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Sonic Automotive, Inc. (SAH) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Sonic Automotive, Inc.

SAHMarket cap $1.91BPrice $60.5

Country🇺🇸United States

SectorConsumer

IndustrySpecialty Retail

Sells and services new and used cars through dealerships across the US, plus a fast-growing online used-car platform. Auto retail is brutally low-margin, so Sonic leans on parts, service, and financing to actually make money.

In Bastion Portfolios?

52W Return-18%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+3%4

Revenue Forecast

Rev CAGR (1y)+3%4

Rev CAGR (3y)+4%3

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+14%7

EPS Growth Y+2+9%6

EPS Growth Y+3+10%6

Quality

Margins

EBIT Margin3%2

Net Income Margin1%2

Free Cash Flow Margin-0%3

Debt

Net Debt/EBITDA6.11

Efficiency

ROE21%8

ROA3%5

Earnings Stability55

GEAR+WEAK20

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)89

P/E Ratio (Forward 3y)79

P/BV1.97

EV Multiples

EV/EBITDA Fwd106

EV/EBIT Fwd127

Yield

Free Cash Flow Yield-1.6%2

Dividend Yield2.7%7

Momentum

Short term

1 month return-20%1

3 month return-31%1

YTD return-1%5

Mid term

Price vs 52wHigh54%2

1 year return-14%3

Long term

3 year return+51%6

5 year return+24%5

Risk Shield

Price Risk

Beta0.95

Volatility46%4

Free Cash Flow

Free Cash Flow Margin-0%3

Free Cash Flow Yield-1.6%2

Quality

ROCE16%8

Earnings Stability55

Net Debt/EBITDA6.11

02Growth

Is it actually growing, and how fast?

SAHSonic Automotive

Revenue FY25$14.2B

GROWTH RATING↗

AVERAGE36 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+3%4

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+14%7

EPS growth, FY27E+9%6

EPS growth, FY28E+10%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 4%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 36% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 3%/yr over the last 3 years and is set to keep growing around 4%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK11 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-20%1

3-month return-31%1

YTD return-1%5

MID & LONG-TERM▾SCORE

% of 52-week high54%2

1-year return-14%3

3-year return+51%6

5-year return+24%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+51% over three years and +24% over five), roughly average for the market.

Returns sit at the market level so far this year (-1%).

WEAKNESSES

It's down 14% over the past year, now 46% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-20%) and over three months (-31%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Sonic Automotive, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

SAHSonic Automotive

Revenue FY25$14.2B

GROWTH RATING↗

AVERAGE36 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+3%4

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+14%7

EPS growth, FY27E+9%6

EPS growth, FY28E+10%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 4%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 36% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 3%/yr over the last 3 years and is set to keep growing around 4%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK11 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-20%1

3-month return-31%1

YTD return-1%5

MID & LONG-TERM▾SCORE

% of 52-week high54%2

1-year return-14%3

3-year return+51%6

5-year return+24%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+51% over three years and +24% over five), roughly average for the market.

Returns sit at the market level so far this year (-1%).

WEAKNESSES

It's down 14% over the past year, now 46% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-20%) and over three months (-31%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Sonic Automotive, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community