Key Statistics
EV/EBIT = 9x
ROE = 42.21%
Debt/Equity = 195%
FCF Yield = 1%
Dividend Yield = 0%
Market Cap = $6.63 billion
The Company
AutoNation (AN) is one of the largest chain of dealerships in the United States, selling both new and used cars. AutoNation operates a large network of stores and franchises across the U.S., selling new and used vehicles from 34 different brands, including popular brands like Toyota, Honda, Ford, and luxury brands like BMW and Mercedes-Benz. They also offer parts and service for vehicles, along with financing and insurance options.
From a revenue perspective, car sales (new and used) account for 81% of the company's revenue but only 38% of its gross profit. The major profit centers are finance and insurance, which make up 5% of revenue but contribute 28% to gross profit, and parts and service, which account for 14% of revenue but provide 34% of gross profit.