AutoNation Inc

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AN : NYSE : Services
$53.05 up 0.87 | 1.7%
Today's Range: 52.21 - 53.04
Avg. Daily Volume: 975000.0
01/24/17 - 1:06 PM ET

Financial Analysis


AUTONATION INC's gross profit margin for the third 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 0.16 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 remained virtually unchanged only decreasing by 1.94% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)5567.55353.7
EBITDA ($mil)248.1261.6
EBIT ($mil)211.8228.7
Net Income ($mil)107.3118.5


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)62.263.9
Total Assets ($mil)9687.08851.4
Total Debt ($mil)6297.35408.9
Equity ($mil)2220.82264.9


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin15.0215.51
EBITDA Margin4.454.88
Operating Margin3.84.27
Sales Turnover2.222.32
Return on Assets4.265.21
Return on Equity18.6320.43
Debt Q3 FY16 Q3 FY15
Current Ratio0.820.95
Debt/Capital0.740.7
Interest Expense47.136.1
Interest Coverage4.56.34


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)101.24111.03
Div / share0.00.0
EPS1.051.05
Book value / share21.9420.4
Institutional Own % n/a n/a
Avg Daily Volume971585.0925485.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.09 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.41. To use another comparison, its price-to-book ratio of 2.35 indicates a discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 14.08. 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 13.24 Peers 22.09   AN 10.27 Peers 13.93

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 12.07 Peers 20.93   AN 5.76 Peers 2.02

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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AN 2.35 Peers 14.08   AN -3.47 Peers -14.80

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 0.24 Peers 1.48   AN 4.36 Peers 7.69

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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