AutoNationSTU:RWI -0.95%77 Gross Margin % is 18.48% as of Mar. 2026, which is 4% above its 10-year median of 17.69. GuruFocus rates STU:RWI with a GF Score™ of 77/100 and a GF Value™ of €182.82 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,313 Vehicles & Parts companies, AutoNation ranks worse than 57.65% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. AutoNation's Gross Profit for the
three
months ended in Mar. 2026 was €1,048 Mil. AutoNation's Revenue for the
three
months ended in Mar. 2026 was €5,668 Mil. Therefore, AutoNation's Gross Margin % for the quarter that ended in Mar. 2026 was 18.48%.
The historical rank and industry rank for AutoNation's Gross Margin % or its related term are showing as below:
STU:RWI'
s Gross Margin % Range Over the Past 10 Years
Min: 15.33 Med: 17.69 Max: 19.51
Current: 17.97
During the past 13 years, the highestGross Margin % of AutoNation was 19.51%. The lowest was 15.33%. And the median was 17.69%.
STU:RWI's Gross Margin % is ranked worse than 57.65% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs STU:RWI: 17.97
AutoNation had a gross margin of 18.48% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AutoNation was -0.30% per year.
AutoNation (STU:RWI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
AutoNation had a gross margin of 18.48% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
AutoNation Gross Margin % Related Terms
AutoNation Gross Margin % Historical Data
* Premium members only.
The historical data trend for AutoNation's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:RWI vs KMX, LAD, RUSHA: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, AutoNation's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AutoNation Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, AutoNation's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AutoNation's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
AutoNation (STU:RWI) has a Gross Margin % of 18.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on AutoNation and its competitors. This is near median its historical median of 17.69. Over the past decade, AutoNation's Gross Margin % has ranged from 15.33 to 19.51. According to the industry distribution chart, AutoNation ranks #757 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 57.7%.
Is AutoNation's Gross Margin % too high?
AutoNation's current Gross Margin % of 18.48% is near median its 10-year median of 17.69. Over the past 10 years, this metric has ranged from a low of 15.33 to a high of 19.51. The Vehicles & Parts industry median Gross Margin % is 19.84. AutoNation's value of 18.48% is 6.9% below this industry median. Based on the distribution chart, AutoNation ranks #757 out of 1313 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, AutoNation has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AutoNation's Gross Margin % compare to KMX and LAD?
According to the Vehicles & Parts industry distribution chart, AutoNation ranks #757 out of 1313 companies for Gross Margin %. This places AutoNation in the lower half of its industry. The industry median Gross Margin % is 19.84. AutoNation's value of 18.48% is 6.9% below this benchmark. Historically, AutoNation's own Gross Margin % has ranged from 15.33 to 19.51 over the past decade. While the company's 10-year median is 17.69 vs. the industry median of 19.84, AutoNation has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AutoNation's current Gross Margin % of 18.48% is 6.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on AutoNation and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AutoNation's current Gross Margin % is 18.48%, which is near median its own 10-year median of 17.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AutoNation stock overvalued right now?
Based on GuruFocus' analysis, AutoNation (STU:RWI) is currently considered Fairly Valued. The stock's GF Value™ is €182.82, compared to a current price of €167.40 — trading 8.4% below its estimated fair value. The current Gross Margin % is 18.48%, which is near median its 10-year median of 17.69 and 6.9% below the Vehicles & Parts industry median of 19.84. AutoNation's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For AutoNation (STU:RWI), the current Gross Margin % is 18.48% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AutoNation (STU:RWI) Overvalued in 2026?
Based on GuruFocus' analysis, AutoNation stock appears to be undervalued.
The current stock price of €167.40 is trading 8.4% below its estimated GF Value™ of €182.82.
GuruFocus considers AutoNation to be Fairly Valued.
Key valuation signals for STU:RWI:
Gross Margin %: 18.48% (near median its 10-year median of 17.69)
GF Value™: €182.82 vs. price of €167.40 (8.4% below fair value)
Industry Position: 6.9% below the Vehicles & Parts median (#757 of 1313)
No single metric tells the full story. See the STU:RWI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AutoNation is the second-largest automotive dealer in the United States, with 2025 revenue of $27.6 billion and over 240 dealerships, plus 52 collision centers. The firm also has 25 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors across 20 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) divested its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which proved to be a smart move.
77GF Score
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