NYSE:AN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.1%

AN

5.7%

US Specialty Retail

3.8%

US Market


1 Year Return

5.4%

AN

3.5%

US Specialty Retail

9.7%

US Market

Return vs Industry: AN exceeded the US Specialty Retail industry which returned 3.6% over the past year.

Return vs Market: AN underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

ANIndustryMarket
7 Day10.1%5.7%3.8%
30 Day19.2%18.8%11.4%
90 Day3.0%2.3%6.8%
1 Year5.4%5.4%4.9%3.5%12.1%9.7%
3 Year6.9%6.9%29.4%23.2%36.2%27.2%
5 Year-31.0%-31.0%23.5%13.0%63.7%45.4%

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?

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AN ($43.47) is trading below our estimate of fair value ($46.68)

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 (30.9x) compared to the Specialty Retail industry average (14.8x).

PE vs Market: AN is poor value based on its PE Ratio (30.9x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: AN is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: AN is overvalued based on its PB Ratio (1.3x) compared to the US Specialty Retail industry average (1.2x).


Next Steps

Future Growth

How is AutoNation forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

143.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AN's forecast earnings growth (143.9% per year) is above the savings rate (2.2%).

Earnings vs Market: AN's earnings (143.9% per year) are forecast to grow faster than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AN's revenue (5.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: AN's revenue (5.9% 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 (11.1%).


Next Steps

Past Performance

How has AutoNation performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AN has a large one-off loss of $326.9M impacting its March 31 2020 financial results.

Growing Profit Margin: AN's current net profit margins (0.6%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: AN's earnings have declined by -5.3% 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 (-68%) over the past year, making it difficult to compare to the Specialty Retail industry average (-5.6%).


Return on Equity

High ROE: AN's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is AutoNation's financial position?


Financial Position Analysis

Short Term Liabilities: AN's short term assets ($4.7B) do not cover its short term liabilities ($5.0B).

Long Term Liabilities: AN's short term assets ($4.7B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: AN's debt to equity ratio (212%) is considered high.

Reducing Debt: AN's debt to equity ratio has reduced from 229.5% to 212% over the past 5 years.

Debt Coverage: AN's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: AN's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

What is AutoNation's 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?

0.4yrs

Average management tenure


CEO

Mike Jackson (70yo)

0.17

Tenure

US$14,500,873

Compensation

Mr. Michael J. Jackson, also known as Mike, serves as an Interim Chief Executive Office of AutoNation, Inc. since April 13, 2020 and served as interim president since April 13, 2020 until April 22, 2020. M ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD14.50M) is above average for companies of similar size in the US market ($USD5.84M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Jackson
Executive Chairman & Interim CEO0.17yrUS$14.50m0.29% $10.9m
James Bender
President & COO0.17yrUS$2.96m0.0078% $295.7k
Christopher Cade
Senior VP & Chief Accounting Officer5yrsUS$1.25m0.0060% $227.9k
C. Coleman Edmunds
Executive VP of Corporate Development3.17yrsUS$2.41m0.023% $875.4k
Marc Cannon
Executive VP & Chief Customer Experience Officer0.17yrUS$2.53m0.033% $1.2m
Cheryl Miller
President0.17yrUS$7.97m0.046% $1.8m
Joseph Lower
Executive VP & CFO0.42yrno data0.0024% $89.9k
Robert Quartaro
Vice President of Investor Relationsno datano datano data
David Koehler
Eastern Region President1.42yrsUS$559.97kno data
Steve Kwak
President of Western Region3.08yrsno datano data

0.4yrs

Average Tenure

54yo

Average Age

Experienced Management: AN's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Jackson
Executive Chairman & Interim CEO0.17yrUS$14.50m0.29% $10.9m
Robert Grusky
Independent Director14yrsUS$319.97k0.024% $900.4k
Rick Burdick
Lead Independent Director1.5yrsUS$334.97k0.039% $1.5m
Steven Gerard
Independent Director1.17yrsUS$37.50k0.0070% $265.8k
Lisa Lutoff-Perlo
Independent Director0.33yrno datano data
David Edelson
Independent Director11.92yrsUS$299.97k0.016% $589.9k
George Mikan
Independent Director7.25yrsUS$319.97k0.017% $630.5k
Thomas Baltimore
Independent Director1.17yrsUS$37.50kno data
Jacqueline Travisano
Independent Director2.17yrsUS$299.97kno data

2.2yrs

Average Tenure

61yo

Average Age

Experienced Board: AN's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: AN insiders have bought more shares than they have sold 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$3.791b
  • Shares outstanding: 87.22m
  • Website: https://www.autonation.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1981
RWIDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1981

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 automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products, as well as arranges finance for vehicle purchases through third-party finance sources. As of December 31, 2019, it owned and operated 317 new vehicle franchises from 231 stores located primarily in metropolitan markets in the Sunbelt region. It also owned and operated 81 AutoNation-branded collision centers, 5 AutoNation USA stores, 4 automotive auction operations, and 17 parts distribution centers. The company was founded in 1991 and is headquartered in Fort Lauderdale, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 01:44
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.