Resilient business model, with a diverse product and services portfolio and revenue base. Fragmented and competitive industry. Cyclical demand for new vehicles, partly determined by swings in consumer confidence and unemployment. Brand diversity. Good geographic reach within the U.S., with some concentration in the southeast and western regions. Thin profit margins on vehicle sales (typical of retail businesses), mitigated by a flexible cost structure and economies of scale. Consistent free operating cash flow (FOCF). Low capital spending requirements. Organic investment expected for expansion. Debt leverage below 3.0x. S&P Global Ratings' stable outlook on AutoNation Inc. reflects our assumption the company's variable cost structure and extensive control systems--combined with its diverse revenue streams, geographic diversity, and brand mix--will enable it to
