SONIC AUTOMOTIVE INC-CLASS A (SAH) Fundamental Analysis & Valuation

NYSE:SAH • US83545G1022

Current stock price

78.75 USD
+5.44 (+7.42%)
At close:
78.75 USD
0 (0%)
After Hours:

This SAH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SAH Profitability Analysis

1.1 Basic Checks

  • SAH had positive earnings in the past year.
  • In the past year SAH had a positive cash flow from operations.
  • SAH had positive earnings in each of the past 5 years.
  • Of the past 5 years SAH 4 years had a positive operating cash flow.
SAH Yearly Net Income VS EBIT VS OCF VS FCFSAH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M

1.2 Ratios

  • SAH's Return On Assets of 1.99% is in line compared to the rest of the industry. SAH outperforms 52.85% of its industry peers.
  • SAH's Return On Equity of 11.11% is fine compared to the rest of the industry. SAH outperforms 65.04% of its industry peers.
  • SAH's Return On Invested Capital of 7.81% is fine compared to the rest of the industry. SAH outperforms 69.11% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SAH is significantly below the industry average of 13.24%.
  • The last Return On Invested Capital (7.81%) for SAH is above the 3 year average (7.59%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.99%
ROE 11.11%
ROIC 7.81%
ROA(3y)2.99%
ROA(5y)3.55%
ROE(3y)17.14%
ROE(5y)18.75%
ROIC(3y)7.59%
ROIC(5y)8.67%
SAH Yearly ROA, ROE, ROICSAH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

1.3 Margins

  • With a Profit Margin value of 0.78%, SAH perfoms like the industry average, outperforming 52.03% of the companies in the same industry.
  • SAH's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 3.57%, SAH is in the better half of the industry, outperforming 60.16% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SAH has grown nicely.
  • With a Gross Margin value of 15.72%, SAH is not doing good in the industry: 84.55% of the companies in the same industry are doing better.
  • SAH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 3.57%
PM (TTM) 0.78%
GM 15.72%
OM growth 3Y-7.62%
OM growth 5Y2.79%
PM growth 3Y7.41%
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y1.52%
SAH Yearly Profit, Operating, Gross MarginsSAH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

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4

2. SAH Health Analysis

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.
  • The number of shares outstanding for SAH has been reduced compared to 1 year ago.
  • SAH has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, SAH has about the same debt to assets ratio.
SAH Yearly Shares OutstandingSAH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
SAH Yearly Total Debt VS Total AssetsSAH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 3.56 indicates that SAH is not in any danger for bankruptcy at the moment.
  • SAH has a better Altman-Z score (3.56) than 78.05% of its industry peers.
  • SAH has a debt to FCF ratio of 9.40. This is a negative value and a sign of low solvency as SAH would need 9.40 years to pay back of all of its debts.
  • SAH has a Debt to FCF ratio of 9.40. This is comparable to the rest of the industry: SAH outperforms 53.66% of its industry peers.
  • A Debt/Equity ratio of 3.61 is on the high side and indicates that SAH has dependencies on debt financing.
  • With a Debt to Equity ratio value of 3.61, SAH is not doing good in the industry: 76.42% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 3.61
Debt/FCF 9.4
Altman-Z 3.56
ROIC/WACC1.21
WACC6.44%
SAH Yearly LT Debt VS Equity VS FCFSAH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.09 indicates that SAH should not have too much problems paying its short term obligations.
  • SAH has a worse Current ratio (1.09) than 68.29% of its industry peers.
  • A Quick Ratio of 0.32 indicates that SAH may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.32, SAH is not doing good in the industry: 77.24% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 0.32
SAH Yearly Current Assets VS Current LiabilitesSAH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. SAH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 17.83% over the past year.
  • The Earnings Per Share has been growing by 11.44% on average over the past years. This is quite good.
  • Looking at the last year, SAH shows a small growth in Revenue. The Revenue has grown by 6.53% in the last year.
  • The Revenue has been growing by 9.18% on average over the past years. This is quite good.
EPS 1Y (TTM)17.83%
EPS 3Y-11.8%
EPS 5Y11.44%
EPS Q2Q%9.46%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y2.67%
Revenue growth 5Y9.18%
Sales Q2Q%1.02%

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 13.15% yearly.
  • SAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.27% yearly.
EPS Next Y0.59%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
EPS Next 5Y13.15%
Revenue Next Year3.37%
Revenue Next 2Y3.76%
Revenue Next 3Y4.8%
Revenue Next 5Y7.27%

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 decreasing.
SAH Yearly Revenue VS EstimatesSAH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
SAH Yearly EPS VS EstimatesSAH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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7

4. SAH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.68, the valuation of SAH can be described as reasonable.
  • Based on the Price/Earnings ratio, SAH is valued cheaper than 82.11% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.77, SAH is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 10.72, the valuation of SAH can be described as very reasonable.
  • SAH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAH is cheaper than 82.11% 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 21.75.
Industry RankSector Rank
PE 11.68
Fwd PE 10.72
SAH Price Earnings VS Forward Price EarningsSAH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • SAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAH is cheaper than 73.17% of the companies in the same industry.
  • 90.24% of the companies in the same industry are more expensive than SAH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.33
EV/EBITDA 6.78
SAH Per share dataSAH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • SAH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)19.81
PEG (5Y)1.02
EPS Next 2Y5.48%
EPS Next 3Y5.41%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. SAH Dividend Analysis

5.1 Amount

  • SAH has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 3.82, SAH pays a bit more dividend than its industry peers.
  • SAH's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.07%

5.2 History

  • On average, the dividend of SAH grows each year by 29.05%, 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)29.05%
Div Incr Years5
Div Non Decr Years15
SAH Yearly Dividends per shareSAH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1

5.3 Sustainability

  • SAH pays out 41.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • SAH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.11%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
SAH Yearly Income VS Free CF VS DividendSAH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M
SAH Dividend Payout.SAH Dividend Payout, showing the Payout Ratio.SAH Dividend Payout.PayoutRetained Earnings

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SAH Fundamentals: All Metrics, Ratios and Statistics

SONIC AUTOMOTIVE INC-CLASS A

NYSE:SAH (4/30/2026, 8:16:46 PM)

After market: 78.75 0 (0%)

78.75

+5.44 (+7.42%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Industry Strength40.37
Industry Growth55.28
Earnings (Last)04-30
Earnings (Next)N/A
Inst Owners70.93%
Inst Owner Change0.65%
Ins Owners32%
Ins Owner Change0.34%
Market Cap2.64B
Revenue(TTM)15.15B
Net Income(TTM)118.70M
Analysts73.33
Price Target78.26 (-0.62%)
Short Float %18.98%
Short Ratio7.88
Dividend
Industry RankSector Rank
Dividend Yield 2.07%
Yearly Dividend1.44
Dividend Growth(5Y)29.05%
DP41.11%
Div Incr Years5
Div Non Decr Years15
Ex-Date03-13
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.31%
Min EPS beat(2)-19.09%
Max EPS beat(2)0.46%
EPS beat(4)3
Avg EPS beat(4)4.02%
Min EPS beat(4)-19.09%
Max EPS beat(4)33.19%
EPS beat(8)6
Avg EPS beat(8)1.87%
EPS beat(12)8
Avg EPS beat(12)-0.55%
EPS beat(16)9
Avg EPS beat(16)-0.52%
Revenue beat(2)1
Avg Revenue beat(2)2.87%
Min Revenue beat(2)-2.9%
Max Revenue beat(2)8.63%
Revenue beat(4)2
Avg Revenue beat(4)1.84%
Min Revenue beat(4)-2.9%
Max Revenue beat(4)8.63%
Revenue beat(8)3
Avg Revenue beat(8)0.52%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)6
Avg Revenue beat(16)-1.63%
PT rev (1m)0.46%
PT rev (3m)0.23%
EPS NQ rev (1m)-4.02%
EPS NQ rev (3m)-13.77%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-6.29%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 11.68
Fwd PE 10.72
P/S 0.17
P/FCF 6.33
P/OCF 4.66
P/B 2.47
P/tB 13.75
EV/EBITDA 6.78
EPS(TTM)6.74
EY8.56%
EPS(NY)7.34
Fwd EY9.33%
FCF(TTM)12.44
FCFY15.8%
OCF(TTM)16.91
OCFY21.48%
SpS451.67
BVpS31.84
TBVpS5.73
PEG (NY)19.81
PEG (5Y)1.02
Graham Number69.4834 (-11.77%)
Profitability
Industry RankSector Rank
ROA 1.99%
ROE 11.11%
ROCE 16.05%
ROIC 7.81%
ROICexc 7.82%
ROICexgc 9.37%
OM 3.57%
PM (TTM) 0.78%
GM 15.72%
FCFM 2.76%
ROA(3y)2.99%
ROA(5y)3.55%
ROE(3y)17.14%
ROE(5y)18.75%
ROIC(3y)7.59%
ROIC(5y)8.67%
ROICexc(3y)7.63%
ROICexc(5y)8.96%
ROICexgc(3y)9.01%
ROICexgc(5y)10.79%
ROCE(3y)15.57%
ROCE(5y)16.88%
ROICexgc growth 3Y-12.24%
ROICexgc growth 5Y2.35%
ROICexc growth 3Y-12.71%
ROICexc growth 5Y0.61%
OM growth 3Y-7.62%
OM growth 5Y2.79%
PM growth 3Y7.41%
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y1.52%
F-Score6
Asset Turnover2.54
Health
Industry RankSector Rank
Debt/Equity 3.61
Debt/FCF 9.4
Debt/EBITDA 5.65
Cap/Depr 106.09%
Cap/Sales 0.99%
Interest Coverage 2.86
Cash Conversion 83.11%
Profit Quality 351.73%
Current Ratio 1.09
Quick Ratio 0.32
Altman-Z 3.56
F-Score6
WACC6.44%
ROIC/WACC1.21
Cap/Depr(3y)137.88%
Cap/Depr(5y)186.19%
Cap/Sales(3y)1.24%
Cap/Sales(5y)1.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.83%
EPS 3Y-11.8%
EPS 5Y11.44%
EPS Q2Q%9.46%
EPS Next Y0.59%
EPS Next 2Y5.48%
EPS Next 3Y5.41%
EPS Next 5Y13.15%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y2.67%
Revenue growth 5Y9.18%
Sales Q2Q%1.02%
Revenue Next Year3.37%
Revenue Next 2Y3.76%
Revenue Next 3Y4.8%
Revenue Next 5Y7.27%
EBIT growth 1Y16.33%
EBIT growth 3Y-5.15%
EBIT growth 5Y12.23%
EBIT Next Year24.72%
EBIT Next 3Y11%
EBIT Next 5Y12.03%
FCF growth 1Y633.89%
FCF growth 3Y32.62%
FCF growth 5Y22.09%
OCF growth 1Y420.07%
OCF growth 3Y11.79%
OCF growth 5Y15.08%

SONIC AUTOMOTIVE INC-CLASS A / SAH Fundamental Analysis 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.


What is the valuation status of SONIC AUTOMOTIVE INC-CLASS A (SAH) stock?

ChartMill assigns a valuation rating of 7 / 10 to SONIC AUTOMOTIVE INC-CLASS A (SAH). This can be considered as Undervalued.


What is the profitability of SAH stock?

SONIC AUTOMOTIVE INC-CLASS A (SAH) has a profitability rating of 6 / 10.


What are the PE and PB ratios of SONIC AUTOMOTIVE INC-CLASS A (SAH) stock?

The Price/Earnings (PE) ratio for SONIC AUTOMOTIVE INC-CLASS A (SAH) is 11.68 and the Price/Book (PB) ratio is 2.47.


Can you provide the expected EPS growth for SAH stock?

The Earnings per Share (EPS) of SONIC AUTOMOTIVE INC-CLASS A (SAH) is expected to grow by 0.59% in the next year.