NYSE
AN
Last Price
US $196.28
KEY FIGURES
MKT CAP
$6.6B
EPS
TTM
$19.57
PEG
TTM
N/M
P/E
TTM
10.03x
P/S
TTM
0.25x
YIELD
0.00%
GROWTH
Revenue Y/Y
6.27%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $196.28
—
Default assumptions
EBITDA Multiple
Fair Value
Market $196.28
-94.02%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
AutoNation, Inc. cash flow to debt ratio of 1.10% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
AutoNation, Inc.'s free cash flow has decreased 1.33K% from $-13.80M last year to $-197.50M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
AutoNation, Inc.'s debt to equity ratio is 4.71, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
AutoNation, Inc.'s debt has increased relative to shareholder equity from 3.52 last year to 4.71 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
AutoNation, Inc. has a net debt to EBITDA ratio of 6.73x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
AutoNation, Inc.'s interest coverage ratio of 3.54 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
AutoNation, Inc.'s profit margin has decreased (-4.50%) in the last year from 2.59% to 2.47%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
AutoNation, Inc.'s short-term liabilities of $5.54G exceed its short-term assets of $4.65G, signaling financial risk
Decreasing performance - ROA.
AutoNation, Inc.'s return on assets of 4.64% is lower than the 5.00% threshold, indicating inefficient asset utilization
Increasing performance - Absolute return on equity.
AutoNation, Inc.'s return on equity of 28.44%, is higher than 15.00%, indicating good performance
Decreasing performance - Earnings quality.
AutoNation, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
AutoNation, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
AutoNation, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
AutoNation, Inc. has negative free cash flow, indicating cash burn
Decreasing performance - Healthy earnings growth.
AutoNation, Inc.'s yearly earnings has decreased -6.23% since last year from $692.20M to $649.10M, signaling decreasing performance
Increasing performance - Healthy revenue growth.
AutoNation, Inc.'s yearly revenue has increased 3.24% since last year from $26.77G to $27.63G, signaling increasing performance
Increasing performance - ROIC.
ROIC 6.78% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
AutoNation, Inc.'s 3-year revenue CAGR of 0.79% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
AutoNation, Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
AutoNation, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
AutoNation, Inc. has insufficient data to evaluate this check.
Undervalued - Earnings yield.
AutoNation, Inc. has an earnings yield of 9.97%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
AutoNation, Inc. is overvalued relative to its fair value price of 11.74 based on EBITDA multiple model
Undervalued - EV/EBITDA.
AutoNation, Inc. has an EV/EBITDA ratio of 11.09x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
AutoNation, Inc. has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
AutoNation, Inc. has a price-to-book ratio of 3.06x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
AutoNation, Inc. has a price-to-sales ratio of 0.25x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
28.44%
Return on equity
ROIC: 6.78%
Valuation History
10.5X
Price to Earnings
EV/EBITDA: 10.7X
Cash flow
Profit margin
10.67%
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
EARNINGS FV (GRAHAM)
Fair Value
Market $196.28
281.22%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.