Autonation, Inc.

Consumer Discretionary
Retail-Auto Dealers and Gas Stations
www.autonation.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.03B
PE 10
Debt $3.58B
Cash $98.40M
EV $10.51B
FCF -$260.20M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$722.30M
EBIT	$1.32B
ROE	30%
ROA	10%
FCF	-$260.20M
Equity	$2.37B
Growth Stability	89%
PE	9.73
PEG	0.32
PB	2.96
P/FCF	-27
P/S	0.27
Price/Cash	0.01
Debt/Equity	1.51
Debt/FCF	-13.78
Net Margins	3%
Gross Margins	18%
Op. Margins	5%
Earnings CAGR	16%
Sales Growth YoY	-4%
Sales Growth QoQ	2%
Sales CAGR	3%
FCF CAGR	15%
Equity CAGR	0%
Earnings Stability	0.46
Earnings Growth YoY	-24%
Earnings Growth QoQ	43%

Earnings CAGR 5Y	30%
Sales CAGR 5Y	7%
FCF CAGR 5Y	-26%
Equity CAGR 5Y	-9%
Earnings CAGR 3Y	0%
Sales CAGR 3Y	0%
FCF CAGR 3Y	-70%
Equity CAGR 3Y	-1%
Market Cap	$7.03B
Revenue	$26.32B
Assets	$12.91B
Total Debt	$3.58B
Cash	$98.40M
Shares Outstanding	39.6M
EV	10.51B
Earnings Score	60%
Moat Score	85%
Safety Score	65%
Final Score	70%
Working Capital	-1.21B
Current Ratio	0.8
Gross Profit	$4.76B
Shares Growth 3y	-16%
Equity Growth QoQ	9%
Equity Growth YoY	11%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

AutoNation is the largest automotive dealer in the United States, with 2021 revenue of $25.8 billion and about 250 dealerships at nearly 350 locations, plus 57 collision centers. The firm also has 11 AutoNation USA used-vehicle stores, four auction sites, and three parts distributors all across 17 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for about half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) spun off its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.

SEC Filings

Direct access to Autonation, Inc. (AN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Autonation, Inc. compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Autonation, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 16%

Stability 46%

loading chart...

Autonation, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Autonation, Inc..

Years

Calculation mode

= -$7.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$260M	-$299M	-$343M	-$394M	-$452M	-$519M	-$596M	-$684M	-$785M	-$901M	-$1B	-$10B
DCF		-$272M	-$283M	-$296M	-$309M	-$322M	-$336M	-$351M	-$366M	-$382M	-$399M	-$4B
Value	-$7.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	2%	2%	2%	2%	2%	2%	2%	5%	5%	4%	3%
ROA	-	9%	9%	8%	7%	8%	6%	21%	20%	14%	10%
ROE	-	19%	19%	18%	15%	14%	12%	58%	67%	46%	30%

Bad Net Margins (2.59%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.83	7.17	12.17	16.35	4.6	2.31	2.05	2.69	11.43	-13.78
Debt over Equity	1.04	0.76	0.85	1.18	0.75	0.73	0.75	1.22	1.76	1.62	1.51
Growth Stability	-	-	-	100%	91%	100%	89%	100%	100%	98%	89%

Good Debt/FCF ratio (-13.78)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Bad Debt/Equity ratio (1.51)

The company is overleveraged and has a bad balance between equity and debt.

Neutral Graham’s Stability (89%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	9%	4%	-0%	-1%	-0%	-4%	27%	4%	-0%	7%
Earnings YoY growth	-	6%	-3%	1%	-9%	14%	-15%	260%	0%	-26%	30%
Equity YoY growth	-	13%	-2%	3%	15%	16%	2%	-27%	-14%	8%	-9%
FCF YoY growth	-	-6%	5%	-16%	-46%	303%	110%	34%	-5%	-77%	-26%