AUTONATION INC (AN) Stock Fundamental Analysis
NYSE:AN - New York Stock Exchange, Inc. - US05329W1027 - Common Stock - Currency: USD
Taking everything into account, AN scores 5 out of 10 in our fundamental rating. AN was compared to 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.
In the past year AN has reported a negative cash flow from operations.
Each year in the past 5 years AN has been profitable.
In the past 5 years AN always reported a positive cash flow from operatings.
1.2 Ratios
AN's Return On Assets of 5.08% is fine compared to the rest of the industry. AN outperforms 68.59% of its industry peers.
Looking at the Return On Equity, with a value of 28.20%, AN belongs to the top of the industry, outperforming 85.12% of the companies in the same industry.
The Return On Invested Capital of AN (12.93%) is better than 80.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AN is significantly above the industry average of 13.07%.
The last Return On Invested Capital (12.93%) for AN is well below the 3 year average (18.17%), which needs to be investigated, but indicates that AN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 28.2% | ||
| ROIC | 12.93% |
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
The Profit Margin of AN (2.51%) is better than 63.64% of its industry peers.
In the last couple of years the Profit Margin of AN has grown nicely.
AN's Operating Margin of 4.94% is fine compared to the rest of the industry. AN outperforms 67.77% of its industry peers.
In the last couple of years the Operating Margin of AN has grown nicely.
AN has a worse Gross Margin (17.82%) than 82.64% of its industry peers.
In the last couple of years the Gross Margin of AN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.94% | ||
| PM (TTM) | 2.51% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AN 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.
Compared to 1 year ago, AN has an improved debt to assets ratio.
2.2 Solvency
AN has an Altman-Z score of 3.25. This indicates that AN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.25, AN is doing good in the industry, outperforming 74.38% of the companies in the same industry.
A Debt/Equity ratio of 1.87 is on the high side and indicates that AN has dependencies on debt financing.
AN's Debt to Equity ratio of 1.87 is on the low side compared to the rest of the industry. AN is outperformed by 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.25 |
ROIC/WACC1.31
WACC9.84%
2.3 Liquidity
A Current Ratio of 0.77 indicates that AN may have some problems paying its short term obligations.
The Current ratio of AN (0.77) is worse than 87.60% of its industry peers.
AN has a Quick Ratio of 0.77. 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's Quick ratio of 0.22 is on the low side compared to the rest of the industry. AN is outperformed by 85.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The earnings per share for AN have decreased strongly by -17.24% in the last 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.
The Revenue has decreased by -0.24% in the past year.
The Revenue has been growing slightly by 4.64% on average over the past years.
EPS 1Y (TTM)-17.24%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%4.23%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%3.16%
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 11.43% on average per year.
AN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.34% yearly.
EPS Next Y9.88%
EPS Next 2Y8.47%
EPS Next 3Y9.72%
EPS Next 5Y11.43%
Revenue Next Year3.11%
Revenue Next 2Y2.83%
Revenue Next 3Y3.39%
Revenue Next 5Y7.34%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.03, AN is valued correctly.
AN's Price/Earnings ratio is rather cheap when compared to the industry. AN is cheaper than 82.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of AN to the average of the S&P500 Index (27.45), we can say AN is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.34, the valuation of AN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AN is valued cheaper than 80.99% of the companies in the same industry.
AN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AN is valued a bit cheaper than 66.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
AN's 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.
PEG (NY)1.22
PEG (5Y)0.4
EPS Next 2Y8.47%
EPS Next 3Y9.72%
5. Dividend
5.1 Amount
AN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
212.5
+0.51 (+0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.24%
Inst Owner Change-53.52%
Ins Owners1.12%
Ins Owner Change0.11%
Market Cap8.01B
Analysts80.91
Price Target212.47 (-0.01%)
Short Float %4.26%
Short Ratio3.43
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)8.08%
Min EPS beat(2)2.96%
Max EPS beat(2)13.19%
EPS beat(4)2
Avg EPS beat(4)-1.36%
Min EPS beat(4)-10.87%
Max EPS beat(4)13.19%
EPS beat(8)4
Avg EPS beat(8)-0.44%
EPS beat(12)7
Avg EPS beat(12)0.32%
EPS beat(16)11
Avg EPS beat(16)6.79%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)3.05%
Revenue beat(4)1
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-6.42%
Max Revenue beat(4)3.05%
Revenue beat(8)1
Avg Revenue beat(8)-2.1%
Revenue beat(12)1
Avg Revenue beat(12)-2.54%
Revenue beat(16)4
Avg Revenue beat(16)-1.31%
PT rev (1m)3.89%
PT rev (3m)-2.16%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)5.13%
EPS NY rev (1m)0.99%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.35%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.34 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.02 |
EPS(TTM)17.66
EY8.31%
EPS(NY)20.55
Fwd EY9.67%
FCF(TTM)-9.08
FCFYN/A
OCF(TTM)-0.86
OCFYN/A
SpS715.39
BVpS63.75
TBVpS-0.42
PEG (NY)1.22
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 28.2% | ||
| ROCE | 17.9% | ||
| ROIC | 12.93% | ||
| ROICexc | 13.05% | ||
| ROICexgc | 19.01% | ||
| OM | 4.94% | ||
| PM (TTM) | 2.51% | ||
| GM | 17.82% | ||
| 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-Score2
Asset Turnover2.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 126.95% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 3.43 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 3.25 |
F-Score2
WACC9.84%
ROIC/WACC1.31
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)-17.24%
EPS 3Y-1.89%
EPS 5Y30.42%
EPS Q2Q%4.23%
EPS Next Y9.88%
EPS Next 2Y8.47%
EPS Next 3Y9.72%
EPS Next 5Y11.43%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.17%
Revenue growth 5Y4.64%
Sales Q2Q%3.16%
Revenue Next Year3.11%
Revenue Next 2Y2.83%
Revenue Next 3Y3.39%
Revenue Next 5Y7.34%
EBIT growth 1Y-13.98%
EBIT growth 3Y-10.87%
EBIT growth 5Y10.7%
EBIT Next Year20.98%
EBIT Next 3Y11.34%
EBIT Next 5Y7.87%
FCF growth 1Y-129.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-102.1%
OCF growth 3Y-42.18%
OCF growth 5Y-16.37%