ANAutoNation, Inc.
Is the business good?
More warning than reassurance: thin cash backing (0.3×), margins compressing, and returns that lean on debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 30% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AN?
AutoNation, Inc. earns 37% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 28 points above what the capital costs: growth creates value
- Operating margin
- 4.8%
Operating margin · Auto & Truck Dealerships median 5.1% · 12 months to Q2 2026
- Cash conversion
- 0.30×
Cash conversion · −0.16× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −12%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 2.8% |
| FY2021 | 7.4% |
| FY2022 | 7.5% |
| FY2023 | 6.1% |
| FY2024 | 4.9% |
| FY2025 | 4.5% |
Details›
- Gross margin12 months to Q2 2026
- 18%
- Operating margin12 months to Q2 2026
- 4.8%
- Net margin12 months to Q2 2026
- 2.8%
- Free cash flow margin
- 0.04%
- Revenue, trailing twelve months
- $27.4B
- Free cash flow, trailing twelve months
- $12M
- Net income, trailing twelve months
- $775M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 37%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Auto & Truck Dealerships
Ranks #5 of 13 by RyuScore