AutoNation Inc

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AN : NYSE : Services
$42.75 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1650900.0
08/22/17 - 4:01 PM ET

Financial Analysis


AUTONATION INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. 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 has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 15.77% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)5279.35441.4
EBITDA ($mil)214.8256.6
EBIT ($mil)175.5220.7
Net Income ($mil)87.7112.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)52.554.7
Total Assets ($mil)10149.79788.3
Total Debt ($mil)6462.56510.9
Equity ($mil)2498.62158.2


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin15.6515.47
EBITDA Margin4.064.71
Operating Margin3.324.06
Sales Turnover2.122.17
Return on Assets4.024.33
Return on Equity16.3819.69
Debt Q2 FY17 Q2 FY16
Current Ratio0.760.84
Debt/Capital0.720.75
Interest Expense53.348.0
Interest Coverage3.294.6


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)100.44102.15
Div / share0.00.0
EPS0.861.08
Book value / share24.8821.13
Institutional Own % n/a n/a
Avg Daily Volume1597523.01320881.0

Valuation


HOLD. AUTONATION INC's P/E ratio indicates a significant discount compared to an average of 20.31 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 1.65 indicates a discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 22.92. 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 10.19 Peers 20.31   AN 7.77 Peers 12.98

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 10.50 Peers 17.97   AN NM Peers 1.48

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AN 1.65 Peers 22.92   AN 3.07 Peers 11.22

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.

 

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

However, AN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AN 0.19 Peers 1.37   AN 0.99 Peers 5.72

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 significantly trails its peers on the basis of sales growth

 

 

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