SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
NYSE:SAH - New York Stock Exchange, Inc. - US83545G1022 - Common Stock
We assign a fundamental rating of 4 out of 10 to SAH. SAH was compared to 119 industry peers in the Specialty Retail industry. SAH has a medium profitability rating, but doesn't score so well on its financial health evaluation. SAH has a valuation in line with the averages, but on the other hand it scores bad on growth. SAH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SAH had positive earnings in the past year.
SAH had a negative operating cash flow in the past year.
Of the past 5 years SAH 4 years were profitable.
SAH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SAH has a better Return On Assets (3.41%) than 62.07% of its industry peers.
Looking at the Return On Equity, with a value of 19.32%, SAH is in the better half of the industry, outperforming 76.72% of the companies in the same industry.
With a Return On Invested Capital value of 5.34%, SAH perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SAH is below the industry average of 12.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 19.32% | ||
| ROIC | 5.34% |
ROA(3y)4.04%
ROA(5y)2.86%
ROE(3y)20.76%
ROE(5y)14.25%
ROIC(3y)7.52%
ROIC(5y)6.76%
1.3 Margins
SAH has a Profit Margin (1.41%) which is comparable to the rest of the industry.
SAH's Profit Margin has improved in the last couple of years.
The Operating Margin of SAH (3.22%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SAH has grown nicely.
With a Gross Margin value of 15.52%, SAH is not doing good in the industry: 88.79% of the companies in the same industry are doing better.
SAH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.22% | ||
| PM (TTM) | 1.41% | ||
| GM | 15.52% |
OM growth 3Y3.98%
OM growth 5Y10.86%
PM growth 3YN/A
PM growth 5Y18.87%
GM growth 3Y2.34%
GM growth 5Y1.46%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SAH has less shares outstanding
Compared to 1 year ago, SAH has a worse debt to assets ratio.
2.2 Solvency
SAH has an Altman-Z score of 3.36. This indicates that SAH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SAH (3.36) is better than 74.14% of its industry peers.
SAH has a Debt/Equity ratio of 3.68. This is a high value indicating a heavy dependency on external financing.
SAH's Debt to Equity ratio of 3.68 is on the low side compared to the rest of the industry. SAH is outperformed by 77.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.36 |
ROIC/WACC0.67
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SAH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, SAH is not doing good in the industry: 71.55% of the companies in the same industry are doing better.
SAH has a Quick Ratio of 1.11. This is a bad value and indicates that SAH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.35, SAH is doing worse than 62.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
SAH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.57%.
SAH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.49% yearly.
Looking at the last year, SAH shows a decrease in Revenue. The Revenue has decreased by -3.23% in the last year.
The Revenue has been growing slightly by 7.63% on average over the past years.
EPS 1Y (TTM)-26.57%
EPS 3Y21.04%
EPS 5Y30.49%
EPS Q2Q%-37.62%
Revenue 1Y (TTM)-3.23%
Revenue growth 3Y13.74%
Revenue growth 5Y7.63%
Sales Q2Q%-4.17%
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 9.90% on average per year.
SAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.17% yearly.
EPS Next Y-16.96%
EPS Next 2Y-4.68%
EPS Next 3Y3.51%
EPS Next 5Y9.9%
Revenue Next Year-3.19%
Revenue Next 2Y0.13%
Revenue Next 3Y1.93%
Revenue Next 5Y5.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.25 indicates a correct valuation of SAH.
Based on the Price/Earnings ratio, SAH is valued cheaper than 82.76% of the companies in the same industry.
SAH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 11.33, which indicates a very decent valuation of SAH.
Based on the Price/Forward Earnings ratio, SAH is valued cheaply inside the industry as 80.17% of the companies are valued more expensively.
SAH is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAH indicates a somewhat cheap valuation: SAH is cheaper than 76.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-4.68%
EPS Next 3Y3.51%
5. Dividend
5.1 Amount
SAH has a Yearly Dividend Yield of 2.05%.
SAH's Dividend Yield is rather good when compared to the industry average which is at 3.27. SAH pays more dividend than 81.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SAH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
On average, the dividend of SAH grows each year by 37.98%, 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)37.98%
Div Incr Years4
Div Non Decr Years14
5.3 Sustainability
SAH pays out 20.60% of its income as dividend. This is a sustainable payout ratio.
The dividend of SAH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.6%
EPS Next 2Y-4.68%
EPS Next 3Y3.51%
SONIC AUTOMOTIVE INC-CLASS A
NYSE:SAH (1/21/2025, 8:25:25 PM)
After market: 70.08 0 (0%)70.08
+1.77 (+2.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.88%
Inst Owner Change0.03%
Ins Owners29.43%
Ins Owner Change-0.03%
Market Cap2.40B
Analysts73.85
Price Target68.63 (-2.07%)
Short Float %7.9%
Short Ratio7.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend1.14
Dividend Growth(5Y)37.98%
DP20.6%
Div Incr Years4
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.56%
Min EPS beat(2)-12.77%
Max EPS beat(2)5.65%
EPS beat(4)2
Avg EPS beat(4)-4.23%
Min EPS beat(4)-13.54%
Max EPS beat(4)5.65%
EPS beat(8)5
Avg EPS beat(8)-1.08%
EPS beat(12)6
Avg EPS beat(12)1.33%
EPS beat(16)10
Avg EPS beat(16)7.66%
Revenue beat(2)0
Avg Revenue beat(2)-3.6%
Min Revenue beat(2)-4.59%
Max Revenue beat(2)-2.61%
Revenue beat(4)0
Avg Revenue beat(4)-3.01%
Min Revenue beat(4)-4.59%
Max Revenue beat(4)-2%
Revenue beat(8)3
Avg Revenue beat(8)-1.57%
Revenue beat(12)4
Avg Revenue beat(12)-3.25%
Revenue beat(16)6
Avg Revenue beat(16)-1.32%
PT rev (1m)0%
PT rev (3m)9.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 11.33 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.36 | ||
| P/tB | 9.57 | ||
| EV/EBITDA | 7.53 |
EPS(TTM)5.72
EY8.16%
EPS(NY)6.19
Fwd EY8.83%
FCF(TTM)-8.61
FCFYN/A
OCF(TTM)-2.88
OCFYN/A
SpS406.94
BVpS29.69
TBVpS7.33
PEG (NY)N/A
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 19.32% | ||
| ROCE | 13.93% | ||
| ROIC | 5.34% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 6.31% | ||
| OM | 3.22% | ||
| PM (TTM) | 1.41% | ||
| GM | 15.52% | ||
| FCFM | N/A |
ROA(3y)4.04%
ROA(5y)2.86%
ROE(3y)20.76%
ROE(5y)14.25%
ROIC(3y)7.52%
ROIC(5y)6.76%
ROICexc(3y)7.88%
ROICexc(5y)7.04%
ROICexgc(3y)9.54%
ROICexgc(5y)8.36%
ROCE(3y)18.03%
ROCE(5y)17.27%
ROICexcg growth 3Y4.5%
ROICexcg growth 5Y10.85%
ROICexc growth 3Y2.49%
ROICexc growth 5Y11.62%
OM growth 3Y3.98%
OM growth 5Y10.86%
PM growth 3YN/A
PM growth 5Y18.87%
GM growth 3Y2.34%
GM growth 5Y1.46%
F-Score4
Asset Turnover2.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.47 | ||
| Cap/Depr | 152.57% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 2.32 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 3.36 |
F-Score4
WACC7.98%
ROIC/WACC0.67
Cap/Depr(3y)227.08%
Cap/Depr(5y)193.23%
Cap/Sales(3y)1.81%
Cap/Sales(5y)1.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.57%
EPS 3Y21.04%
EPS 5Y30.49%
EPS Q2Q%-37.62%
EPS Next Y-16.96%
EPS Next 2Y-4.68%
EPS Next 3Y3.51%
EPS Next 5Y9.9%
Revenue 1Y (TTM)-3.23%
Revenue growth 3Y13.74%
Revenue growth 5Y7.63%
Sales Q2Q%-4.17%
Revenue Next Year-3.19%
Revenue Next 2Y0.13%
Revenue Next 3Y1.93%
Revenue Next 5Y5.17%
EBIT growth 1Y-20.04%
EBIT growth 3Y18.27%
EBIT growth 5Y19.31%
EBIT Next Year15.55%
EBIT Next 3Y6.15%
EBIT Next 5Y9%
FCF growth 1Y-179.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-114.36%
OCF growth 3YN/A
OCF growth 5YN/A