SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - NYSE:SAH - US83545G1022 - Common Stock
59.68 USD
-1.38 (-2.26%)
60.4 USD
+0.72 (+1.21%)
Overall SAH gets a fundamental rating of 5 out of 10. We evaluated SAH against 121 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. 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 of 2.17%. This is comparable to the rest of the industry: SAH outperforms 56.20% of its industry peers.
SAH's Return On Equity of 12.19% is fine compared to the rest of the industry. SAH outperforms 69.42% of its industry peers.
The Return On Invested Capital of SAH (8.31%) is better than 70.25% of its industry peers.
SAH had an Average Return On Invested Capital over the past 3 years of 8.98%. This 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.
SAH's Profit Margin has improved in the last couple of years.
SAH's Operating Margin of 3.64% is in line compared to the rest of the industry. SAH outperforms 56.20% of its industry peers.
SAH's Operating Margin has been stable in the last couple of years.
The Gross Margin of SAH (15.54%) is worse than 85.12% of its industry peers.
SAH's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 1 year ago, SAH has an improved debt to assets ratio.
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 better Altman-Z score (3.43) than 76.03% 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.
SAH has a Debt to FCF ratio of 8.88. This is comparable to the rest of the industry: SAH outperforms 58.68% of its industry peers.
SAH has a Debt/Equity ratio of 3.54. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.54, SAH is doing worse than 76.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.01
WACC8.27%
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.
With a Current ratio value of 1.02, SAH is not doing good in the industry: 73.55% of the companies in the same industry are doing better.
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.
SAH's Quick ratio of 0.27 is on the low side compared to the rest of the industry. SAH is outperformed by 82.64% of its industry peers.
| 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.
The Earnings Per Share has been growing by 16.23% on average over the past years. This is quite good.
SAH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.09%.
SAH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
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
SAH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.45% yearly.
SAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
EPS Next Y26.11%
EPS Next 2Y14.15%
EPS Next 3Y13.44%
EPS Next 5Y15.45%
Revenue Next Year5.85%
Revenue Next 2Y4.67%
Revenue Next 3Y5.37%
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
The Price/Earnings ratio is 9.06, which indicates a very decent valuation of SAH.
SAH's Price/Earnings ratio is rather cheap when compared to the industry. SAH is cheaper than 87.60% of the companies in the same industry.
SAH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.67.
SAH is valuated reasonably with a Price/Forward Earnings ratio of 8.18.
SAH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAH is cheaper than 89.26% of the companies in the same industry.
SAH is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAH is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SAH is valued cheaply inside the industry as 97.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | 5.57 |
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.
SAH's earnings are expected to grow with 13.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)0.56
EPS Next 2Y14.15%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.44%, 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 5.43. SAH pays more dividend than 83.47% of the companies in the same industry.
SAH's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
On average, the dividend of SAH grows each year by 27.13%, which is quite nice.
SAH has been paying a dividend for at least 10 years, so it has 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 2Y14.15%
EPS Next 3Y13.44%
59.68
-1.38 (-2.26%)
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 Cap2.04B
Revenue(TTM)15.18B
Net Income(TTM)130.40M
Analysts69.23
Price Target80.71 (35.24%)
Short Float %12.93%
Short Ratio10.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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)-4.01%
PT rev (3m)11.89%
EPS NQ rev (1m)-2.69%
EPS NQ rev (3m)3.73%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)11.67%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.18 | ||
| P/S | 0.13 | ||
| P/FCF | 4.69 | ||
| P/OCF | 3.47 | ||
| P/B | 1.91 | ||
| P/tB | 10.51 | ||
| EV/EBITDA | 5.57 |
EPS(TTM)6.59
EY11.04%
EPS(NY)7.3
Fwd EY12.23%
FCF(TTM)12.71
FCFY21.3%
OCF(TTM)17.22
OCFY28.86%
SpS444.45
BVpS31.31
TBVpS5.68
PEG (NY)0.35
PEG (5Y)0.56
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
WACC8.27%
ROIC/WACC1.01
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 Y26.11%
EPS Next 2Y14.15%
EPS Next 3Y13.44%
EPS Next 5Y15.45%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%13.81%
Revenue Next Year5.85%
Revenue Next 2Y4.67%
Revenue Next 3Y5.37%
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 9.06 and the Price/Book (PB) ratio is 1.91.
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 26.11% in the next year.