SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAH - US83545G1022 - Common Stock
61.86 USD
-0.99 (-1.58%)
61.86 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SAH. SAH was compared to 123 industry peers in the Specialty Retail industry. SAH has an average financial health and profitability rating. SAH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally 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.
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
SAH has a Return On Assets (2.17%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 12.19%, SAH is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.31%, SAH is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
SAH had an Average Return On Invested Capital over the past 3 years of 8.98%. This is below the industry average of 12.14%.
| 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
The Profit Margin of SAH (0.86%) 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 (3.64%) which is comparable to the rest of the industry.
SAH's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 15.54%, SAH is doing worse than 83.74% of the companies in the same industry.
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.
Compared to 1 year ago, SAH has more shares outstanding
SAH has less shares outstanding than it did 5 years ago.
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.
The Altman-Z score of SAH (3.43) is better than 78.86% 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.
SAH has a Debt to FCF ratio of 8.88. This is in the better half of the industry: SAH outperforms 60.16% of its industry peers.
A Debt/Equity ratio of 3.54 is on the high side and indicates that SAH has dependencies on debt financing.
SAH has a worse Debt to Equity ratio (3.54) than 74.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.99
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.02 indicates that SAH should not have too much problems paying its short term obligations.
The Current ratio of SAH (1.02) is worse than 74.80% of its industry peers.
A Quick Ratio of 0.27 indicates that SAH may have some problems paying its short term obligations.
SAH has a Quick ratio of 0.27. This is in the lower half of the industry: SAH underperforms 78.86% 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.
Measured over the past years, SAH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.23% on average per year.
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.
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 Y20.35%
EPS Next 2Y12.94%
EPS Next 3Y11.51%
EPS Next 5Y14.29%
Revenue Next Year8.96%
Revenue Next 2Y6.11%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.39, which indicates a very decent valuation of SAH.
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 26.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.66, which indicates a very decent valuation of SAH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 89.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, SAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
SAH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SAH is cheaper than 82.93% of the companies in the same industry.
96.75% of the companies in the same industry are more expensive than SAH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.87 | ||
| EV/EBITDA | 5.61 |
4.3 Compensation for Growth
SAH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.46
PEG (5Y)0.58
EPS Next 2Y12.94%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, SAH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.01, SAH pays a better dividend. On top of this SAH pays more dividend than 80.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, SAH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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 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
SAH pays out 35.28% of its income as dividend. This is a 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 2Y12.94%
EPS Next 3Y11.51%
61.86
-0.99 (-1.58%)
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 Cap2.11B
Revenue(TTM)15.18B
Net Income(TTM)130.40M
Analysts71.43
Price Target78.09 (26.24%)
Short Float %11.53%
Short Ratio7.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend1.2
Dividend Growth(5Y)27.13%
DP35.28%
Div Incr Years4
Div Non Decr Years14
Ex-DateN/A
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)0%
PT rev (3m)-7.12%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-6.58%
EPS NY rev (1m)-1.73%
EPS NY rev (3m)-4.58%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)2.46%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.66 | ||
| P/S | 0.14 | ||
| P/FCF | 4.87 | ||
| P/OCF | 3.59 | ||
| P/B | 1.98 | ||
| P/tB | 10.9 | ||
| EV/EBITDA | 5.61 |
EPS(TTM)6.59
EY10.65%
EPS(NY)7.14
Fwd EY11.55%
FCF(TTM)12.7
FCFY20.54%
OCF(TTM)17.21
OCFY27.82%
SpS444.19
BVpS31.29
TBVpS5.67
PEG (NY)0.46
PEG (5Y)0.58
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 | 3.43 |
F-Score7
WACC8.37%
ROIC/WACC0.99
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 Y20.35%
EPS Next 2Y12.94%
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 Year8.96%
Revenue Next 2Y6.11%
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.
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 20.35% in the next year.