AutoNation Inc (AN, Financial) has demonstrated a robust performance in the stock market with its market capitalization reaching $7.22 billion. The current stock price stands at $173.26, reflecting a 3.73% gain over the past week and a significant 16.02% gain over the past three months. According to GuruFocus's valuation metrics, the GF Value of AutoNation is currently $186.43, slightly down from the past GF Value of $188.28. This positions the company as fairly valued at present, whereas it was considered modestly undervalued three months ago. These figures suggest that investors are recognizing the company's value, aligning the market price closer to its intrinsic value.
AutoNation Inc: A Leader in the Automotive Industry
AutoNation Inc, a titan in the Vehicles & Parts industry, stands as the second-largest automotive dealer in the United States. With a history dating back to the 1990s and founded by Wayne Huizenga, AutoNation has grown to generate approximately $27 billion in revenue for 2023. The company's expansive operations include over 250 dealerships, 53 collision centers, 19 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors across 21 states. The company's strategy of rollup acquisitions has proven successful, allowing it to offer a diverse range of services including new and used vehicle sales, parts, repair services, and auto financing. 
Impressive Profitability Metrics
AutoNation's Profitability Rank stands at an impressive 8/10, indicating a strong likelihood of continued profitable operations. The company's Operating Margin is 6.13%, surpassing 57.18% of 1,282 companies in the industry. Its Return on Equity (ROE) is an outstanding 48.56%, better than 97.63% of its peers, while the Return on Assets (ROA) at 9.33% and Return on Invested Capital (ROIC) at 11.26% also outperform the majority of competitors. AutoNation has maintained profitability for the past 10 years, a testament to its solid business model and operational efficiency. 
Robust Growth Trajectory
The company's Growth Rank is equally impressive at 9/10. AutoNation has experienced a 37.70% 3-Year Revenue Growth Rate per Share, outperforming 93.5% of 1,216 companies in the same industry. The 5-Year Revenue Growth Rate per Share stands at 22.90%, again placing it ahead of 93.92% of 1,119 companies. While the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at 2.79%, the 3-Year EPS without NRI Growth Rate and 5-Year EPS without NRI Growth Rate are at 47.00% and 48.80% respectively, indicating strong earnings growth. These figures underscore AutoNation's ability to expand its revenue and earnings at an impressive pace. 
Key Shareholders in AutoNation
Notable investors have taken significant positions in AutoNation, demonstrating confidence in the company's prospects. Mario Gabelli (Trades, Portfolio) holds 425,447 shares, representing 1.02% of the company, while Barrow, Hanley, Mewhinney & Strauss owns 414,366 shares, accounting for 0.97%. Murray Stahl (Trades, Portfolio) also has a stake with 300,803 shares, making up 0.72% of AutoNation. These major shareholders are indicative of the company's strong investment appeal.
Competitive Landscape
AutoNation operates in a competitive landscape, with key players such as Lithia Motors Inc (LAD, Financial) with a market cap of $7.15 billion, Asbury Automotive Group Inc (ABG, Financial) valued at $4.43 billion, and Rush Enterprises Inc (RUSHA, Financial) at $3.54 billion. Despite the competition, AutoNation's market cap of $7.22 billion signifies its leading position and the market's confidence in its business model and growth prospects.
Conclusion
In summary, AutoNation Inc's stock performance and valuation reflect a company that is both growing and profitable. Its recent price increase is supported by strong fundamentals, as evidenced by its high Profitability and Growth Ranks. The company's strategic operations and expansion in the automotive industry have attracted significant shareholder interest and positioned it favorably against its competitors. With a market cap that leads its closest rivals, AutoNation is well-positioned to maintain its momentum in the market.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
