SONIC AUTOMOTIVE INC-CLASS A (SAH) Fundamental Analysis & Valuation
NYSE:SAH • US83545G1022
Current stock price
68.06 USD
+0.23 (+0.34%)
At close:
68.06 USD
0 (0%)
After Hours:
This SAH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SAH Profitability Analysis
1.1 Basic Checks
- SAH had positive earnings in the past year.
- In the past year SAH had a positive cash flow from operations.
- Each year in the past 5 years SAH has been profitable.
- Of the past 5 years SAH 4 years had a positive operating cash flow.
1.2 Ratios
- SAH has a Return On Assets (1.99%) which is in line with its industry peers.
- SAH has a better Return On Equity (11.11%) than 66.67% of its industry peers.
- With a decent Return On Invested Capital value of 7.81%, SAH is doing good in the industry, outperforming 69.92% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SAH is significantly below the industry average of 13.64%.
- The last Return On Invested Capital (7.81%) for SAH is above the 3 year average (7.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 11.11% | ||
| ROIC | 7.81% |
ROA(3y)2.99%
ROA(5y)3.55%
ROE(3y)17.14%
ROE(5y)18.75%
ROIC(3y)7.59%
ROIC(5y)8.67%
1.3 Margins
- SAH has a Profit Margin (0.78%) which is comparable to the rest of the industry.
- SAH's Profit Margin has improved in the last couple of years.
- SAH has a better Operating Margin (3.57%) than 60.98% of its industry peers.
- In the last couple of years the Operating Margin of SAH has grown nicely.
- Looking at the Gross Margin, with a value of 15.72%, SAH is doing worse than 82.93% of the companies in the same industry.
- SAH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.57% | ||
| PM (TTM) | 0.78% | ||
| GM | 15.72% |
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. SAH Health Analysis
2.1 Basic Checks
- SAH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, SAH has less shares outstanding
- Compared to 5 years ago, SAH has less shares outstanding
- Compared to 1 year ago, SAH has about the same debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.51 indicates that SAH is not in any danger for bankruptcy at the moment.
- SAH's Altman-Z score of 3.51 is fine compared to the rest of the industry. SAH outperforms 78.86% of its industry peers.
- SAH has a debt to FCF ratio of 9.40. This is a negative value and a sign of low solvency as SAH would need 9.40 years to pay back of all of its debts.
- SAH has a Debt to FCF ratio (9.40) which is comparable to the rest of the industry.
- SAH has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external financing.
- SAH has a worse Debt to Equity ratio (3.61) than 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 9.4 | ||
| Altman-Z | 3.51 |
ROIC/WACC1.31
WACC5.98%
2.3 Liquidity
- SAH has a Current Ratio of 1.09. This is a normal value and indicates that SAH is financially healthy and should not expect problems in meeting its short term obligations.
- SAH has a Current ratio of 1.09. This is in the lower half of the industry: SAH underperforms 65.85% of its industry peers.
- A Quick Ratio of 0.32 indicates that SAH may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.32, SAH is doing worse than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.32 |
3. SAH Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 17.86% over the past year.
- The Earnings Per Share has been growing by 11.44% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 6.53% in the past year.
- The Revenue has been growing by 9.18% on average over the past years. This is quite good.
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 13.15% on average per year.
- Based on estimates for the next years, SAH will show a small growth in Revenue. The Revenue will grow by 7.27% on average per year.
EPS Next Y0.59%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
EPS Next 5Y13.15%
Revenue Next Year3.51%
Revenue Next 2Y3.82%
Revenue Next 3Y5.33%
Revenue Next 5Y7.27%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. SAH Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.31, which indicates a very decent valuation of SAH.
- Based on the Price/Earnings ratio, SAH is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
- SAH is valuated cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
- SAH is valuated reasonably with a Price/Forward Earnings ratio of 10.25.
- 85.37% of the companies in the same industry are more expensive than SAH, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of SAH to the average of the S&P500 Index (37.39), we can say SAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SAH is valued a bit cheaper than 78.86% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SAH is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.47 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAH does not grow enough to justify the current Price/Earnings ratio.
- SAH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)17.48
PEG (5Y)0.9
EPS Next 2Y5.48%
EPS Next 3Y5.41%
5. SAH Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.24%, SAH has a reasonable but not impressive dividend return.
- SAH's Dividend Yield is a higher than the industry average which is at 3.39.
- SAH's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
- On average, the dividend of SAH grows each year by 29.05%, which is quite nice.
- SAH has been paying a dividend for at least 10 years, so it has a reliable track record.
- SAH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)29.05%
Div Incr Years5
Div Non Decr Years15
5.3 Sustainability
- SAH pays out 41.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of SAH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.11%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
SAH Fundamentals: All Metrics, Ratios and Statistics
68.06
+0.23 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-18 2026-02-18/bmo
Earnings (Next)04-30 2026-04-30
Inst Owners70.93%
Inst Owner Change0.6%
Ins Owners32%
Ins Owner Change0.34%
Market Cap2.28B
Revenue(TTM)15.15B
Net Income(TTM)118.70M
Analysts73.33
Price Target76.84 (12.9%)
Short Float %16.66%
Short Ratio7.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend1.44
Dividend Growth(5Y)29.05%
DP41.11%
Div Incr Years5
Div Non Decr Years15
Ex-Date03-13 2026-03-13 (0.38)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.31%
Min EPS beat(2)-19.09%
Max EPS beat(2)0.46%
EPS beat(4)3
Avg EPS beat(4)4.02%
Min EPS beat(4)-19.09%
Max EPS beat(4)33.19%
EPS beat(8)6
Avg EPS beat(8)1.87%
EPS beat(12)8
Avg EPS beat(12)-0.55%
EPS beat(16)9
Avg EPS beat(16)-0.52%
Revenue beat(2)1
Avg Revenue beat(2)2.87%
Min Revenue beat(2)-2.9%
Max Revenue beat(2)8.63%
Revenue beat(4)2
Avg Revenue beat(4)1.84%
Min Revenue beat(4)-2.9%
Max Revenue beat(4)8.63%
Revenue beat(8)3
Avg Revenue beat(8)0.52%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)6
Avg Revenue beat(16)-1.63%
PT rev (1m)-1.36%
PT rev (3m)-1.6%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-12.02%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-7.06%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 10.25 | ||
| P/S | 0.15 | ||
| P/FCF | 5.47 | ||
| P/OCF | 4.02 | ||
| P/B | 2.14 | ||
| P/tB | 11.88 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)6.6
EY9.7%
EPS(NY)6.64
Fwd EY9.75%
FCF(TTM)12.44
FCFY18.28%
OCF(TTM)16.91
OCFY24.85%
SpS451.67
BVpS31.84
TBVpS5.73
PEG (NY)17.48
PEG (5Y)0.9
Graham Number68.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 11.11% | ||
| ROCE | 16.05% | ||
| ROIC | 7.81% | ||
| ROICexc | 7.82% | ||
| ROICexgc | 9.37% | ||
| OM | 3.57% | ||
| PM (TTM) | 0.78% | ||
| GM | 15.72% | ||
| FCFM | 2.76% |
ROA(3y)2.99%
ROA(5y)3.55%
ROE(3y)17.14%
ROE(5y)18.75%
ROIC(3y)7.59%
ROIC(5y)8.67%
ROICexc(3y)7.63%
ROICexc(5y)8.96%
ROICexgc(3y)9.01%
ROICexgc(5y)10.79%
ROCE(3y)15.57%
ROCE(5y)16.88%
ROICexgc growth 3Y-12.24%
ROICexgc growth 5Y2.35%
ROICexc growth 3Y-12.71%
ROICexc growth 5Y0.61%
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-Score6
Asset Turnover2.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 9.4 | ||
| Debt/EBITDA | 5.65 | ||
| Cap/Depr | 106.09% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 2.86 | ||
| Cash Conversion | 83.11% | ||
| Profit Quality | 351.73% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 3.51 |
F-Score6
WACC5.98%
ROIC/WACC1.31
Cap/Depr(3y)137.88%
Cap/Depr(5y)186.19%
Cap/Sales(3y)1.24%
Cap/Sales(5y)1.55%
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 Y0.59%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
EPS Next 5Y13.15%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y2.67%
Revenue growth 5Y9.18%
Sales Q2Q%-0.63%
Revenue Next Year3.51%
Revenue Next 2Y3.82%
Revenue Next 3Y5.33%
Revenue Next 5Y7.27%
EBIT growth 1Y16.33%
EBIT growth 3Y-5.15%
EBIT growth 5Y12.23%
EBIT Next Year24.72%
EBIT Next 3Y11%
EBIT Next 5Y12.03%
FCF growth 1Y633.89%
FCF growth 3Y32.62%
FCF growth 5Y22.09%
OCF growth 1Y420.07%
OCF growth 3Y11.79%
OCF growth 5Y15.08%
SONIC AUTOMOTIVE INC-CLASS A / SAH Fundamental Analysis 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.
What is the profitability of SAH stock?
SONIC AUTOMOTIVE INC-CLASS A (SAH) has a profitability rating of 6 / 10.
What are the PE and PB ratios of SONIC AUTOMOTIVE INC-CLASS A (SAH) stock?
The Price/Earnings (PE) ratio for SONIC AUTOMOTIVE INC-CLASS A (SAH) is 10.31 and the Price/Book (PB) ratio is 2.14.
Can you provide the expected EPS growth for SAH stock?
The Earnings per Share (EPS) of SONIC AUTOMOTIVE INC-CLASS A (SAH) is expected to grow by 0.59% in the next year.