AutoNation (AN) Adds Goodyear CEO To Its Board, Is The Stock Still Cheap?

AutoNation (AN) stock is in focus after the retailer added Mark Stewart, current Goodyear CEO and president, to its board as an independent director, effective 13 October 2026.

For investors, the board appointment comes at an interesting time for AutoNation. The 1-day share price return of 1.21% and 7-day share price return of 2.76% follow a 90-day share price decline of 18.28% and a 1-year total shareholder return decline of 24.68%. This suggests that recent momentum has picked up slightly after a tougher year for holders.

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AutoNation’s share price has slipped over the past year even as the business reports annual revenue of US$27.4b and net income of US$774.7m. Is the recent uptick just sentiment, or is value starting to reappear?

Most Popular Narrative: 27% Undervalued

Against AutoNation’s last close at $161.73, the most widely followed narrative pins fair value at $222, leaving a sizable valuation gap for investors to interrogate. That gap rests heavily on how durable the company’s higher margin, recurring profit streams really are.

Continued mix shift toward high margin aftersales and customer financial services, which already account for around 80% of AutoNation profit and nearly half of gross profit from aftersales alone, supports the view that a larger share of future revenue and net margins will come from recurring, less cyclical lines that some investors may underappreciate.

See why 3 investors see AutoNation as 27% undervalued.

Result: Fair Value of $222 (UNDERVALUED)

Still, AutoNation’s reliance on parts and service, along with regulatory scrutiny of dealer pricing and financing practices, could weaken that recurring earnings story if conditions tighten.

Find out about the key risks to this AutoNation narrative.

Next Steps

If this mix of pressure and optimism around AutoNation feels conflicted, treat it as a prompt to move quickly and test the story against your own criteria. To see the balance of concerns and bright spots in one place, review the 3 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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