AutoNation, Inc. (AN) AI Stock Analysis
AN AI stock analysis summary
AI ResearchAutoNation, Inc. (AN) is a major automotive retailer in the United States offering new and used vehicle sales, repair, and financing services. Across the trailing twelve months, the company generated $27.45B in revenue with a net profit margin of 2.8%. Despite annual net income declining from $1.38B in FY2022 to $649.1M in FY2025, diluted EPS reached $21.59 over the trailing twelve months supported by extensive share repurchases.
- Market cap
- $5.35B
- Revenue (TTM)
- $27.45B
- P/E
- 7.5x fwd 6.9x
- 1Y return
- -24.3% S&P 500 16.8%
- Avg. target
- $219.67 35.8% vs last close
Bull case
- Diluted EPS has remained strong at $21.59 over the trailing twelve months, aided by a 48.8% reduction in share count over 5 years.
- The stock trades at a forward P/E of 6.9x and a PEG ratio of 0.47, well below the peer median forward P/E of 14.1x.
- The analyst mean price target of $219.67 sits 35.8% above the recent closing price of $161.73.
Bear case
- Net income contracted consecutively from $1.38B in FY2022 to $649.1M in FY2025 as net margins narrowed to 2.3%.
- Free cash flow turned negative at -$13.8M in FY2024 and -$197.5M in FY2025 as operating cash flow declined to $111.9M.
- Balance sheet leverage is elevated with total debt of $11.33B against cash of $123.9M, producing a debt-to-equity ratio of 5.02.
What AutoNation does
AutoNation, Inc., headquartered in Fort Lauderdale, Florida, operates as an automotive retailer in the United States across three segments: Domestic, Import, and Premium Luxury. Its offerings include new and used vehicle sales, automotive repair, maintenance, wholesale parts, and collision repair services. AutoNation also provides automotive finance and insurance products and arranges financing through third parties. Its network includes 343 new vehicle franchises in 247 stores primarily in Sunbelt metropolitan markets, along with 55 collision centers, 13 AutoNation USA used vehicle stores, 4 auction operations, and 3 parts distribution centers.
Growth and profitability
Between FY2020 and FY2025, AutoNation achieved a 5-year revenue compound annual growth rate of 6.3%. Revenue grew 3.2% in FY2025 to $27.63B, recovering from $26.77B in FY2024. However, net income decreased from $1.38B in FY2022 to $1.02B in FY2023, $692.2M in FY2024, and $649.1M in FY2025. Operating margin contracted from 7.5% in FY2022 to 4.7% in FY2025. For the latest quarter ended June 30, 2026, quarterly revenue fell 0.6% year-over-year, while quarterly earnings grew 138.5% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, AutoNation held $123.9M in cash and short-term investments against total debt of $11.33B, resulting in net debt of $11.21B. Shareholders' equity was $2.26B, yielding a debt-to-equity ratio of 5.02 and a current ratio of 0.78. In FY2025, operating cash flow was $111.9M while capital expenditures reached $309.4M, resulting in free cash flow of -$197.5M. The company repurchased $791.6M of stock in FY2025, lowering its 5-year share count by 48.8%.
Valuation and performance
At $161.73 per share, AutoNation trades at a trailing P/E of 7.5x and a forward P/E of 6.9x, which are lower than the median of its US-listed Consumer Cyclical peers at 18.0x and 14.1x, respectively. The company's price-to-sales multiple is 0.2x compared to the peer median of 0.7x, and its EV-to-EBITDA stands at 9.6x versus 11.1x for peers. Over the past year, AN shares declined 24.3%, trailing the S&P 500 return of 16.8%.
What analysts expect
AutoNation is covered by Wall Street analysts who hold 7 Strong Buy, 3 Buy, and 3 Hold recommendations. The mean price target is $219.67, representing a 35.8% premium to the last closing price of $161.73. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $20.97 on revenue of $27.59B. The company beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for October 30, 2026.
Key risks and what to watch
- The current ratio sits at 0.78, indicating short-term liquidity constraints relative to short-term obligations.
- Operating margins fell from 7.5% in FY2022 to 4.5% over the trailing twelve months, signaling margin compression.
- Short interest stands at 13.4% of float, reflecting substantial negative market sentiment.
- The stock is trading 17.5% below its 200-day moving average, showing prolonged share price weakness.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this AN AI stock analysis
This page is an AI-written research summary of AutoNation, Inc. (AN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: AN income statement, AN balance sheet, AN key metrics, AN analyst forecast, AN chart. See the AN stock overview for the latest quote and news.
AN AI stock analysis FAQ
Does AutoNation pay a dividend?
AutoNation does not currently pay a dividend. Capital returns to shareholders have been executed primarily through share buybacks, including $791.6M in repurchases during FY2025.
What is AutoNation's current debt burden?
As of June 30, 2026, AutoNation had $11.33B in total debt and $123.9M in cash and short-term investments, resulting in net debt of $11.21B and a debt-to-equity ratio of 5.02.
What are analysts forecasting for AutoNation's upcoming fiscal year?
For the next fiscal year, 13 analysts forecast AutoNation to deliver EPS of $23.60, representing 12.6% growth, alongside revenue of $28.39B.
When does AutoNation report its next quarterly earnings?
AutoNation's next earnings report is scheduled for October 30, 2026.