SONIC AUTOMOTIVE INC-CLASS A (SAH) Fundamental Analysis & Valuation

NYSE:SAH • US83545G1022

Current stock price

60.04 USD
-0.93 (-1.53%)
At close:
60.04 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.

6

1. SAH Profitability Analysis

1.1 Basic Checks

  • In the past year SAH was profitable.
  • SAH had a positive operating cash flow in the past year.
  • In the past 5 years SAH has always been profitable.
  • Of the past 5 years SAH 4 years had a positive operating cash flow.
SAH Yearly Net Income VS EBIT VS OCF VS FCFSAH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M

1.2 Ratios

  • SAH has a Return On Assets (1.99%) which is comparable to the rest of the industry.
  • SAH has a Return On Equity of 11.11%. This is in the better half of the industry: SAH outperforms 68.55% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.81%, SAH is in the better half of the industry, outperforming 69.35% 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 13.55%.
  • 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 RankSector 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%
SAH Yearly ROA, ROE, ROICSAH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 0.78%, SAH is in line with its industry, outperforming 53.23% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SAH has grown nicely.
  • With a decent Operating Margin value of 3.57%, SAH is doing good in the industry, outperforming 61.29% of the companies in the same industry.
  • SAH's Operating Margin has improved in the last couple of years.
  • SAH has a Gross Margin of 15.72%. This is amonst the worse of the industry: SAH underperforms 81.45% of its industry peers.
  • SAH's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
SAH Yearly Profit, Operating, Gross MarginsSAH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

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4

2. SAH Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SAH is destroying value.
  • The number of shares outstanding for SAH has been reduced compared to 1 year ago.
  • Compared to 5 years ago, SAH has less shares outstanding
  • Compared to 1 year ago, SAH has about the same debt to assets ratio.
SAH Yearly Shares OutstandingSAH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
SAH Yearly Total Debt VS Total AssetsSAH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • SAH has an Altman-Z score of 3.48. This indicates that SAH is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 3.48, SAH belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
  • The Debt to FCF ratio of SAH is 9.40, which is on the high side as it means it would take SAH, 9.40 years of fcf income to pay off all of its debts.
  • SAH's Debt to FCF ratio of 9.40 is in line compared to the rest of the industry. SAH outperforms 58.06% of its industry peers.
  • SAH has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external financing.
  • SAH has a Debt to Equity ratio of 3.61. This is in the lower half of the industry: SAH underperforms 73.39% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.61
Debt/FCF 9.4
Altman-Z 3.48
ROIC/WACC0.99
WACC7.89%
SAH Yearly LT Debt VS Equity VS FCFSAH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.09 indicates that SAH should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.09, SAH is not doing good in the industry: 66.94% of the companies in the same industry are doing better.
  • SAH has a Quick Ratio of 1.09. This is a bad value and indicates that SAH is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.32, SAH is not doing good in the industry: 69.35% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 0.32
SAH Yearly Current Assets VS Current LiabilitesSAH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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5

3. SAH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 17.86% over the past year.
  • Measured over the past years, SAH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.44% on average per year.
  • SAH shows a small growth in Revenue. In the last year, the Revenue has grown by 6.53%.
  • SAH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.18% yearly.
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.
  • SAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.27% yearly.
EPS Next Y1.72%
EPS Next 2Y5.46%
EPS Next 3Y5.21%
EPS Next 5Y13.15%
Revenue Next Year3.39%
Revenue Next 2Y3.87%
Revenue Next 3Y5.29%
Revenue Next 5Y7.27%

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 decreasing.
SAH Yearly Revenue VS EstimatesSAH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
SAH Yearly EPS VS EstimatesSAH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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7

4. SAH Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 9.10, the valuation of SAH can be described as very reasonable.
  • Based on the Price/Earnings ratio, SAH is valued cheaply inside the industry as 87.90% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.23. SAH is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 8.94 indicates a reasonable valuation of SAH.
  • Based on the Price/Forward Earnings ratio, SAH is valued cheaper than 87.10% of the companies in the same industry.
  • SAH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.1
Fwd PE 8.94
SAH Price Earnings VS Forward Price EarningsSAH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SAH is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 91.94% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.83
EV/EBITDA 5.91
SAH Per share dataSAH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

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)5.29
PEG (5Y)0.8
EPS Next 2Y5.46%
EPS Next 3Y5.21%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. SAH Dividend Analysis

5.1 Amount

  • SAH has a Yearly Dividend Yield of 2.50%.
  • SAH's Dividend Yield is a higher than the industry average which is at 2.41.
  • Compared to an average S&P500 Dividend Yield of 1.91, SAH pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.5%

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 Years4
Div Non Decr Years14
SAH Yearly Dividends per shareSAH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1

5.3 Sustainability

  • 41.11% of the earnings are spent on dividend by SAH. This is a bit on the high side, but may be sustainable.
  • SAH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.11%
EPS Next 2Y5.46%
EPS Next 3Y5.21%
SAH Yearly Income VS Free CF VS DividendSAH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M
SAH Dividend Payout.SAH Dividend Payout, showing the Payout Ratio.SAH Dividend Payout.PayoutRetained Earnings

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SAH Fundamentals: All Metrics, Ratios and Statistics

SONIC AUTOMOTIVE INC-CLASS A

NYSE:SAH (3/20/2026, 8:21:53 PM)

After market: 60.04 0 (0%)

60.04

-0.93 (-1.53%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-18
Earnings (Next)04-22
Inst Owners70.84%
Inst Owner Change-3.5%
Ins Owners29.25%
Ins Owner Change0.34%
Market Cap2.02B
Revenue(TTM)15.15B
Net Income(TTM)118.70M
Analysts71.43
Price Target77.9 (29.75%)
Short Float %14.31%
Short Ratio7.94
Dividend
Industry RankSector Rank
Dividend Yield 2.5%
Yearly Dividend1.44
Dividend Growth(5Y)29.05%
DP41.11%
Div Incr Years4
Div Non Decr Years14
Ex-Date03-13
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)-0.97%
PT rev (3m)-0.24%
EPS NQ rev (1m)-10.15%
EPS NQ rev (3m)-10.26%
EPS NY rev (1m)-4.94%
EPS NY rev (3m)-6.05%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.13%
Valuation
Industry RankSector Rank
PE 9.1
Fwd PE 8.94
P/S 0.13
P/FCF 4.83
P/OCF 3.55
P/B 1.89
P/tB 10.49
EV/EBITDA 5.91
EPS(TTM)6.6
EY10.99%
EPS(NY)6.71
Fwd EY11.18%
FCF(TTM)12.43
FCFY20.71%
OCF(TTM)16.9
OCFY28.14%
SpS451.27
BVpS31.81
TBVpS5.72
PEG (NY)5.29
PEG (5Y)0.8
Graham Number68.73
Profitability
Industry RankSector 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 RankSector 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 3.48
F-Score6
WACC7.89%
ROIC/WACC0.99
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 Y1.72%
EPS Next 2Y5.46%
EPS Next 3Y5.21%
EPS Next 5Y13.15%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y2.67%
Revenue growth 5Y9.18%
Sales Q2Q%-0.63%
Revenue Next Year3.39%
Revenue Next 2Y3.87%
Revenue Next 3Y5.29%
Revenue Next 5Y7.27%
EBIT growth 1Y16.33%
EBIT growth 3Y-5.15%
EBIT growth 5Y12.23%
EBIT Next Year23.23%
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.


Can you provide the profitability details for SONIC AUTOMOTIVE INC-CLASS A?

SONIC AUTOMOTIVE INC-CLASS A (SAH) has a profitability rating of 6 / 10.


How financially healthy is SONIC AUTOMOTIVE INC-CLASS A?

The financial health rating of SONIC AUTOMOTIVE INC-CLASS A (SAH) is 4 / 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 1.72% in the next year.