Sonic Automotive, Inc. (SAH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Warby Parker, Inc.

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Savers Value Village, Inc.

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Sonic Automotive, Inc.

The ODP Corp.

ChargePoint Holdings, Inc.

Why is Sonic Automotive, Inc. ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.49 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.49 times

Healthy long term growth as Operating profit has grown by an annual rate 16.95%

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 6.17 times
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
EPS(Q) Lowest at USD -1.34

With ROCE of 11.10%, it has a very attractive valuation with a 1.91 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0.31%, its profits have risen by 6.7% ; the PEG ratio of the company is 2.6

Underperformed the market in the last 1 year

The stock has generated a return of 0.31% in the last 1 year, much lower than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sonic Automotive, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sonic Automotive, Inc.

4.01%

0.45

39.82%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.18%

EBIT Growth (5y)

13.05%

EBIT to Interest (avg)

4.59

Debt to EBITDA (avg)

4.49

Net Debt to Equity (avg)

3.14

Sales to Capital Employed (avg)

3.24

Tax Ratio

17.36%

Dividend Payout Ratio

42.68%

Pledged Shares

Institutional Holding

76.40%

ROCE (avg)

13.46%

ROE (avg)

29.71%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.37

EV to EBIT

15.18

EV to EBITDA

11.68

EV to Capital Employed

1.77

EV to Sales

0.55

PEG Ratio

0.45

Dividend Yield

113.06%

ROCE (Latest)

11.68%

ROE (Latest)

27.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 370.3 MM

DIVIDEND PER SHARE(HY)

Highest at USD 32.66

RAW MATERIAL COST(Y)

Fallen by -5.74% (YoY

-9What is not working for the Company

ROCE(HY)

Lowest at 10.51%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.47 times

CASH AND EQV(HY)

Lowest at USD 12 MM

DEBT-EQUITY RATIO (HY)

Highest at 450.73 %

NET PROFIT(Q)

At USD 57.44 MM has Fallen at -21.89%

Here's what is working for Sonic Automotive, Inc.

Operating Cash Flow

Highest at USD 370.3 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 32.66 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -5.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sonic Automotive, Inc.

Inventory Turnover Ratio

Lowest at 6.47 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Profit

At USD 57.44 MM has Fallen at -21.89%

over average net sales of the previous four periods of USD 73.54 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 450.73 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio