SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
NYSE:SAH - New York Stock Exchange, Inc. - US83545G1022 - Common Stock - Currency: USD
SAH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 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 is valued quite cheap, while showing a decent growth score. This is a good combination! SAH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SAH was profitable.
SAH had a positive operating cash flow in the past year.
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's Return On Assets of 2.66% is fine compared to the rest of the industry. SAH outperforms 60.16% of its industry peers.
With a decent Return On Equity value of 15.33%, SAH is doing good in the industry, outperforming 74.80% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.24%, SAH is in the better half of 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 below the industry average of 12.08%.
| 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
SAH has a Profit Margin (1.07%) which is in line with its industry peers.
SAH's Profit Margin has improved in the last couple of years.
SAH has a Operating Margin of 3.70%. This is comparable to the rest of the industry: SAH outperforms 59.35% of its industry peers.
In the last couple of years the Operating Margin of SAH has remained more or less at the same level.
The Gross Margin of SAH (15.56%) is worse than 86.18% 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.
SAH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SAH has been reduced compared to 5 years ago.
SAH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.43 indicates that SAH is not in any danger for bankruptcy at the moment.
SAH's Altman-Z score of 3.43 is fine compared to the rest of the industry. SAH outperforms 76.42% of its industry peers.
The Debt to FCF ratio of SAH is 11.63, which is on the high side as it means it would take SAH, 11.63 years of fcf income to pay off all of its debts.
SAH has a Debt to FCF ratio (11.63) which is comparable to the rest of the industry.
SAH has a Debt/Equity ratio of 3.72. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SAH (3.72) is worse than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.72 | ||
| Debt/FCF | 11.63 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.98
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.03 indicates that SAH should not have too much problems paying its short term obligations.
SAH has a Current ratio of 1.03. This is in the lower half of the industry: SAH underperforms 70.73% of its industry peers.
SAH has a Quick Ratio of 1.03. This is a bad value and indicates that SAH is not financially healthy enough and could expect problems in meeting its short term obligations.
SAH has a Quick ratio of 0.24. This is amonst the worse of the industry: SAH underperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for SAH have decreased by -0.62% in the last year.
Measured over the past years, SAH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.23% on average per year.
Looking at the last year, SAH shows a small growth in Revenue. The Revenue has grown by 4.48% in the last year.
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.
SAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
EPS Next Y12.93%
EPS Next 2Y12.16%
EPS Next 3Y13.42%
EPS Next 5Y15.45%
Revenue Next Year5.6%
Revenue Next 2Y4.64%
Revenue Next 3Y5.91%
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
SAH is valuated reasonably with a Price/Earnings ratio of 11.53.
Based on the Price/Earnings ratio, SAH is valued cheaply inside the industry as 81.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.48, SAH is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.54, the valuation of SAH can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAH indicates a somewhat cheap valuation: SAH is cheaper than 78.86% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SAH to the average of the S&P500 Index (34.04), we can say SAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
SAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAH is cheaper than 76.42% 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 91.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.59 | ||
| EV/EBITDA | 6.29 |
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 13.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)0.71
EPS Next 2Y12.16%
EPS Next 3Y13.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, SAH has a reasonable but not impressive dividend return.
SAH's Dividend Yield is rather good when compared to the industry average which is at 5.00. SAH pays more dividend than 82.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SAH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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 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
SAH pays out 28.01% 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.
DP28.01%
EPS Next 2Y12.16%
EPS Next 3Y13.42%
74.25
+1.19 (+1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners70.87%
Inst Owner Change-0.03%
Ins Owners28.46%
Ins Owner Change-2.7%
Market Cap2.54B
Analysts77.14
Price Target72.13 (-2.86%)
Short Float %11.02%
Short Ratio7.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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)-3.95%
PT rev (3m)-5.5%
EPS NQ rev (1m)-2.32%
EPS NQ rev (3m)-5.2%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 10.54 | ||
| P/S | 0.17 | ||
| P/FCF | 7.59 | ||
| P/OCF | 4.99 | ||
| P/B | 2.46 | ||
| P/tB | 12.66 | ||
| EV/EBITDA | 6.29 |
EPS(TTM)6.44
EY8.67%
EPS(NY)7.05
Fwd EY9.49%
FCF(TTM)9.79
FCFY13.18%
OCF(TTM)14.88
OCFY20.03%
SpS430.33
BVpS30.15
TBVpS5.87
PEG (NY)0.89
PEG (5Y)0.71
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 | 3.43 |
F-Score6
WACC8.39%
ROIC/WACC0.98
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 Y12.93%
EPS Next 2Y12.16%
EPS Next 3Y13.42%
EPS Next 5Y15.45%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%5.91%
Revenue Next Year5.6%
Revenue Next 2Y4.64%
Revenue Next 3Y5.91%
Revenue Next 5Y7.76%
EBIT growth 1Y15.18%
EBIT growth 3Y-4.75%
EBIT growth 5Y7.18%
EBIT Next Year30.8%
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%