SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAH - US83545G1022 - Common Stock
64.3 USD
-0.03 (-0.05%)
64.3 USD
0 (0%)
Taking everything into account, SAH scores 5 out of 10 in our fundamental rating. SAH was compared to 123 industry peers in the Specialty Retail industry. SAH has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on SAH. Finally SAH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SAH had positive earnings in the past year.
SAH had a positive operating cash flow in the past year.
Of the past 5 years SAH 4 years were profitable.
Of the past 5 years SAH 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.17%, SAH perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
SAH's Return On Equity of 12.19% is fine compared to the rest of the industry. SAH outperforms 69.11% of its industry peers.
SAH has a Return On Invested Capital of 8.31%. This is in the better half of the industry: SAH outperforms 70.73% of its industry peers.
SAH had an Average Return On Invested Capital over the past 3 years of 8.98%. This is below the industry average of 12.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 12.19% | ||
| ROIC | 8.31% |
ROA(3y)2.92%
ROA(5y)2.88%
ROE(3y)16.73%
ROE(5y)15.27%
ROIC(3y)8.98%
ROIC(5y)8.83%
1.3 Margins
SAH has a Profit Margin (0.86%) which is comparable to the rest of the industry.
SAH's Profit Margin has improved in the last couple of years.
SAH has a Operating Margin of 3.64%. This is comparable to the rest of the industry: SAH outperforms 56.91% of its industry peers.
SAH's Operating Margin has been stable in the last couple of years.
SAH has a Gross Margin of 15.54%. 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 remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.64% | ||
| PM (TTM) | 0.86% | ||
| GM | 15.54% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAH is still creating some value.
The number of shares outstanding for SAH has been increased compared to 1 year ago.
SAH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SAH has an improved debt to assets ratio.
2.2 Solvency
SAH has an Altman-Z score of 3.44. This indicates that SAH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SAH (3.44) is better than 79.67% of its industry peers.
SAH has a debt to FCF ratio of 8.88. This is a slightly negative value and a sign of low solvency as SAH would need 8.88 years to pay back of all of its debts.
SAH's Debt to FCF ratio of 8.88 is fine compared to the rest of the industry. SAH outperforms 60.16% of its industry peers.
SAH has a Debt/Equity ratio of 3.54. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.54, SAH is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.98
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.02 indicates that SAH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.02, SAH is doing worse than 75.61% of the companies in the same industry.
A Quick Ratio of 0.27 indicates that SAH may have some problems paying its short term obligations.
SAH has a worse Quick ratio (0.27) than 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
SAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.21%, which is quite good.
The Earnings Per Share has been growing by 16.23% on average over the past years. This is quite good.
SAH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.09%.
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)15.21%
EPS 3Y-12.92%
EPS 5Y16.23%
EPS Q2Q%11.9%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%13.81%
3.2 Future
SAH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.29% yearly.
The Revenue is expected to grow by 7.76% on average over the next years.
EPS Next Y20.4%
EPS Next 2Y12.96%
EPS Next 3Y11.51%
EPS Next 5Y14.29%
Revenue Next Year8.87%
Revenue Next 2Y6.15%
Revenue Next 3Y5.56%
Revenue Next 5Y7.76%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SAH is valuated reasonably with a Price/Earnings ratio of 9.76.
SAH's Price/Earnings ratio is rather cheap when compared to the industry. SAH is cheaper than 88.62% of the companies in the same industry.
SAH is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.00 indicates a reasonable valuation of SAH.
Based on the Price/Forward Earnings ratio, SAH is valued cheaper than 89.43% of the companies in the same industry.
SAH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAH is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SAH is valued cheaply inside the industry as 96.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.06 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.48
PEG (5Y)0.6
EPS Next 2Y12.96%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.39%, SAH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.98, SAH pays a better dividend. On top of this SAH pays more dividend than 81.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, SAH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
On average, the dividend of SAH grows each year by 27.13%, which is quite nice.
SAH has paid a dividend for at least 10 years, which is 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)27.13%
Div Incr Years4
Div Non Decr Years14
5.3 Sustainability
35.28% of the earnings are spent on dividend by SAH. This is a low number and sustainable payout ratio.
The dividend of SAH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.28%
EPS Next 2Y12.96%
EPS Next 3Y11.51%
64.3
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners72%
Inst Owner Change1.11%
Ins Owners28.19%
Ins Owner Change0%
Market Cap2.20B
Revenue(TTM)15.18B
Net Income(TTM)130.40M
Analysts71.43
Price TargetN/A
Short Float %11.8%
Short Ratio8.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend1.2
Dividend Growth(5Y)27.13%
DP35.28%
Div Incr Years4
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.05%
Min EPS beat(2)-19.09%
Max EPS beat(2)33.19%
EPS beat(4)3
Avg EPS beat(4)4.47%
Min EPS beat(4)-19.09%
Max EPS beat(4)33.19%
EPS beat(8)5
Avg EPS beat(8)0.12%
EPS beat(12)8
Avg EPS beat(12)0.77%
EPS beat(16)9
Avg EPS beat(16)2.12%
Revenue beat(2)1
Avg Revenue beat(2)3.57%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)8.63%
Revenue beat(4)3
Avg Revenue beat(4)4.27%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)8.63%
Revenue beat(8)3
Avg Revenue beat(8)0.63%
Revenue beat(12)6
Avg Revenue beat(12)0.38%
Revenue beat(16)7
Avg Revenue beat(16)-1.37%
PT rev (1m)-3.25%
PT rev (3m)-7.12%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-6.58%
EPS NY rev (1m)-1.69%
EPS NY rev (3m)-2.99%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)2.46%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 9 | ||
| P/S | 0.14 | ||
| P/FCF | 5.06 | ||
| P/OCF | 3.74 | ||
| P/B | 2.05 | ||
| P/tB | 11.33 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)6.59
EY10.25%
EPS(NY)7.15
Fwd EY11.11%
FCF(TTM)12.7
FCFY19.76%
OCF(TTM)17.21
OCFY26.77%
SpS444.19
BVpS31.29
TBVpS5.67
PEG (NY)0.48
PEG (5Y)0.6
Graham Number68.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 12.19% | ||
| ROCE | 16.97% | ||
| ROIC | 8.31% | ||
| ROICexc | 8.46% | ||
| ROICexgc | 10.18% | ||
| OM | 3.64% | ||
| PM (TTM) | 0.86% | ||
| GM | 15.54% | ||
| FCFM | 2.86% |
ROA(3y)2.92%
ROA(5y)2.88%
ROE(3y)16.73%
ROE(5y)15.27%
ROIC(3y)8.98%
ROIC(5y)8.83%
ROICexc(3y)9.23%
ROICexc(5y)9.2%
ROICexgc(3y)10.85%
ROICexgc(5y)10.93%
ROCE(3y)16.97%
ROCE(5y)16.85%
ROICexgc growth 3Y-14.51%
ROICexgc growth 5Y-0.73%
ROICexc growth 3Y-12.08%
ROICexc growth 5Y-0.71%
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-Score7
Asset Turnover2.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Debt/EBITDA | 5.47 | ||
| Cap/Depr | 110.63% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 84.94% | ||
| Profit Quality | 332.9% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 3.44 |
F-Score7
WACC8.46%
ROIC/WACC0.98
Cap/Depr(3y)168.98%
Cap/Depr(5y)194.01%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.21%
EPS 3Y-12.92%
EPS 5Y16.23%
EPS Q2Q%11.9%
EPS Next Y20.4%
EPS Next 2Y12.96%
EPS Next 3Y11.51%
EPS Next 5Y14.29%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%13.81%
Revenue Next Year8.87%
Revenue Next 2Y6.15%
Revenue Next 3Y5.56%
Revenue Next 5Y7.76%
EBIT growth 1Y23.32%
EBIT growth 3Y-4.75%
EBIT growth 5Y7.18%
EBIT Next Year39.3%
EBIT Next 3Y13.82%
EBIT Next 5Y12.81%
FCF growth 1Y236.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y535.31%
OCF growth 3Y-29.11%
OCF growth 5Y-8.59%
SONIC AUTOMOTIVE INC-CLASS A / SAH 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.
Can you provide the valuation status for SONIC AUTOMOTIVE INC-CLASS A?
ChartMill assigns a valuation rating of 8 / 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 4 / 10.
Can you provide the PE and PB ratios for SAH stock?
The Price/Earnings (PE) ratio for SONIC AUTOMOTIVE INC-CLASS A (SAH) is 9.76 and the Price/Book (PB) ratio is 2.05.
What is the expected EPS growth for SONIC AUTOMOTIVE INC-CLASS A (SAH) stock?
The Earnings per Share (EPS) of SONIC AUTOMOTIVE INC-CLASS A (SAH) is expected to grow by 20.4% in the next year.