SAH Stock Analysis: Sonic Automotive | NYSE
Auto & Truck Dealerships | NYSE, USA | Market Cap: 3.012m USD | 12M Return: 20.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 21.1M
EPS Trend: -48.8%
Qual. Beats: 1
Rev. Trend: 77.1%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Sonic Automotive, Inc. is a U.S.-based automotive retailer operating through three segments: Franchised Dealerships (new and used vehicles, parts, service, collision repair, and third-party finance and insurance), EchoPark (a used-vehicle specialty retail format with its own F&I offerings), and Powersports (motorcycles, personal watercraft, ATVs, and related service). The company is headquartered in Charlotte, North Carolina, and was incorporated in 1997.
As an automotive retailer in the Consumer Discretionary sector, the business model relies on multiple revenue streams beyond vehicle sales, including fixed operations (parts and service), and finance and insurance (F&I) income, which often carries higher margins than vehicle sales itself. The franchised dealership model operates under manufacturer franchise agreements that grant territorial rights to sell new vehicles and provide authorized warranty repairs.
- EchoPark used car segment continues posting losses
- F&I product income rises with elevated interest rates
- Franchised dealership margins face pressure as new vehicle inventory normalizes
| 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 15.34%; Δ 0.56% > 0.5%) |
| Asset Turnover: 253.3% > 50% (prev 246.6%; Δ 6.69% > 0%) |
| Interest Coverage Ratio: 1.79 > 6 (EBIT TTM 349.6m / 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: 0.19 (Book Value of Equity 981.3m / Total Liabilities 5.14b) |
| Altman-Z'' = 1.50 = BB |
| DSRI: 0.77 (Receivables 415.4m/514.7m, Revenue 15.2b/14.5b) |
| GMI: 0.96 (GM 15.34% / 15.90%) |
| 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 = -3.16 (Cap -4..+1) = AA |
As of July 16, 2026, the stock is trading at USD 99.73 with a total of 323,802 shares traded. Over the past week, the price has changed by +13.32%, over one month by +19.14%, over three months by +52.10% and over the past year by +20.12%.
Current recommended Stop Loss: 95.60 (which is 4.1% or 1.2 ATR below the current price).
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 | 85 | -14.8% |
P/E Trailing = 27.7872
P/E Forward = 12.837
P/S = 0.1983
P/B = 2.8345
P/EG = 0.4265
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 = 8.14b USD (3.01b + Debt 5.13b - CCE 5.70m)
Interest Coverage Ratio = 1.79 (Ebit TTM 349.6m / Interest Expense TTM 194.8m)
EV/FCF = 30.90x (Enterprise Value 8.14b / FCF TTM 263.3m)
FCF Yield = 3.24% (FCF TTM 263.3m / Enterprise Value 8.14b)
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 = 1.33 (Enterprise Value 8.14b / Total Assets 6.12b)
Interest Expense / Debt = 3.80% (Interest Expense 194.8m / Debt 5.13b)
Taxrate = 32.11% (51.5m / 160.4m)
NOPAT = 237.4m (EBIT 349.6m * (1 - 32.11%))
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 = 4.30% (NOPAT 237.4m / Invested Capital 5.52b)
WACC = 4.72% (E(3.01b)/V(8.14b) * Re(8.36%) + D(5.13b)/V(8.14b) * Rd(3.80%) * (1-Tc(0.32)))
Discount Rate = 8.36% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -57.29 | 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=1.76 | Chg30d=+0.26% | Revisions=+55% | Analysts=9
EPS next Quarter (2026-09-30): EPS=1.86 | Chg30d=+0.18% | Revisions=+55% | Analysts=9
EPS current Year (2026-12-31): EPS=6.90 | Chg30d=+0.15% | Revisions=+62% | GrowthEPS=+4.5% | GrowthRev=+2.9%
EPS next Year (2027-12-31): EPS=7.56 | Chg30d=+0.35% | Revisions=+42% | GrowthEPS=+9.5% | GrowthRev=+4.3%
[Analyst] Revisions Ratio: +66% (up=30, down=5)