SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
NYSE:SAH - US83545G1022 - Common Stock
82.24 USD
+0.05 (+0.06%)
82.24 USD
0 (0%)
Overall SAH gets a fundamental rating of 4 out of 10. We evaluated SAH against 123 industry peers in the Specialty Retail industry. While SAH is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
SAH had a positive operating cash flow in the past year.
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
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 74.80% of its industry peers.
SAH has a Return On Invested Capital of 8.24%. This is in the better half of the industry: SAH outperforms 69.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAH is below the industry average of 12.10%.
| 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
With a Profit Margin value of 1.07%, SAH perfoms like the industry average, outperforming 57.72% 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 in line with its industry peers.
SAH's Operating Margin has been stable in the last couple of years.
The Gross Margin of SAH (15.56%) is worse than 84.55% of its industry peers.
SAH's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAH is still 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.
SAH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.47 indicates that SAH is not in any danger for bankruptcy at the moment.
The Altman-Z score of SAH (3.47) is better than 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.
A Debt/Equity ratio of 3.72 is on the high side and indicates that SAH has dependencies on debt financing.
The Debt to Equity ratio of SAH (3.72) is worse than 77.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.72 | ||
| Debt/FCF | 11.63 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.94
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.03 indicates that SAH should not have too much problems paying its short term obligations.
SAH's Current ratio of 1.03 is on the low side compared to the rest of the industry. SAH is outperformed by 72.36% of its industry peers.
A Quick Ratio of 0.24 indicates that SAH may have some problems paying its short term obligations.
SAH's Quick ratio of 0.24 is on the low side compared to the rest of the industry. SAH is outperformed by 82.11% 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.
SAH shows a small growth in Revenue. In the last year, the Revenue has grown by 4.48%.
SAH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
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 Y24.11%
EPS Next 2Y13.35%
EPS Next 3Y13.47%
EPS Next 5Y15.45%
Revenue Next Year5.76%
Revenue Next 2Y4.68%
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 12.77, SAH is valued correctly.
81.30% of the companies in the same industry are more expensive than SAH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.90, SAH is valued rather cheaply.
A Price/Forward Earnings ratio of 11.43 indicates a reasonable valuation of SAH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAH indicates a somewhat cheap valuation: SAH is cheaper than 79.67% 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 (22.52), we can say SAH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAH is valued a bit cheaper than 75.61% of the companies 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 90.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.4 | ||
| EV/EBITDA | 6.74 |
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 13.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)0.79
EPS Next 2Y13.35%
EPS Next 3Y13.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.80%, SAH has a reasonable but not impressive dividend return.
SAH's Dividend Yield is a higher than the industry average which is at 5.41.
SAH's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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%
82.24
+0.05 (+0.06%)
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 Cap2.81B
Analysts69.23
Price Target84.08 (2.24%)
Short Float %11.66%
Short Ratio7.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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)16.57%
PT rev (3m)18%
EPS NQ rev (1m)10.19%
EPS NQ rev (3m)4.46%
EPS NY rev (1m)9.9%
EPS NY rev (3m)11.49%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.43 | ||
| P/S | 0.19 | ||
| P/FCF | 8.4 | ||
| P/OCF | 5.53 | ||
| P/B | 2.73 | ||
| P/tB | 14.02 | ||
| EV/EBITDA | 6.74 |
EPS(TTM)6.44
EY7.83%
EPS(NY)7.2
Fwd EY8.75%
FCF(TTM)9.79
FCFY11.9%
OCF(TTM)14.88
OCFY18.09%
SpS430.33
BVpS30.15
TBVpS5.87
PEG (NY)0.53
PEG (5Y)0.79
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 | 3.47 |
F-Score6
WACC8.78%
ROIC/WACC0.94
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 2Y4.68%
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%