AutoNation Inc AN

Morningstar Rating
$177.68 −4.77 (2.61%)
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Company Report

Price vs Fair Value

AN is trading at a 183% premium.
Price
$182.61
Fair Value
$173.00
Uncertainty
High
1-Star Price
$421.30
5-Star Price
$695.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

AutoNation's massive size provides some appealing economies of scale, illustrated by strong operating margins.

Bears

About half of revenue is derived from new-car sales, leaving AutoNation vulnerable to the fluctuations of a viciously cyclical industry. This risk is greater for AutoNation as it gets a much larger share of its sales from California and Florida than the national average. These markets could be hit worse than other US markets in a housing downturn.

News

Trading Information

Previous Close Price
$182.45
Day Range
$177.61180.93
52-Week Range
$123.77197.12
Bid/Ask
$176.84 / $177.70
Market Cap
$7.05 Bil
Volume/Avg
99,670 / 372,009

Key Statistics

Price/Earnings (Normalized)
9.59
Price/Sales
0.29
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
9.68%

Company Profile

AutoNation is the second largest automotive dealer in the United States, with 2023 revenue of about $27 billion and over 250 dealerships, plus 53 collision centers. The firm also has 23 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors all across 21 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly 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.
Sector
Consumer Cyclical
Industry
Auto & Truck Dealerships
Stock Style Box
Small Value
Total Number of Employees
25,300

Competitors

Valuation

Metric
AN
ABG
LAD
Price/Earnings (Normalized)
9.598.4710.19
Price/Book Value
3.321.471.35
Price/Sales
0.290.310.26
Price/Cash Flow
7.095.826.94
Price/Earnings
AN
ABG
LAD

Financial Strength

Metric
AN
ABG
LAD
Quick Ratio
0.150.200.27
Current Ratio
0.781.251.19
Interest Coverage
3.763.434.26
Quick Ratio
AN
ABG
LAD

Profitability

Metric
AN
ABG
LAD
Return on Assets (Normalized)
6.86%6.28%4.29%
Return on Equity (Normalized)
36.94%18.18%14.11%
Return on Invested Capital (Normalized)
10.87%9.65%6.91%
Return on Assets
AN
ABG
LAD

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