SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAH - US83545G1022 - Common Stock
64.3 USD
-0.03 (-0.05%)
64.3 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SAH. SAH was compared to 123 industry peers in the Specialty Retail industry. SAH has only an average score on both its financial health and profitability. SAH may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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 2.17%, SAH is in line with its industry, outperforming 56.10% of the companies in the same industry.
With a decent Return On Equity value of 12.19%, SAH is doing good in the industry, outperforming 69.11% of the companies in the same industry.
SAH has a better Return On Invested Capital (8.31%) than 70.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAH is below the industry average of 12.14%.
| 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
SAH's Profit Margin of 0.86% is in line compared to the rest of the industry. SAH outperforms 53.66% of its industry peers.
In the last couple of years the Profit Margin of SAH has grown nicely.
Looking at the Operating Margin, with a value of 3.64%, SAH is in line with its industry, outperforming 57.72% of the companies in the same industry.
In the last couple of years the Operating Margin of SAH has remained more or less at the same level.
SAH has a Gross Margin of 15.54%. This is amonst the worse of the industry: SAH underperforms 84.55% 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.
SAH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SAH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.44 indicates that SAH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.44, SAH is in the better half of the industry, outperforming 78.86% of the companies in the same industry.
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.
SAH has a better Debt to FCF ratio (8.88) than 60.16% of its industry peers.
A Debt/Equity ratio of 3.54 is on the high side and indicates that SAH has dependencies on debt financing.
SAH has a Debt to Equity ratio of 3.54. This is in the lower half of the industry: SAH underperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.98
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.02 indicates that SAH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.02, SAH is doing worse than 75.61% of the companies in the same industry.
A Quick Ratio of 0.27 indicates that SAH may have some problems paying its short term obligations.
SAH has a worse Quick ratio (0.27) than 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
SAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.21%, which is quite good.
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.
The Revenue has grown by 9.09% in the past year. This is quite good.
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 Y20.35%
EPS Next 2Y12.94%
EPS Next 3Y11.51%
EPS Next 5Y14.29%
Revenue Next Year8.96%
Revenue Next 2Y6.11%
Revenue Next 3Y5.56%
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
The Price/Earnings ratio is 9.76, which indicates a very decent valuation of SAH.
Compared to the rest of the industry, the Price/Earnings ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 88.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, SAH is valued rather cheaply.
A Price/Forward Earnings ratio of 9.00 indicates a reasonable valuation of SAH.
Based on the Price/Forward Earnings ratio, SAH is valued cheaper than 89.43% 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 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 9 |
4.2 Price Multiples
82.93% of the companies in the same industry are more expensive than SAH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SAH is valued cheaply inside the industry as 96.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.06 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.48
PEG (5Y)0.6
EPS Next 2Y12.94%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
SAH has a Yearly Dividend Yield of 2.36%.
SAH's Dividend Yield is rather good when compared to the industry average which is at 2.01. SAH pays more dividend than 80.49% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, SAH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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 35.28% of its income as dividend. This is a sustainable payout ratio.
The dividend of SAH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.28%
EPS Next 2Y12.94%
EPS Next 3Y11.51%
64.3
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners72%
Inst Owner Change1.11%
Ins Owners28.19%
Ins Owner Change0%
Market Cap2.20B
Revenue(TTM)15.18B
Net Income(TTM)130.40M
Analysts71.43
Price Target78.09 (21.45%)
Short Float %11.8%
Short Ratio8.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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)0%
PT rev (3m)-7.12%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-6.58%
EPS NY rev (1m)-1.73%
EPS NY rev (3m)-4.58%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)2.46%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 9 | ||
| P/S | 0.14 | ||
| P/FCF | 5.06 | ||
| P/OCF | 3.74 | ||
| P/B | 2.05 | ||
| P/tB | 11.33 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)6.59
EY10.25%
EPS(NY)7.14
Fwd EY11.11%
FCF(TTM)12.7
FCFY19.76%
OCF(TTM)17.21
OCFY26.77%
SpS444.19
BVpS31.29
TBVpS5.67
PEG (NY)0.48
PEG (5Y)0.6
Graham Number68.12
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 | 3.44 |
F-Score7
WACC8.46%
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)15.21%
EPS 3Y-12.92%
EPS 5Y16.23%
EPS Q2Q%11.9%
EPS Next Y20.35%
EPS Next 2Y12.94%
EPS Next 3Y11.51%
EPS Next 5Y14.29%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%13.81%
Revenue Next Year8.96%
Revenue Next 2Y6.11%
Revenue Next 3Y5.56%
Revenue Next 5Y7.76%
EBIT growth 1Y23.32%
EBIT growth 3Y-4.75%
EBIT growth 5Y7.18%
EBIT Next Year39.3%
EBIT Next 3Y13.82%
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 9.76 and the Price/Book (PB) ratio is 2.05.
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 20.35% in the next year.