Autonation (AN)
NYSE:AN
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AutoNation
(NYSE:AN)
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Rating:58Neutral
Price Target:
$189.00
▼(-4.02% Downside)
Action:ReiteratedDate:02/13/26
The score is held back primarily by weaker financial quality versus prior years (margin compression, high leverage in 2022–2024, and volatile/declining cash generation) and soft technical momentum. These are partly offset by a relatively modest P/E valuation and an earnings-call outlook that emphasizes stable profitability, strong cash generation/capital returns, and continued growth in aftersales and AN Finance despite a slightly weaker 2026 market backdrop.
Positive Factors
Aftersales strength
Record aftersales gross profit and mid-single-digit same-store revenue growth point to a durable, high-margin recurring revenue stream. Aftersales demand is less cyclical than new-vehicle sales, supports gross margins (~48.7%), and benefits from investments (technician hiring, loaner fleets) that sustain service capacity and cash generation.
Negative Factors
Margin compression
A sustained decline in net margins materially reduces earnings power and resilience. Lower margins increase sensitivity to volume declines or higher costs (floorplan interest, advertising, reconditioning). Unless structural cost or mix improvements occur, compressed margins constrain free cash flow and strategic flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Aftersales strength
Record aftersales gross profit and mid-single-digit same-store revenue growth point to a durable, high-margin recurring revenue stream. Aftersales demand is less cyclical than new-vehicle sales, supports gross margins (~48.7%), and benefits from investments (technician hiring, loaner fleets) that sustain service capacity and cash generation.
Read all positive factors
AutoNation (AN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.83B
Dividend YieldN/A
Average Volume (3M)418.38K
Price to Earnings (P/E)12.1
Beta (1Y)0.88
Revenue Growth6.06%
EPS Growth-1.71%
CountryUS
Employees25,100
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)5.08
Shares Outstanding34,710,537
10 Day Avg. Volume309,664
30 Day Avg. Volume418,381
Financial Highlights & Ratios
PEG Ratio12.18
Price to Book (P/B)3.36
Price to Sales (P/S)0.28
P/FCF Ratio-39.83
Enterprise Value/Market Cap2.50
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit3.50
Enterprise Value/Ebitda10.97
Forecast
1Y Price Target
$245.88Price Target Upside24.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)21.49
Revenue Forecast (FY)$27.99B
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, includin...
How the Company Makes Money
AutoNation makes money primarily through a mix of vehicle retailing and higher-margin after-sales and finance activities. (1) New vehicle sales: The company sells new cars and trucks sourced from OEMs through franchised dealerships, generating rev...
AutoNation Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call presented a mix of near-term headwinds and strong full-year operational and financial achievements. While AutoNation faced a notable Q4 decline in new unit volumes (driven heavily by electrified powertrain pullbacks and tougher comps), the company delivered meaningful full-year progress: revenue growth, double-digit adjusted EPS growth (16%), record adjusted free cash flow (up ~39%), disciplined capital deployment (>$1.5 billion including $785 million of buybacks and $460 million of M&A), and record aftersales and CFS results. Management articulated constructive operating initiatives (AN Finance scale-up, technician hiring, internal vehicle sourcing) and maintained a healthy balance sheet. On balance, the positives (sustained cash flow, EPS growth, aftersales/CFS records, financing portfolio traction, disciplined cap allocation) outweigh the quarter-specific challenges and market uncertainties.Positive Updates
Full-Year Revenue and Earnings Growth
AutoNation delivered full-year revenue of $27.6 billion, up approximately 3% versus 2024, and full-year adjusted net income growth of 8%. Adjusted EPS grew 16% year-over-year to $20.22, marking four consecutive quarters of year-over-year EPS growth.
Negative Updates
Weak Fourth-Quarter New Vehicle Sales
Same-store new vehicle unit sales declined ~10% in Q4 (total new unit sales down ~9% for the quarter). Sales of battery electric vehicles fell ~60% year-over-year in Q4 and hybrid powertrain vehicles declined ~10%, driven by pull-ahead effects and reduced OEM dealer incentives.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Earnings Growth
AutoNation delivered full-year revenue of $27.6 billion, up approximately 3% versus 2024, and full-year adjusted net income growth of 8%. Adjusted EPS grew 16% year-over-year to $20.22, marking four consecutive quarters of year-over-year EPS growth.
Read all positive updates
Company Guidance
AutoNation guided that 2026 should move roughly with the market (management sees the market “slightly down” vs. 2025) with new‑vehicle profitability expected to remain fairly stable at 2025 levels (Q4 new‑vehicle profit ≈ $2,400/unit), the used market remaining constrained but improving year‑over‑year (Dec used inventory 25,700 units; Q4 used GPU $14.38, full‑year $15.55), and aftersales targeted to sustain mid‑single‑digit revenue and gross‑profit growth (aftersales gross profit ~record Q4 ≈ $600M; full‑year gross margin ~48.3–48.7%). Management also expects AN Finance to continue scaling (portfolio >$2.2B year‑end, 2025 originations ~$1.76B, funded status to exceed ~90% after the recent ~$750M ABS at ~4.25% and 98.7% advance), delinquency to normalize toward ~3%, and profitability to improve from recent quarterly run rates; capital allocation will remain balanced with CapEx roughly in line with 2025 (~$309M), continued disciplined M&A (2025 closed ~$460M) and buybacks funded by strong adjusted free cash flow (~$1.05B in 2025, up ~39%) while keeping leverage around ~2.4x EBITDA (target 2–3x).AutoNation Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.63B | 26.77B | 26.95B | 26.98B | 25.84B |
| Gross Profit | 4.70B | 4.79B | 5.13B | 5.27B | 4.95B |
| EBITDA | 1.50B | 1.60B | 1.92B | 2.21B | 2.12B |
| Net Income | 649.10M | 692.20M | 1.02B | 1.38B | 1.37B |
Balance Sheet | |||||
| Total Assets | 14.39B | 13.00B | 11.98B | 10.06B | 8.94B |
| Cash, Cash Equivalents and Short-Term Investments | 58.60M | 101.50M | 60.80M | 72.60M | 60.40M |
| Total Debt | 10.18B | 8.65B | 8.12B | 6.42B | 4.95B |
| Total Liabilities | 12.05B | 10.54B | 9.77B | 8.01B | 6.57B |
| Stockholders Equity | 2.34B | 2.46B | 2.21B | 2.05B | 2.38B |
Cash Flow | |||||
| Free Cash Flow | -197.50M | -13.80M | 313.70M | 1.34B | 1.41B |
| Operating Cash Flow | 111.90M | 314.70M | 724.00M | 1.67B | 1.63B |
| Investing Cash Flow | -687.00M | 12.30M | -569.90M | -479.30M | -460.30M |
| Financing Cash Flow | 557.50M | -300.60M | -172.50M | -1.15B | -1.68B |
AutoNation Technical Analysis
Positive
196.91
Price Trends
197.60
Negative
203.80
Negative
206.52
Negative
Market Momentum
0.20
Negative
54.76
Neutral
57.35
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 196.91 is above the 20-day moving average (MA) of 190.45, below the 50-day MA of 197.60, and below the 200-day MA of 206.52, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 57.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AN.
AutoNation Risk Analysis
AutoNation disclosed 16 risk factors in its most recent earnings report. AutoNation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AutoNation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.08B | 11.20 | 16.04% | 3.14% | 2.25% | 8.92% | |
62 Neutral | $3.87B | 9.17 | 9.29% | ― | 8.07% | 60.95% | |
62 Neutral | $3.97B | 15.78 | 10.85% | 0.49% | 19.45% | -24.27% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $6.15B | 10.30 | 12.08% | 0.64% | 8.56% | 17.84% | |
60 Neutral | $6.27B | 23.09 | 7.39% | ― | 0.12% | 2.78% | |
58 Neutral | $6.83B | 12.12 | 26.70% | ― | 6.06% | -1.71% |
* Consumer Cyclical Sector Average
AN
AutoNation
200.42
34.12
20.52%
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LAD
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PAG
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155.15
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.