SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAH - US83545G1022 - Common Stock
62.92 USD
-1.44 (-2.24%)
62.92 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SAH. SAH was compared to 122 industry peers in the Specialty Retail industry. SAH has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on SAH. 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.
- SAH had positive earnings in 4 of the past 5 years.
- SAH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- SAH has a Return On Assets of 2.17%. This is comparable to the rest of the industry: SAH outperforms 55.74% of its industry peers.
- The Return On Equity of SAH (12.19%) is better than 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 has a Profit Margin of 0.86%. This is comparable to the rest of the industry: SAH outperforms 53.28% of its industry peers.
- In the last couple of years the Profit Margin of SAH has grown nicely.
- Looking at the Operating Margin, with a value of 3.64%, SAH is in line with its industry, outperforming 57.38% of the companies in the same industry.
- SAH's Operating Margin has been stable in the last couple of years.
- SAH's Gross Margin of 15.54% is on the low side compared to the rest of the industry. SAH is outperformed by 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.
- SAH has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SAH has less shares outstanding
- 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.
- SAH has a Altman-Z score of 3.44. This is in the better half of the industry: SAH outperforms 78.69% 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 has a Debt to FCF ratio (8.88) which is in line with 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 Debt to Equity ratio of 3.54. This is in the lower half of the industry: SAH underperforms 74.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.99
WACC8.44%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that SAH should not have too much problems paying its short term obligations.
- SAH has a worse Current ratio (1.02) than 74.59% of its industry peers.
- A Quick Ratio of 0.27 indicates that SAH may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.27, SAH is doing worse than 77.87% of the companies in the same industry.
| 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.
- SAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.23% yearly.
- SAH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.09%.
- SAH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
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 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- Based on the Price/Earnings ratio of 9.55, the valuation of SAH can be described as reasonable.
- SAH's Price/Earnings ratio is rather cheap when compared to the industry. SAH is cheaper than 87.70% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SAH to the average of the S&P500 Index (27.47), we can say SAH is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.81, which indicates a very decent valuation of SAH.
- Based on the Price/Forward Earnings ratio, SAH is valued cheaply inside the industry as 89.34% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of SAH to the average of the S&P500 Index (24.26), we can say SAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
- SAH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SAH is cheaper than 86.07% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 95.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.95 | ||
| 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)0.47
PEG (5Y)0.59
EPS Next 2Y12.94%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
- SAH has a Yearly Dividend Yield of 2.36%.
- SAH's Dividend Yield is rather good when compared to the industry average which is at 2.10. SAH pays more dividend than 80.33% of the companies in the same industry.
- SAH's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
5.3 Sustainability
- 35.28% 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.
DP35.28%
EPS Next 2Y12.94%
EPS Next 3Y11.51%
62.92
-1.44 (-2.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners72.9%
Inst Owner Change-0.3%
Ins Owners28.19%
Ins Owner Change0%
Market Cap2.15B
Revenue(TTM)15.18B
Net Income(TTM)130.40M
Analysts71.43
Price Target78.09 (24.11%)
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)-8.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.03%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-4.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.39%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 8.81 | ||
| P/S | 0.14 | ||
| P/FCF | 4.95 | ||
| P/OCF | 3.66 | ||
| P/B | 2.01 | ||
| P/tB | 11.09 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)6.59
EY10.47%
EPS(NY)7.14
Fwd EY11.35%
FCF(TTM)12.7
FCFY20.19%
OCF(TTM)17.21
OCFY27.35%
SpS444.19
BVpS31.29
TBVpS5.67
PEG (NY)0.47
PEG (5Y)0.59
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
WACC8.44%
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 3 / 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.