AutoNation (AN) AI Stock Analysis

• Market Cap: $8.55B
• Dividend Yield: N/A
• Average Volume (3M): 437.60K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.01
• Revenue Growth: 3.15%
• EPS Growth: -12.49%
• Country: US
• Employees: 25,100
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Auto - Dealerships
• EPS (TTM): 5.46
• Shares Outstanding: 37,706,017
• 10 Day Avg. Volume: 385,647
• 30 Day Avg. Volume: 437,599
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: 10.74
• 1Y Price Target: $225.75
• Price Target Upside: -0.47% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: $231.00 ▲(1.84% Upside)

AutoNation's strong technical indicators and positive earnings call sentiment are the most significant factors driving the score. Financial performance shows stability but also highlights areas for improvement, particularly in profitability and cash flow. The valuation is reasonable, though the lack of a dividend yield may deter some investors.

Positive Factors

Earnings

AutoNation reported a revenue increase of 3% year-over-year to $6.7 billion, surpassing consensus expectations.

Electric Vehicles

Battery Electric Vehicle sales were up nearly 50% from a year ago, reflecting strong demand and manufacturer incentives.

Sales Performance

New vehicle retail unit sales increased by 6% year-over-year, indicating strong performance in this segment.

Negative Factors

Profit Margins

Gross profit margins decreased by 30 basis points year-over-year to 18.2%.

SG&A Costs

SG&A as a percentage of gross profit increased to 67.5% from 65.6% compared to the previous year.

AutoNation Business Overview & Revenue Model

Company Description

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, 2021, it owned and operated 339 new vehicle franchises from 247 stores located primarily in metropolitan markets in the Sunbelt region. The company also owned and operated 57 AutoNation-branded collision centers, 9 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, and 3 parts distribution centers. AutoNation, Inc. was founded in 1991 and is headquartered in Fort Lauderdale, Florida.

How the Company Makes Money

AutoNation generates revenue primarily through the sale of new and used vehicles, which constitutes a significant portion of its overall income. The company also earns money from automotive financing and insurance products, often through partnerships with financial institutions. Additionally, AutoNation has a robust service department that provides maintenance and repair services, contributing to recurring revenue streams. The company benefits from its extensive footprint and brand recognition, as well as its investments in digital sales platforms, which enhance customer engagement and streamline the purchasing process.

AutoNation Financial Statement Overview

Summary

AutoNation shows stable revenue growth but faces challenges in profitability and cash flow generation. High leverage and declining margins highlight potential financial risks, while some resilience is offered by the ability to generate cash relative to net income.

Income Statement

AutoNation's income statement shows moderate performance with a slight revenue growth of 1.83% TTM, indicating stability in sales. However, the gross profit margin of 17.91% and net profit margin of 2.31% TTM suggest room for improvement in cost management and profitability. The EBIT and EBITDA margins have declined over the years, reflecting potential challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.77 TTM, indicating significant leverage which could pose financial risk. Return on equity is 26.13% TTM, showing decent profitability relative to shareholder investment. The equity ratio of 18.20% TTM suggests a lower proportion of equity financing, highlighting potential vulnerability to financial fluctuations.

Cash Flow

Cash flow analysis indicates negative free cash flow growth of 32.05% TTM, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. However, the free cash flow to net income ratio of 3.00 TTM indicates some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.46B	26.77B	26.95B	26.98B	25.84B	20.39B
Gross Profit	4.92B	4.79B	5.13B	5.27B	4.95B	3.57B
EBITDA	1.57B	1.60B	1.92B	2.21B	2.12B	906.50M
Net Income	633.80M	692.20M	1.02B	1.38B	1.37B	381.60M
Balance Sheet
Total Assets	13.57B	13.00B	11.98B	10.06B	8.94B	9.89B
Cash, Cash Equivalents and Short-Term Investments	62.90M	59.80M	60.80M	72.60M	60.40M	569.60M
Total Debt	9.30B	8.65B	8.03B	6.42B	4.95B	5.19B
Total Liabilities	11.10B	10.54B	9.77B	8.01B	6.57B	6.65B
Stockholders Equity	2.47B	2.46B	2.21B	2.05B	2.38B	3.24B
Cash Flow
Free Cash Flow	-452.00M	-13.80M	313.70M	1.34B	1.41B	1.05B
Operating Cash Flow	-150.50M	314.70M	724.00M	1.67B	1.63B	1.21B
Investing Cash Flow	-61.80M	12.30M	-569.90M	-479.30M	-460.30M	-73.70M
Financing Cash Flow	199.90M	-300.60M	-172.50M	-1.15B	-1.68B	-606.70M

AutoNation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 226.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AN, the sentiment is Positive. The current price of 226.82 is above the 20-day moving average (MA) of 213.95, above the 50-day MA of 206.67, and above the 200-day MA of 185.03, indicating a bullish trend. The MACD of 6.27 indicates Negative momentum. The RSI at 72.56 is Negative, neither overbought nor oversold. The STOCH value of 86.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AN.

AutoNation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAG	80 Outperform	$12.39B	13.07	18.11%	2.66%	2.39%	5.84%
ABG	75 Outperform	$5.06B	9.40	15.19%	―	8.39%	40.35%
GPI	75 Outperform	$6.26B	13.40	15.72%	0.41%	19.75%	-10.74%
LAD	73 Outperform	$8.74B	10.10	13.34%	0.63%	10.25%	9.08%
KMX	71 Outperform	$9.11B	16.79	8.97%	―	3.17%	42.14%
AN	70 Outperform	$8.55B	14.21	27.24%	―	3.15%	-12.49%
Sector *	61 Neutral	$17.99B	12.87	-3.56%	2.97%	1.27%	-14.28%

AutoNation Corporate Events

AutoNation Completes $700 Million Securitization Transaction

On May 21, 2025, AutoNation announced the completion of a $700 million asset-backed securitization transaction through its captive finance company, AutoNation Finance. This inaugural transaction involved the issuance of seven classes of notes with a weighted-average interest rate of 4.90%, secured by $714.3 million of automobile loan contracts. The net proceeds of approximately $696.4 million will be used to reduce existing debt and support corporate purposes. The transaction was well-received, allowing AutoNation to secure a competitive interest rate and increase the offering size by $200 million, enhancing its capital allocation flexibility.

The most recent analyst rating on (AN) stock is a Buy with a $215.00 price target. To see the full list of analyst forecasts on AutoNation stock, see the AN Stock Forecast page.