CluenexAutoNation AN
AutoNation scores weak on business quality (3.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What AutoNation does
AutoNation sells new and used vehicles, parts, and repair services through a vast physical network of dealerships across the United States, collecting revenue directly from retail consumers. The company is leaning into digital tools and recently appointed a new chief technology and AI officer to streamline its operations.
- What it does best
AutoNation converts shareholder equity into returns efficiently, posting a 33.2% ROE that outpaces peers like Penske Automotive Group at 16.5%. This stems from massive retail footprint scale and localized inventory dominance that independent lots struggle to replicate.
- The main risk
A heavy debt load creates vulnerability, with total debt reaching $9.8B against just $59M in cash. If vehicle demand softens further, high fixed floorplan financing costs will squeeze margins.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 4.8% and FCF margin is a razor-thin 0.04%, sitting in the bottom quartile of its sector. Scale fails to drive efficient cash conversion.
Scale and nationwide physical footprint create a localized distribution moat that locks in consumers for vehicle maintenance. However, gross margins rank in the bottom decile at 13% of its sector.
Revenue crept up by 3.2% to $27.4B, marking a sluggish pace that sits in the bottom quartile of its sector at the 39th percentile.
Debt-to-equity sits high at 4.2x while interest coverage is thin at 3.5x. Free cash flow dropped to $12M, showing severe cash generation strain.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $198K outside pre-planned sales.
Our sealed record on AN
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
AutoNation scores weak on the Cluenex quality check (3.3 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 1 sold $198K outside pre-planned sales.
Oct 22, 2026.
See AN today
- Today's verdict on AN, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “AutoNation (AN)”, https://cluenex.com/stocks/an/, data as of Oct 10, 2026.