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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

87.18  -0.39 (-0.45%)

After market: 87.18 0 (0%)

Fundamental Rating

4

SAH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 121 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 has a decent growth rate and is not valued too expensively.


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.
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.
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 65.29% of its industry peers.
SAH's Return On Equity of 22.42% is fine compared to the rest of the industry. SAH outperforms 79.34% of its industry peers.
The Return On Invested Capital of SAH (7.76%) is better than 67.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAH is below the industry average of 13.07%.
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.
The Operating Margin of SAH (3.48%) is comparable to the rest of the industry.
SAH's Operating Margin has been stable in the last couple of years.
SAH has a worse Gross Margin (15.34%) than 87.60% of its industry peers.
SAH's Gross Margin has been stable in the last couple of years.
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.
SAH has more shares outstanding than it did 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.
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 3.52. This indicates that SAH is financially healthy and has little risk of bankruptcy at the moment.
SAH has a better Altman-Z score (3.52) than 79.34% of its industry peers.
SAH has a debt to FCF ratio of 82.25. This is a negative value and a sign of low solvency as SAH would need 82.25 years to pay back of all of its debts.
SAH has a Debt to FCF ratio (82.25) which is in line with its industry peers.
SAH has a Debt/Equity ratio of 3.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SAH (3.40) is worse than 76.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.4
Debt/FCF 82.25
Altman-Z 3.52
ROIC/WACC0.89
WACC8.76%
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.
SAH's Current ratio of 1.09 is on the low side compared to the rest of the industry. SAH is outperformed by 68.59% of its industry peers.
A Quick Ratio of 0.38 indicates that SAH may have some problems paying its short term obligations.
With a Quick ratio value of 0.38, SAH is not doing good in the industry: 61.98% of the companies in the same industry are doing better.
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

SAH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.45% yearly.
Based on estimates for the next years, SAH will show a small growth in Revenue. The Revenue will grow by 7.76% on average per year.
EPS Next Y12.84%
EPS Next 2Y12.14%
EPS Next 3Y12.93%
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

SAH is valuated correctly with a Price/Earnings ratio of 15.24.
Based on the Price/Earnings ratio, SAH is valued a bit cheaper than 77.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. SAH is valued slightly cheaper when compared to this.
SAH is valuated correctly with a Price/Forward Earnings ratio of 12.38.
SAH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SAH is cheaper than 74.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, SAH is valued a bit cheaper.
Industry RankSector Rank
PE 15.24
Fwd PE 12.38
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

Based on the Enterprise Value to EBITDA ratio, SAH is valued a bit cheaper than the industry average as 69.42% of the companies are valued more expensively.
SAH's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 63.94
EV/EBITDA 7.56
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 12.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)0.94
EPS Next 2Y12.14%
EPS Next 3Y12.93%

6

5. Dividend

5.1 Amount

SAH has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.99, SAH pays a bit more dividend than its industry peers.
SAH's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
Industry RankSector Rank
Dividend Yield 1.6%

5.2 History

On average, the dividend of SAH grows each year by 27.13%, 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)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.
SAH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.38%
EPS Next 2Y12.14%
EPS Next 3Y12.93%
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 (7/7/2025, 8:04:00 PM)

After market: 87.18 0 (0%)

87.18

-0.39 (-0.45%)

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 Cap2.96B
Analysts77.14
Price Target75.1 (-13.86%)
Short Float %9.87%
Short Ratio7.38
Dividend
Industry RankSector Rank
Dividend Yield 1.6%
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)5.39%
PT rev (3m)-7.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.27%
EPS NY rev (1m)1.36%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)2.6%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.8%
Valuation
Industry RankSector Rank
PE 15.24
Fwd PE 12.38
P/S 0.2
P/FCF 63.94
P/OCF 12.61
P/B 2.71
P/tB 9.77
EV/EBITDA 7.56
EPS(TTM)5.72
EY6.56%
EPS(NY)7.04
Fwd EY8.08%
FCF(TTM)1.36
FCFY1.56%
OCF(TTM)6.91
OCFY7.93%
SpS426.73
BVpS32.12
TBVpS8.92
PEG (NY)1.19
PEG (5Y)0.94
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 3.52
F-Score5
WACC8.76%
ROIC/WACC0.89
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 Y12.84%
EPS Next 2Y12.14%
EPS Next 3Y12.93%
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%