SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAH - US83545G1022 - Common Stock
63.78 USD
-0.59 (-0.92%)
63.78 USD
0 (0%)
Overall SAH gets a fundamental rating of 5 out of 10. We evaluated SAH against 121 industry peers in the Specialty Retail industry. SAH has only an average score on both its financial health and profitability. SAH may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
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
With a Return On Assets value of 2.17%, SAH perfoms like the industry average, outperforming 56.20% of the companies in the same industry.
With a decent Return On Equity value of 12.19%, SAH is doing good in the industry, outperforming 69.42% 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 69.42% 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 12.25%.
| 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
Looking at the Profit Margin, with a value of 0.86%, SAH is in line with its industry, outperforming 54.55% of the companies in the same industry.
In the last couple of years the Profit Margin of SAH has grown nicely.
The Operating Margin of SAH (3.64%) 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 84.30% 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.
SAH has more shares outstanding than it did 1 year ago.
SAH has less shares outstanding than it did 5 years ago.
SAH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.44 indicates that SAH is not in any danger for bankruptcy at the moment.
SAH's Altman-Z score of 3.44 is amongst the best of the industry. SAH outperforms 80.99% 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's Debt to FCF ratio of 8.88 is fine compared to the rest of the industry. SAH outperforms 61.16% 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.
The Debt to Equity ratio of SAH (3.54) is worse than 74.38% 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.
The Current ratio of SAH (1.02) is worse than 73.55% of its industry peers.
A Quick Ratio of 0.27 indicates that SAH may have some problems paying its short term obligations.
With a Quick ratio value of 0.27, SAH is not doing good in the industry: 79.34% of the companies in the same industry are doing better.
| 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.
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.
The Revenue has grown by 9.09% in the past year. This is quite good.
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
Based on estimates for the next years, SAH will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.29% on average per year.
SAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
EPS Next Y20.4%
EPS Next 2Y12.96%
EPS Next 3Y11.51%
EPS Next 5Y14.29%
Revenue Next Year8.87%
Revenue Next 2Y6.15%
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
SAH is valuated reasonably with a Price/Earnings ratio of 9.68.
85.95% of the companies in the same industry are more expensive than SAH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.34, SAH is valued rather cheaply.
The Price/Forward Earnings ratio is 8.93, which indicates a very decent valuation of SAH.
SAH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAH is cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SAH to the average of the S&P500 Index (23.56), we can say SAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAH is valued cheaply inside the industry as 80.99% of the companies are valued more expensively.
98.35% 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 | 5.02 | ||
| EV/EBITDA | 5.7 |
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)0.47
PEG (5Y)0.6
EPS Next 2Y12.96%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
SAH has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of SAH has falen by -20.13%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SAH's Dividend Yield is rather good when compared to the industry average which is at 5.67. SAH pays more dividend than 83.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SAH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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 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.
SAH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.28%
EPS Next 2Y12.96%
EPS Next 3Y11.51%
63.78
-0.59 (-0.92%)
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 Cap2.18B
Revenue(TTM)15.18B
Net Income(TTM)130.40M
Analysts71.43
Price Target78.09 (22.44%)
Short Float %12.14%
Short Ratio8.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend1.2
Dividend Growth(5Y)27.13%
DP35.28%
Div Incr Years4
Div Non Decr Years14
Ex-Date
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)-3.25%
PT rev (3m)-7.12%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-6.97%
EPS NY rev (1m)-1.69%
EPS NY rev (3m)-2.99%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)2.46%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 8.93 | ||
| P/S | 0.14 | ||
| P/FCF | 5.02 | ||
| P/OCF | 3.71 | ||
| P/B | 2.04 | ||
| P/tB | 11.24 | ||
| EV/EBITDA | 5.7 |
EPS(TTM)6.59
EY10.33%
EPS(NY)7.15
Fwd EY11.2%
FCF(TTM)12.7
FCFY19.92%
OCF(TTM)17.21
OCFY26.98%
SpS444.19
BVpS31.29
TBVpS5.67
PEG (NY)0.47
PEG (5Y)0.6
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 Y20.4%
EPS Next 2Y12.96%
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 Year8.87%
Revenue Next 2Y6.15%
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.
Can you provide the valuation status for SONIC AUTOMOTIVE INC-CLASS A?
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.
Can you provide the PE and PB ratios for SAH stock?
The Price/Earnings (PE) ratio for SONIC AUTOMOTIVE INC-CLASS A (SAH) is 9.68 and the Price/Book (PB) ratio is 2.04.
What is the expected EPS growth for SONIC AUTOMOTIVE INC-CLASS A (SAH) stock?
The Earnings per Share (EPS) of SONIC AUTOMOTIVE INC-CLASS A (SAH) is expected to grow by 20.4% in the next year.