Sonic Automotive Inc.
Find Ratings ReportsSONIC AUTOMOTIVE INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. SONIC AUTOMOTIVE INC has very weak liquidity. Currently, the Quick Ratio is 0.39 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 unchanged 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 | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 3584.8 | 3590.6 |
EBITDA ($mil) | 138.1 | 92.9 |
EBIT ($mil) | 101.5 | 59.4 |
Net Income ($mil) | 38.7 | -190.9 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 373.9 | 501.2 |
Total Assets ($mil) | 5364.6 | 4978.3 |
Total Debt ($mil) | 3863.1 | 3486.8 |
Equity ($mil) | 891.9 | 895.2 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 15.09 | 16.04 |
EBITDA Margin | 3.85 | 2.58 |
Operating Margin | 2.83 | 1.65 |
Sales Turnover | 2.68 | 2.81 |
Return on Assets | 3.32 | 1.77 |
Return on Equity | 19.98 | 9.89 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.1 | 1.2 |
Debt/Capital | 0.81 | 0.8 |
Interest Expense | 47.3 | 39.1 |
Interest Coverage | 2.15 | 1.52 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 33.96 | 36.23 |
Div / share | 0.3 | 0.28 |
EPS | 1.11 | -5.22 |
Book value / share | 26.26 | 24.71 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 220634.0 | 270959.0 |
BUY. SONIC AUTOMOTIVE INC's P/E ratio indicates a significant discount compared to an average of 31.04 for the Motor Vehicle and Parts Dealers subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.97 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 6.33. The price-to-sales ratio is well below both the S&P 500 average and the subsector 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.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SAH 10.42 | Peers 31.04 | SAH NM | Peers 17.67 | |||||||||||||||||||||
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, 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's P/CF is negative making the measure meaningless. |
|||||||||||||||||||||||
Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
SAH 8.24 | Peers 18.52 | SAH 0.46 | Peers 2.06 | |||||||||||||||||||||
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 |
|
Earnings Growth |
|
|||||||||||||||||||||
SAH 1.97 | Peers 6.33 | SAH 195.83 | Peers 17.49 | |||||||||||||||||||||
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 |
|
Sales Growth |
|
|||||||||||||||||||||
SAH 0.12 | Peers 2.45 | SAH 2.65 | Peers 13.22 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. SAH significantly trails its peers on the basis of sales growth. |
|||||||||||||||||||||||