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SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis

NYSE:SAH - New York Stock Exchange, Inc. - US83545G1022 - Common Stock - Currency: USD

76.94  +0.64 (+0.84%)

Fundamental Rating

4

SAH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. There are concerns on the financial health of SAH while its profitability can be described as average. SAH is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year SAH was profitable.
In the past year SAH had a positive cash flow from operations.
Of the past 5 years SAH 4 years were 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M

1.2 Ratios

SAH's Return On Assets of 4.16% is fine compared to the rest of the industry. SAH outperforms 65.57% of its industry peers.
Looking at the Return On Equity, with a value of 22.42%, SAH is in the better half of the industry, outperforming 79.51% of the companies in the same industry.
SAH has a better Return On Invested Capital (7.76%) than 68.03% 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 12.95%.
Industry RankSector Rank
ROA 4.16%
ROE 22.42%
ROIC 7.76%
ROA(3y)2.92%
ROA(5y)2.88%
ROE(3y)16.73%
ROE(5y)15.27%
ROIC(3y)8.98%
ROIC(5y)8.83%
SAH Yearly ROA, ROE, ROICSAH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

SAH has a Profit Margin (1.69%) 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 (3.48%) which is comparable to the rest of the industry.
SAH's Operating Margin has been stable in the last couple of years.
The Gross Margin of SAH (15.34%) is worse than 87.70% 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 RankSector Rank
OM 3.48%
PM (TTM) 1.69%
GM 15.34%
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%
SAH Yearly Profit, Operating, Gross MarginsSAH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

3

2. Health

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 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.
SAH Yearly Shares OutstandingSAH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
SAH Yearly Total Debt VS Total AssetsSAH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

SAH has an Altman-Z score of 3.47. 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 3.47, SAH is in the better half of the industry, outperforming 77.87% of the companies in the same industry.
The Debt to FCF ratio of SAH is 82.25, which is on the high side as it means it would take SAH, 82.25 years of fcf income to pay off all of its debts.
SAH has a Debt to FCF ratio (82.25) which is comparable to the rest of the industry.
SAH has a Debt/Equity ratio of 3.40. This is a high value indicating a heavy dependency on external financing.
SAH has a Debt to Equity ratio of 3.40. This is in the lower half of the industry: SAH underperforms 76.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.4
Debt/FCF 82.25
Altman-Z 3.47
ROIC/WACC0.88
WACC8.81%
SAH Yearly LT Debt VS Equity VS FCFSAH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 68.85% of the companies in the same industry.
A Quick Ratio of 0.38 indicates that SAH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.38, SAH is doing worse than 62.30% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 0.38
SAH Yearly Current Assets VS Current LiabilitesSAH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

4

3. Growth

3.1 Past

SAH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.37%.
The Earnings Per Share has been growing by 16.23% on average over the past years. This is quite good.
SAH shows a small growth in Revenue. In the last year, the Revenue has grown by 1.59%.
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)-16.37%
EPS 3Y-12.92%
EPS 5Y16.23%
EPS Q2Q%8.82%
Revenue 1Y (TTM)1.59%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%7.9%

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 15.45% on average per year.
The Revenue is expected to grow by 7.76% on average over the next years.
EPS Next Y12.93%
EPS Next 2Y12.16%
EPS Next 3Y13.42%
EPS Next 5Y15.45%
Revenue Next Year5.54%
Revenue Next 2Y4.48%
Revenue Next 3Y5.91%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SAH Yearly Revenue VS EstimatesSAH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
SAH Yearly EPS VS EstimatesSAH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.45, which indicates a correct valuation of SAH.
SAH's Price/Earnings ratio is a bit cheaper when compared to the industry. SAH is cheaper than 78.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, SAH is valued rather cheaply.
SAH is valuated reasonably with a Price/Forward Earnings ratio of 10.92.
Based on the Price/Forward Earnings ratio, SAH is valued a bit cheaper than 78.69% 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 36.44.
Industry RankSector Rank
PE 13.45
Fwd PE 10.92
SAH Price Earnings VS Forward Price EarningsSAH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

SAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAH is cheaper than 72.13% of the companies in the same industry.
SAH's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 56.43
EV/EBITDA 6.98
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 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 13.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)0.83
EPS Next 2Y12.16%
EPS Next 3Y13.42%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.83%, SAH has a reasonable but not impressive dividend return.
SAH's Dividend Yield is a higher than the industry average which is at 4.90.
SAH's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
Industry RankSector Rank
Dividend Yield 1.83%

5.2 History

The dividend of SAH is nicely growing with an annual growth rate of 27.13%!
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
SAH Yearly Dividends per shareSAH Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

17.38% 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.
DP17.38%
EPS Next 2Y12.16%
EPS Next 3Y13.42%
SAH Yearly Income VS Free CF VS DividendSAH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M 300M
SAH Dividend Payout.SAH Dividend Payout, showing the Payout Ratio.SAH Dividend Payout.PayoutRetained Earnings

SONIC AUTOMOTIVE INC-CLASS A

NYSE:SAH (7/18/2025, 8:11:00 PM)

76.94

+0.64 (+0.84%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-24 2025-04-24/bmo
Earnings (Next)07-24 2025-07-24/bmo
Inst Owners70.87%
Inst Owner Change0%
Ins Owners28.46%
Ins Owner Change-2.7%
Market Cap2.61B
Analysts77.14
Price Target72.13 (-6.25%)
Short Float %9.86%
Short Ratio7.55
Dividend
Industry RankSector Rank
Dividend Yield 1.83%
Yearly Dividend1.2
Dividend Growth(5Y)27.13%
DP17.38%
Div Incr Years4
Div Non Decr Years14
Ex-Date06-13 2025-06-13 (0.35)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.9%
Min EPS beat(2)1.52%
Max EPS beat(2)2.28%
EPS beat(4)3
Avg EPS beat(4)-0.83%
Min EPS beat(4)-12.77%
Max EPS beat(4)5.65%
EPS beat(8)6
Avg EPS beat(8)1%
EPS beat(12)7
Avg EPS beat(12)-1.69%
EPS beat(16)10
Avg EPS beat(16)5.48%
Revenue beat(2)2
Avg Revenue beat(2)4.97%
Min Revenue beat(2)3.11%
Max Revenue beat(2)6.82%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-4.59%
Max Revenue beat(4)6.82%
Revenue beat(8)4
Avg Revenue beat(8)0%
Revenue beat(12)5
Avg Revenue beat(12)-1.91%
Revenue beat(16)7
Avg Revenue beat(16)-1.2%
PT rev (1m)2.43%
PT rev (3m)-7.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.48%
EPS NY rev (1m)1.44%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)2.69%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.64%
Valuation
Industry RankSector Rank
PE 13.45
Fwd PE 10.92
P/S 0.18
P/FCF 56.43
P/OCF 11.13
P/B 2.4
P/tB 8.62
EV/EBITDA 6.98
EPS(TTM)5.72
EY7.43%
EPS(NY)7.05
Fwd EY9.16%
FCF(TTM)1.36
FCFY1.77%
OCF(TTM)6.91
OCFY8.99%
SpS426.73
BVpS32.12
TBVpS8.92
PEG (NY)1.04
PEG (5Y)0.83
Profitability
Industry RankSector Rank
ROA 4.16%
ROE 22.42%
ROCE 15.52%
ROIC 7.76%
ROICexc 7.86%
ROICexgc 9.3%
OM 3.48%
PM (TTM) 1.69%
GM 15.34%
FCFM 0.32%
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%
ROICexcg growth 3Y-14.51%
ROICexcg 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-Score5
Asset Turnover2.47
Health
Industry RankSector Rank
Debt/Equity 3.4
Debt/FCF 82.25
Debt/EBITDA 5.82
Cap/Depr 141.41%
Cap/Sales 1.3%
Interest Coverage 2.54
Cash Conversion 36.84%
Profit Quality 18.93%
Current Ratio 1.09
Quick Ratio 0.38
Altman-Z 3.47
F-Score5
WACC8.81%
ROIC/WACC0.88
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)-16.37%
EPS 3Y-12.92%
EPS 5Y16.23%
EPS Q2Q%8.82%
EPS Next Y12.93%
EPS Next 2Y12.16%
EPS Next 3Y13.42%
EPS Next 5Y15.45%
Revenue 1Y (TTM)1.59%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%7.9%
Revenue Next Year5.54%
Revenue Next 2Y4.48%
Revenue Next 3Y5.91%
Revenue Next 5Y7.76%
EBIT growth 1Y-0.02%
EBIT growth 3Y-4.75%
EBIT growth 5Y7.18%
EBIT Next Year30.8%
EBIT Next 3Y14.9%
EBIT Next 5Y12.81%
FCF growth 1Y153.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y96.32%
OCF growth 3Y-29.11%
OCF growth 5Y-8.59%