AUTONATION INC (AN) Stock Fundamental Analysis
NYSE:AN - New York Stock Exchange, Inc. - US05329W1027 - Common Stock - Currency: USD
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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AN had positive earnings in the past year.
AN had a positive operating cash flow in the past year.
In the past 5 years AN has always been profitable.
AN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AN (5.32%) is better than 68.59% of its industry peers.
AN has a better Return On Equity (28.17%) than 85.12% of its industry peers.
AN's Return On Invested Capital of 13.79% is amongst the best of the industry. AN outperforms 81.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AN is above the industry average of 14.13%.
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
Looking at the Profit Margin, with a value of 2.59%, AN is in the better half of the industry, outperforming 65.29% 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 4.99%. This is in the better half of the industry: AN outperforms 66.12% of its industry peers.
In the last couple of years the Operating Margin of AN has grown nicely.
AN's Gross Margin of 17.88% is on the low side compared to the rest of the industry. AN is outperformed by 81.82% of its industry peers.
AN's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AN is creating value.
AN has less shares outstanding than it did 1 year ago.
AN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AN has an improved debt to assets ratio.
2.2 Solvency
AN has an Altman-Z score of 3.19. This indicates that AN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.19, AN is doing good in the industry, outperforming 75.21% of the companies in the same industry.
AN has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.64, AN is not doing good in the industry: 66.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.19 |
ROIC/WACC1.43
WACC9.64%
2.3 Liquidity
AN has a Current 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 Current ratio of 0.74. This is amonst the worse of the industry: AN underperforms 87.60% 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.
Looking at the Quick ratio, with a value of 0.21, AN is doing worse than 85.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
AN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.71%.
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 decrease in Revenue. The Revenue has decreased by -0.68% in the last year.
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 13.01% on average per year.
AN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y7.03%
EPS Next 2Y9.22%
EPS Next 3Y11.3%
EPS Next 5Y13.01%
Revenue Next Year3%
Revenue Next 2Y2.91%
Revenue Next 3Y4.24%
Revenue Next 5Y5.04%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.49 indicates a reasonable valuation of AN.
Based on the Price/Earnings ratio, AN is valued cheaply inside the industry as 83.47% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, AN is valued rather cheaply.
A Price/Forward Earnings ratio of 8.87 indicates a reasonable valuation of AN.
80.99% of the companies in the same industry are more expensive than AN, based on the Price/Forward Earnings ratio.
AN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than 64.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
AN's 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)1.35
PEG (5Y)0.31
EPS Next 2Y9.22%
EPS Next 3Y11.3%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
165.78
+3.69 (+2.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.8%
Inst Owner Change0.19%
Ins Owners0.79%
Ins Owner Change0.08%
Market Cap6.51B
Analysts80
Price Target217.15 (30.99%)
Short Float %4.55%
Short Ratio3.42
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)1.32%
PT rev (3m)9.62%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-1.47%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.24 | ||
| P/FCF | N/A | ||
| P/OCF | 20.68 | ||
| P/B | 2.65 | ||
| P/tB | 66.06 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)17.47
EY10.54%
EPS(NY)18.7
Fwd EY11.28%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)8.02
OCFY4.84%
SpS681.92
BVpS62.61
TBVpS2.51
PEG (NY)1.35
PEG (5Y)0.31
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 | 3.19 |
F-Score4
WACC9.64%
ROIC/WACC1.43
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 Y7.03%
EPS Next 2Y9.22%
EPS Next 3Y11.3%
EPS Next 5Y13.01%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%6.59%
Revenue Next Year3%
Revenue Next 2Y2.91%
Revenue Next 3Y4.24%
Revenue Next 5Y5.04%
EBIT growth 1Y-19.09%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year23.35%
EBIT Next 3Y11.98%
EBIT Next 5Y7.87%
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%