AutoNation (AN) AI Stock Analysis

• Market Cap: $7.07B
• Dividend Yield: N/A
• Average Volume (3M): 447.14K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.99
• 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: 36,472,176
• 10 Day Avg. Volume: 544,562
• 30 Day Avg. Volume: 447,136
• 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: 2.55
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: 11.30
• 1Y Price Target: $239.71
• Price Target Upside: 24.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 20.04
• Revenue Forecast (FY): $27.77B

• Rating: 55 Neutral
• Price Target: $205.00 ▲(6.24% Upside)

AutoNation's overall score reflects moderate financial performance and bearish technical indicators, offset by a positive earnings call and attractive valuation. The company's strong EPS growth and strategic initiatives are promising, but challenges in profitability and market competition remain.

Positive Factors

Revenue Growth

AutoNation's revenue growth exceeding expectations indicates strong market demand and effective business strategies, supporting long-term stability.

EPS Growth

Significant EPS growth reflects operational efficiency and strategic initiatives, enhancing shareholder value and financial health over time.

After-Sales Performance

Record after-sales performance demonstrates strong customer retention and recurring revenue potential, bolstering long-term profitability.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues could constrain investment capacity and operational flexibility, impacting long-term growth prospects.

New Vehicle Profitability

Declining new vehicle profitability suggests margin pressures, potentially affecting overall financial performance and competitive positioning.

Debt Levels

Elevated debt levels may limit financial flexibility and increase risk, potentially impacting future investment and expansion opportunities.

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 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	1.59B	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	13.00B	11.98B	10.06B	8.94B	9.89B
Cash, Cash Equivalents and Short-Term Investments	97.60M	59.80M	60.80M	72.60M	60.40M	569.60M
Total Debt	2.85B	8.70B	8.12B	6.42B	4.95B	5.25B
Total Liabilities	11.69B	10.54B	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: Negative
• Last Price: 192.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 192.96 is below the 20-day moving average (MA) of 203.74, below the 50-day MA of 213.83, and below the 200-day MA of 193.83, indicating a bearish trend. The MACD of -6.33 indicates Positive momentum. The RSI at 34.25 is Neutral, neither overbought nor oversold. The STOCH value of 35.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AN.

AutoNation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABG	71 Outperform	$4.41B	7.81	15.49%	―	8.07%	60.95%
LAD	69 Neutral	$7.11B	8.48	13.44%	0.74%	8.56%	17.84%
PAG	68 Neutral	$10.45B	11.17	17.30%	3.14%	2.25%	8.92%
GPI	66 Neutral	$4.94B	13.75	12.27%	0.50%	19.45%	-24.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KMX	58 Neutral	$4.75B	9.50	8.42%	―	2.17%	28.59%
AN	55 Neutral	$7.07B	11.41	27.16%	―	6.06%	-1.71%

AutoNation Corporate Events

AutoNation Reports Strong Q3 2025 Financial Results

AutoNation Inc., a leading automotive retailer in the United States, offers a wide range of new and used vehicles, customer financing, and expert maintenance services across its nationwide network of dealerships. In its third-quarter 2025 earnings report, AutoNation announced a 7% increase in revenue, reaching $7 billion, and a 23% rise in earnings per share (EPS) to $5.65. The company also reported a record gross profit in its After-Sales and Customer Financial Services segments, highlighting its strong performance across multiple revenue streams.

AutoNation Inc Shines in Earnings Call with Strong EPS Growth

AutoNation Inc’s recent earnings call painted a largely positive picture, highlighting strong EPS growth and record performances in several key areas. Despite challenges such as declining new vehicle profitability and heightened competition in the used vehicle market, the overall sentiment was optimistic, driven by significant achievements in sales and financial services.

AutoNation Inc. Reports Strong Q2 Earnings Amid Challenges

AutoNation Inc.’s recent earnings call painted a picture of robust performance across several key areas, including revenue growth, expansion of AutoNation Finance, and record results in After-Sales. Despite these positive outcomes, the company acknowledged challenges such as the CDK outage, tariff-related shifts, and impairment charges, which were notable concerns during the discussion.

AutoNation’s Q2 2025: Revenue Growth Amid EPS Decline

AutoNation, Inc., one of the largest automotive retailers in the United States, provides a comprehensive range of products and services including new and used vehicles, customer financing, parts, and maintenance services, with a strong focus on community engagement through its DRV PNK initiative.