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SAH

Sonic AutomotiveNYSE:SAH Stock Report

Market Cap

US$1.9b

7D

0.2%

1Y

10.6%

Updated

26 Nov, 2021

Data

Company Financials +
SAH fundamental analysis
Snowflake Score
Valuation6/6
Future Growth4/6
Past Performance3/6
Financial Health4/6
Dividends4/6

SAH Stock Overview

Sonic Automotive, Inc. operates as an automotive retailer in the United States.

Sonic Automotive Competitors

Carvana

NYSE:CVNA

US$51.2b

O'Reilly Automotive

NasdaqGS:ORLY

US$42.8b

AutoZone

NYSE:AZO

US$38.0b

Advance Auto Parts

NYSE:AAP

US$14.0b

Price History & Performance

Summary of all time highs, changes and price drops for Sonic Automotive
Historical stock prices
Current Share PriceUS$46.84
52 Week HighUS$58.00
52 Week LowUS$37.24
Beta2.38
1 Month Change-5.58%
3 Month Change-7.90%
1 Year Change10.58%
3 Year Change196.64%
5 Year Change123.58%
Change since IPO676.59%

Recent News & Updates

Nov 05

Sonic Automotive: Q3 Earnings And M&A Draw Attention

SAH's bottom line was above consensus for the 14th consecutive quarter in Q3 2021, but the earnings beat narrowed to +2% implying a risk of earnings disappointment in subsequent quarters. SAH seems to be on the acquisition trail again, so it is worth keeping an eye on the valuation multiples and financing mix for future acquisitions. SAH is valued by the market at consensus forward fiscal 2021 and 2022 normalized P/E multiples of 6.8 times and 6.0 times, respectively.

Oct 04
Here's Why Sonic Automotive (NYSE:SAH) Has A Meaningful Debt Burden

Here's Why Sonic Automotive (NYSE:SAH) Has A Meaningful Debt Burden

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

SAHUS Specialty RetailUS Market
7D0.2%-3.5%-2.7%
1Y10.6%29.4%21.3%

Return vs Industry: SAH underperformed the US Specialty Retail industry which returned 29.4% over the past year.

Return vs Market: SAH underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is SAH's price volatile compared to industry and market?
SAH volatility
SAH Average Weekly Movement5.8%
Specialty Retail Industry Average Movement6.6%
Market Average Movement5.9%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.2%

Stable Share Price: SAH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SAH's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19978,100David Smithhttps://www.sonicautomotive.com

Sonic Automotive, Inc. operates as an automotive retailer in the United States. It operates in two segments, Franchised Dealerships and EchoPark. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products.

Sonic Automotive Fundamentals Summary

How do Sonic Automotive's earnings and revenue compare to its market cap?
SAH fundamental statistics
Market CapUS$1.93b
Earnings (TTM)US$309.85m
Revenue (TTM)US$12.01b

6.2x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAH income statement (TTM)
RevenueUS$12.01b
Cost of RevenueUS$10.24b
Gross ProfitUS$1.77b
ExpensesUS$1.46b
EarningsUS$309.85m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.51
Gross Margin14.76%
Net Profit Margin2.58%
Debt/Equity Ratio157.8%

How did SAH perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

6%

Payout Ratio

Does SAH pay a reliable dividends?

See SAH dividend history and benchmarks
When do you need to buy SAH by to receive an upcoming dividend?
Sonic Automotive dividend dates
Ex Dividend DateDec 14 2021
Dividend Pay DateJan 14 2022
Days until Ex dividend16 days
Days until Dividend pay date47 days

Does SAH pay a reliable dividends?

See SAH dividend history and benchmarks

Valuation

Is Sonic Automotive undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAH ($46.84) is trading below our estimate of fair value ($146)

Significantly Below Fair Value: SAH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAH is good value based on its PE Ratio (6.2x) compared to the US Specialty Retail industry average (9.7x).

PE vs Market: SAH is good value based on its PE Ratio (6.2x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: SAH is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SAH is good value based on its PB Ratio (1.9x) compared to the US Specialty Retail industry average (3.1x).


Future Growth

How is Sonic Automotive forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAH's forecast earnings growth (12.3% per year) is above the savings rate (2%).

Earnings vs Market: SAH's earnings (12.3% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: SAH's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAH's revenue (20.3% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: SAH's revenue (20.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAH's Return on Equity is forecast to be high in 3 years time (23.8%)


Past Performance

How has Sonic Automotive performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAH has high quality earnings.

Growing Profit Margin: SAH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SAH's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: SAH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SAH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (144.8%).


Return on Equity

High ROE: Whilst SAH's Return on Equity (30.81%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Sonic Automotive's financial position?


Financial Position Analysis

Short Term Liabilities: SAH's short term assets ($1.5B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: SAH's short term assets ($1.5B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: SAH's net debt to equity ratio (126%) is considered high.

Reducing Debt: SAH's debt to equity ratio has reduced from 328.4% to 157.8% over the past 5 years.

Debt Coverage: SAH's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: SAH's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Dividend

What is Sonic Automotive current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Upcoming Dividend Payment

TodayNov 27 2021Ex Dividend DateDec 14 2021Dividend Pay DateJan 14 202231 days from Ex DividendBuy in the next 16 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SAH's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: SAH's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (3.58%).


Stability and Growth of Payments

Stable Dividend: SAH's dividends per share have been stable in the past 10 years.

Growing Dividend: SAH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.9%), SAH's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAH's dividends in 3 years are forecast to be thoroughly covered by earnings (6.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

David Smith (46 yo)

3.17yrs

Tenure

US$5,063,116

Compensation

Mr. David Bruton Smith is Chief Executive Officer of Sonic Automotive, Inc since September 25, 2018 and served as Executive Vice Chairman since March 2018 until September 25, 2018. He serves as Chief Execu...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD5.06M) is above average for companies of similar size in the US market ($USD3.64M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SAH's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: SAH's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sonic Automotive, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Sonic Automotive, Inc.
  • Ticker: SAH
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$1.932b
  • Shares outstanding: 41.25m
  • Website: https://www.sonicautomotive.com

Number of Employees


Location

  • Sonic Automotive, Inc.
  • 4401 Colwick Road
  • Charlotte
  • North Carolina
  • 28211
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 23:20
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.