1027

204.98 USD
-2.09 (-1.01%)
At close: Jan 30, 2026
204.98 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

5

Overall AN gets a fundamental rating of 5 out of 10. We evaluated AN against 122 industry peers in the Specialty Retail industry. AN has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on AN.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year AN was profitable.
  • AN had a positive operating cash flow in the past year.
  • Each year in the past 5 years AN has been profitable.
  • Each year in the past 5 years AN had a positive operating cash flow.
AN Yearly Net Income VS EBIT VS OCF VS FCFAN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.67%, AN is in the better half of the industry, outperforming 66.39% of the companies in the same industry.
  • The Return On Equity of AN (26.40%) is better than 86.07% of its industry peers.
  • AN has a better Return On Invested Capital (8.73%) than 71.31% of its industry peers.
  • AN had an Average Return On Invested Capital over the past 3 years of 14.61%. This is above the industry average of 12.19%.
  • 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 RankSector 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%
AN Yearly ROA, ROE, ROICAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

  • With a decent Profit Margin value of 2.38%, AN is doing good in the industry, outperforming 62.30% of the companies in the same industry.
  • In the last couple of years the Profit Margin of AN has grown nicely.
  • AN has a Operating Margin of 5.09%. This is in the better half of the industry: AN outperforms 67.21% of its industry peers.
  • AN's Operating Margin has improved in the last couple of years.
  • The Gross Margin of AN (17.82%) is worse than 80.33% of its industry peers.
  • In the last couple of years the Gross Margin of AN has grown nicely.
Industry RankSector 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%
AN Yearly Profit, Operating, Gross MarginsAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

3

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.
  • AN has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for AN has been reduced compared to 5 years ago.
  • Compared to 1 year ago, AN has an improved debt to assets ratio.
AN Yearly Shares OutstandingAN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
AN Yearly Total Debt VS Total AssetsAN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 3.15 indicates that AN is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.15, AN is doing good in the industry, outperforming 74.59% 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 has a Debt to Equity ratio of 3.52. This is in the lower half of the industry: AN underperforms 73.77% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.52
Debt/FCF N/A
Altman-Z 3.15
ROIC/WACC1
WACC8.73%
AN Yearly LT Debt VS Equity VS FCFAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 0.79 indicates that AN may have some problems paying its short term obligations.
  • AN's Current ratio of 0.79 is on the low side compared to the rest of the industry. AN is outperformed by 86.07% of its industry peers.
  • 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.
  • AN has a worse Quick ratio (0.20) than 87.70% of its industry peers.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.2
AN Yearly Current Assets VS Current LiabilitesAN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

5

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.
  • 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

  • Based on estimates for the next years, AN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.64% on average per year.
  • The Revenue is expected to grow by 7.66% on average over the next years.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
AN Yearly Revenue VS EstimatesAN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
AN Yearly EPS VS EstimatesAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30

7

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.19, 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 84.43% of the companies listed in the same industry.
  • AN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
  • A Price/Forward Earnings ratio of 9.40 indicates a reasonable 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 86.89% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. AN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.19
Fwd PE 9.4
AN Price Earnings VS Forward Price EarningsAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than 71.31% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.63
AN Per share dataAN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600

4.3 Compensation for Growth

  • The 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)0.57
PEG (5Y)0.33
EPS Next 2Y11.72%
EPS Next 3Y11.25%

0

5. Dividend

5.1 Amount

  • No dividends for AN!.
Industry RankSector 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.