ScoreWhy is Sonic Automotive, Inc. ?
1
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
2
Healthy long term growth as Operating profit has grown by an annual rate 16.95%
3
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
4
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 -4.95%, its profits have risen by 6.7% ; the PEG ratio of the company is 2.6
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -4.95% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sonic Automotive, Inc. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sonic Automotive, Inc. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Sonic Automotive, Inc.
-4.95%
0.34
39.67%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.28%
EBIT Growth (5y)
16.95%
EBIT to Interest (avg)
4.59
Debt to EBITDA (avg)
4.49
Net Debt to Equity (avg)
3.14
Sales to Capital Employed (avg)
3.28
Tax Ratio
17.36%
Dividend Payout Ratio
20.25%
Pledged Shares
0
Institutional Holding
76.63%
ROCE (avg)
13.46%
ROE (avg)
29.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
4.77
EV to EBIT
17.21
EV to EBITDA
13.17
EV to Capital Employed
1.91
EV to Sales
0.60
PEG Ratio
2.63
Dividend Yield
88.59%
ROCE (Latest)
11.10%
ROE (Latest)
22.58%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend24What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 414.88
OPERATING CASH FLOW(Y)
Highest at USD 512.1 MM
DIVIDEND PER SHARE(HY)
Highest at USD 35.03
OPERATING PROFIT(Q)
Highest at USD 189.6 MM
OPERATING PROFIT MARGIN(Q)
Highest at 5.18 %
PRE-TAX PROFIT(Q)
Highest at USD 103.3 MM
RAW MATERIAL COST(Y)
Fallen by -6.06% (YoY
NET PROFIT(Q)
Highest at USD 126.8 MM
-4What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 6.17 times
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
EPS(Q)
Lowest at USD -1.34
Here's what is working for Sonic Automotive, Inc.
Interest Coverage Ratio
Highest at 414.88 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at USD 189.6 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 5.18 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 103.3 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 126.8 MM has Grown at 105.97%
over average net sales of the previous four periods of USD 61.56 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Dividend per share
Highest at USD 35.03 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 512.1 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Profit
Highest at USD 126.8 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by -6.06% (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
Depreciation
Highest at USD 40.5 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Sonic Automotive, Inc.
Inventory Turnover Ratio
Lowest at 6.17 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
EPS
Lowest at USD -1.34
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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