AutoNation Price To Book vs. Net Income
| RWI Stock | EUR 162.30 2.65 1.66% |
For AutoNation profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AutoNation to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AutoNation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AutoNation's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AutoNation over time as well as its relative position and ranking within its peers.
AutoNation |
AutoNation Net Income vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AutoNation's current stock value. Our valuation model uses many indicators to compare AutoNation value to that of its competitors to determine the firm's financial worth. AutoNation is rated below average in price to book category among its peers. It is rated fifth in net income category among its peers making up about 532,719,678 of Net Income per Price To Book. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the AutoNation's earnings, one of the primary drivers of an investment's value.AutoNation Net Income vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
AutoNation |
| = | 2.59 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
AutoNation |
| = | 1.38 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
AutoNation Net Income Comparison
AutoNation is rated fourth in net income category among its peers.
AutoNation Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AutoNation, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AutoNation will eventually generate negative long term returns. The profitability progress is the general direction of AutoNation's change in net profit over the period of time. It can combine multiple indicators of AutoNation, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company was founded in 1991 and is headquartered in Fort Lauderdale, Florida. AutoNation operates under Auto Truck Dealerships classification in Germany and is traded on Frankfurt Stock Exchange. It employs 26000 people.
AutoNation Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AutoNation. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AutoNation position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AutoNation's important profitability drivers and their relationship over time.
Use AutoNation in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AutoNation position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AutoNation will appreciate offsetting losses from the drop in the long position's value.AutoNation Pair Trading
AutoNation Pair Trading Analysis
The ability to find closely correlated positions to AutoNation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AutoNation when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AutoNation - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AutoNation to buy it.
The correlation of AutoNation is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AutoNation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AutoNation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AutoNation can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your AutoNation position
In addition to having AutoNation in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in AutoNation Stock
When determining whether AutoNation offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AutoNation's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Autonation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Autonation Stock:Check out Your Equity Center. For more detail on how to invest in AutoNation Stock please use our How to Invest in AutoNation guide.You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
To fully project AutoNation's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AutoNation at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include AutoNation's income statement, its balance sheet, and the statement of cash flows.