(SAH) Sonic Automotive - Overview
Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NYSE (USA) | Market Cap: 2.470m USD | Total Return: 22% in 12m
Avg Turnover: 24.7M
EPS Trend: -48.8%
Qual. Beats: 1
Rev. Trend: 77.1%
Qual. Beats: 0
Warnings
High Debt/EBITDA (10.0) with thin interest coverage (1.8)
Tailwinds
Idiosyncratic Leader, Confidence
Sonic Automotive, Inc. (SAH) is a diversified automotive retailer based in Charlotte, North Carolina, operating through three distinct segments: Franchised Dealerships, EchoPark, and Powersports. The company’s business model integrates the sale of new and pre-owned vehicles with fixed operations, which include high-margin services such as parts, maintenance, warranty repairs, and collision services. By diversifying into the Powersports market, the company captures consumer demand for recreational vehicles like motorcycles and ATVs alongside its core automotive offerings.
The automotive retail sector relies heavily on the arrangement of third-party financing and aftermarket insurance products to drive profitability beyond the initial vehicle sale. Sonic’s EchoPark segment specifically targets the pre-owned vehicle specialty market, a high-volume sector that often experiences counter-cyclical demand when new vehicle prices rise. Investors looking for deeper insights into these revenue streams may find further data on ValueRay useful for their analysis.
- EchoPark operational efficiency and path to profitability drive investor sentiment
- High interest rates pressure consumer demand and vehicle financing margins
- Fixed operations revenue provides stable cash flow during vehicle sales volatility
- Manufacturer inventory levels and incentive programs impact dealership gross margins
- Expansion of Powersports segment diversifies revenue streams beyond traditional automotive
| Net Income: 108.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 3.60 > 1.0 |
| NWC/Revenue: 0.59% < 20% (prev 1.66%; Δ -1.07% < -1%) |
| CFO/TA 0.07 > 3% & CFO 405.2m > Net Income 108.9m |
| Net Debt (5.12b) to EBITDA (511.8m): 10.01 < 3 |
| Current Ratio: 1.03 > 1.5 & < 3 |
| Outstanding Shares: last quarter (34.0m) vs 12m ago -1.73% < -2% |
| Gross Margin: 15.90% > 18% (prev 0.15%; Δ 1.57k% > 0.5%) |
| Asset Turnover: 253.3% > 50% (prev 246.6%; Δ 6.69% > 0%) |
| Interest Coverage Ratio: 1.79 > 6 (EBITDA TTM 511.8m / Interest Expense TTM 194.8m) |
| A: 0.01 (Total Current Assets 2.96b - Total Current Liabilities 2.87b) / Total Assets 6.12b |
| B: 0.25 (Retained Earnings 1.53b / Total Assets 6.12b) |
| C: 0.06 (EBIT TTM 349.6m / Avg Total Assets 6.00b) |
| D: 0.30 (Book Value of Equity 1.53b / Total Liabilities 5.14b) |
| Altman-Z'' = 1.62 = BB |
| DSRI: 0.77 (Receivables 415.4m/514.7m, Revenue 15.2b/14.5b) |
| GMI: 0.96 (GM 15.90% / 15.34%) |
| AQI: 1.09 (AQ_t 0.16 / AQ_t-1 0.15) |
| SGI: 1.05 (Revenue 15.2b / 14.5b) |
| TATA: -0.05 (NI 108.9m - CFO 405.2m) / TA 6.12b) |
| Beneish M = -3.21 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 82.62 with a total of 183,099 shares traded.
Over the past week, the price has changed by +8.85%,
over one month by +12.70%,
over three months by +32.56% and
over the past year by +22.03%.
Sonic Automotive has received a consensus analysts rating of 3.89. Therefore, it is recommended to buy SAH.
- StrongBuy: 3
- Buy: 2
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 81.9 | -0.9% |
P/E Trailing = 24.6562
P/E Forward = 11.9474
P/S = 0.1626
P/B = 2.5172
P/EG = 0.397
Revenue TTM = 15.2b USD
EBIT TTM = 349.6m USD
EBITDA TTM = 511.8m USD
Long Term Debt = 1.54b USD (from longTermDebt, last quarter)
Short Term Debt = 2.28b USD (from shortTermDebt, last quarter)
Debt = 5.13b USD (from shortLongTermDebtTotal, last quarter) + Leases 701.5m
Net Debt = 5.12b USD (calculated: Debt 5.13b - CCE 5.70m)
Enterprise Value = 7.59b USD (2.47b + Debt 5.13b - CCE 5.70m)
Interest Coverage Ratio = 1.79 (Ebit TTM 349.6m / Interest Expense TTM 194.8m)
EV/FCF = 28.84x (Enterprise Value 7.59b / FCF TTM 263.3m)
FCF Yield = 3.47% (FCF TTM 263.3m / Enterprise Value 7.59b)
FCF Margin = 1.73% (FCF TTM 263.3m / Revenue TTM 15.2b)
Net Margin = 0.72% (Net Income TTM 108.9m / Revenue TTM 15.2b)
Gross Margin = 15.90% ((Revenue TTM 15.2b - Cost of Revenue TTM 12.8b) / Revenue TTM)
Gross Margin QoQ = 16.23% (prev 15.47%)
Tobins Q-Ratio = 1.24 (Enterprise Value 7.59b / Total Assets 6.12b)
Interest Expense / Debt = 3.80% (Interest Expense 194.8m / Debt 5.13b)
Taxrate = 28.55% (24.3m / 85.1m)
NOPAT = 249.8m (EBIT 349.6m * (1 - 28.55%))
Current Ratio = 1.03 (Total Current Assets 2.96b / Total Current Liabilities 2.87b)
Debt / Equity = 5.23 (Debt 5.13b / totalStockholderEquity, last quarter 981.3m)
Debt / EBITDA = 10.01 (Net Debt 5.12b / EBITDA 511.8m)
Debt / FCF = 19.46 (Net Debt 5.12b / FCF TTM 263.3m)
Total Stockholder Equity = 1.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.82% (Net Income 108.9m / Total Assets 6.12b)
RoE = 10.50% (Net Income TTM 108.9m / Total Stockholder Equity 1.04b)
RoCE = 13.59% (EBIT 349.6m / Capital Employed (Equity 1.04b + L.T.Debt 1.54b))
RoIC = 4.53% (NOPAT 249.8m / Invested Capital 5.52b)
WACC = 4.57% (E(2.47b)/V(7.60b) * Re(8.44%) + D(5.13b)/V(7.60b) * Rd(3.80%) * (1-Tc(0.29)))
Discount Rate = 8.44% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -32.20 | Cagr: -1.03%
[DCF] Terminal Value 77.97% ; FCFF base≈174.4m ; Y1≈199.9m ; Y5≈294.3m
[DCF] Fair Price = N/A (negative equity: EV 4.43b - Net Debt 5.12b = -696.3m; debt exceeds intrinsic value)
EPS Correlation: -48.82 | EPS CAGR: -5.84% | SUE: 0.86 | # QB: 1
Revenue Correlation: 77.11 | Revenue CAGR: 2.65% | SUE: -0.24 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.72 | Chg30d=+2.34% | Revisions=+27% | Analysts=8
EPS next Quarter (2026-09-30): EPS=1.79 | Chg30d=+4.09% | Revisions=+45% | Analysts=8
EPS current Year (2026-12-31): EPS=6.77 | Chg30d=+4.14% | Revisions=+54% | GrowthEPS=+2.6% | GrowthRev=+3.1%
EPS next Year (2027-12-31): EPS=7.40 | Chg30d=+3.07% | Revisions=+33% | GrowthEPS=+9.2% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +54%