SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
NYSE:SAH • US83545G1022
62.66 USD
-0.77 (-1.21%)
Last: Feb 27, 2026, 01:30 PM
We assign a fundamental rating of 5 out of 10 to SAH. SAH was compared to 123 industry peers in the Specialty Retail industry. There are concerns on the financial health of SAH while its profitability can be described as average. SAH may be a bit undervalued, certainly considering the very reasonable score on growth Finally SAH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year SAH was profitable.
- SAH had a positive operating cash flow in the past year.
- SAH had positive earnings in each of the past 5 years.
- In multiple years SAH reported negative operating cash flow during the last 5 years.
1.2 Ratios
- SAH has a Return On Assets of 2.17%. This is comparable to the rest of the industry: SAH outperforms 56.10% of its industry peers.
- SAH's Return On Equity of 12.19% is fine compared to the rest of the industry. SAH outperforms 69.11% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.05%, SAH is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 12.19% | ||
| ROIC | 8.05% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SAH has a Profit Margin of 0.86%. This is comparable to the rest of the industry: SAH outperforms 53.66% of its industry peers.
- In the last couple of years the Profit Margin of SAH has grown nicely.
- SAH has a Operating Margin of 3.64%. This is comparable to the rest of the industry: SAH outperforms 59.35% of its industry peers.
- SAH's Operating Margin has improved in the last couple of years.
- The Gross Margin of SAH (15.54%) is worse than 82.11% of its industry peers.
- In the last couple of years the Gross Margin of SAH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.64% | ||
| PM (TTM) | 0.86% | ||
| GM | 15.54% |
OM growth 3Y-7.62%
OM growth 5Y2.79%
PM growth 3Y7.41%
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
- SAH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- SAH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.44 indicates that SAH is not in any danger for bankruptcy at the moment.
- SAH's Altman-Z score of 3.44 is fine compared to the rest of the industry. SAH outperforms 77.24% of its industry peers.
- SAH has a debt to FCF ratio of 8.88. This is a slightly negative value and a sign of low solvency as SAH would need 8.88 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.88, SAH is in line with its industry, outperforming 58.54% of the companies in the same industry.
- A Debt/Equity ratio of 3.54 is on the high side and indicates that SAH has dependencies on debt financing.
- SAH has a Debt to Equity ratio of 3.54. This is in the lower half of the industry: SAH underperforms 74.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.96
WACC8.39%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that SAH should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.02, SAH is not doing good in the industry: 71.54% of the companies in the same industry are doing better.
- A Quick Ratio of 0.27 indicates that SAH may have some problems paying its short term obligations.
- SAH's Quick ratio of 0.27 is on the low side compared to the rest of the industry. SAH is outperformed by 76.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
- SAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.86%, which is quite good.
- The Earnings Per Share has been growing by 11.44% on average over the past years. This is quite good.
- SAH shows a small growth in Revenue. In the last year, the Revenue has grown by 6.53%.
- Measured over the past years, SAH shows a quite strong growth in Revenue. The Revenue has been growing by 9.18% on average per year.
EPS 1Y (TTM)17.86%
EPS 3Y-11.8%
EPS 5Y11.44%
EPS Q2Q%0.66%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y2.67%
Revenue growth 5Y9.18%
Sales Q2Q%-0.63%
3.2 Future
- Based on estimates for the next years, SAH will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.41% on average per year.
- SAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
EPS Next Y7.01%
EPS Next 2Y7.93%
EPS Next 3Y10.68%
EPS Next 5Y13.41%
Revenue Next Year3.32%
Revenue Next 2Y3.82%
Revenue Next 3Y6.51%
Revenue Next 5Y7.5%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.49, the valuation of SAH can be described as reasonable.
- SAH's Price/Earnings ratio is rather cheap when compared to the industry. SAH is cheaper than 91.06% of the companies in the same industry.
- SAH is valuated cheaply when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 8.87 indicates a reasonable valuation of SAH.
- 91.87% of the companies in the same industry are more expensive than SAH, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.13, SAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SAH is valued cheaper than 87.80% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SAH is valued cheaper than 94.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
- SAH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.35
PEG (5Y)0.83
EPS Next 2Y7.93%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
- SAH has a Yearly Dividend Yield of 2.43%.
- SAH's Dividend Yield is rather good when compared to the industry average which is at 2.30. SAH pays more dividend than 82.93% of the companies in the same industry.
- SAH's Dividend Yield is a higher than the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
- The dividend of SAH is nicely growing with an annual growth rate of 27.13%!
- SAH has been paying a dividend for at least 10 years, so it has a reliable track record.
- SAH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)27.13%
Div Incr Years4
Div Non Decr Years14
5.3 Sustainability
- 35.28% of the earnings are spent on dividend by SAH. This is a low number and sustainable payout ratio.
- The dividend of SAH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.28%
EPS Next 2Y7.93%
EPS Next 3Y10.68%
NYSE:SAH (2/27/2026, 1:30:34 PM)
62.66
-0.77 (-1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-18 2026-02-18/bmo
Earnings (Next)04-22 2026-04-22
Inst Owners72.9%
Inst Owner Change-4.39%
Ins Owners28.19%
Ins Owner Change0.34%
Market Cap2.14B
Revenue(TTM)15.15B
Net Income(TTM)130.40M
Analysts71.43
Price Target77.9 (24.32%)
Short Float %12.91%
Short Ratio10.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend1.2
Dividend Growth(5Y)27.13%
DP35.28%
Div Incr Years4
Div Non Decr Years14
Ex-Date03-13 2026-03-13 (0.38)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.05%
Min EPS beat(2)-19.09%
Max EPS beat(2)33.19%
EPS beat(4)3
Avg EPS beat(4)4.47%
Min EPS beat(4)-19.09%
Max EPS beat(4)33.19%
EPS beat(8)5
Avg EPS beat(8)0.12%
EPS beat(12)8
Avg EPS beat(12)0.77%
EPS beat(16)9
Avg EPS beat(16)2.12%
Revenue beat(2)1
Avg Revenue beat(2)3.57%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)8.63%
Revenue beat(4)3
Avg Revenue beat(4)4.27%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)8.63%
Revenue beat(8)3
Avg Revenue beat(8)0.63%
Revenue beat(12)6
Avg Revenue beat(12)0.38%
Revenue beat(16)7
Avg Revenue beat(16)-1.37%
PT rev (1m)0.74%
PT rev (3m)0.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-2.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.14 | ||
| P/FCF | 4.93 | ||
| P/OCF | 3.64 | ||
| P/B | 2 | ||
| P/tB | 11.04 | ||
| EV/EBITDA | 5.69 |
EPS(TTM)6.6
EY10.53%
EPS(NY)7.06
Fwd EY11.27%
FCF(TTM)12.7
FCFY20.27%
OCF(TTM)17.21
OCFY27.47%
SpS444.19
BVpS31.29
TBVpS5.67
PEG (NY)1.35
PEG (5Y)0.83
Graham Number68.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 12.19% | ||
| ROCE | 16.97% | ||
| ROIC | 8.05% | ||
| ROICexc | 8.19% | ||
| ROICexgc | 9.86% | ||
| OM | 3.64% | ||
| PM (TTM) | 0.86% | ||
| GM | 15.54% | ||
| FCFM | 2.86% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-7.62%
OM growth 5Y2.79%
PM growth 3Y7.41%
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y1.52%
F-Score7
Asset Turnover2.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Debt/EBITDA | 5.47 | ||
| Cap/Depr | 110.63% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 84.94% | ||
| Profit Quality | 332.9% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 3.44 |
F-Score7
WACC8.39%
ROIC/WACC0.96
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.86%
EPS 3Y-11.8%
EPS 5Y11.44%
EPS Q2Q%0.66%
EPS Next Y7.01%
EPS Next 2Y7.93%
EPS Next 3Y10.68%
EPS Next 5Y13.41%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y2.67%
Revenue growth 5Y9.18%
Sales Q2Q%-0.63%
Revenue Next Year3.32%
Revenue Next 2Y3.82%
Revenue Next 3Y6.51%
Revenue Next 5Y7.5%
EBIT growth 1Y23.32%
EBIT growth 3Y-5.15%
EBIT growth 5Y12.23%
EBIT Next Year26.22%
EBIT Next 3Y11.95%
EBIT Next 5Y13.62%
FCF growth 1Y247.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y697.66%
OCF growth 3YN/A
OCF growth 5YN/A
SONIC AUTOMOTIVE INC-CLASS A / SAH FAQ
What is the ChartMill fundamental rating of SONIC AUTOMOTIVE INC-CLASS A (SAH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SAH.
What is the valuation status of SONIC AUTOMOTIVE INC-CLASS A (SAH) stock?
ChartMill assigns a valuation rating of 7 / 10 to SONIC AUTOMOTIVE INC-CLASS A (SAH). This can be considered as Undervalued.
Can you provide the profitability details for SONIC AUTOMOTIVE INC-CLASS A?
SONIC AUTOMOTIVE INC-CLASS A (SAH) has a profitability rating of 5 / 10.
How financially healthy is SONIC AUTOMOTIVE INC-CLASS A?
The financial health rating of SONIC AUTOMOTIVE INC-CLASS A (SAH) is 3 / 10.
What is the earnings growth outlook for SONIC AUTOMOTIVE INC-CLASS A?
The Earnings per Share (EPS) of SONIC AUTOMOTIVE INC-CLASS A (SAH) is expected to grow by 7.01% in the next year.