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AutoNation (AN) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Auto & Truck Dealerships
C
AverageMetricSide Score: 41/100
ProfitabilityProfit18/30
GrowthGrowth12/25
Balance SheetBalance9/25
Cash QualityCash2/20
Price & Volume
Market Cap $6.47B

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through four segments: Domestic, Import, Premium Luxury, and AutoNation Finance. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products; and indirect financing, as well as arranges finance for vehicle purchases through third-party finance sources. It owns and operates new vehicle franchises from stores located in metropolitan markets in the Sunbelt region, as well as AutoNation-branded collision centers, AutoNation USA used vehicle stores, AutoNation-branded automotive auction operations, and parts distribution centers. The company was formerly known as Republic Industries, Inc. and changed its name to AutoNation, Inc. in 1999. AutoNation, Inc. was incorporated in 1980 and is headquartered in Fort Lauderdale, Florida.

Moat Signals

Competitive analysis based on 62 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~4.6% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Strong Moat

Consistently high ROE averaging 29.1% suggests a durable competitive advantage and efficient capital allocation.

Cash Generation

Weak Moat

Only 3 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.

Demand Durability

Moderate Moat

Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.

Risk Signals

Data-driven red flags and warnings across 62 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 8.1% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Red Flag

Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.

Leverage Risk

Healthy

D/E ratio is 1.6 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

5 of the last 8 quarters had negative FCF — inconsistent cash generation raises sustainability concerns.

Share Dilution

Healthy

Shares decreased 14.1% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$27.49B
1.9%
Q. Revenue
$6.55B
TTM EBITDA
$1.47B
4.8%
TTM Op. Income
$1.22B
6.4%
Q. Op. Income
$314.30M
TTM Net Income
$679.00M
0.2%
Q. Net Income
$205.40M
EPS
$5.92
Shares Out.
$34.70M
11.0%
$27.49B in TTM revenue grew 1.9% YoY, reaching $6.55B last quarter. TTM EBITDA of $1.47B and TTM operating income of $1.22B shows growth is flowing through. Net income of $679.00M TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
18.5%
1.4%
EBITDA Margin
5.8%
Op. Margin
4.8%
4.5%
Net Margin
3.1%
19.5%
Op. margin of 4.8% is down 0.2% YoY — costs are rising relative to revenue. Net margin at 3.1% and gross margin of 18.5% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
9.5x
P/S Ratio
0.2x
P/B Ratio
2.9x
At 9.5x P/E, the stock trades below market averages — potentially undervalued. P/S of 0.2x and P/B of 2.9x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$14.62B
Cash
$65.50M
Long-Term Debt
N/A
Book Value
$2.23B
D/E Ratio
N/A
Debt/EBITDA
0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$22.20M
Free Cash Flow
$-34.20M
73.2%
FCF Margin
-0.1%
FCF / Net Income
-0.2
FCF of $-34.20M on $22.20M in operating cash flow. The FCF / Net Income ratio of -0.1x shows cash consumption — the business is not yet self-funding.

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