Sonic Automotive Inc

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SAH : NYSE : Services
$22.95 | %
Today's Range: 22.85 - 23.75
Avg. Daily Volume: 259300.0
12/09/16 - 4:02 PM ET

Financial Analysis


SONIC AUTOMOTIVE INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SONIC AUTOMOTIVE INC has very weak liquidity. Currently, the Quick Ratio is 0.17 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 remained virtually unchanged only decreasing by 1.11% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2557.932494.41
EBITDA ($mil)70.8680.17
EBIT ($mil)50.9362.92
Net Income ($mil)18.1126.5


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2.942.49
Total Assets ($mil)3429.193292.41
Total Debt ($mil)2237.642111.54
Equity ($mil)685.44693.16


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin14.0414.44
EBITDA Margin2.773.21
Operating Margin1.992.52
Sales Turnover2.812.89
Return on Assets2.522.47
Return on Equity12.8312.05
Debt Q3 FY16 Q3 FY15
Current Ratio1.061.1
Debt/Capital0.770.75
Interest Expense20.2918.38
Interest Coverage2.513.42


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)44.8749.93
Div / share0.050.03
EPS0.420.53
Book value / share15.2813.88
Institutional Own % n/a n/a
Avg Daily Volume262172.0345795.0

Valuation


BUY. SONIC AUTOMOTIVE INC's P/E ratio indicates a significant discount compared to an average of 22.40 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.37. To use another comparison, its price-to-book ratio of 1.44 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.35. 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 11.83 Peers 22.40   SAH 5.31 Peers 14.15

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 9.65 Peers 21.57   SAH 0.56 Peers 2.00

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 1.44 Peers 13.35   SAH 14.11 Peers 8.69

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.

 

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 0.10 Peers 1.48   SAH 1.47 Peers 7.23

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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