AN

AUTONATION, INC.

Consumer Discretionary • CIK: 0000350698

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Market Cap
$7.75B
P/E (TTM)
11.9x
Rev Growth (TTM)
+3.2%
Net Margin (TTM)
2.3%
FCF Yield (TTM)
-2.5%
FCF Margin (TTM)
-0.7%

Filing Intelligence

5.0/10
10-K filed Feb 12, 2026 • FY 2025

Executive Summary

Gross profit grew 3% driven by strong performance in Parts & Service and Finance & Insurance, which offset a significant decline in New Vehicle gross profit.. Operating income declined 5%, impacted...

Key Concerns

  • ●Gross profit grew 3% driven by strong performance in Parts & Service and Finance & Insurance, which offset a significant decline in New...
  • ●Operating income declined 5%, impacted by a 3% increase in SG&A expenses (driven by compensation) and substantial non-cash impairments...
  • ●New vehicle unit profitability is expected to moderate due to increased inventory supply, higher costs, and potential impacts from tariffs...

Key Strengths

  • ●Gross profit grew 3% driven by strong performance in Parts & Service and Finance & Insurance, which offset a significant decline in New...
  • ●Operating income declined 5%, impacted by a 3% increase in SG&A expenses (driven by compensation) and substantial non-cash impairments...
  • ●New vehicle unit profitability is expected to moderate due to increased inventory supply, higher costs, and potential impacts from tariffs...
View Full Quarterly Insights →

LATEST EARNINGS

•
Q4 FY2025
•
about 2 months ago
•View source
Revenue
$6.93B
—
Net Income
$172.10M
-7.5%
EPS
$4.70
+1.3%
Gross
17.5%↑ +0.3%
Operating
4.5%↓ -0.2%
Net
2.5%↓ -0.1%
  • •Full year 2025 revenue increased 3% to $27.6 billion.
  • •Full year 2025 Adjusted EPS increased 16% to $20.22.
  • •Record Q4 After-Sales gross profit and record quarterly and full year Customer Financial Services profit per unit.
  • •Full year adjusted free cash flow was $1.05 billion, or 125% of adjusted net income.
View Full Earnings →

Cash Flow Health

Free Cash Flow4/8 positive
TTM$-198M
Q4 '25
$64M-48%
Q3 '25
$123M+148%
FCF Margin
TTM-0.7%
Q4 '250.9%-47%
Sector: 2.7%Below Avg
OCF Margin0.4%
OCF/NI0.17x
CapEx Coverage0.4x
FCF Yield-2.5%
FCF Growth (2Y)–
Cash Conversion Cycle
58 days
DSO: 9+DIO: 55−DPO: 6
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM10.2%
Div Yield0.0%
+
Buyback (TTM)10.2%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$-197.5M
Stock Repurchases (TTM)$791.6M
Capital Return / FCF-400.8%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
15.5%
Stable
-0.1% YoY-1.3%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
3.3%
8Q: 3.7%
Asset Turnover
2.02x
8Q: 2.06x
Leverage (1+D/E)
2.67x
D/E: 1.67x
DuPont: 17.7% ≈ 15.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
7.18x
8Q:7.04x
+32.5%
Invested Cap Turn
5.07x
8Q:5.05x
+8.2%
CapEx Intensity
5.7%
8Q:5.9%
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$27.6B
$6.9B↓1.5%
$7.0B↑0.9%
$7.0B↑4.2%
$6.7B↓7.2%
$7.2B↑9.5%
$6.6B↑1.6%
$6.5B↓0.1%
$6.5B
Operating Income
$1.2B
$313.9M↓15.7%
$372.4M↑71.1%
$217.6M↓35.2%
$336.0M↓1.0%
$339.5M↓3.2%
$350.7M↑27.5%
$275.0M↓19.2%
$340.3M
Net Income
$649.1M
$172.1M↓20.0%
$215.1M↑149.0%
$86.4M↓50.8%
$175.5M↓5.7%
$186.1M↑0.2%
$185.8M↑42.7%
$130.2M↓31.5%
$190.1M
Operating Cash Flow
$111.9M
$150.5M↓21.5%
$191.7M↑207.8%
$-177.8M↓238.7%
$-52.5M↓135.0%
$149.8M↑314.0%
$-70.0M↓17.4%
$-59.6M↓120.2%
$294.5M
Free Cash Flow
$-197.5M
$64.2M↓47.7%
$122.8M↑147.8%
$-256.8M↓101.1%
$-127.7M↓252.9%
$83.5M↑155.3%
$-151.0M↓2.7%
$-147.1M↓173.3%
$200.8M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
11.9x
Volatile
8Q: 38.3x+1131%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
11.9x
vs – sector
Cash Flow
-55.9x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
0.8P/E per %ROIC
ROIC: 15.5%
Shareholder Returns
Dividend
–
Buyback
10.2%
Total Yield
10.2%
Market Cap$7.75B
EV$11.05B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
70/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
26.5%
8Q:–
Return on Invested Capital (ROIC)Top 25%
15.5%
8Q:–
Flat
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 3.3%
Asset Turnover: 2.02x

Earnings Quality

Cash Conversion

0.17x

OCF / Net Income

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin17.9%

Capital Efficiency

Invested Capital Turnover5.07x

Working Capital

Cash Conversion Cycle58 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
53/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
3.2%
OpInc Growth YoY
-7.5%
EPS Growth YoY
0.8%
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
17.9%
Operating
4.5%
Below Avg in sector
Net
2.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-3.1 pts
FCF: -0.7% | Net: 2.3%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
–Net Debt: $3.82B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

All research