AUTONATION INC (AN) Stock Fundamental Analysis
USA - NYSE:AN - US05329W1027 - Common Stock
218.7 USD
+2.08 (+0.96%)
218.7 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AN. AN was compared to 119 industry peers in the Specialty Retail industry. While AN has a great profitability rating, there are quite some concerns on its financial health. AN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
AN had positive earnings in each of the past 5 years.
Each year in the past 5 years AN had a positive operating cash flow.
1.2 Ratios
AN has a Return On Assets of 4.67%. This is in the better half of the industry: AN outperforms 66.39% of its industry peers.
With an excellent Return On Equity value of 25.67%, AN belongs to the best of the industry, outperforming 83.19% of the companies in the same industry.
AN has a Return On Invested Capital of 13.28%. This is amongst the best in the industry. AN outperforms 81.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AN is significantly above the industry average of 12.29%.
The 3 year average ROIC (18.17%) for AN is well above the current ROIC(13.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 25.67% | ||
| ROIC | 13.28% |
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 better Profit Margin (2.31%) than 63.03% of its industry peers.
AN's Profit Margin has improved in the last couple of years.
The Operating Margin of AN (5.12%) is better than 67.23% of its industry peers.
AN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.91%, AN is not doing good in the industry: 82.35% 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 | 5.12% | ||
| PM (TTM) | 2.31% | ||
| GM | 17.91% |
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 well above the Cost of Capital (WACC), which means it is creating 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.
The debt/assets ratio for AN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.29 indicates that AN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.29, AN is doing good in the industry, outperforming 74.79% of the companies in the same industry.
AN has a Debt/Equity ratio of 1.89. This is a high value indicating a heavy dependency on external financing.
AN has a Debt to Equity ratio of 1.89. This is in the lower half of the industry: AN underperforms 68.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.29 |
ROIC/WACC1.34
WACC9.9%
2.3 Liquidity
A Current Ratio of 0.81 indicates that AN may have some problems paying its short term obligations.
The Current ratio of AN (0.81) is worse than 84.87% of its industry peers.
AN has a Quick Ratio of 0.81. This is a bad value and indicates that AN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AN (0.21) is worse than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.47% over the past 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 small growth in Revenue. The Revenue has grown by 3.15% 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)0.47%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%36.84%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%7.62%
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 12.28% on average per year.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y17.54%
EPS Next 2Y11.69%
EPS Next 3Y10.98%
EPS Next 5Y12.28%
Revenue Next Year4.22%
Revenue Next 2Y3.26%
Revenue Next 3Y3.36%
Revenue Next 5Y4.74%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.43, the valuation of AN can be described as very reasonable.
Based on the Price/Earnings ratio, AN is valued cheaper than 84.03% of the companies in the same industry.
AN is valuated cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.04, which indicates a very decent valuation of AN.
Based on the Price/Forward Earnings ratio, AN is valued cheaply inside the industry as 84.87% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.23. AN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 10.04 |
4.2 Price Multiples
68.91% of the companies in the same industry are more expensive than AN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.02 |
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)0.65
PEG (5Y)0.38
EPS Next 2Y11.69%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
218.7
+2.08 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners75.52%
Inst Owner Change0.77%
Ins Owners1.12%
Ins Owner Change-0.02%
Market Cap8.25B
Revenue(TTM)27.46B
Net Income(TTM)633.80M
Analysts80
Price Target230.32 (5.31%)
Short Float %4%
Short Ratio3.22
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)7.75%
Min EPS beat(2)2.96%
Max EPS beat(2)12.53%
EPS beat(4)3
Avg EPS beat(4)4.45%
Min EPS beat(4)-10.87%
Max EPS beat(4)13.19%
EPS beat(8)4
Avg EPS beat(8)0.72%
EPS beat(12)7
Avg EPS beat(12)1.26%
EPS beat(16)11
Avg EPS beat(16)3.38%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-1.13%
Revenue beat(4)1
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)3.05%
Revenue beat(8)1
Avg Revenue beat(8)-2.08%
Revenue beat(12)1
Avg Revenue beat(12)-2.24%
Revenue beat(16)3
Avg Revenue beat(16)-2%
PT rev (1m)1.14%
PT rev (3m)8.4%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)6.15%
EPS NY rev (1m)0%
EPS NY rev (3m)6.91%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 10.04 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.34 | ||
| P/tB | 43.13 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)19.13
EY8.75%
EPS(NY)21.79
Fwd EY9.96%
FCF(TTM)-11.99
FCFYN/A
OCF(TTM)-3.99
OCFYN/A
SpS728.3
BVpS65.49
TBVpS5.07
PEG (NY)0.65
PEG (5Y)0.38
Graham Number167.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 25.67% | ||
| ROCE | 17.87% | ||
| ROIC | 13.28% | ||
| ROICexc | 13.38% | ||
| ROICexgc | 18.76% | ||
| OM | 5.12% | ||
| PM (TTM) | 2.31% | ||
| GM | 17.91% | ||
| 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%
ROICexgc growth 3Y-15.44%
ROICexgc 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-Score3
Asset Turnover2.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 121.48% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 3.29 |
F-Score3
WACC9.9%
ROIC/WACC1.34
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)0.47%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%36.84%
EPS Next Y17.54%
EPS Next 2Y11.69%
EPS Next 3Y10.98%
EPS Next 5Y12.28%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%7.62%
Revenue Next Year4.22%
Revenue Next 2Y3.26%
Revenue Next 3Y3.36%
Revenue Next 5Y4.74%
EBIT growth 1Y1.46%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year25.72%
EBIT Next 3Y11.66%
EBIT Next 5Y7.88%
FCF growth 1Y-149.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-111.76%
OCF growth 3Y-42.18%
OCF growth 5Y-16.37%