We believe AutoNation's massive size and economies of scale advantages will allow the company to deliver operating margins of at least 4% at times, and we see upside potential to profits as the AutoNation USA stand-alone used-vehicle stores roll out. There are 24 USA stores as of June 2026; store count growth will be gradual.
AutoNation's massive size provides some appealing economies of scale, illustrated by strong operating margins.
About half of revenue is derived from new-car sales, leaving AutoNation vulnerable to the fluctuations of a viciously cyclical industry. This risk is greater for AutoNation as it gets a much larger share of its sales from California and Florida than the national average. These markets could be hit worse than other US markets in a housing downturn or by hurricanes.
|
Metric
|
AN
|
BRK.B
|
KMX
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.11 | 12.58 | 15.68 |
Price/Book Value | 2.42 | 1.44 | 1.26 |
Price/Sales | 0.22 | 2.46 | 0.29 |
Price/Cash Flow | 4.95 | 26.53 | 2.83 |
|
Metric
|
AN
|
BRK.B
|
KMX
|
|---|---|---|---|
Quick Ratio | 0.14 | — | 0.18 |
Current Ratio | 0.78 | — | 2.33 |
Interest Coverage | 2.68 | 21.59 | −0.57 |
|
Metric
|
AN
|
BRK.B
|
KMX
|
|---|---|---|---|
Return on Assets (Normalized) | 5.05% | 7.02% | 1.90% |
Return on Equity (Normalized) | 30.89% | 12.09% | 8.17% |
Return on Invested Capital (Normalized) | 7.12% | 10.72% | −0.45% |
|
1-Day Chart
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United States