AutoNation Inc

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AN : NYSE : Services
$51.53 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 1,184,900
07/27/16 - 4:00 PM ET

Financial Analysis


AUTONATION INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. AUTONATION INC has very weak liquidity. Currently, the Quick Ratio is 0.14 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.21% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)5119.64944.2
EBITDA ($mil)243.2242.3
EBIT ($mil)208.4213.6
Net Income ($mil)95.9111.5


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)47.874.1
Total Assets ($mil)9997.68438.5
Total Debt ($mil)6719.95058.1
Equity ($mil)2090.62205.6


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin16.1316.18
EBITDA Margin4.754.9
Operating Margin4.074.32
Sales Turnover2.12.33
Return on Assets4.275.15
Return on Equity20.4819.76
Debt Q1 FY16 Q1 FY15
Current Ratio0.831.03
Debt/Capital0.760.7
Interest Expense47.234.6
Interest Coverage4.426.17


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)103.1113.92
Div / share0.00.0
EPS0.90.97
Book value / share20.2819.36
Institutional Own % n/a n/a
Avg Daily Volume1296895.01904409.0

Valuation


BUY. AUTONATION INC's P/E ratio indicates a significant discount compared to an average of 24.35 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.55 indicates valuation on par with the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.96. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, AUTONATION INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AN 13.52 Peers 24.35   AN 10.87 Peers 15.74

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AN is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AN is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AN 11.04 Peers 20.26   AN 1.76 Peers 2.04

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AN is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AN trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AN 2.55 Peers 13.96   AN 2.68 Peers -3.13

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AN is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AN 0.25 Peers 1.56   AN 6.84 Peers 8.06

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AN is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AN trails its peers on the basis of sales growth

 

 

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