AN AutoNation, Inc. - Fundamental Analysis
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AN Stock | Fundamental Analysis & Investment Insights
NYSE
Consumer Cyclical
Auto & Truck Dealerships
Current Price
Live
$214.26
Analyst Target
$239.3
+11.7%
Upside
52W High
$228.92
52W Low
$148.33
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$7.81B
P/E
12.9
ROE
27.2%
Profit margin
2.4%
Debt/Equity
3.9
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
AutoNation's deterministic health scores raise significant concerns, with a weak Piotroski F-Score of 3/9 indicating poor financial health, and no available Altman Z-Score limits distress risk assessment. Despite this, the company shows strong recent earnings growth (22.6% YoY) and beats on earnings surprises, supported by a bullish analyst recommendation and a forward P/E of 10.12 that appears cheap relative to sector peers. However, high leverage (Debt/Equity of 3.90), weak liquidity (Current Ratio 0.79), and declining Q/Q EPS (-8.2%) offset these positives. The stock trades below the growth-based intrinsic value of $490 but above the conservative Graham Number of $159.54, suggesting mixed valuation signals.
Key Strengths
Strong year-over-year earnings growth of 22.6% and consistent earnings beat history (3 out of last 4 quarters)
Attractive forward P/E of 10.12, significantly below sector average of 52.74, indicating potential undervaluation
High return on equity (ROE) of 27.16%, well above sector average of 6.55%, reflecting efficient use of equity capital
Analyst consensus is 'buy' with a target price of $239.30, implying ~11.7% upside
Revenue growth of 6.9% YoY in a mature industry shows operational momentum
Key Risks
Very weak Piotroski F-Score of 3/9, signaling poor financial health and potential instability
High debt burden with Debt/Equity ratio of 3.90, well above sector average of 1.59, increasing financial risk
Poor liquidity position: Current Ratio of 0.79 and Quick Ratio of 0.17 indicate potential difficulty meeting short-term obligations
Negative technical trend score of 10/100 suggests weak price momentum and bearish market sentiment
Declining Q/Q EPS growth of -8.2% raises concerns about near-term earnings sustainability
AI Fair Value Estimate
Based on comprehensive analysis
$239.3
+11.7% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
52
Moderate
75
68
60
35
20
AI Verdict
Neutral with upside potential if financial health improves
Key drivers: Low Piotroski score dragging down health, Strong ROE and earnings growth supporting future outlook, Undemanding valuation relative to sector, Bearish technicals and weak liquidity as headwinds
Confidence
70%
Value
75/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 10.12 is well below sector average
- Price/Sales of 0.28 indicates low revenue multiple
- Current price below analyst target of $239.30
Watchpoints
- Price above Graham Number of $159.54, limiting defensive appeal
- High P/B of 3.15 may reflect leverage rather than asset efficiency
Future
68/100
Ref Growth rates
Positives
- 22.6% YoY earnings growth
- Strong historical earnings surprise average (7.49%)
- Revenue growth of 6.9% in a stable industry
Watchpoints
- Q/Q EPS decline of 8.2%
- No PEG ratio due to uncertainty in growth sustainability
Past
60/100
Ref Historical trends
Positives
- Consistent revenue and earnings growth over multiple years
- History of beating earnings estimates in 18 of last 25 quarters
Watchpoints
- Earnings volatility evident in quarterly swings
- Recent two quarters missed estimates (Oct 2024, Jul 2024)
Health
35/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- ROA of 6.53% is positive and above sector average
- Operating margin of 4.70% shows some profitability
Watchpoints
- Piotroski F-Score of 3/9 indicates weak financial health
- Debt/Equity of 3.90 is very high
- Current and Quick Ratios below 1.0 signal liquidity risk
Dividend
20/100
Ref Yield, Payout
Positives
- Payout ratio of 0% allows capital retention
Watchpoints
- No dividend yield or payout history
- Dividend Strength score of 0/100 indicates no shareholder returns via dividends
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$214.26
Analyst Target
$239.3
Upside/Downside
+11.7%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AN and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AN
AutoNation, Inc.
Primary
|
+183.9% | +87.3% | +15.7% | +5.4% | +0.9% | -0.3% |
|
BIRK
Birkenstock Holding plc
Peer
|
-1.6% | -1.6% | -32.6% | -25.0% | -6.8% | +2.8% |
|
ALSN
Allison Transmission Holdings, Inc.
Peer
|
+163.1% | +161.4% | -7.9% | +23.3% | +8.7% | -0.6% |
|
ETSY
Etsy, Inc.
Peer
|
-72.1% | -53.4% | +17.2% | +3.6% | +16.9% | -0.2% |
|
ALV
Autoliv, Inc.
Peer
|
+62.6% | +63.5% | +28.6% | +8.9% | +5.9% | +0.4% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
12.9
Forward P/E
10.12
PEG Ratio
N/A
P/B Ratio
3.15
P/S Ratio
0.28
EV/Revenue
0.63
EV/EBITDA
10.51
Market Cap
$7.81B
Profitability
Profit margins and return metrics
Profit Margin
2.38%
Operating Margin
4.7%
Gross Margin
17.82%
ROE
27.16%
ROA
6.53%
Growth
Revenue and earnings growth rates
Revenue Growth
+6.9%
Earnings Growth
+22.6%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+15.8%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
3.9
High debt
Current Ratio
0.79
Weak
Quick Ratio
0.17
Poor
Cash/Share
$2.68
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-06
$N/A
2025-10-23
$5.01
+3.6% surprise
2025-07-25
$5.46
+16.1% surprise
2025-04-25
$4.45
+2.8% surprise
Consumer Cyclical Sector Comparison
Comparing AN against 94 companies in the Consumer Cyclical sector
(5 bullish, 49 neutral, 40 bearish)
P/E Ratio
12.9
This Stock
vs
42.97
Sector Avg
-70.0%
(Discount)
Return on Equity (ROE)
27.16%
This Stock
vs
6.02%
Sector Avg
+351.0%
(Excellent)
Profit Margin
2.38%
This Stock
vs
0.78%
Sector Avg
+204.6%
(Superior)
Debt to Equity
3.9
This Stock
vs
1.65
Sector Avg
+136.7%
(Higher)
Revenue Growth
6.9%
This Stock
vs
7.65%
Sector Avg
-9.8%
(Slower)
Current Ratio
0.79
This Stock
vs
1.88
Sector Avg
-57.8%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AN
AutoNation, Inc.
|
NEUTRAL | $7.81B | 12.9 | 27.2% | 2.4% | $214.26 | |
|
BIRK
Birkenstock Holding plc
|
NEUTRAL | $7.27B | 18.14 | 13.0% | 16.6% | $39.55 | |
|
ALSN
Allison Transmission Holdings, Inc.
|
NEUTRAL | $9.16B | 13.63 | 40.4% | 22.8% | $109.57 | |
|
ETSY
Etsy, Inc.
|
NEUTRAL | $6.12B | 41.74 | -% | 6.4% | $61.77 | |
|
ALV
Autoliv, Inc.
|
NEUTRAL | $9.75B | 13.03 | 31.0% | 7.1% | $126.94 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-02 | BURDICK RICHARD L | Director | Stock Award | 1,210 | - |
| 2026-01-02 | GRUSKY ROBERT R | Director | Stock Award | 1,210 | - |
| 2026-01-02 | EDELSON DAVID B | Director | Stock Award | 1,210 | - |
| 2026-01-02 | MIKAN GEORGE LAWRENCE III | Director | Stock Award | 1,210 | - |
| 2026-01-02 | LUTOFF-PERLO LISA A | Director | Stock Award | 1,210 | - |
| 2026-01-02 | BENNETT CLAIRE M. | Director | Stock Award | 1,210 | - |
| 2026-01-02 | JENKINS NORMAN K | Director | Stock Award | 1,210 | - |
| 2026-01-02 | TRAVISANO JACQUELINE A | Director | Stock Award | 1,210 | - |
| 2025-11-18 | BURDICK RICHARD L | Director | Gift | 423 | - |
| 2025-10-31 | PARENT JEFF | Chief Operating Officer | Stock Award | 288 | - |
| 2025-08-07 | SZLOSEK THOMAS A | Chief Financial Officer | Stock Award | 3,194 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
10 analysts
Barclays
2026-01-21
Overweight
Overweight
JP Morgan
2026-01-16
Neutral
Overweight
Wells Fargo
2026-01-12
Equal-Weight
Equal-Weight
Morgan Stanley
2025-12-08
Overweight
Overweight
Evercore ISI Group
2025-11-24
Outperform
Outperform
Barclays
2025-11-12
Overweight
JP Morgan
2025-11-05
Neutral
Neutral
Morgan Stanley
2025-11-05
Overweight
Overweight
Citigroup
2025-10-30
Buy
Buy
Wells Fargo
2025-10-15
Equal-Weight
Equal-Weight
Past News Coverage
Recent headlines mentioning AN from our newsroom.
Newest → oldest
No matching news yet.