Sonic Automotive Inc

Find Ratings Reports
SAH : NYSE : Services
$19.0 up 0.05 | 0.26%
Today's Range: 19.0 - 19.45
Avg. Daily Volume: 271400.0
06/28/17 - 3:59 PM ET

Financial Analysis


SONIC AUTOMOTIVE INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SONIC AUTOMOTIVE INC has very weak liquidity. Currently, the Quick Ratio is 0.16 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 8.37% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)2287.822234.63
EBITDA ($mil)56.4560.78
EBIT ($mil)35.342.31
Net Income ($mil)-0.5414.62


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)6.572.39
Total Assets ($mil)3607.643431.37
Total Debt ($mil)2392.942264.08
Equity ($mil)722.28666.46


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin15.3115.45
EBITDA Margin2.462.71
Operating Margin1.541.89
Sales Turnover2.712.8
Return on Assets2.162.53
Return on Equity11.0813.22
Debt Q1 FY17 Q1 FY16
Current Ratio1.051.07
Debt/Capital0.770.77
Interest Expense22.2619.41
Interest Coverage1.592.18


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)44.9846.18
Div / share0.050.05
EPS0.00.31
Book value / share16.0614.43
Institutional Own % n/a n/a
Avg Daily Volume270600.0255045.0

Valuation


HOLD. SONIC AUTOMOTIVE INC's P/E ratio indicates a significant discount compared to an average of 21.78 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 1.12 indicates a significant discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 21.49. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of 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 10.26 Peers 21.78   SAH 4.14 Peers 13.51

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.

 

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

SAH is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SAH 8.40 Peers 18.60   SAH NM Peers 1.65

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SAH 1.12 Peers 21.49   SAH -0.57 Peers 12.00

Discount. 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.

SAH is trading at a significant discount to its peers.

 

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

However, SAH is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SAH 0.08 Peers 1.45   SAH 1.67 Peers 5.75

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

 

 

Latest Stock Upgrades/Downgrades