📊 AN Key Takeaways
Is Autonation, Inc.. (AN) a Good Investment?
AutoNation demonstrates solid operational profitability with 17.9% gross margins and strong 27.7% ROE, supported by 3.2% revenue growth. However, deteriorating profitability (-6.2% net income decline), severely negative free cash flow (-$197.5M), and high leverage (1.58x D/E ratio) indicate financial strain that offsets operational strengths.
AutoNation shows solid scale, stable revenue growth, and strong accounting profitability, with ROE boosted by disciplined capital structure and ongoing earnings resilience. However, core fundamentals are tempered by thin retail margins, declining net income, weak liquidity, and negative free cash flow, which lowers the quality of recent growth. The business appears fundamentally stable rather than clearly strengthening.
Why Buy Autonation, Inc.. Stock? AN Key Strengths
- Strong gross margins at 17.9% and ROE of 27.7% demonstrate efficient asset utilization and operational effectiveness
- Revenue growth of 3.2% YoY in challenging retail auto environment shows competitive positioning
- Adequate interest coverage of 6.9x indicates ability to service debt obligations
- Revenue continued to grow (+3.2% YoY) while operating income remained solid at $1.24B
- Profitability is still healthy for the sector, with 17.9% gross margin and 27.7% ROE
- Interest coverage of 6.9x suggests debt service remains manageable under current earnings levels
AN Stock Risks: Autonation, Inc.. Investment Risks
- Negative free cash flow of -$197.5M despite positive operating income signals cash generation problems and CapEx sustainability concerns
- Net income decline of 6.2% YoY contradicts revenue growth, indicating margin compression and operational headwinds
- High financial leverage (1.58x D/E ratio) with only $58.6M cash on $14.4B assets creates limited financial flexibility
- Weak liquidity ratios (current ratio 0.84x, quick ratio 0.22x) raise concerns about short-term obligation coverage
- Net income declined 6.2% YoY, indicating pressure below the revenue line
- Liquidity is weak, with a 0.84x current ratio, 0.22x quick ratio, and only $58.6M of cash
- Free cash flow was negative (-$197.5M), which reduces financial flexibility despite reported profits
Key Metrics to Watch
- Free cash flow generation and trend—critical given -$197.5M current level
- Operating margin sustainability as gross margin pressures emerged
- Debt reduction pace and leverage trajectory given 1.58x D/E ratio
- Inventory turnover and working capital efficiency affecting liquidity ratios
- Free cash flow and operating cash flow conversion
- Net margin and interest coverage
Autonation, Inc.. (AN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AN Profit Margin, ROE & Profitability Analysis
AN vs Automotive Sector: How Autonation, Inc.. Compares
How Autonation, Inc.. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Autonation, Inc.. Stock Overvalued? AN Valuation Analysis 2026
Based on fundamental analysis, Autonation, Inc.. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Autonation, Inc.. Balance Sheet: AN Debt, Cash & Liquidity
AN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Autonation, Inc..'s revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $22.74 reflects profitable operations.
AN Revenue Growth, EPS Growth & YoY Performance
AN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $6.6B | $86.4M | $4.61 |
| Q2 2025 | $6.5B | $86.4M | $2.26 |
| Q1 2025 | $6.5B | $175.5M | $4.45 |
| Q3 2024 | $6.6B | $130.2M | $4.61 |
| Q2 2024 | $6.5B | $130.2M | $3.20 |
| Q1 2024 | $6.4B | $190.1M | $4.49 |
| Q3 2023 | $6.7B | $243.7M | $5.54 |
| Q2 2023 | $6.9B | $272.5M | $6.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Autonation, Inc.. Dividends, Buybacks & Capital Allocation
AN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Autonation, Inc.. (CIK: 0000350698)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AN
What is the AI rating for AN?
Autonation, Inc.. (AN) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AN's key strengths?
Claude: Strong gross margins at 17.9% and ROE of 27.7% demonstrate efficient asset utilization and operational effectiveness. Revenue growth of 3.2% YoY in challenging retail auto environment shows competitive positioning. ChatGPT: Revenue continued to grow (+3.2% YoY) while operating income remained solid at $1.24B. Profitability is still healthy for the sector, with 17.9% gross margin and 27.7% ROE.
What are the risks of investing in AN?
Claude: Negative free cash flow of -$197.5M despite positive operating income signals cash generation problems and CapEx sustainability concerns. Net income decline of 6.2% YoY contradicts revenue growth, indicating margin compression and operational headwinds. ChatGPT: Net income declined 6.2% YoY, indicating pressure below the revenue line. Liquidity is weak, with a 0.84x current ratio, 0.22x quick ratio, and only $58.6M of cash.
What is AN's revenue and growth?
Autonation, Inc.. reported revenue of $27.6B.
Does AN pay dividends?
Autonation, Inc.. does not currently pay dividends.
Where can I find AN SEC filings?
Official SEC filings for Autonation, Inc.. (CIK: 0000350698) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AN's EPS?
Autonation, Inc.. has a diluted EPS of $17.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Autonation, Inc.. has a HOLD rating with 69% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AN stock overvalued or undervalued?
Valuation metrics for AN: ROE of 27.7% (sector avg: 12%), net margin of 2.3% (sector avg: 6%). Higher ROE suggests strong returns relative to peers.
Should I buy AN stock in 2026?
Our dual AI analysis gives Autonation, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AN's free cash flow?
Autonation, Inc..'s operating cash flow is $111.9M, with capital expenditures of $309.4M. FCF margin is -0.7%.
How does AN compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 2.3% (avg: 6%), ROE 27.7% (avg: 12%), current ratio 0.84 (avg: 1.2).
Is Autonation, Inc.. carrying too much debt?
AN has a debt-to-equity ratio of 1.58x, which is above the Automotive sector average of 1x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is AN's return on equity (ROE) so high?
Autonation, Inc.. has a return on equity of 27.7%, significantly above the Automotive sector average of 12%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 2.3% net margin.