SONIC AUTOMOTIVE INC-CLASS A (SAH)
US83545G1022 - Common Stock
Taking everything into account, SAH scores 5 out of 10 in our fundamental rating. SAH was compared to 126 industry peers in the Specialty Retail industry. SAH has a medium profitability rating, but doesn't score so well on its financial health evaluation. SAH has a correct valuation and a medium growth rate. 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.
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
Looking at the Return On Assets, with a value of 3.19%, SAH is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
The Return On Equity of SAH (19.07%) is better than 76.19% of its industry peers.
The Return On Invested Capital of SAH (6.36%) is comparable to the rest of the industry.
SAH had an Average Return On Invested Capital over the past 3 years of 7.52%. This is significantly below the industry average of 13.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 19.07% | ||
| ROIC | 6.36% |
ROA(3y)4.04%
ROA(5y)2.86%
ROE(3y)20.76%
ROE(5y)14.25%
ROIC(3y)7.52%
ROIC(5y)6.76%
1.3 Margins
The Profit Margin of SAH (1.21%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SAH has grown nicely.
SAH's Operating Margin of 3.53% is in line compared to the rest of the industry. SAH outperforms 55.56% of its industry peers.
SAH's Operating Margin has improved in the last couple of years.
SAH's Gross Margin of 15.62% is on the low side compared to the rest of the industry. SAH is outperformed by 88.10% of its industry peers.
SAH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.53% | ||
| PM (TTM) | 1.21% | ||
| GM | 15.62% |
OM growth 3Y3.98%
OM growth 5Y10.86%
PM growth 3YN/A
PM growth 5Y18.87%
GM growth 3Y2.34%
GM growth 5Y1.46%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAH is creating some value.
SAH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SAH has less shares outstanding
SAH has a worse debt/assets ratio than last year.
2.2 Solvency
SAH has an Altman-Z score of 3.58. This indicates that SAH is financially healthy and has little risk of bankruptcy at the moment.
SAH has a better Altman-Z score (3.58) than 76.19% of its industry peers.
SAH has a Debt/Equity ratio of 3.95. This is a high value indicating a heavy dependency on external financing.
SAH has a worse Debt to Equity ratio (3.95) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.58 |
ROIC/WACC0.92
WACC6.89%
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.
The Current ratio of SAH (1.09) is worse than 76.98% of its industry peers.
A Quick Ratio of 0.35 indicates that SAH may have some problems paying its short term obligations.
The Quick ratio of SAH (0.35) is worse than 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
SAH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.65%.
Measured over the past years, SAH shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.49% on average per year.
SAH shows a small growth in Revenue. In the last year, the Revenue has grown by 1.63%.
The Revenue has been growing slightly by 7.63% on average over the past years.
EPS 1Y (TTM)-20.65%
EPS 3Y21.04%
EPS 5Y30.49%
EPS growth Q2Q2.26%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y13.74%
Revenue growth 5Y7.63%
Revenue growth Q2Q-3.07%
3.2 Future
The Earnings Per Share is expected to grow by 17.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.79% on average over the next years. This is quite good.
EPS Next Y-12.5%
EPS Next 2Y-2.4%
EPS Next 3Y7.39%
EPS Next 5Y17.63%
Revenue Next Year0.33%
Revenue Next 2Y2.21%
Revenue Next 3Y4.15%
Revenue Next 5Y12.79%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 8.25 indicates a reasonable valuation of SAH.
90.48% of the companies in the same industry are more expensive than SAH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SAH to the average of the S&P500 Index (28.06), we can say SAH is valued rather cheaply.
SAH is valuated reasonably with a Price/Forward Earnings ratio of 8.70.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 88.10% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. SAH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
SAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAH is cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-2.4%
EPS Next 3Y7.39%
5. Dividend
5.1 Amount
SAH has a Yearly Dividend Yield of 2.09%.
SAH's Dividend Yield is rather good when compared to the industry average which is at 3.50. SAH pays more dividend than 82.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, SAH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
The dividend of SAH is nicely growing with an annual growth rate of 37.98%!
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)37.98%
Div Incr Years3
Div Non Decr Years13
5.3 Sustainability
SAH pays out 23.19% 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.
DP23.19%
EPS Next 2Y-2.4%
EPS Next 3Y7.39%
SONIC AUTOMOTIVE INC-CLASS A
NYSE:SAH (5/3/2024, 3:23:54 PM)
After market: 56.43 0 (0%)56.43
-0.65 (-1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 8.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 19.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.53% | ||
| PM (TTM) | 1.21% | ||
| GM | 15.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20.65%
EPS 3Y21.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.63%
Revenue growth 3Y13.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y