Sonic Automotive Inc

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SAH : NYSE : Services
$16.7 up 0.25 | 1.5%
Today's Range: 15.95 - 16.725
Avg. Daily Volume: 274700.0
08/18/17 - 1:07 PM ET

Financial Analysis


SONIC AUTOMOTIVE INC's gross profit margin for the second 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 0.15 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.70% 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.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)2405.752382.31
EBITDA ($mil)66.0875.95
EBIT ($mil)44.1657.05
Net Income ($mil)12.1322.82


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)4.382.42
Total Assets ($mil)3645.163511.23
Total Debt ($mil)2435.892320.67
Equity ($mil)713.41674.93


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin14.9914.83
EBITDA Margin2.743.18
Operating Margin1.842.39
Sales Turnover2.692.73
Return on Assets1.842.7
Return on Equity9.7114.24
Debt Q2 FY17 Q2 FY16
Current Ratio1.031.07
Debt/Capital0.770.77
Interest Expense22.4619.72
Interest Coverage1.972.89


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)43.8645.45
Div / share0.050.05
EPS0.270.5
Book value / share16.2714.85
Institutional Own % n/a n/a
Avg Daily Volume273981.0289293.0

Valuation


HOLD. SONIC AUTOMOTIVE INC's P/E ratio indicates a significant discount compared to an average of 21.45 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 24.31. For additional comparison, its price-to-book ratio of 1.04 indicates a significant discount versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 21.61. 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 11.01 Peers 21.45   SAH 3.66 Peers 13.40

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 8.47 Peers 18.42   SAH NM Peers 1.72

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 1.04 Peers 21.61   SAH -22.34 Peers 10.33

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 1.42   SAH 2.36 Peers 5.74

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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