Is Sonic Automotive Stock a Good Investment?
Sonic Automotive Investment Advice | SAH |
- Examine Sonic Automotive's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Sonic Automotive's leadership team and their track record. Good management can help Sonic Automotive navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Retail space and any emerging trends that could impact Sonic Automotive's business and its evolving consumer preferences.
- Compare Sonic Automotive's performance and market position to its competitors. Analyze how Sonic Automotive is positioned in terms of product offerings, innovation, and market share.
- Check if Sonic Automotive pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Sonic Automotive's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Sonic Automotive stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Sonic Automotive is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Sonic Automotive Stock
Researching Sonic Automotive's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 33.0% of the company outstanding shares are owned by corporate insiders. The book value of Sonic Automotive was at this time reported as 29.69. The company has Price/Earnings To Growth (PEG) ratio of 0.67. Sonic Automotive recorded earning per share (EPS) of 5.64. The entity last dividend was issued on the 13th of December 2024. The firm had 2:1 split on the 26th of January 1999.
To determine if Sonic Automotive is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Sonic Automotive's research are outlined below:
| Sonic Automotive is unlikely to experience financial distress in the next 2 years | |
| Sonic Automotive has about 229.2 M in cash with (15.7 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.68. | |
| Roughly 72.0% of the company shares are owned by institutional investors | |
| On 15th of October 2024 Sonic Automotive paid $ 0.3 per share dividend to its current shareholders | |
| Latest headline from thelincolnianonline.com: Sonic Automotive Sets New 12-Month High Still a Buy |
Sonic Automotive Quarterly Liabilities And Stockholders Equity |
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Sonic Automotive uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Sonic Automotive. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Sonic Automotive's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Sonic Automotive's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Sonic Automotive's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1998-05-05 | 1998-03-31 | 0.09 | 0.1 | 0.01 | 11 | ||
1998-03-02 | 1997-12-31 | 0.09 | 0.07 | -0.02 | 22 | ||
2010-02-23 | 2009-12-31 | 0.15 | 0.18 | 0.03 | 20 | ||
2009-10-27 | 2009-09-30 | 0.24 | 0.21 | -0.03 | 12 | ||
1998-08-05 | 1998-06-30 | 0.17 | 0.2 | 0.03 | 17 | ||
2011-02-22 | 2010-12-31 | 0.26 | 0.3 | 0.04 | 15 | ||
2009-07-28 | 2009-06-30 | 0.15 | 0.19 | 0.04 | 26 | ||
2008-10-28 | 2008-09-30 | 0.29 | 0.25 | -0.04 | 13 |
Know Sonic Automotive's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Sonic Automotive is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Sonic Automotive backward and forwards among themselves. Sonic Automotive's institutional investor refers to the entity that pools money to purchase Sonic Automotive's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Towle & Co | 2024-09-30 | 372.8 K | Geode Capital Management, Llc | 2024-09-30 | 333.6 K | Northern Trust Corp | 2024-09-30 | 272.9 K | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 261.6 K | Bank Of New York Mellon Corp | 2024-06-30 | 253.4 K | Goldman Sachs Group Inc | 2024-06-30 | 227.2 K | Bank Of America Corp | 2024-06-30 | 182.4 K | Nuveen Asset Management, Llc | 2024-06-30 | 158.6 K | J. Goldman & Co Lp | 2024-09-30 | 130.1 K | Blackrock Inc | 2024-06-30 | 2.4 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1.7 M |
Sonic Automotive's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 2.39 B.Market Cap |
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Sonic Automotive's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.03 | |
| Return On Capital Employed | 0.14 | 0.14 | |
| Return On Assets | 0.03 | 0.03 | |
| Return On Equity | 0.20 | 0.21 |
Determining Sonic Automotive's profitability involves analyzing its financial statements and using various financial metrics to determine if Sonic Automotive is a good buy. For example, gross profit margin measures Sonic Automotive's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Sonic Automotive's profitability and make more informed investment decisions.
Evaluate Sonic Automotive's management efficiency
Sonic Automotive has Return on Asset of 0.0531 % which means that on every $100 spent on assets, it made $0.0531 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.2094 %, implying that it generated $0.2094 on every 100 dollars invested. Sonic Automotive's management efficiency ratios could be used to measure how well Sonic Automotive manages its routine affairs as well as how well it operates its assets and liabilities. As of now, Sonic Automotive's Return On Capital Employed is decreasing as compared to previous years. The Sonic Automotive's current Return On Assets is estimated to increase to 0.03, while Return On Tangible Assets are projected to decrease to 0.03. As of now, Sonic Automotive's Return On Assets are increasing as compared to previous years. The Sonic Automotive's current Asset Turnover is estimated to increase to 3.04, while Total Assets are projected to decrease to under 3.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 25.48 | 26.76 | |
| Tangible Book Value Per Share | 6.31 | 6.62 | |
| Enterprise Value Over EBITDA | 10.39 | 13.24 | |
| Price Book Value Ratio | 2.21 | 1.21 | |
| Enterprise Value Multiple | 10.39 | 13.24 | |
| Price Fair Value | 2.21 | 1.21 | |
| Enterprise Value | 3 B | 3.1 B |
Evaluating the management effectiveness of Sonic Automotive allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Sonic Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Dividend Yield 0.02 | Forward Dividend Yield 0.02 | Forward Dividend Rate 1.4 | Beta 1.617 |
Basic technical analysis of Sonic Stock
As of the 28th of November, Sonic Automotive has the Semi Deviation of 1.8, risk adjusted performance of 0.0685, and Coefficient Of Variation of 1245.54. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Sonic Automotive, as well as the relationship between them.Sonic Automotive's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Sonic Automotive insiders, such as employees or executives, is commonly permitted as long as it does not rely on Sonic Automotive's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Sonic Automotive insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Sonic Automotive's Outstanding Corporate Bonds
Sonic Automotive issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Sonic Automotive uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Sonic bonds can be classified according to their maturity, which is the date when Sonic Automotive has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US835495AL63 Corp BondUS835495AL63 | View | |
| SON 18 01 FEB 25 Corp BondUS835495AM47 | View | |
| SON 225 01 FEB 27 Corp BondUS835495AN20 | View | |
| US835495AJ18 Corp BondUS835495AJ18 | View | |
| US83545GBD34 Corp BondUS83545GBD34 | View | |
| US83545GBE17 Corp BondUS83545GBE17 | View |
Understand Sonic Automotive's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Sonic Automotive's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0685 | |||
| Market Risk Adjusted Performance | 0.0944 | |||
| Mean Deviation | 1.84 | |||
| Semi Deviation | 1.8 | |||
| Downside Deviation | 1.98 | |||
| Coefficient Of Variation | 1245.54 | |||
| Standard Deviation | 2.55 | |||
| Variance | 6.5 | |||
| Information Ratio | 0.0311 | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.19) | |||
| Sortino Ratio | 0.0399 | |||
| Treynor Ratio | 0.0844 | |||
| Maximum Drawdown | 13.17 | |||
| Value At Risk | (3.31) | |||
| Potential Upside | 4.6 | |||
| Downside Variance | 3.94 | |||
| Semi Variance | 3.23 | |||
| Expected Short fall | (2.28) | |||
| Skewness | 1.11 | |||
| Kurtosis | 3.45 |
| Risk Adjusted Performance | 0.0685 | |||
| Market Risk Adjusted Performance | 0.0944 | |||
| Mean Deviation | 1.84 | |||
| Semi Deviation | 1.8 | |||
| Downside Deviation | 1.98 | |||
| Coefficient Of Variation | 1245.54 | |||
| Standard Deviation | 2.55 | |||
| Variance | 6.5 | |||
| Information Ratio | 0.0311 | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.19) | |||
| Sortino Ratio | 0.0399 | |||
| Treynor Ratio | 0.0844 | |||
| Maximum Drawdown | 13.17 | |||
| Value At Risk | (3.31) | |||
| Potential Upside | 4.6 | |||
| Downside Variance | 3.94 | |||
| Semi Variance | 3.23 | |||
| Expected Short fall | (2.28) | |||
| Skewness | 1.11 | |||
| Kurtosis | 3.45 |
Consider Sonic Automotive's intraday indicators
Sonic Automotive intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Sonic Automotive stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Sonic Automotive Corporate Filings
F4 | 31st of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 24th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 8th of August 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
| 15th of March 2024 Other Reports | ViewVerify |
Sonic Stock media impact
Far too much social signal, news, headlines, and media speculation about Sonic Automotive that are available to investors today. That information is available publicly through Sonic media outlets and privately through word of mouth or via Sonic internal channels. However, regardless of the origin, that massive amount of Sonic data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Sonic Automotive news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Sonic Automotive relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Sonic Automotive's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Sonic Automotive alpha.
Sonic Automotive Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Sonic Automotive can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Sonic Automotive Corporate Directors
| Keri Kaiser | Independent Director | Profile | |
| William Brooks | Director | Profile | |
| Victor Doolan | Independent Director | Profile | |
| Robert Heller | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sonic Automotive. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For more detail on how to invest in Sonic Stock please use our How to Invest in Sonic Automotive guide.You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sonic Automotive. If investors know Sonic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sonic Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.109 | Dividend Share 1.2 | Earnings Share 5.64 | Revenue Per Share 409.817 | Quarterly Revenue Growth (0.04) |
The market value of Sonic Automotive is measured differently than its book value, which is the value of Sonic that is recorded on the company's balance sheet. Investors also form their own opinion of Sonic Automotive's value that differs from its market value or its book value, called intrinsic value, which is Sonic Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sonic Automotive's market value can be influenced by many factors that don't directly affect Sonic Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Sonic Automotive's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Sonic Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sonic Automotive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.