AutoNation Inc. Common Stock (AN)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I see AutoNation as a steady but capital-intensive retailer. The business sells new and used vehicles and earns fees from parts, service, and finance. In fiscal 2025, the year ended 2025-12-31, revenue was $27.6B, net income $649.1M, and diluted EPS $17.04. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.9B, net income $182.1M, and diluted EPS $5.39; in fiscal Q2 2025, the quarter ended 2025-06-30, net income was $86.4M and diluted EPS $2.26. That rebound is encouraging. However, the underlying economics are thin, and trailing free cash flow was negative $104.0M. The balance sheet is heavily levered, with a debt-to-equity ratio of 5.02. Return on equity is high at 32.77%, but return on capital employed is only 5.44%, suggesting leverage flatters equity returns. At the 2026-10-13 close of $155.32, the FairStock P/E is 7.20, PEG 0.42, and EV/EBITDA 9.51. The Graham Number is $178.51, implying a 12.99% margin of safety. The Piotroski F-Score is 5/9 and Altman Z-Score is 1.27, so financial strength is not pristine. FairStock classifies it as a STALWART, with profit growth of 11.2% a year over five years and revenue growth of 6.3%. The price is undemanding, but I would want durable cash generation and lower leverage before calling it a bargain.

In plain English: AutoNation sells new and used vehicles and provides repair, parts, and financing through dealerships. The business runs on thin profits and carries a lot of debt, but recent profit improved from a year earlier. At the 2026-10-13 close of $155.32, the shares look inexpensive compared with the company's earnings, though weak cash flow keeps the picture mixed.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer