SONIC AUTOMOTIVE INC-CLASS A (SAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAH - US83545G1022 - Common Stock
62.63 USD
+0.04 (+0.06%)
62.63 USD
0 (0%)
Taking everything into account, SAH scores 5 out of 10 in our fundamental rating. SAH was compared to 122 industry peers in the Specialty Retail industry. SAH has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on SAH. SAH also has an excellent dividend rating.
1. Profitability
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 4 of the past 5 years.
Of the past 5 years SAH 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.17%, SAH perfoms like the industry average, outperforming 56.56% 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 69.67% of the companies in the same industry.
SAH has a better Return On Invested Capital (8.31%) than 70.49% 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 11.71%.
| 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
Looking at the Profit Margin, with a value of 0.86%, SAH is in line with its industry, outperforming 54.92% 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 (3.64%) which is in line with its industry peers.
SAH's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 15.54%, SAH is doing worse than 84.43% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAH is creating some value.
The number of shares outstanding for SAH has been increased compared to 1 year ago.
SAH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SAH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.43 indicates that SAH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.43, SAH belongs to the best of the industry, outperforming 81.15% 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.
With a decent Debt to FCF ratio value of 8.88, SAH is doing good in the industry, outperforming 61.48% of the companies in the same industry.
A Debt/Equity ratio of 3.54 is on the high side and indicates that SAH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.54, SAH is doing worse than 74.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.99
WACC8.37%
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.
Looking at the Current ratio, with a value of 1.02, SAH is doing worse than 72.95% 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 79.51% 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.
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.
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
The Earnings Per Share is expected to grow by 14.29% on average over the next years. This is quite good.
SAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
EPS Next Y22.46%
EPS Next 2Y13.38%
EPS Next 3Y12.72%
EPS Next 5Y14.29%
Revenue Next Year8.13%
Revenue Next 2Y5.86%
Revenue Next 3Y5.47%
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 9.50.
86.89% 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 26.15, SAH is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.70, the valuation of SAH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SAH is valued cheaply inside the industry as 90.16% of the companies are valued more expensively.
SAH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAH indicates a rather cheap valuation: SAH is cheaper than 83.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SAH is valued cheaply inside the industry as 97.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 5.65 |
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.
A more expensive valuation may be justified as SAH's earnings are expected to grow with 12.72% in the coming years.
PEG (NY)0.42
PEG (5Y)0.59
EPS Next 2Y13.38%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
SAH has a Yearly Dividend Yield of 2.42%.
In the last 3 months the price of SAH has falen by -24.66%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SAH's Dividend Yield is rather good when compared to the industry average which is at 5.64. SAH pays more dividend than 84.43% of the companies in the same industry.
SAH's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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 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
SAH pays out 35.28% 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.
DP35.28%
EPS Next 2Y13.38%
EPS Next 3Y12.72%
62.63
+0.04 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.11%
Inst Owner Change1.11%
Ins Owners28.22%
Ins Owner Change-0.01%
Market Cap2.14B
Revenue(TTM)15.18B
Net Income(TTM)130.40M
Analysts69.23
Price Target78.09 (24.68%)
Short Float %12.14%
Short Ratio8.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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)-3.25%
PT rev (3m)-7.12%
EPS NQ rev (1m)-5.51%
EPS NQ rev (3m)-7%
EPS NY rev (1m)-2.89%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)2.15%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 8.7 | ||
| P/S | 0.14 | ||
| P/FCF | 4.93 | ||
| P/OCF | 3.64 | ||
| P/B | 2 | ||
| P/tB | 11.04 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)6.59
EY10.52%
EPS(NY)7.2
Fwd EY11.49%
FCF(TTM)12.7
FCFY20.28%
OCF(TTM)17.21
OCFY27.48%
SpS444.19
BVpS31.29
TBVpS5.67
PEG (NY)0.42
PEG (5Y)0.59
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 | 3.43 |
F-Score7
WACC8.37%
ROIC/WACC0.99
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 Y22.46%
EPS Next 2Y13.38%
EPS Next 3Y12.72%
EPS Next 5Y14.29%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y4.69%
Revenue growth 5Y6.35%
Sales Q2Q%13.81%
Revenue Next Year8.13%
Revenue Next 2Y5.86%
Revenue Next 3Y5.47%
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 9.5 and the Price/Book (PB) ratio is 2.
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 22.46% in the next year.