SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:SAH • US83545G1022
59.78 USD
-0.49 (-0.81%)
Last: Jan 30, 2026, 02:22 PM
Taking everything into account, SAH scores 5 out of 10 in our fundamental rating. 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.
- 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 55.74% of the companies in the same industry.
- The Return On Equity of SAH (12.19%) is better than 68.85% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.31%, SAH is in the better half of the industry, outperforming 70.49% 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 12.24%.
| 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
- Looking at the Profit Margin, with a value of 0.86%, SAH is in line with its industry, outperforming 53.28% of the companies in the same industry.
- In the last couple of years the Profit Margin of SAH has grown nicely.
- SAH has a Operating Margin (3.64%) which is in line with its industry peers.
- SAH's Operating Margin has been stable in the last couple of years.
- SAH has a worse Gross Margin (15.54%) than 83.61% of its industry peers.
- 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
- 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 3.42 indicates that SAH is not in any danger for bankruptcy at the moment.
- SAH has a better Altman-Z score (3.42) than 79.51% 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.
- SAH has a Debt/Equity ratio of 3.54. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 3.54, SAH is not doing good in the industry: 74.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.42 |
ROIC/WACC1
WACC8.33%
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.
- SAH's Quick ratio of 0.27 is on the low side compared to the rest of the industry. SAH is outperformed by 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.
- The Earnings Per Share has been growing by 16.23% on average over the past years. This is quite good.
- Looking at the last year, SAH shows a quite strong growth in Revenue. The Revenue has grown by 9.09% in the last year.
- 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)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.
- The Revenue is expected to grow by 7.76% on average over the next years.
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
- 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.
- 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
- With a Price/Earnings ratio of 9.07, the valuation of SAH can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 90.16% of the companies listed in the same industry.
- SAH is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- SAH is valuated reasonably with a Price/Forward Earnings ratio of 8.44.
- SAH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAH is cheaper than 89.34% of the companies in the same industry.
- SAH is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
- 84.43% of the companies in the same industry are more expensive than SAH, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SAH is valued cheaply inside the industry as 95.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.71 | ||
| EV/EBITDA | 5.53 |
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)0.46
PEG (5Y)0.56
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.
- Compared to an average industry Dividend Yield of 2.15, SAH pays a better dividend. On top of this SAH pays more dividend than 81.15% of the companies listed in the same industry.
- SAH's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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 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
- 35.28% of the earnings are spent on dividend by SAH. This is a low number and 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 2Y12.48%
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 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 19.63% in the next year.