Stock fact sheet · data as of
AutoNation, Inc. (AN): fair value, margin of safety and Wheel Score
Consumer Cyclical · Auto - Dealerships · United States · Value
Is AN undervalued?
AN has a margin of safety of 46%: the stock closed at 159.80 on 16 Oct 2026 against a GLS average fair value of 295.09. 6 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between Payback Time (6.92) and Graham Growth (887.52). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files AN under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for AN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 387.80 | +143% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 187.32 | +17% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 887.52 | +455% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 355.56 | +123% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 67.69 | -58% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 210.96 | +32% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 6.92 | -96% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 256.95 | +61% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -223.93 | -240% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 223.00 | +40% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
AutoNation, Inc. scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 3.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 5.2%, ROE 27.7%, ROA 4.5% - with debt at 4.35 times equity and a free-cash-flow yield of 0.2%. Debt of 4.35 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
AutoNation, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from New Vehicle 48%, Used Vehicle 29%, Parts and Service 18% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 5.2% |
|---|---|---|---|
| GLS Moat | 3.5 / 10 | ROE | 27.7% |
| Debt / equity | 4.35 | ROA | 4.5% |
| Free-cash-flow yield | 0.2% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 75: Good
With a Wheel Score of 75 - the Good band - AutoNation, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 9/20, Moat 5/15, Premium 20/20, Stability 16/20; Moat (5/15) scores lowest.
Implied volatility is 45% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 3,641 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 677k shares a day on a market cap of $5.3B, with a beta of 0.72 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 46% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 5 / 15 | moat 3.5/10 | |
| Premium | 20 / 20 | implied volatility 45% | |
| Stability | 16 / 20 | 677k shares/day, $5.3B cap, beta 0.72 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
AutoNation, Inc. reports earnings on 22 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Auto - Dealerships
The 12 companies below are the closest to AutoNation, Inc. by market cap within the Auto - Dealerships industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RUSHA Rush Enterprises, Inc. | 43.78 | 72.26 | +39% | 88Prime | $5.1B |
| OPLN OPENLANE, Inc. | 36.98 | 47.45 | +22% | 77Good | $4.5B |
| LAD Lithia Motors, Inc. | 295.31 | 571.63 | +48% | 45Weak | $6.5B |
| RUSHB Rush Enterprises, Inc. | 56.62 | 86.44 | +34% | 39No options | $6.7B |
| VVV Valvoline Inc. | 30.39 | 21.92 | -39% | 54Fair | $3.9B |
| KMX CarMax, Inc. | 52.62 | 67.30 | +22% | 81Prime | $7.5B |
| ABG Asbury Automotive Group, Inc. | 169.87 | 478.77 | +65% | 77Good | $3.0B |
| GPI Group 1 Automotive, Inc. | 239.80 | 323.14 | +26% | 77Good | $2.9B |
| ALTB Alpine Auto Brokers Inc. | 10.00 | 0.0102 | -97609% | 17No options | $10.0B |
| BGSI Boyd Group Services Inc. | 81.65 | 64.45 | -27% | 29No options | $2.3B |
| PAG Penske Automotive Group, Inc. | 194.79 | 157.80 | -23% | 58Fair | $12.8B |
| DRVN Driven Brands Holdings Inc. | 11.96 | 20.91 | +43% | 78Good | $2.0B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about AN
Is AN undervalued right now?
By the GLS models, yes: at 159.80 the stock is 46% below the average fair value of 295.09 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of AN and what does it mean?
AN scores 75 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for AN?
295.09 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does AutoNation, Inc. report earnings next?
The next earnings report is due on 22 Oct 2026 (before the open), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does AN have listed options, and how liquid are they?
Yes. The nightly snapshot found 306 listed contracts with 3,641 open interest across all expiries and implied volatility of 45% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.