AN

Autonation Inc.

Industrial/Transportation


Presented:03/03/2021
Price:$78.65
Cap:$6.47B
Current Price:$166.56
Cap:$6.61B

Presented

Date03/03/2021
Price$78.65
Market Cap$6.47B
Ent Value$10.74B
P/E Ratio17.97x
Book Value$38.76
Div Yield0%
Shares O/S82.23M
Ave Daily Vol656,636
Short Int6.41%

Current

Price$166.56
Market Cap$6.61B
AutoNation, Inc. engages in the provision of automotive products and services. It operates through the following segments: Domestic, Import, Premium Luxury, and Corporate & Other. The Domestic segment comprises retail automotive franchises that sell new vehicles manufactured by General Motors, Ford and Chrysler. The Import segment includes retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, and Nissan. The Premium Luxury segment consists of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, Audi, and Lexus. The Corporate & Other segment involves in the collision centres, auction operations and stand-alone used vehicle sales and service centres. The company was founded by Steven Richard Berrard and Harry Wayne Huizenga Sr. in 1991 and is headquartered in Fort Lauderdale, FL.

Publicly traded companies mentioned herein: Asbury Automotive Group Inc (ABG), AutoNation (AN), Group 1 Automotive Inc (GPI), Lithia Motors Inc (LAD), Tesla Inc (TSLA)

Highlights

The presenter is long shares of AutoNation (AN), Asbury Automotive Group Inc (ABG), and Group 1 Automotive Inc (GPI) based on his bullish outlook for the automotive dealer industry. He has been invested in automotive dealers for several years due to the secular tailwinds, margin profiles, and the defensibility of the parts & services (P&S) businesses, but he has become increasingly bullish given M&A potential, his analysis on the impact of EVs, and ongoing industry trends. These stocks trade at 6x – 7x his 2022 – 2023 earnings estimates, and he sees the potential for these valuations to double or triple over the next couple of years.

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Idea Discussion

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