AutoNation AN
United StatesConsumer Cyclical · Auto & Truck DealershipsUSD
230.42 USD (+47.5%)
12 analysts
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AutoNation is the largest auto dealership in the US, selling new and used vehicles of multiple brands and offering financing, maintenance, and repair services through its network of dealerships.
Key points
from its scores- ✓Attractive valuation8.5
- ✕Fragile balance sheet1.5
- ✕Little or no dividend1.5
- ✕Little competitive advantage4.7
AI analysis
bottom line, main risk, context and newsAlthough the valuation is tempting, the extremely high leverage and rising interest rate environment make AutoNation a high-risk investment; only suitable for investors with high risk tolerance and a long-term horizon.
AutoNation trades at a P/E of 7.24 and a PEG of 0.43, reflecting a very attractive valuation, but its financial health is fragile (Net Debt/EBITDA of 7.44) and the 138.5% earnings growth seems unsustainable in a rising rate environment that pressures auto demand.
The main risk is its extreme leverage (Net Debt/EBITDA of 7.44) combined with a rising interest rate environment, which makes debt service more expensive and could strain the balance sheet if auto demand weakens.
Context and risks
The auto dealership business in the US is highly sensitive to the economic cycle and consumer financing conditions. The sharp rise in interest rates (10-year Treasury at 5.28%) makes vehicle purchase loans more expensive, which could pressure AutoNation's demand and margins. Furthermore, its high leverage (Net Debt/EBITDA of 7.44) amplifies the risk in a tightening financial environment.
Is AutoNation stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 31% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 7.2 | 17.8 | −59% |
| EV / EBITDA | 10.8 | 11.2 | −3% |
| Price / book | 2.3 | 2.9 | −20% |
| Price / sales | 0.2 | 1.3 | −85% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.5 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 230.42 USD, +47.5% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 1.5 (sector 5.7), Growth 6.5 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 7.2
- Forward P/E
- 6.5
- EV / EBITDA
- 10.8
- Price / book
- 2.3
- Price / sales
- 0.2
- PEG
- 0.43
- Market cap
- 5.2B USD
- Enterprise value
- 16.4B USD
Profitability
- ROE
- 32.8%
- ROA
- 5.4%
- ROIC (approx.)
- 9.0%
- Gross margin
- 17.8%
- Operating margin
- 4.4%
- Net margin
- 2.8%
- Free cash flow
- 356.1M USD
- FCF yield
- 6.9%
- Cash conversion
- 23%
Solvency
- Total debt
- 11.3B USD
- Net debt
- 11.3B USD
- Cash
- 53.3M USD
- EBITDA
- 1.5B USD
- Net debt / EBITDA
- 7.44
- Debt / equity
- 501.58
- Current ratio
- 0.78
- Quick ratio
- 0.15
Growth
- Revenue growth
- −0.6%
- Earnings growth
- +138.5%
- EPS (TTM)
- 21.59 USD
- EPS (forward)
- 24.08 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.81
- Analyst consensus
- Buy (12)
- Target price
- 230.42 USD
- 52-week range
- 152.86 – 235.81
Recent news
All AN news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about AutoNation
Is AutoNation stock cheap or expensive?
On P/E and EV / EBITDA, it trades 31% below the Consumer Cyclical median on average. Valuation score: 8.5 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 230.42 USD, +47.5% versus the price. This is not investment advice.
What score does AutoNation get on MeridIAn Screener?
It scores 5.4 out of 10, rank 1,454 of 2,130 (better than 29% of the companies analysed). Its strongest category is Valuation (8.5) and its weakest, Financial health (1.5). Analysis of 08/10/2026.
What is AutoNation's P/E ratio?
Its P/E is 7.2: the share price equals 7.2 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 6.5.
How much is AutoNation worth on the stock market?
Its market capitalisation is 5.2B USD and its enterprise value, debt included, is 16.4B USD.
How much debt does AutoNation have?
Its net debt (debt minus cash) is 11.3B USD. That is 7.44 times its EBITDA; the Consumer Cyclical median is 1.91.
Does AutoNation pay a dividend?
It pays no dividend, or almost none.
How has AutoNation stock performed over the last year?
It has fallen 26.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 152.86 and 235.81 USD. Past performance does not guarantee future results.
What do analysts think of AutoNation?
12 analysts cover it; their average recommendation is “Buy” and their average target is 230.42 USD (+47.5% versus the price). It is an estimate, not market data.