AutoNation (AN) AI Stock Analysis

• Market Cap: $7.77B
• Dividend Yield: N/A
• Average Volume (3M): 508.84K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.02
• Revenue Growth: 3.15%
• EPS Growth: -12.49%
• Country: US
• Employees: 25,100
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Dealerships
• EPS (TTM): 5.46
• Shares Outstanding: 37,706,017
• 10 Day Avg. Volume: 406,718
• 30 Day Avg. Volume: 508,841
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 10.59
• 1Y Price Target: $224.44
• Price Target Upside: 8.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 69 Neutral
• Price Target: $214.00 ▲(3.79% Upside)

AutoNation's overall stock score reflects strong earnings growth and positive corporate events, offset by financial challenges and mixed technical indicators. The company's valuation is reasonable, but high leverage and cash flow issues need addressing.

Positive Factors

Revenue Growth

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

Sales Performance

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

Stock Buybacks

The company repurchased 0.6 million shares of common stock, indicating confidence in its own value.

Negative Factors

Gross Profit Margins

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

Operating Margins

Operating margins were softer, decreasing from the previous year.

SG&A Expenses

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. is the largest automotive retailer in the United States, operating a network of over 300 dealerships across various states. The company focuses on new and used vehicle sales, automotive service and repair, and parts distribution. AutoNation offers a diverse range of vehicle brands, including both domestic and foreign manufacturers, and is committed to enhancing the customer experience through innovative digital tools and services.

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 exhibits stable revenue but faces challenges with declining profitability margins, high leverage, and negative cash flow, indicating financial risks and a need for improved operational efficiency.

Income Statement

AutoNation's income statement shows a stable revenue base with a slight growth in the TTM period. Gross Profit Margin stands at 17.83% for TTM, showing consistent profitability. However, there is a decline in Net Profit Margin from 3.88% in 2024 to 2.51% in TTM, indicating rising costs or expenses. The EBIT and EBITDA margins are stable, but lower compared to earlier years, reflecting operational efficiency challenges.

Balance Sheet

The balance sheet reveals a relatively high Debt-to-Equity Ratio, increasing from 3.52 in 2024 to 9.86 in TTM, highlighting significant leverage. The company maintains a moderate Equity Ratio of 18.03% in TTM, suggesting a dependence on debt financing. With a declining Return on Equity from 28.17% in 2024 to 28.19% in TTM, profitability on shareholder equity shows slight improvement but may be strained by high leverage.

Cash Flow

Cash flow analysis shows a concerning decline in Free Cash Flow, turning negative in TTM, which could affect liquidity and operational flexibility. The Operating Cash Flow to Net Income Ratio reduced significantly, indicating challenges in converting income into cash. Free Cash Flow to Net Income Ratio is negative, signaling potential cash management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.77B	26.95B	26.98B	25.84B	20.39B
Gross Profit	4.79B	5.13B	5.27B	4.95B	3.57B
EBITDA	1.60B	1.87B	2.21B	2.09B	842.70M
Net Income	692.20M	1.02B	1.38B	1.37B	381.60M
Balance Sheet
Total Assets	13.00B	11.98B	10.06B	8.94B	9.89B
Cash, Cash Equivalents and Short-Term Investments	59.80M	60.80M	72.60M	60.40M	569.60M
Total Debt	8.65B	8.03B	6.42B	4.95B	5.19B
Total Liabilities	10.54B	9.77B	8.01B	6.57B	6.65B
Stockholders Equity	2.46B	2.21B	2.05B	2.38B	3.24B
Cash Flow
Free Cash Flow	-13.80M	313.70M	1.34B	1.41B	1.05B
Operating Cash Flow	314.70M	724.00M	1.67B	1.63B	1.21B
Investing Cash Flow	12.30M	-569.90M	-479.30M	-460.30M	-73.70M
Financing Cash Flow	-300.60M	-172.50M	-1.15B	-1.68B	-606.70M

AutoNation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 206.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 206.18 is above the 20-day moving average (MA) of 198.72, above the 50-day MA of 199.68, and above the 200-day MA of 181.13, indicating a bullish trend. The MACD of 1.56 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 84.42 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	77 Outperform	$11.91B	12.56	18.11%	2.77%	2.39%	5.84%
GPI	76 Outperform	$5.73B	12.26	15.72%	0.44%	19.75%	-10.74%
ABG	76 Outperform	$4.73B	8.79	15.19%	―	8.39%	40.35%
LAD	75 Outperform	$7.71B	8.91	13.34%	0.72%	10.25%	9.08%
AN	69 Neutral	$7.77B	12.92	27.24%	―	3.15%	-12.49%
SAH	66 Neutral	$2.70B	17.56	15.99%	1.71%	4.48%	-16.26%
Sector *	61 Neutral	$17.43B	12.46	-6.01%	3.11%	1.62%	-15.64%

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.