Sonic Automotive Inc

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SAH : NYSE : Services
$18.18 | %
Today's Range: 18.03 - 18.38
Avg. Daily Volume: 316,600
07/29/16 - 4:04 PM ET

Financial Analysis


SONIC AUTOMOTIVE INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2382.312423.74
EBITDA ($mil)76.174.29
EBIT ($mil)57.257.0
Net Income ($mil)22.8214.78


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)0.03.55
Total Assets ($mil)0.03275.5
Total Debt ($mil)0.02128.84
Equity ($mil)0.0685.43


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin14.8314.67
EBITDA Margin3.193.06
Operating Margin2.42.35
Sales Turnover0.02.86
Return on Assets0.02.42
Return on Equity0.011.81
Debt Q2 FY16 Q2 FY15
Current Ratio0.01.1
Debt/Capital0.00.76
Interest Expense0.018.76
Interest Coverage0.03.04


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)46.1850.73
Div / share0.050.03
EPS0.50.3
Book value / share0.013.51
Institutional Own % n/a n/a
Avg Daily Volume316451.0448068.0

Valuation


HOLD. SONIC AUTOMOTIVE INC's P/E ratio indicates a significant discount compared to an average of 24.72 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.10. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, SONIC AUTOMOTIVE INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SAH 9.58 Peers 24.72   SAH NA Peers 15.99

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SAH is trading at a significant discount to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SAH 8.09 Peers 20.60   SAH 0.43 Peers 2.12

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SAH is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SAH trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SAH NA Peers 14.19   SAH 25.47 Peers -3.31

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

Ratio not available.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SAH is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SAH 0.09 Peers 1.59   SAH 2.29 Peers 8.03

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SAH is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SAH significantly trails its peers on the basis of sales growth

 

 

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