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

NYSE:SAH • US83545G1022

Current stock price

71.58 USD
-0.26 (-0.36%)
At close:
71.58 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

  • SAH had positive earnings in the past year.
  • SAH had a positive operating cash flow in the past year.
  • SAH had positive earnings in each of the past 5 years.
  • SAH had a positive operating cash flow in 4 of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 1.99%, SAH is in line with its industry, outperforming 52.85% of the companies in the same industry.
  • The Return On Equity of SAH (11.11%) is better than 65.04% of its industry peers.
  • SAH has a Return On Invested Capital of 7.81%. This is in the better half of the industry: SAH outperforms 69.11% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SAH is significantly below the industry average of 13.24%.
  • The 3 year average ROIC (7.59%) for SAH is below the current ROIC(7.81%), indicating increased profibility in the last year.
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

  • SAH has a Profit Margin of 0.78%. This is comparable to the rest of the industry: SAH outperforms 52.03% of its industry peers.
  • In the last couple of years the Profit Margin of SAH has grown nicely.
  • SAH's Operating Margin of 3.57% is fine compared to the rest of the industry. SAH outperforms 60.16% of its industry peers.
  • 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 84.55% of its industry peers.
  • In the last couple of years the Gross Margin of SAH has grown nicely.
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) just above the Cost of Capital (WACC), SAH is creating some value.
  • The number of shares outstanding for SAH has been reduced compared to 1 year ago.
  • SAH has less shares outstanding than it did 5 years ago.
  • 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

  • An Altman-Z score of 3.53 indicates that SAH is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.53, SAH is in the better half of the industry, outperforming 77.24% 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 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 Debt to Equity ratio of 3.61. This is in the lower half of the industry: SAH underperforms 76.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.61
Debt/FCF 9.4
Altman-Z 3.53
ROIC/WACC1.22
WACC6.39%
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

  • 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.
  • Looking at the Current ratio, with a value of 1.09, SAH is doing worse than 68.29% of the companies in the same industry.
  • 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.
  • SAH has a Quick ratio of 0.32. This is in the lower half of the industry: SAH underperforms 76.42% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • 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

  • The Earnings Per Share is expected to grow by 13.15% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 7.27% on average over the next years.
EPS Next Y0.59%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
EPS Next 5Y13.15%
Revenue Next Year3.37%
Revenue Next 2Y3.76%
Revenue Next 3Y4.8%
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.
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

  • Based on the Price/Earnings ratio of 10.85, 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 84.55% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.35. SAH is valued rather cheaply when compared to this.
  • SAH is valuated reasonably with a Price/Forward Earnings ratio of 10.78.
  • Based on the Price/Forward Earnings ratio, SAH is valued cheaper than 82.93% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.23, SAH is valued rather cheaply.
Industry RankSector Rank
PE 10.85
Fwd PE 10.78
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

  • SAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAH is cheaper than 76.42% of the companies in the same industry.
  • 91.06% of the companies in the same industry are more expensive than SAH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.75
EV/EBITDA 6.44
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)18.39
PEG (5Y)0.95
EPS Next 2Y5.48%
EPS Next 3Y5.41%

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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 2.13%. Purely for dividend investing, there may be better candidates out there.
  • SAH's Dividend Yield is a higher than the industry average which is at 3.78.
  • Compared to an average S&P500 Dividend Yield of 1.82, SAH has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.13%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)29.05%
Div Incr Years5
Div Non Decr Years15
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

  • SAH pays out 41.11% of its income as dividend. 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 2Y5.48%
EPS Next 3Y5.41%
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 (4/27/2026, 8:16:47 PM)

After market: 71.58 0 (0%)

71.58

-0.26 (-0.36%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-18
Earnings (Next)04-30
Inst Owners70.93%
Inst Owner Change0.65%
Ins Owners32%
Ins Owner Change0.34%
Market Cap2.40B
Revenue(TTM)15.15B
Net Income(TTM)118.70M
Analysts73.33
Price Target78.26 (9.33%)
Short Float %18.86%
Short Ratio7.68
Dividend
Industry RankSector Rank
Dividend Yield 2.13%
Yearly Dividend1.44
Dividend Growth(5Y)29.05%
DP41.11%
Div Incr Years5
Div Non Decr Years15
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)0.46%
PT rev (3m)0.23%
EPS NQ rev (1m)-4.02%
EPS NQ rev (3m)-13.77%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-6.29%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 10.85
Fwd PE 10.78
P/S 0.16
P/FCF 5.75
P/OCF 4.23
P/B 2.25
P/tB 12.49
EV/EBITDA 6.44
EPS(TTM)6.6
EY9.22%
EPS(NY)6.64
Fwd EY9.27%
FCF(TTM)12.44
FCFY17.38%
OCF(TTM)16.91
OCFY23.63%
SpS451.67
BVpS31.84
TBVpS5.73
PEG (NY)18.39
PEG (5Y)0.95
Graham Number68.7579 (-3.94%)
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 3.53
F-Score6
WACC6.39%
ROIC/WACC1.22
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 Year3.37%
Revenue Next 2Y3.76%
Revenue Next 3Y4.8%
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 10.85 and the Price/Book (PB) ratio is 2.25.


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.