NYSE:AN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.


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


Market Performance


7 Day Return

-0.9%

AN

1.3%

US Specialty Retail

0.07%

US Market


1 Year Return

21.8%

AN

8.0%

US Specialty Retail

8.9%

US Market

Return vs Industry: AN exceeded the US Specialty Retail industry which returned 8% over the past year.

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


Shareholder returns

ANIndustryMarket
7 Day-0.9%1.3%0.07%
30 Day-2.4%5.0%-0.3%
90 Day1.3%3.3%-1.6%
1 Year21.8%21.8%9.8%8.0%11.3%8.9%
3 Year7.6%7.6%44.6%37.1%46.3%36.8%
5 Year-11.3%-11.3%55.9%42.6%62.1%44.3%

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?

11.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AN ($49.3) is trading above our estimate of fair value ($46.61)

Significantly Below Fair Value: AN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AN is good value based on its PE Ratio (11.2x) compared to the Specialty Retail industry average (15.7x).

PE vs Market: AN is good value based on its PE Ratio (11.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AN is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: AN is overvalued based on its PB Ratio (1.5x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is AutoNation forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AN's forecast earnings growth (2.6% per year) is below the savings rate (2.7%).

Earnings vs Market: AN's earnings (2.6% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: AN's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: AN's revenue is forecast to decline over the next 3 years (-0.2% 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 (11.4%).


Next Steps

Past Performance

How has AutoNation performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AN's earnings have declined by -0.7% 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 (-9.4%) over the past year, making it difficult to compare to the Specialty Retail industry average (8.3%).


Return on Equity

High ROE: AN's Return on Equity (13.8%) is considered low.


Return on Assets

ROA vs Industry: AN has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: AN's Return on Capital Employed has declined over the past 3 years.


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 ($5.6B)

Long Term Liabilities: AN's short term assets (4.7B) exceeds its long term liabilities (2.2B)


Debt to Equity History and Analysis

Debt Level: AN's debt to equity ratio (208.6%) is considered high

Reducing Debt: AN's debt to equity ratio has reduced from 223.7% to 208.6% over the past 5 years.

Debt Coverage: AN's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: AN's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: AN has a high level of physical assets or inventory.

Debt Coverage by Assets: AN's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of AutoNation's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Cheryl Miller (46yo)

0.3yrs

Tenure

US$2,946,532

Compensation

Ms. Cheryl Scully Miller serves as President, CEO & Director at AutoNation, Inc. since July 22, 2019. She was Executive Vice President of Corporate Real Estate Services and Benefits and Chief Financial Off ...


CEO Compensation Analysis

Compensation vs. Market: Cheryl has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

0.8yrs

Average Tenure

57yo

Average Age

Experienced Management: AN's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

60yo

Average Age

Experienced Board: AN's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$698,79613 Sep 19
ESL Investments, Inc.
EntityCompany
Shares13,417
Max PriceUS$52.23
SellUS$4,675,69313 Sep 19
Edward Lampert
EntityIndividual
Shares89,893
Max PriceUS$52.23
SellUS$37,08415 Aug 19
James Bender
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares767
Max PriceUS$48.35
SellUS$1,956,01129 Jul 19
ESL Investments, Inc.
EntityCompany
Shares40,272
Max PriceUS$48.57
SellUS$7,616,69929 Jul 19
Edward Lampert
EntityIndividual
Shares156,819
Max PriceUS$48.57
SellUS$1,217,84026 Jul 19
The Lampert Foundation, Endowment Arm
EntityCompany
Shares25,526
Max PriceUS$48.57
SellUS$52,128,26825 Jul 19
Edward Lampert
EntityIndividual
Shares1,092,425
Max PriceUS$48.09
SellUS$20,801,22025 Jul 19
ESL Investments, Inc.
EntityCompany
Shares439,689
Max PriceUS$48.09
SellUS$33,040,56217 May 19
Bill & Melinda Gates Foundation Asset Trust
EntityCompany
Shares824,769
Max PriceUS$41.12
BuyUS$100,29617 May 19
Carl Liebert
EntityIndividual
Shares2,575
Max PriceUS$38.95
SellUS$44,980,63208 May 19
Bill & Melinda Gates Foundation Asset Trust
EntityCompany
Shares1,073,948
Max PriceUS$43.31
SellUS$42,59006 May 19
James Bender
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares1,034
Max PriceUS$41.19
SellUS$108,33730 Apr 19
Christopher Cade
EntityIndividual
Role
Chief Financial Officer
Interim CFO
Shares2,555
Max PriceUS$42.40
BuyUS$41,46927 Feb 19
David Edelson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,150
Max PriceUS$36.06

Ownership Breakdown


Management Team

  • Mike Jackson (70yo)

    Executive Chairman

    • Tenure: 16.8yrs
    • Compensation: US$12.47m
  • Marc Cannon (57yo)

    Executive VP of Communications

    • Tenure: 2.8yrs
    • Compensation: US$2.07m
  • Cheryl Miller (46yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$2.95m
  • Jim Bender (63yo)

    COO & Executive VP

    • Tenure: 0.3yrs
  • Christopher Cade (52yo)

    Interim CFO

    • Tenure: 0.3yrs
  • C. Coleman Edmunds (54yo)

    Executive VP of Human Resources & Corporate Development

    • Tenure: 2.5yrs
  • David Koehler

    Eastern Region President

    • Tenure: 0.8yrs
    • Compensation: US$559.97k
  • H. Arnold (60yo)

    Executive Vice President of Customer Care & Brand Extensions

    • Tenure: 2.4yrs
  • Steve Kwak

    President of Western Region

    • Tenure: 2.4yrs
  • Robert Quartaro

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bob Grusky (61yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$319.97k
  • Rick Burdick (67yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$309.97k
  • Mike Jackson (70yo)

    Executive Chairman

    • Tenure: 16.8yrs
    • Compensation: US$12.47m
  • Steven Gerard (73yo)

    Director

    • Tenure: 0.5yrs
  • Cheryl Miller (46yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$2.95m
  • David Edelson (60yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$299.97k
  • Mike Mikan (47yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$309.97k
  • Tom Baltimore (56yo)

    Director

    • Tenure: 0.5yrs
  • Jacqueline Travisano (49yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$37.50k

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$4.391b
  • Shares outstanding: 89.08m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:32
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.