SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
NYSE:SAH - New York Stock Exchange, Inc. - US83545G1022 - Common Stock - Currency: USD
Overall SAH gets a fundamental rating of 4 out of 10. We evaluated SAH against 120 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAH was profitable.
SAH had a negative operating cash flow in the past year.
SAH had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SAH reported negative operating cash flow in multiple years.
1.2 Ratios
SAH has a better Return On Assets (3.41%) than 61.54% of its industry peers.
SAH has a better Return On Equity (19.32%) than 76.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.01%, SAH is in the better half of the industry, outperforming 62.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 19.32% | ||
| ROIC | 7.01% |
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 (1.41%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SAH has grown nicely.
SAH has a Operating Margin of 3.22%. This is comparable to the rest of the industry: SAH outperforms 54.70% of its industry peers.
In the last couple of years the Operating Margin of SAH has remained more or less at the same level.
With a Gross Margin value of 15.52%, SAH is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SAH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.22% | ||
| PM (TTM) | 1.41% | ||
| GM | 15.52% |
OM growth 3Y-9.02%
OM growth 5Y0.78%
PM growth 3Y-18.59%
PM growth 5Y1.97%
GM growth 3Y-0.06%
GM growth 5Y1.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SAH is destroying value.
There is no outstanding debt for SAH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SAH has an Altman-Z score of 3.37. This indicates that SAH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.37, SAH is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
A Debt/Equity ratio of 3.68 is on the high side and indicates that SAH has dependencies on debt financing.
With a Debt to Equity ratio value of 3.68, SAH is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.37 |
ROIC/WACC0.79
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SAH should not have too much problems paying its short term obligations.
SAH has a worse Current ratio (1.11) than 71.79% of its industry peers.
A Quick Ratio of 0.35 indicates that SAH may have some problems paying its short term obligations.
SAH has a Quick ratio of 0.35. This is in the lower half of the industry: SAH underperforms 64.10% of its industry peers.
| 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 -17.77%.
Measured over the past years, SAH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.23% on average per year.
The Revenue has decreased by -1.03% in the past year.
Measured over the past years, SAH shows a small growth in Revenue. The Revenue has been growing by 6.35% on average per year.
EPS 1Y (TTM)-17.77%
EPS 3Y-12.92%
EPS 5Y16.23%
EPS Q2Q%-7.36%
Revenue 1Y (TTM)-1.03%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%8.67%
3.2 Future
The Earnings Per Share is expected to grow by 18.17% on average over the next years. This is quite good.
Based on estimates for the next years, SAH will show a small growth in Revenue. The Revenue will grow by 7.34% on average per year.
EPS Next Y11.53%
EPS Next 2Y16.82%
EPS Next 3Y17.13%
EPS Next 5Y18.17%
Revenue Next Year4.19%
Revenue Next 2Y5.31%
Revenue Next 3Y7.93%
Revenue Next 5Y7.34%
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 stable: in the next years the growth will be about the same than in the last years.
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 cheaply inside the industry as 80.34% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. SAH is valued rather cheaply when compared to this.
SAH is valuated reasonably with a Price/Forward Earnings ratio of 10.98.
Based on the Price/Forward Earnings ratio, SAH is valued a bit cheaper than 75.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SAH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 10.98 |
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 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
SAH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SAH's earnings are expected to grow with 17.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)0.75
EPS Next 2Y16.82%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, SAH has a reasonable but not impressive dividend return.
SAH's Dividend Yield is a higher than the industry average which is at 4.31.
Compared to an average S&P500 Dividend Yield of 2.27, SAH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of SAH is nicely growing with an annual growth rate of 37.98%!
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
20.60% of the earnings are spent on dividend by SAH. This is a low number and sustainable payout ratio.
SAH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.6%
EPS Next 2Y16.82%
EPS Next 3Y17.13%
68.59
-3.72 (-5.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.6%
Inst Owner Change-3.34%
Ins Owners29.12%
Ins Owner Change-0.54%
Market Cap2.35B
Analysts76.92
Price Target75.19 (9.62%)
Short Float %8.82%
Short Ratio7.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend1.14
Dividend Growth(5Y)37.98%
DP20.6%
Div Incr Years4
Div Non Decr Years14
Ex-Date
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)5.13%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 10.98 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.31 | ||
| P/tB | 9.36 | ||
| EV/EBITDA | 7.76 |
EPS(TTM)5.6
EY8.16%
EPS(NY)6.25
Fwd EY9.11%
FCF(TTM)-8.61
FCFYN/A
OCF(TTM)-2.88
OCFYN/A
SpS406.94
BVpS29.69
TBVpS7.33
PEG (NY)1.06
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 19.32% | ||
| ROCE | 13.93% | ||
| ROIC | 7.01% | ||
| ROICexc | 7.04% | ||
| ROICexgc | 8.29% | ||
| OM | 3.22% | ||
| PM (TTM) | 1.41% | ||
| GM | 15.52% | ||
| FCFM | N/A |
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-9.02%
OM growth 5Y0.78%
PM growth 3Y-18.59%
PM growth 5Y1.97%
GM growth 3Y-0.06%
GM growth 5Y1.16%
F-Score5
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 | 3.37 |
F-Score5
WACC8.88%
ROIC/WACC0.79
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)-17.77%
EPS 3Y-12.92%
EPS 5Y16.23%
EPS Q2Q%-7.36%
EPS Next Y11.53%
EPS Next 2Y16.82%
EPS Next 3Y17.13%
EPS Next 5Y18.17%
Revenue 1Y (TTM)-1.03%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%8.67%
Revenue Next Year4.19%
Revenue Next 2Y5.31%
Revenue Next 3Y7.93%
Revenue Next 5Y7.34%
EBIT growth 1Y-20.04%
EBIT growth 3Y-4.75%
EBIT growth 5Y7.18%
EBIT Next Year26.56%
EBIT Next 3Y14.43%
EBIT Next 5Y13.67%
FCF growth 1Y7.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y27.17%
OCF growth 3YN/A
OCF growth 5YN/A