| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 9.4x | 17.8x | Top tier | |
Growth | 21 | -0.1% | 7.1% | Bottom tier | |
Quality | 53 | 12.5% | 4.5% | Around median | |
Safety | 42 | 4.0x | 2.6x | Around median | |
Capital Return | 60 | — | 2.12% | Around median | |
Momentum | 60 | -5.3% | 2.9% | Around median | |
Sentiment | 49 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
AutoNation is one of the largest automotive retailers, generating revenue from the sale of new and used vehicles, after-sales services and parts, and vehicle-related financing and insurance services. Its earnings mix is distinguished by the fact that approximately 80% of profits comes from Customer Financial Services and after-sales services, which are higher-margin and more recurring businesses than vehicle sales alone. AutoNation Finance also operates as a captive finance arm, while extended service contracts and warranties support customer retention and generate future maintenance business.
In Q2 of fiscal year 2026, revenue according to EDGAR was approximately $6.9 billion, gross profit was $1.2 billion, net income was $182.1 million, and earnings per share were $5.39. Management reported more detailed operating figures, including revenue of $6.93 billion versus $6.97 billion a year ago, gross profit of $1.23 billion at a margin of 17.8%, and adjusted operating income of $343 million at a margin of approximately 5%. Adjusted earnings per share were $5.56, up from $5.46, making this the sixth consecutive quarter of year-over-year growth in adjusted earnings per share.
After-sales services led the earnings mix in Q2 of fiscal year 2026, generating record gross profit of $607 million and revenue of $1.26 billion. Customer Financial Services generated gross profit of $358 million, while AutoNation Finance delivered record quarterly profit of $11 million. In contrast, new vehicle sales declined to 63,240 vehicles, but stable unit profitability, financing, and share repurchases offset part of the impact of weaker sales volumes.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rating on AN stock is “Buy,” with an average price target of $243 and a wide target range of $202 to $260. Both the average target and the highest target exceed the 52-week range high of $235.81, but the lower end of $202 highlights valuation sensitivity to the possibility of weaker vehicle volumes and margin pressure, and the available data does not include a valid earnings multiple that can be used as an additional anchor.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Approximately 80% of AutoNation's profits came from Customer Financial Services and after-sales services, rather than vehicle sales alone. After-sales services recorded record gross profit of $607 million, while Customer Financial Services generated gross profit of $358 million. AutoNation Finance delivered quarterly profit of $11 million, further diversifying the company's earnings sources.
The AutoNation Finance portfolio grew to $2.67 billion from $1.76 billion a year ago, an increase of approximately 52%. Loan originations reached $485 million, and the arm's penetration reached 11% of total vehicle sales and 18% of financed sales. Profit also increased to $11 million from $2 million a year ago, with delinquency rates and reserves remaining stable.
Revenue was $6.93 billion in Q2 of fiscal year 2026 versus $6.97 billion a year ago, but adjusted earnings per share increased to $5.56 from $5.46. Growth at AutoNation Finance and the strength of after-sales services helped offset part of the decline in vehicle sales. Share repurchases also reduced the weighted average shares outstanding by approximately 12% year over year to 33.8 million shares.
New vehicle sales declined by 4% to 63,240 units in Q2 of fiscal year 2026, with battery electric vehicle sales falling by more than 30%. New vehicle profit was $2,381 per unit, while used vehicle profit was $1,582 per unit. In the used vehicle market, units priced above $40,000 increased by 10%, but the supply of vehicles priced below $20,000 remained constrained.
Adjusted free cash flow reached $439 million in the first half of fiscal year 2026, an increase of 11% and a conversion rate of 125%. The company spent $317 million on acquisitions and $126 million on capital expenditures, and repurchased $457 million of shares. The acquisitions included Toyota of Newnan and 3 luxury stores that collectively add approximately $600 million in annual revenue.
Management expects adjusted earnings per share to grow in the second half of fiscal year 2026, supported by stable unit profitability and growth in Customer Financial Services and after-sales services. It targets reducing selling, general, and administrative expenses to a range of 66%–67% of gross profit on an adjusted run-rate basis by the end of fiscal year 2026, compared with 68.2% in Q2. It also expects customer-pay revenue in after-sales services to continue growing at a mid-single-digit rate, with lease returns expected to increase during the second half.
