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Market Cap

US$7.7b

Last Updated

2021/04/11 22:02 UTC

Data Sources

Company Financials +

Executive Summary

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has AutoNation's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

AN

3.7%

US Specialty Retail

2.1%

US Market


1 Year Return

176.7%

AN

116.8%

US Specialty Retail

56.3%

US Market

Return vs Industry: AN exceeded the US Specialty Retail industry which returned 116.8% over the past year.

Return vs Market: AN exceeded the US Market which returned 56.3% over the past year.


Shareholder returns

ANIndustryMarket
7 Day1.2%3.7%2.1%
30 Day4.6%2.4%2.4%
90 Day22.2%15.6%6.8%
1 Year176.7%176.7%118.1%116.8%59.1%56.3%
3 Year101.9%101.9%116.8%108.2%65.7%55.1%
5 Year97.6%97.6%111.0%95.1%122.3%97.7%

Long-Term Price Volatility Vs. Market

How volatile is AutoNation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AutoNation undervalued compared to its fair value and its price relative to the market?

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AN ($93.12) is trading below our estimate of fair value ($97.48)

Significantly Below Fair Value: AN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AN is poor value based on its PE Ratio (21.5x) compared to the US Specialty Retail industry average (19.8x).

PE vs Market: AN is good value based on its PE Ratio (21.5x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: AN is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: AN is good value based on its PB Ratio (2.4x) compared to the US Specialty Retail industry average (3.1x).


Future Growth

How is AutoNation forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AN's forecast earnings growth (13.9% per year) is above the savings rate (2%).

Earnings vs Market: AN's earnings (13.9% per year) are forecast to grow slower than the US market (18.6% per year).

High Growth Earnings: AN's earnings are forecast to grow, but not significantly.

Revenue vs Market: AN's revenue (7.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AN's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AN's Return on Equity is forecast to be low in 3 years time (13.8%).


Past Performance

How has AutoNation performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AN has a large one-off loss of $278.1M impacting its December 31 2020 financial results.

Growing Profit Margin: AN's current net profit margins (1.9%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: AN's earnings have declined by 5.5% per year over the past 5 years.

Accelerating Growth: AN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AN had negative earnings growth (-14.6%) over the past year, making it difficult to compare to the Specialty Retail industry average (30.5%).


Return on Equity

High ROE: AN's Return on Equity (11.8%) is considered low.


Financial Health

How is AutoNation's financial position?


Financial Position Analysis

Short Term Liabilities: AN's short term assets ($4.2B) do not cover its short term liabilities ($4.2B).

Long Term Liabilities: AN's short term assets ($4.2B) exceed its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: AN's debt to equity ratio (146.1%) is considered high.

Reducing Debt: AN's debt to equity ratio has reduced from 260.2% to 146.1% over the past 5 years.

Debt Coverage: AN's debt is well covered by operating cash flow (25.5%).

Interest Coverage: AN's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Dividend

What is AutoNation current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Mike Jackson (71 yo)

1

Tenure

US$14,198,071

Compensation

Mr. Michael J. Jackson, also known as Mike, serves as Chief Executive Office of AutoNation, Inc. since July 14, 2020. He served as an Interim Chief Executive Office of AutoNation, Inc. since April 13, 2020...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD14.20M) is above average for companies of similar size in the US market ($USD6.40M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: AN's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AutoNation, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AutoNation, Inc.
  • Ticker: AN
  • Exchange: NYSE
  • Founded: 1991
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$7.675b
  • Shares outstanding: 82.42m
  • Website: https://www.autonation.com

Number of Employees


Location

  • AutoNation, Inc.
  • 200 SW 1st Avenue
  • Fort Lauderdale
  • Florida
  • 33301
  • United States

Listings


Biography

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 22:02
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.