AutoNation Inc (AN)
NYSE:AN
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AutoNation
(NYSE:AN)
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Rating:63Neutral
Price Target:
$198.00
▼(-4.80% Downside)
Action:Reiterated
Date:05/02/26
The score is held back primarily by weakening financial performance—especially negative recent free cash flow and pressured margins—despite still-positive profitability. Offsetting this are supportive technical momentum, a low P/E valuation, and an earnings call that highlighted strong Q1 cash generation and durable aftersales/finance performance, tempered by withdrawn full-year guidance and ongoing volume/expense pressure.
Positive Factors
Aftersales Profitability
AutoNation’s record aftersales gross profit and same-store gains indicate a structurally higher-margin, recurring revenue stream from service, parts and warranty work. This durable cash-generative segment cushions new-vehicle cyclicality and supports long-term earnings stability.
Negative Factors
Deteriorating Cash Generation
Persistently negative free cash flow signals weaker cash conversion and higher sensitivity to inventory and working-capital swings. Over months, this raises refinancing, liquidity and discretionary capital risk, making the business more vulnerable to macro shocks and reducing internal reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Aftersales Profitability
AutoNation’s record aftersales gross profit and same-store gains indicate a structurally higher-margin, recurring revenue stream from service, parts and warranty work. This durable cash-generative segment cushions new-vehicle cyclicality and supports long-term earnings stability.
Read all positive factors
AutoNation (AN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.41B
Dividend YieldN/A
Average Volume (3M)374.39K
Price to Earnings (P/E)9.8
Beta (1Y)0.82
Revenue Growth1.94%
EPS Growth9.88%
CountryUS
Employees25,100
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)18.63
Shares Outstanding33,461,494
10 Day Avg. Volume333,220
30 Day Avg. Volume374,393
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 Cap2.60
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit3.46
Enterprise Value/Ebitda10.48
Forecast
1Y Price Target
$247.38Price Target Upside18.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)21.45
Revenue Forecast (FY)$27.78B
AutoNation Business Overview & Revenue Model
Company Description
AutoNation, Inc. functions as an automotive retailer throughout the United States, organizing its operations across three primary segments: Domestic, Import, and Premium Luxury. The company offers a comprehensive array of automotive products and s...
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:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call portrays a fundamentally strong operational and financial performance despite industry headwinds. Key positives include record aftersales gross profit, continued adjusted EPS growth (five consecutive quarters), robust free cash flow ($256M), successful scaling of AutoNation Finance (portfolio +$1B YoY) and aggressive share repurchases, supported by a healthy balance sheet (2.57x leverage). Offsetting these positives are declines in new vehicle volumes (same‑store down 9%), BEV sales collapsing >50% YoY with disproportionate impact on premium luxury, higher SG&A as a percent of gross profit due to strategic investments, and short‑term margin/volume uncertainty driven by macro and geopolitical factors. Overall, management emphasizes durable, high‑margin aftersales and finance businesses and disciplined capital allocation while acknowledging near‑term uncertainty.Positive Updates
Adjusted EPS Growth
Adjusted EPS of $4.69 in Q1, marking the fifth consecutive quarter of year‑over‑year adjusted EPS growth.
Negative Updates
Revenue Slight Decline
Total revenue of $6.6 billion in Q1 vs $6.7 billion in Q1 last year, reflecting industry volume headwinds and tough year‑over‑year comps.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted EPS of $4.69 in Q1, marking the fifth consecutive quarter of year‑over‑year adjusted EPS growth.
Read all positive updates
Company Guidance
Management withdrew the prior 2026 outlook given macro/geopolitical uncertainty and said industry volumes will likely be below the earlier up-to-5% impact forecast, but reiterated disciplined capital allocation and metric targets: Q1 adjusted EPS was $4.69 (fifth consecutive YoY increase), total revenue $6.6B, gross profit $1.2B (18.5% margin), adjusted operating income $312M (down 7% YoY) and adjusted free cash flow $256M (155% of adjusted net income). They expect SG&A to moderate over the year but remain above the 66–67% of gross profit target (Q1 was 69.8%), with management guiding to roughly a 150‑bp improvement through the balance of the year and normalization toward target into early next year; full‑year CapEx is expected to be $300–325M (CapEx/Depreciation 0.9x in Q1). Business‑level guidance/updates include aftersales record gross profit $593M (same‑store revenue +4%, same‑store gross profit +3%, aftersales margin 48.6%, technician headcount +3%), CFS per‑unit profit +6%, AutoNation Finance profit $9M and portfolio $2.45B (originations ~$460M in Q1, penetration 17% and trending toward ~20%, ABS ~$750M, debt funding 90% of portfolio, 30‑day delinquencies 2.1% expected to normalize toward ~3%), new vehicle units down ~9% same‑store with GPU >$2,500 (+~$100 vs Q4), 46 days’ supply, and used metrics showing used‑to‑new = 1, used ASP +5% YoY, used GPU ≈$1,600 (up >$150 sequential), ~25,000 units ready for sale/32,600 total inventory; capital deployment remains active (Q1 repurchases $300M, ~ $400M YTD including post‑March, nearly 2M shares or ~6% of beginning shares repurchased) while leverage sits at 2.57x EBITDA (target 2–3x).AutoNation Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
46
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.49B | 27.63B | 26.77B | 26.95B | 26.98B | 25.84B |
| Gross Profit | 4.82B | 4.70B | 4.79B | 5.13B | 5.27B | 4.95B |
| EBITDA | 1.59B | 1.50B | 1.60B | 1.92B | 2.21B | 2.12B |
| Net Income | 679.00M | 649.10M | 692.20M | 1.02B | 1.38B | 1.37B |
Balance Sheet | ||||||
| Total Assets | 14.62B | 14.39B | 13.00B | 11.98B | 10.06B | 8.94B |
| Cash, Cash Equivalents and Short-Term Investments | 120.20M | 58.60M | 101.50M | 60.80M | 72.60M | 60.40M |
| Total Debt | 10.48B | 10.18B | 8.65B | 8.12B | 6.42B | 4.95B |
| Total Liabilities | 12.40B | 12.05B | 10.54B | 9.77B | 8.01B | 6.57B |
| Stockholders Equity | 2.23B | 2.34B | 2.46B | 2.21B | 2.05B | 2.38B |
Cash Flow | ||||||
| Free Cash Flow | -104.00M | -197.50M | -13.80M | 313.70M | 1.34B | 1.41B |
| Operating Cash Flow | 186.60M | 111.90M | 314.70M | 724.00M | 1.67B | 1.63B |
| Investing Cash Flow | -599.80M | -687.00M | 12.30M | -569.90M | -479.30M | -460.30M |
| Financing Cash Flow | 409.70M | 557.50M | -300.60M | -172.50M | -1.15B | -1.68B |
AutoNation Technical Analysis
Negative
207.99
Price Trends
196.56
Negative
197.89
Negative
204.85
Negative
Market Momentum
-1.07
Negative
48.84
Neutral
71.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AN, the sentiment is Negative. The current price of 207.99 is above the 20-day moving average (MA) of 188.99, above the 50-day MA of 196.56, and above the 200-day MA of 204.85, indicating a neutral trend. The MACD of -1.07 indicates Negative momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 71.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $11.90B | 12.86 | 16.41% | 3.14% | 1.24% | -5.59% | |
66 Neutral | $7.15B | 10.32 | 10.61% | 0.64% | 2.37% | -10.19% | |
63 Neutral | $6.41B | 9.79 | 28.44% | ― | 1.94% | 9.88% | |
63 Neutral | $3.72B | 6.92 | 14.15% | ― | 4.83% | 33.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $7.27B | 30.52 | 4.05% | ― | -1.64% | -50.32% | |
59 Neutral | $3.87B | 11.97 | 11.04% | 0.49% | 7.17% | -26.51% |
* Consumer Cyclical Sector Average
AN
AutoNation
191.53
-1.51
-0.78%
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LAD
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180.96
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AutoNation Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
AutoNation Shareholders Approve 2026 Equity Plan and Directors
Positive
Apr 29, 2026
On January 28, 2026, AutoNation’s board approved a new 2026 Employee Equity and Incentive Plan, which was subsequently cleared by shareholders on April 28, 2026, replacing the 2017 plan while preserving existing awards. The new plan authoriz...
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.