(AN) AutoNation - Overview
Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NYSE (USA) | Market Cap: 6.357m USD | Total Return: 2.8% in 12m
Avg Turnover: 64.5M
EPS Trend: -57.8%
Qual. Beats: 0
Rev. Trend: 70.3%
Qual. Beats: 0
Warnings
High Debt while negative Cash Flow
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
AutoNation, Inc. is a major automotive retailer in the United States, operating through Domestic, Import, Premium Luxury, and AutoNation Finance segments. The company generates revenue through the sale of new and used vehicles, parts and collision services, and the brokering of third-party financing and insurance products. Its physical footprint is concentrated in metropolitan markets within the Sunbelt region, supported by a network of branded collision centers and auction operations.
The automotive retail sector operates on a franchise model where dealerships hold exclusive rights to sell specific manufacturer brands within defined geographic territories. Revenue in this industry is increasingly driven by higher-margin Parts and Service departments, which often provide more stable cash flow than cyclical vehicle sales. For deeper insights into these margin trends, you can explore the data on ValueRay.
Headquartered in Fort Lauderdale, Florida, AutoNation has evolved from its origins as Republic Industries to become a vertically integrated player with its own captive finance arm and used-vehicle storefronts. This structure allows the company to capture value across the entire vehicle lifecycle, from initial purchase through maintenance and eventual resale.
- High interest rates suppress consumer demand for new and used vehicle financing
- Used vehicle margin compression persists as wholesale inventory pricing stabilizes nationwide
- High-margin parts and service revenue offsets volatility in cyclical vehicle sales
- Aggressive share buyback programs drive earnings per share growth despite revenue fluctuations
- Expansion of AutoNation Finance segment increases proprietary lending and interest income potential
| Net Income: 679.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA 1.86 > 1.0 |
| NWC/Revenue: -3.81% < 20% (prev -4.94%; Δ 1.13% < -1%) |
| CFO/TA 0.01 > 3% & CFO 186.6m > Net Income 679.0m |
| Net Debt (10.8b) to EBITDA (1.54b): 7.01 < 3 |
| Current Ratio: 0.81 > 1.5 & < 3 |
| Outstanding Shares: last quarter (34.7m) vs 12m ago -11.93% < -2% |
| Gross Margin: 17.51% > 18% (prev 0.18%; Δ 1.73k% > 0.5%) |
| Asset Turnover: 196.7% > 50% (prev 202.4%; Δ -5.65% > 0%) |
| Interest Coverage Ratio: 3.72 > 6 (EBITDA TTM 1.54b / Interest Expense TTM 345.7m) |
| A: -0.07 (Total Current Assets 4.58b - Total Current Liabilities 5.63b) / Total Assets 14.6b |
| B: 0.42 (Retained Earnings 6.17b / Total Assets 14.6b) |
| C: 0.09 (EBIT TTM 1.28b / Avg Total Assets 14.0b) |
| D: 0.50 (Book Value of Equity 6.17b / Total Liabilities 12.4b) |
| Altman-Z'' = 2.05 = BBB |
| DSRI: 0.82 (Receivables 852.9m/1.02b, Revenue 27.5b/27.0b) |
| GMI: 1.02 (GM 17.51% / 17.82%) |
| AQI: 1.14 (AQ_t 0.39 / AQ_t-1 0.34) |
| SGI: 1.02 (Revenue 27.5b / 27.0b) |
| TATA: 0.03 (NI 679.0m - CFO 186.6m) / TA 14.6b) |
| Beneish M = -3.03 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 187.72 with a total of 521,673 shares traded.
Over the past week, the price has changed by +0.69%,
over one month by -8.74%,
over three months by -3.81% and
over the past year by +2.80%.
AutoNation has received a consensus analysts rating of 3.93. Therefore, it is recommended to buy AN.
- StrongBuy: 6
- Buy: 1
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 243.6 | 29.7% |
P/E Trailing = 10.297
P/E Forward = 8.8028
P/S = 0.2312
P/B = 2.8546
P/EG = 0.6934
Revenue TTM = 27.5b USD
EBIT TTM = 1.28b USD
EBITDA TTM = 1.54b USD
Long Term Debt = 5.83b USD (from longTermDebt, last quarter)
Short Term Debt = 4.23b USD (from shortTermDebt, last quarter)
Debt = 10.9b USD (from shortLongTermDebtTotal, last quarter) + Leases 418.4m
Net Debt = 10.8b USD (calculated: Debt 10.9b - CCE 120.2m)
Enterprise Value = 17.1b USD (6.36b + Debt 10.9b - CCE 120.2m)
Interest Coverage Ratio = 3.72 (Ebit TTM 1.28b / Interest Expense TTM 345.7m)
EV/FCF = -164.8x (Enterprise Value 17.1b / FCF TTM -104.0m)
FCF Yield = -0.61% (FCF TTM -104.0m / Enterprise Value 17.1b)
FCF Margin = -0.38% (FCF TTM -104.0m / Revenue TTM 27.5b)
Net Margin = 2.47% (Net Income TTM 679.0m / Revenue TTM 27.5b)
Gross Margin = 17.51% ((Revenue TTM 27.5b - Cost of Revenue TTM 22.7b) / Revenue TTM)
Gross Margin QoQ = 17.52% (prev 16.64%)
Tobins Q-Ratio = 1.17 (Enterprise Value 17.1b / Total Assets 14.6b)
Interest Expense / Debt = 3.17% (Interest Expense 345.7m / Debt 10.9b)
Taxrate = 25.50% (70.3m / 275.7m)
NOPAT = 957.2m (EBIT 1.28b * (1 - 25.50%))
Current Ratio = 0.81 (Total Current Assets 4.58b / Total Current Liabilities 5.63b)
Debt / Equity = 4.89 (Debt 10.9b / totalStockholderEquity, last quarter 2.23b)
Debt / EBITDA = 7.01 (Net Debt 10.8b / EBITDA 1.54b)
Debt / FCF = -103.6 (out of range, set to none) (Net Debt 10.8b / FCF TTM -104.0m)
Total Stockholder Equity = 2.39b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.86% (Net Income 679.0m / Total Assets 14.6b)
RoE = 28.44% (Net Income TTM 679.0m / Total Stockholder Equity 2.39b)
RoCE = 15.64% (EBIT 1.28b / Capital Employed (Equity 2.39b + L.T.Debt 5.83b))
RoIC = 7.24% (NOPAT 957.2m / Invested Capital 13.2b)
WACC = 5.11% (E(6.36b)/V(17.3b) * Re(9.82%) + D(10.9b)/V(17.3b) * Rd(3.17%) * (1-Tc(0.25)))
Discount Rate = 9.82% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -9.00%
[DCF] Fair Price = unknown (Cash Flow -104.0m)
EPS Correlation: -57.83 | EPS CAGR: -7.41% | SUE: 0.24 | # QB: 0
Revenue Correlation: 70.33 | Revenue CAGR: 1.37% | SUE: -0.47 | # QB: 0
EPS current Quarter (2026-06-30): EPS=5.38 | Chg30d=-2.02% | Revisions=-8% | Analysts=9
EPS next Quarter (2026-09-30): EPS=5.69 | Chg30d=+1.36% | Revisions=+38% | Analysts=9
EPS current Year (2026-12-31): EPS=21.38 | Chg30d=+0.32% | Revisions=+14% | GrowthEPS=+5.8% | GrowthRev=+0.7%
EPS next Year (2027-12-31): EPS=24.19 | Chg30d=+1.90% | Revisions=+29% | GrowthEPS=+13.1% | GrowthRev=+3.4%
[Analyst] Revisions Ratio: +38%