AutoNation Z Score

AN
 Stock
  

USD 121.05  0.12  0.1%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Please continue to AutoNation Piotroski F Score and AutoNation Valuation analysis.
  
The value of Capital Expenditure is estimated to slide to about (232.7 M). The value of Return on Invested Capital is expected to slide to 0.26. AutoNation Operating Income is quite stable at the moment as compared to the past year. The company's current value of Operating Income is estimated at 2.05 Billion. Weighted Average Shares is expected to rise to about 102.8 M this year, although the value of Direct Expenses will most likely fall to about 17.8 B.

AutoNation Z Score Analysis

AutoNation's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 2022 (projected)
Revenue Per Employee853.43 K941.4 K1.16 M961.74 K
Net Income Per Employee18 K17.62 K61.85 K66.73 K
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current AutoNation Z Score

    
  3.6  
Most of AutoNation's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, AutoNation is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

AutoNation Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for AutoNation is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since AutoNation's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of AutoNation's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of AutoNation's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

In accordance with the company's disclosures, AutoNation has a Z Score of 3.6. This is 11.46% higher than that of the Specialty Retail sector and 40.08% higher than that of the Consumer Discretionary industry. The z score for all United States stocks is 58.72% higher than that of the company.

AutoNation Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses AutoNation's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of AutoNation could also be used in its relative valuation, which is a method of valuing AutoNation by comparing valuation metrics of similar companies.
AutoNation is currently under evaluation in z score category among related companies.

AutoNation Current Valuation Drivers

We derive many important indicators used in calculating different scores of AutoNation from analyzing AutoNation's financial statements. These drivers represent accounts that assess AutoNation's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of AutoNation's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee16.71 K15.23 K18 K17.62 K61.85 K66.73 K
Revenue Per Employee828.25 K823.57 K853.43 K941.4 K1.16 M961.74 K
Average Assets10.12 B10.32 B10.65 B9.86 B8.68 B9.65 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA1.02 B949.7 M1.04 B910.9 M2.13 B2.29 B
Earnings Before Interest Taxes and Depreciation Amortization USD1.01 B945.5 M1.04 B906.3 M2.12 B1.71 B
Earnings before Tax636.1 M529.5 M611.8 M549.9 M1.81 B1.95 B
Average Equity2.38 B2.58 B2.96 B3.14 B2.7 B2.78 B
Enterprise Value7.49 B5.73 B6.87 B8.18 B10.53 B10.01 B
Free Cash Flow247.7 M110.2 M499.9 M1.05 B1.41 B1.52 B
Invested Capital5.17 B5.45 B5.73 B5.83 B7.3 B6.83 B
Invested Capital Average4.7 B5.35 B5.69 B6.09 B6.4 B6.25 B
Market Capitalization4.68 B3.21 B4.34 B6.13 B7.66 B7.21 B
Tangible Asset Value8.17 B8.56 B8.46 B8.18 B6.96 B7.85 B
Working Capital(838.2 M)(774.1 M)(689.1 M)(13.2 M)(248.1 M)(267.69 M)

AutoNation Institutional Holders

Institutional Holdings refers to the ownership stake in AutoNation that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of AutoNation's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing AutoNation's value.
Security TypeSharesValue
Zweigdimenna Associates LlcCommon Shares4.4 K266 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares5.1 K520 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares5.1 K570 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares6.1 K604 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares6.1 K708 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares5.4 K652 K
Zurcher Kantonalbank Zurich CantonalbankCommon SharesK470 K

AutoNation Fundamentals

About AutoNation Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze AutoNation's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of AutoNation using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of AutoNation based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. AutoNation, Inc. was founded in 1991 and is headquartered in Fort Lauderdale, Florida. Autonation operates under Auto Truck Dealerships classification in the United States and is traded on New York Stock Exchange. It employs 22200 people.

AutoNation Investors Sentiment

The influence of AutoNation's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in AutoNation. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to AutoNation's public news can be used to forecast risks associated with investment in AutoNation. The trend in average sentiment can be used to explain how an investor holding AutoNation can time the market purely based on public headlines and social activities around AutoNation. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
AutoNation's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AutoNation's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average AutoNation's news discussions. The higher the estimated score, the more favorable is the investor's outlook on AutoNation.

AutoNation Implied Volatility

    
  42.92  
AutoNation's implied volatility exposes the market's sentiment of AutoNation stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if AutoNation's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that AutoNation stock will not fluctuate a lot when AutoNation's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards AutoNation in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, AutoNation's short interest history, or implied volatility extrapolated from AutoNation options trading.

Pair Trading with AutoNation

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AutoNation position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AutoNation will appreciate offsetting losses from the drop in the long position's value.

Moving together with AutoNation

+0.79GPIGroup 1 Automotive Normal TradingPairCorr
+0.79LADLithia Motors Downward RallyPairCorr
The ability to find closely correlated positions to AutoNation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AutoNation when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AutoNation - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AutoNation to buy it.
The correlation of AutoNation is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AutoNation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AutoNation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AutoNation can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to AutoNation Piotroski F Score and AutoNation Valuation analysis. You can also try Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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Is AutoNation's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AutoNation. If investors know AutoNation will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AutoNation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.23
Market Capitalization
B
Quarterly Revenue Growth YOY
0.045
Return On Assets
0.15
Return On Equity
0.64
The market value of AutoNation is measured differently than its book value, which is the value of AutoNation that is recorded on the company's balance sheet. Investors also form their own opinion of AutoNation's value that differs from its market value or its book value, called intrinsic value, which is AutoNation's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AutoNation's market value can be influenced by many factors that don't directly affect AutoNation's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AutoNation's value and its price as these two are different measures arrived at by different means. Investors typically determine AutoNation value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AutoNation's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.