SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - NYSE:SAH - US83545G1022 - Common Stock
61.75 USD
+2.07 (+3.47%)
61.75 USD
0 (0%)
SAH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. There are concerns on the financial health of SAH while its profitability can be described as average. SAH is valued quite cheap, while showing a decent growth score. This is a good combination! Finally SAH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SAH was profitable.
In the past year SAH had a positive cash flow from operations.
Of the past 5 years SAH 4 years were profitable.
SAH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SAH has a Return On Assets (2.17%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 12.19%, SAH is doing good in the industry, outperforming 69.67% of the companies in the same industry.
SAH has a Return On Invested Capital of 8.31%. This is in the better half of the industry: SAH outperforms 70.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAH is below the industry average of 11.82%.
| 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 of 3.64%. This is comparable to the rest of the industry: SAH outperforms 56.56% of its industry peers.
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 85.25% 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.
SAH has more shares outstanding than it did 1 year ago.
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
SAH has an Altman-Z score of 3.43. This indicates that SAH is financially healthy and has little risk of bankruptcy at the moment.
SAH has a Altman-Z score of 3.43. This is in the better half of the industry: SAH outperforms 75.41% 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.
With a Debt to FCF ratio value of 8.88, SAH perfoms like the industry average, outperforming 58.20% of the companies in the same industry.
A Debt/Equity ratio of 3.54 is on the high side and indicates that SAH has dependencies on debt financing.
With a Debt to Equity ratio value of 3.54, SAH is not doing good in the industry: 76.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.43 |
ROIC/WACC1
WACC8.34%
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.
The Current ratio of SAH (1.02) is worse than 73.77% of its industry peers.
SAH has a Quick Ratio of 1.02. This is a bad value and indicates that SAH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.27, SAH is doing worse than 82.79% of the companies in the same industry.
| 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.
SAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.23% yearly.
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
The Earnings Per Share is expected to grow by 14.29% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.76% on average over the next years.
EPS Next Y22.46%
EPS Next 2Y13.38%
EPS Next 3Y12.72%
EPS Next 5Y14.29%
Revenue Next Year8.13%
Revenue Next 2Y5.86%
Revenue Next 3Y5.47%
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 9.37.
SAH's Price/Earnings ratio is rather cheap when compared to the industry. SAH is cheaper than 85.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of SAH to the average of the S&P500 Index (25.83), we can say SAH is valued rather cheaply.
A Price/Forward Earnings ratio of 8.58 indicates a reasonable valuation of SAH.
Based on the Price/Forward Earnings ratio, SAH is valued cheaper than 89.34% of the companies in the same industry.
SAH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
SAH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SAH is cheaper than 81.15% of the companies in the same industry.
SAH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SAH is cheaper than 98.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.86 | ||
| EV/EBITDA | 5.6 |
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.
SAH's earnings are expected to grow with 12.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)0.58
EPS Next 2Y13.38%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.55%, SAH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.39, SAH pays a better dividend. On top of this SAH pays more dividend than 86.07% of the companies listed in the same industry.
SAH's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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
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 2Y13.38%
EPS Next 3Y12.72%
61.75
+2.07 (+3.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.11%
Inst Owner Change-0.31%
Ins Owners28.22%
Ins Owner Change-2.31%
Market Cap2.11B
Revenue(TTM)15.18B
Net Income(TTM)130.40M
Analysts69.23
Price Target80.71 (30.7%)
Short Float %12.93%
Short Ratio10.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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)-5%
PT rev (3m)1.07%
EPS NQ rev (1m)-8.46%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)-2.9%
EPS NY rev (3m)8.44%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)2.19%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.58 | ||
| P/S | 0.14 | ||
| P/FCF | 4.86 | ||
| P/OCF | 3.59 | ||
| P/B | 1.97 | ||
| P/tB | 10.88 | ||
| EV/EBITDA | 5.6 |
EPS(TTM)6.59
EY10.67%
EPS(NY)7.2
Fwd EY11.66%
FCF(TTM)12.71
FCFY20.59%
OCF(TTM)17.22
OCFY27.89%
SpS444.45
BVpS31.31
TBVpS5.68
PEG (NY)0.42
PEG (5Y)0.58
Graham Number68.14
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
WACC8.34%
ROIC/WACC1
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 Y22.46%
EPS Next 2Y13.38%
EPS Next 3Y12.72%
EPS Next 5Y14.29%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%13.81%
Revenue Next Year8.13%
Revenue Next 2Y5.86%
Revenue Next 3Y5.47%
Revenue Next 5Y7.76%
EBIT growth 1Y23.32%
EBIT growth 3Y-4.75%
EBIT growth 5Y7.18%
EBIT Next Year39.21%
EBIT Next 3Y16.4%
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 9.37 and the Price/Book (PB) ratio is 1.97.
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 22.46% in the next year.