SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAH - US83545G1022 - Common Stock
61.23 USD
-2.18 (-3.44%)
61.23 USD
0 (0%)
Overall SAH gets a fundamental rating of 5 out of 10. We evaluated SAH against 122 industry peers in the Specialty Retail industry. While SAH is still in line with the averages on profitability rating, there are concerns on its financial health. SAH is valued quite cheap, while showing a decent growth score. This is a good combination! SAH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- SAH had positive earnings in the past year.
- In the past year SAH had a positive cash flow from operations.
- SAH had positive earnings in 4 of the past 5 years.
- Of the past 5 years SAH 4 years had a positive operating cash flow.
1.2 Ratios
- SAH has a Return On Assets (2.17%) which is in line with its industry peers.
- SAH has a Return On Equity of 12.19%. This is in the better half of the industry: SAH outperforms 68.85% of its industry peers.
- SAH has a better Return On Invested Capital (8.31%) than 70.49% 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 12.24%.
| 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's Profit Margin of 0.86% is in line compared to the rest of the industry. SAH outperforms 53.28% of its industry peers.
- SAH's Profit Margin has improved in the last couple of years.
- SAH's Operating Margin of 3.64% is in line compared to the rest of the industry. SAH outperforms 57.38% of its industry peers.
- In the last couple of years the Operating Margin of SAH has remained more or less at the same level.
- The Gross Margin of SAH (15.54%) is worse than 83.61% of its industry peers.
- SAH's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 5 years ago, SAH has less shares outstanding
- The debt/assets ratio for SAH has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.43 indicates that SAH is not in any danger for bankruptcy at the moment.
- SAH's Altman-Z score of 3.43 is fine compared to the rest of the industry. SAH outperforms 78.69% of its industry peers.
- The Debt to FCF ratio of SAH is 8.88, which is on the high side as it means it would take SAH, 8.88 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 8.88, SAH perfoms like the industry average, outperforming 59.84% of the companies in the same industry.
- SAH has a Debt/Equity ratio of 3.54. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 3.54, SAH is doing worse than 74.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.99
WACC8.37%
2.3 Liquidity
- SAH has a Current Ratio of 1.02. 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 1.02, SAH is doing worse than 74.59% 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.
- The Quick ratio of SAH (0.27) is worse than 77.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.21% over the past year.
- SAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.23% yearly.
- Looking at the last year, SAH shows a quite strong growth in Revenue. The Revenue has grown by 9.09% in the last year.
- 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
- The Earnings Per Share is expected to grow by 14.29% on average over the next years. This is quite good.
- SAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
EPS Next Y19.63%
EPS Next 2Y12.48%
EPS Next 3Y11.27%
EPS Next 5Y14.29%
Revenue Next Year8.91%
Revenue Next 2Y6.08%
Revenue Next 3Y5.52%
Revenue Next 5Y7.76%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.29 indicates a reasonable valuation of SAH.
- 88.52% of the companies in the same industry are more expensive than SAH, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. SAH is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 8.64, the valuation of SAH can be described as very reasonable.
- 90.98% of the companies in the same industry are more expensive than SAH, based on the Price/Forward Earnings ratio.
- SAH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 86.07% of the companies listed in the same industry.
- SAH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SAH is cheaper than 95.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.82 | ||
| EV/EBITDA | 5.58 |
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)0.47
PEG (5Y)0.57
EPS Next 2Y12.48%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.40%, SAH has a reasonable but not impressive dividend return.
- SAH's Dividend Yield is rather good when compared to the industry average which is at 2.15. SAH pays more dividend than 81.15% of the companies in the same industry.
- SAH's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)27.13%
Div Incr Years4
Div Non Decr Years14
5.3 Sustainability
- SAH pays out 35.28% of its income as dividend. This is a sustainable payout ratio.
- SAH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.28%
EPS Next 2Y12.48%
EPS Next 3Y11.27%
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.
What is the valuation status of SONIC AUTOMOTIVE INC-CLASS A (SAH) stock?
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.
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 19.63% in the next year.