SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - NYSE:SAH - US83545G1022 - Common Stock
78.89 USD
+0.28 (+0.36%)
78.89 USD
0 (0%)
Taking everything into account, SAH scores 4 out of 10 in our fundamental rating. SAH was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
SAH had positive earnings in the past year.
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 (2.66%) which is in line with its industry peers.
SAH has a better Return On Equity (15.33%) than 75.41% of its industry peers.
With a decent Return On Invested Capital value of 8.24%, SAH is doing good in the industry, outperforming 69.67% 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 12.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 15.33% | ||
| ROIC | 8.24% |
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 1.07%, SAH is in line with its industry, outperforming 56.56% 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 (3.70%) which is comparable to the rest of the industry.
SAH's Operating Margin has been stable in the last couple of years.
SAH's Gross Margin of 15.56% 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 | 3.7% | ||
| PM (TTM) | 1.07% | ||
| GM | 15.56% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAH is creating some value.
Compared to 1 year ago, SAH has more shares outstanding
The number of shares outstanding for SAH has been reduced compared to 5 years ago.
The debt/assets ratio for SAH has been reduced compared to a year ago.
2.2 Solvency
SAH has an Altman-Z score of 3.46. This indicates that SAH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.46, SAH is doing good in the industry, outperforming 77.87% of the companies in the same industry.
SAH has a debt to FCF ratio of 11.63. This is a negative value and a sign of low solvency as SAH would need 11.63 years to pay back of all of its debts.
SAH has a Debt to FCF ratio of 11.63. This is comparable to the rest of the industry: SAH outperforms 55.74% of its industry peers.
A Debt/Equity ratio of 3.72 is on the high side and indicates that SAH has dependencies on debt financing.
SAH's Debt to Equity ratio of 3.72 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 | ||
|---|---|---|---|
| Debt/Equity | 3.72 | ||
| Debt/FCF | 11.63 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.92
WACC8.97%
2.3 Liquidity
SAH has a Current Ratio of 1.03. 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 1.03, SAH is doing worse than 73.77% of the companies in the same industry.
A Quick Ratio of 0.24 indicates that SAH may have some problems paying its short term obligations.
SAH has a Quick ratio of 0.24. This is amonst the worse of the industry: SAH underperforms 84.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
SAH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.62%.
SAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.23% yearly.
SAH shows a small growth in Revenue. In the last year, the Revenue has grown by 4.48%.
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)-0.62%
EPS 3Y-12.92%
EPS 5Y16.23%
EPS Q2Q%48.98%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%5.91%
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 15.45% on average per year.
Based on estimates for the next years, SAH will show a small growth in Revenue. The Revenue will grow by 7.76% on average per year.
EPS Next Y24.11%
EPS Next 2Y13.35%
EPS Next 3Y13.47%
EPS Next 5Y15.45%
Revenue Next Year5.76%
Revenue Next 2Y4.67%
Revenue Next 3Y5.83%
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 12.25, SAH is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 81.97% of the companies listed in the same industry.
SAH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 10.96, 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 80.33% 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 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAH indicates a somewhat cheap valuation: SAH is cheaper than 77.87% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 93.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.06 | ||
| EV/EBITDA | 6.56 |
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 13.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)0.75
EPS Next 2Y13.35%
EPS Next 3Y13.47%
5. Dividend
5.1 Amount
SAH has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.22, SAH pays a better dividend. On top of this SAH pays more dividend than 81.97% of the companies listed in the same industry.
SAH's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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 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
28.01% 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.
DP28.01%
EPS Next 2Y13.35%
EPS Next 3Y13.47%
78.89
+0.28 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners69.61%
Inst Owner Change1.26%
Ins Owners28.22%
Ins Owner Change-2.18%
Market Cap2.69B
Analysts69.23
Price Target84.08 (6.58%)
Short Float %10.99%
Short Ratio7.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend1.2
Dividend Growth(5Y)27.13%
DP28.01%
Div Incr Years4
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.35%
Min EPS beat(2)1.52%
Max EPS beat(2)33.19%
EPS beat(4)3
Avg EPS beat(4)6.05%
Min EPS beat(4)-12.77%
Max EPS beat(4)33.19%
EPS beat(8)6
Avg EPS beat(8)3.94%
EPS beat(12)8
Avg EPS beat(12)1.47%
EPS beat(16)10
Avg EPS beat(16)3.37%
Revenue beat(2)1
Avg Revenue beat(2)0.81%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)3.11%
Revenue beat(4)2
Avg Revenue beat(4)1.46%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)6.82%
Revenue beat(8)3
Avg Revenue beat(8)-0.24%
Revenue beat(12)5
Avg Revenue beat(12)-1.13%
Revenue beat(16)6
Avg Revenue beat(16)-1.95%
PT rev (1m)5.29%
PT rev (3m)11.96%
EPS NQ rev (1m)1.26%
EPS NQ rev (3m)8.5%
EPS NY rev (1m)0%
EPS NY rev (3m)9.99%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 10.96 | ||
| P/S | 0.18 | ||
| P/FCF | 8.06 | ||
| P/OCF | 5.3 | ||
| P/B | 2.62 | ||
| P/tB | 13.45 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)6.44
EY8.16%
EPS(NY)7.2
Fwd EY9.12%
FCF(TTM)9.79
FCFY12.4%
OCF(TTM)14.88
OCFY18.86%
SpS430.33
BVpS30.15
TBVpS5.87
PEG (NY)0.51
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 15.33% | ||
| ROCE | 16.88% | ||
| ROIC | 8.24% | ||
| ROICexc | 8.41% | ||
| ROICexgc | 10.04% | ||
| OM | 3.7% | ||
| PM (TTM) | 1.07% | ||
| GM | 15.56% | ||
| FCFM | 2.27% |
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%
ROICexcg growth 3Y-14.51%
ROICexcg 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-Score6
Asset Turnover2.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.72 | ||
| Debt/FCF | 11.63 | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 127.42% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 0.01 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 211.79% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 3.46 |
F-Score6
WACC8.97%
ROIC/WACC0.92
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)-0.62%
EPS 3Y-12.92%
EPS 5Y16.23%
EPS Q2Q%48.98%
EPS Next Y24.11%
EPS Next 2Y13.35%
EPS Next 3Y13.47%
EPS Next 5Y15.45%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%5.91%
Revenue Next Year5.76%
Revenue Next 2Y4.67%
Revenue Next 3Y5.83%
Revenue Next 5Y7.76%
EBIT growth 1Y15.18%
EBIT growth 3Y-4.75%
EBIT growth 5Y7.18%
EBIT Next Year37.43%
EBIT Next 3Y14.9%
EBIT Next 5Y12.81%
FCF growth 1Y375.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y527.94%
OCF growth 3Y-29.11%
OCF growth 5Y-8.59%