AutoNation (AN) AI Stock Analysis

• Market Cap: $7.56B
• Dividend Yield: N/A
• Average Volume (3M): 422.50K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.92
• Revenue Growth: 6.06%
• EPS Growth: -1.71%
• Country: US
• Employees: 25,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 5.01
• Shares Outstanding: 36,000,000
• 10 Day Avg. Volume: 529,430
• 30 Day Avg. Volume: 422,498
• PEG Ratio: -0.39
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -491.06
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: 11.29
• 1Y Price Target: $250.13
• Price Target Upside: 19.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 20.07
• Revenue Forecast (FY): $27.87B

• Rating: 70 Neutral
• Price Target: $236.00 ▲(12.34% Upside)

AutoNation's overall stock score is driven by strong technical analysis and a positive earnings call, indicating growth potential. The financial performance shows moderate health with some concerns in cash flow management. The valuation is reasonable, and the corporate event of a stock buyback program expansion supports shareholder value.

Positive Factors

Revenue Growth

The increase in same-store sales and domestic segment growth indicates strong demand and effective sales strategies, supporting long-term revenue growth.

Strategic Acquisitions

The acquisition of Jerry’s Toyota expands AutoNation's market presence and strengthens its dealership network, enhancing long-term competitive positioning.

Financial Services Growth

Record growth in financial services indicates strong cross-selling capabilities and customer engagement, contributing to diversified revenue streams.

Negative Factors

Cash Flow Management

Poor cash flow management limits operational flexibility and investment capacity, posing a risk to long-term financial stability.

Profitability Margins

Declining net profit margins indicate pressure on profitability, which could affect the company's ability to reinvest and grow sustainably.

Debt Levels

High leverage, despite improvements, can strain financial resources and increase vulnerability to economic downturns, impacting long-term resilience.

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, with significant contributions from its service operations, which include maintenance and repair services. The company earns money by marking up the cost of vehicles sold and receiving commissions from manufacturers for meeting sales targets. Additionally, AutoNation profits from the sale of vehicle financing and insurance products, which are often bundled with vehicle purchases. The company also has partnerships with various automotive manufacturers and financial institutions, enhancing its ability to offer competitive financing solutions. The increasing focus on digital retailing, particularly through online sales platforms, has also contributed to its revenue growth by attracting a wider customer base.

AutoNation Financial Statement Overview

Summary

AutoNation shows moderate financial health with stable revenue growth and improved leverage. However, profitability margins have slightly declined, and cash flow management remains a concern.

Income Statement

AutoNation's income statement shows moderate performance with a stable gross profit margin of approximately 17.8% in TTM. However, the net profit margin has slightly decreased to 2.38% from 2.59% in the previous year, indicating a slight decline in profitability. Revenue growth is positive at 1.64% in TTM, showing a recovery from previous declines. The EBIT and EBITDA margins have also seen a slight decrease, reflecting some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.13 in TTM, which has improved significantly from 3.54 in the previous year, indicating better leverage management. However, the return on equity has decreased to 26.95% from 28.17%, suggesting a slight decline in shareholder returns. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Cash flow analysis indicates challenges with a negative free cash flow growth rate of -60.58% in TTM, highlighting cash management issues. The operating cash flow to net income ratio is low at 0.018, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is negative, indicating cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.92B	26.77B	26.95B	26.98B	25.84B	20.39B
Gross Profit	4.91B	4.79B	5.13B	5.27B	4.95B	3.57B
EBITDA	1.60B	1.60B	1.92B	2.21B	2.12B	906.50M
Net Income	663.10M	692.20M	1.02B	1.38B	1.37B	381.60M
Balance Sheet
Total Assets	14.20B	13.39B	11.98B	10.06B	8.94B	9.89B
Cash, Cash Equivalents and Short-Term Investments	124.10M	101.50M	60.80M	72.60M	60.40M	569.60M
Total Debt	9.81B	8.70B	8.12B	6.42B	4.95B	5.25B
Total Liabilities	11.69B	10.93B	9.77B	8.01B	6.57B	6.65B
Stockholders Equity	2.51B	2.46B	2.21B	2.05B	2.38B	3.24B
Cash Flow
Free Cash Flow	-178.20M	-13.80M	313.70M	1.34B	1.41B	1.05B
Operating Cash Flow	111.20M	314.70M	724.00M	1.67B	1.63B	1.21B
Investing Cash Flow	-485.30M	12.30M	-569.90M	-479.30M	-460.30M	-73.70M
Financing Cash Flow	401.70M	-300.60M	-172.50M	-1.15B	-1.68B	-606.70M

AutoNation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 210.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 210.08 is below the 20-day moving average (MA) of 211.77, above the 50-day MA of 205.88, and above the 200-day MA of 197.14, indicating a neutral trend. The MACD of 0.74 indicates Positive momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 37.76 is Neutral, 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
LAD	76 Outperform	$8.30B	9.90	13.44%	0.64%	8.56%	17.84%
GPI	73 Outperform	$5.12B	14.26	12.27%	0.49%	19.45%	-24.27%
PAG	71 Outperform	$10.88B	11.63	17.30%	3.14%	2.25%	8.92%
AN	70 Neutral	$7.56B	12.36	27.16%	―	6.06%	-1.71%
ABG	67 Neutral	$4.61B	8.33	15.49%	―	8.07%	60.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KMX	61 Neutral	$5.65B	12.72	7.46%	―	0.12%	2.78%

AutoNation Corporate Events

AutoNation Completes $600 Million Senior Notes Sale

On November 14, 2025, AutoNation, Inc. completed the sale of $600 million in 4.450% Senior Notes due 2029, following an underwriting agreement with several financial institutions. The issuance, part of a strategic financial maneuver, is expected to impact the company’s financial operations and its relationships with underwriters, who may continue to engage in commercial dealings with AutoNation.

AutoNation Expands Stock Buyback Program by $1 Billion

On October 31, 2025, AutoNation announced its Board of Directors authorized an additional $1 billion for its stock repurchase program, reflecting confidence in the company’s performance and long-term strategy. Year-to-date through October 30, 2025, AutoNation repurchased 3 million shares for $576 million, reducing its shares outstanding by 8% since December 31, 2024, and leaving $1.28 billion available for future repurchases.