2024-07-17 21:50:20 ET
Summary
- AutoNation stock presents with exceptional economic characteristics despite trading at <10x NOPAT.
- Returns on capital employed in the business persistently sit over 25%, driven by highly efficient asset utilization.
- With minimal reinvestment runway management is aggressively buying back shares.
- In my view AN is worth ~$214/share today.
Investment Thesis
AutoNation, Inc. (NYSE: AN ) is a leading player in the US automotive retail industry, with a broad operational footprint encompassing new and used vehicle sales, parts and service operations, and automotive finance and insurance products. The company’s extensive dealership network, brand recognition, and in my opinion, excellent capital budgeting, position it well to capitalize on market opportunities and drive long-term value creation....
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AutoNation: Superb Economics With Minimal Reinvestment Opportunities