SONIC AUTOMOTIVE INC-CLASS A (SAH) Fundamental Analysis & Valuation

NYSE:SAH • US83545G1022

Current stock price

68.06 USD
+0.23 (+0.34%)
At close:
68.06 USD
0 (0%)
After Hours:

This SAH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SAH Profitability Analysis

1.1 Basic Checks

  • SAH had positive earnings in the past year.
  • In the past year SAH had a positive cash flow from operations.
  • Each year in the past 5 years SAH has been profitable.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M

1.2 Ratios

  • SAH has a Return On Assets (1.99%) which is in line with its industry peers.
  • SAH has a better Return On Equity (11.11%) than 66.67% of its industry peers.
  • With a decent Return On Invested Capital value of 7.81%, SAH is doing good in the industry, outperforming 69.92% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SAH is significantly below the industry average of 13.64%.
  • The last Return On Invested Capital (7.81%) for SAH is above the 3 year average (7.59%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.99%
ROE 11.11%
ROIC 7.81%
ROA(3y)2.99%
ROA(5y)3.55%
ROE(3y)17.14%
ROE(5y)18.75%
ROIC(3y)7.59%
ROIC(5y)8.67%
SAH Yearly ROA, ROE, ROICSAH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

1.3 Margins

  • SAH has a Profit Margin (0.78%) which is comparable to the rest of the industry.
  • SAH's Profit Margin has improved in the last couple of years.
  • SAH has a better Operating Margin (3.57%) than 60.98% of its industry peers.
  • In the last couple of years the Operating Margin of SAH has grown nicely.
  • Looking at the Gross Margin, with a value of 15.72%, SAH is doing worse than 82.93% of the companies in the same industry.
  • SAH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 3.57%
PM (TTM) 0.78%
GM 15.72%
OM growth 3Y-7.62%
OM growth 5Y2.79%
PM growth 3Y7.41%
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y1.52%
SAH Yearly Profit, Operating, Gross MarginsSAH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

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4

2. SAH Health Analysis

2.1 Basic Checks

  • SAH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, SAH has less shares outstanding
  • Compared to 5 years ago, SAH has less shares outstanding
  • Compared to 1 year ago, SAH has about the same debt to assets ratio.
SAH Yearly Shares OutstandingSAH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
SAH Yearly Total Debt VS Total AssetsSAH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 3.51 indicates that SAH is not in any danger for bankruptcy at the moment.
  • SAH's Altman-Z score of 3.51 is fine compared to the rest of the industry. SAH outperforms 78.86% of its industry peers.
  • SAH has a debt to FCF ratio of 9.40. This is a negative value and a sign of low solvency as SAH would need 9.40 years to pay back of all of its debts.
  • SAH has a Debt to FCF ratio (9.40) which is comparable to the rest of the industry.
  • SAH has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external financing.
  • SAH has a worse Debt to Equity ratio (3.61) than 73.98% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.61
Debt/FCF 9.4
Altman-Z 3.51
ROIC/WACC1.31
WACC5.98%
SAH Yearly LT Debt VS Equity VS FCFSAH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 has a Current ratio of 1.09. This is in the lower half of the industry: SAH underperforms 65.85% of its industry peers.
  • A Quick Ratio of 0.32 indicates that SAH may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.32, SAH is doing worse than 73.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 0.32
SAH Yearly Current Assets VS Current LiabilitesSAH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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5

3. SAH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 17.86% over the past year.
  • The Earnings Per Share has been growing by 11.44% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 6.53% in the past year.
  • The Revenue has been growing by 9.18% on average over the past years. This is quite good.
EPS 1Y (TTM)17.86%
EPS 3Y-11.8%
EPS 5Y11.44%
EPS Q2Q%0.66%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y2.67%
Revenue growth 5Y9.18%
Sales Q2Q%-0.63%

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 13.15% on average per year.
  • Based on estimates for the next years, SAH will show a small growth in Revenue. The Revenue will grow by 7.27% on average per year.
EPS Next Y0.59%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
EPS Next 5Y13.15%
Revenue Next Year3.51%
Revenue Next 2Y3.82%
Revenue Next 3Y5.33%
Revenue Next 5Y7.27%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SAH Yearly Revenue VS EstimatesSAH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
SAH Yearly EPS VS EstimatesSAH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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7

4. SAH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.31, which indicates a very decent valuation of SAH.
  • Based on the Price/Earnings ratio, SAH is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
  • SAH is valuated cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
  • SAH is valuated reasonably with a Price/Forward Earnings ratio of 10.25.
  • 85.37% of the companies in the same industry are more expensive than SAH, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of SAH to the average of the S&P500 Index (37.39), we can say SAH is valued rather cheaply.
Industry RankSector Rank
PE 10.31
Fwd PE 10.25
SAH Price Earnings VS Forward Price EarningsSAH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SAH is valued a bit cheaper than 78.86% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SAH is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.47
EV/EBITDA 6.26
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAH does not grow enough to justify the current Price/Earnings ratio.
  • SAH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)17.48
PEG (5Y)0.9
EPS Next 2Y5.48%
EPS Next 3Y5.41%

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6

5. SAH Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.24%, SAH has a reasonable but not impressive dividend return.
  • SAH's Dividend Yield is a higher than the industry average which is at 3.39.
  • SAH's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.24%

5.2 History

  • On average, the dividend of SAH grows each year by 29.05%, 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)29.05%
Div Incr Years5
Div Non Decr Years15
SAH Yearly Dividends per shareSAH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1

5.3 Sustainability

  • SAH pays out 41.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of SAH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.11%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
SAH Yearly Income VS Free CF VS DividendSAH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M
SAH Dividend Payout.SAH Dividend Payout, showing the Payout Ratio.SAH Dividend Payout.PayoutRetained Earnings

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SAH Fundamentals: All Metrics, Ratios and Statistics

SONIC AUTOMOTIVE INC-CLASS A

NYSE:SAH (4/10/2026, 8:04:00 PM)

After market: 68.06 0 (0%)

68.06

+0.23 (+0.34%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-18
Earnings (Next)04-30
Inst Owners70.93%
Inst Owner Change0.6%
Ins Owners32%
Ins Owner Change0.34%
Market Cap2.28B
Revenue(TTM)15.15B
Net Income(TTM)118.70M
Analysts73.33
Price Target76.84 (12.9%)
Short Float %16.66%
Short Ratio7.05
Dividend
Industry RankSector Rank
Dividend Yield 2.24%
Yearly Dividend1.44
Dividend Growth(5Y)29.05%
DP41.11%
Div Incr Years5
Div Non Decr Years15
Ex-Date03-13
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.31%
Min EPS beat(2)-19.09%
Max EPS beat(2)0.46%
EPS beat(4)3
Avg EPS beat(4)4.02%
Min EPS beat(4)-19.09%
Max EPS beat(4)33.19%
EPS beat(8)6
Avg EPS beat(8)1.87%
EPS beat(12)8
Avg EPS beat(12)-0.55%
EPS beat(16)9
Avg EPS beat(16)-0.52%
Revenue beat(2)1
Avg Revenue beat(2)2.87%
Min Revenue beat(2)-2.9%
Max Revenue beat(2)8.63%
Revenue beat(4)2
Avg Revenue beat(4)1.84%
Min Revenue beat(4)-2.9%
Max Revenue beat(4)8.63%
Revenue beat(8)3
Avg Revenue beat(8)0.52%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)6
Avg Revenue beat(16)-1.63%
PT rev (1m)-1.36%
PT rev (3m)-1.6%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-12.02%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-7.06%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 10.31
Fwd PE 10.25
P/S 0.15
P/FCF 5.47
P/OCF 4.02
P/B 2.14
P/tB 11.88
EV/EBITDA 6.26
EPS(TTM)6.6
EY9.7%
EPS(NY)6.64
Fwd EY9.75%
FCF(TTM)12.44
FCFY18.28%
OCF(TTM)16.91
OCFY24.85%
SpS451.67
BVpS31.84
TBVpS5.73
PEG (NY)17.48
PEG (5Y)0.9
Graham Number68.76
Profitability
Industry RankSector Rank
ROA 1.99%
ROE 11.11%
ROCE 16.05%
ROIC 7.81%
ROICexc 7.82%
ROICexgc 9.37%
OM 3.57%
PM (TTM) 0.78%
GM 15.72%
FCFM 2.76%
ROA(3y)2.99%
ROA(5y)3.55%
ROE(3y)17.14%
ROE(5y)18.75%
ROIC(3y)7.59%
ROIC(5y)8.67%
ROICexc(3y)7.63%
ROICexc(5y)8.96%
ROICexgc(3y)9.01%
ROICexgc(5y)10.79%
ROCE(3y)15.57%
ROCE(5y)16.88%
ROICexgc growth 3Y-12.24%
ROICexgc growth 5Y2.35%
ROICexc growth 3Y-12.71%
ROICexc growth 5Y0.61%
OM growth 3Y-7.62%
OM growth 5Y2.79%
PM growth 3Y7.41%
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y1.52%
F-Score6
Asset Turnover2.54
Health
Industry RankSector Rank
Debt/Equity 3.61
Debt/FCF 9.4
Debt/EBITDA 5.65
Cap/Depr 106.09%
Cap/Sales 0.99%
Interest Coverage 2.86
Cash Conversion 83.11%
Profit Quality 351.73%
Current Ratio 1.09
Quick Ratio 0.32
Altman-Z 3.51
F-Score6
WACC5.98%
ROIC/WACC1.31
Cap/Depr(3y)137.88%
Cap/Depr(5y)186.19%
Cap/Sales(3y)1.24%
Cap/Sales(5y)1.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.86%
EPS 3Y-11.8%
EPS 5Y11.44%
EPS Q2Q%0.66%
EPS Next Y0.59%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
EPS Next 5Y13.15%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y2.67%
Revenue growth 5Y9.18%
Sales Q2Q%-0.63%
Revenue Next Year3.51%
Revenue Next 2Y3.82%
Revenue Next 3Y5.33%
Revenue Next 5Y7.27%
EBIT growth 1Y16.33%
EBIT growth 3Y-5.15%
EBIT growth 5Y12.23%
EBIT Next Year24.72%
EBIT Next 3Y11%
EBIT Next 5Y12.03%
FCF growth 1Y633.89%
FCF growth 3Y32.62%
FCF growth 5Y22.09%
OCF growth 1Y420.07%
OCF growth 3Y11.79%
OCF growth 5Y15.08%

SONIC AUTOMOTIVE INC-CLASS A / SAH Fundamental Analysis 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 7 / 10 to SONIC AUTOMOTIVE INC-CLASS A (SAH). This can be considered as Undervalued.


What is the profitability of SAH stock?

SONIC AUTOMOTIVE INC-CLASS A (SAH) has a profitability rating of 6 / 10.


What are the PE and PB ratios of SONIC AUTOMOTIVE INC-CLASS A (SAH) stock?

The Price/Earnings (PE) ratio for SONIC AUTOMOTIVE INC-CLASS A (SAH) is 10.31 and the Price/Book (PB) ratio is 2.14.


Can you provide the expected EPS growth for SAH stock?

The Earnings per Share (EPS) of SONIC AUTOMOTIVE INC-CLASS A (SAH) is expected to grow by 0.59% in the next year.