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 0.31%, its profits have risen by 6.7% ; the PEG ratio of the company is 2.6
5
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 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.
5.05%
0.45
39.82%
S&P 500
14.9%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.18%
EBIT Growth (5y)
12.93%
EBIT to Interest (avg)
4.59
Debt to EBITDA (avg)
4.49
Net Debt to Equity (avg)
3.14
Sales to Capital Employed (avg)
1,518.27
Tax Ratio
17.36%
Dividend Payout Ratio
42.69%
Pledged Shares
0
Institutional Holding
73.28%
ROCE (avg)
13.46%
ROE (avg)
29.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
NA
EV to EBIT
7.96
EV to EBITDA
6.12
EV to Capital Employed
NA
EV to Sales
0.28
PEG Ratio
0.43
Dividend Yield
122.52%
ROCE (Latest)
NA
ROE (Latest)
NA
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 507.6 MM
DIVIDEND PER SHARE(HY)
Highest at USD 0
DIVIDEND PAYOUT RATIO(Y)
Highest at 27.94%
RAW MATERIAL COST(Y)
Fallen by -5.27% (YoY
-9What is not working for the Company
ROCE(HY)
Lowest at 0%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0 times
NET PROFIT(Q)
At USD 46.9 MM has Fallen at -38.14%
DEBTORS TURNOVER RATIO(HY)
Lowest at 0 times
Here's what is working for Sonic Automotive, Inc.
Operating Cash Flow
Highest at USD 507.6 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 0 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 27.94%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -5.27% (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 41.8 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.
Net Profit
At USD 46.9 MM has Fallen at -38.14%
over average net sales of the previous four periods of USD 75.81 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Inventory Turnover Ratio
Lowest at 0 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
Debtors Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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