📊 SAH Key Takeaways
Is Sonic Automotive Inc. (SAH) a Good Investment?
Sonic Automotive demonstrates concerning profitability deterioration with net income declining 45% YoY despite 6.5% revenue growth, signaling operational margin compression in a capital-intensive retail environment. While the company maintains strong cash generation ($417.5M FCF) and excellent debt coverage, tightening liquidity (1.09x current ratio, $6.3M cash) combined with high leverage (1.51x D/E) and razor-thin net margins (0.8%) create material near-term financial stress.
Why Buy Sonic Automotive Inc. Stock? SAH Key Strengths
- Positive revenue growth at 6.5% YoY in competitive automotive retail sector
- Strong operating cash flow generation ($567.4M) with healthy FCF conversion (2.8% FCF margin)
- Excellent interest coverage ratio (735x) eliminates debt service distress concerns
SAH Stock Risks: Sonic Automotive Inc. Investment Risks
- Dramatic 45% YoY net income collapse despite revenue growth indicates severe margin compression and operational deterioration
- Critical liquidity weakness with only $6.3M cash against $6B assets and 0.32x quick ratio creating refinancing vulnerability
- High financial leverage (1.51x D/E) combined with collapsing profitability and thin margins (0.8% net) reduces financial flexibility
Key Metrics to Watch
- Gross margin and operating margin trends to identify whether margin compression continues or stabilizes
- Operating cash flow sustainability and cash balance recovery given current liquidity constraints
- Debt/Equity trajectory and near-term debt maturity schedule relative to refinancing capacity
Sonic Automotive Inc. (SAH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.8% FCF margin may limit capital allocation flexibility.
SAH Profit Margin, ROE & Profitability Analysis
SAH vs Automotive Sector: How Sonic Automotive Inc. Compares
How Sonic Automotive Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sonic Automotive Inc. Stock Overvalued? SAH Valuation Analysis 2026
Based on fundamental analysis, Sonic Automotive Inc. shows some fundamental concerns relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sonic Automotive Inc. Balance Sheet: SAH Debt, Cash & Liquidity
SAH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sonic Automotive Inc.'s revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.97 reflects profitable operations.
SAH Revenue Growth, EPS Growth & YoY Performance
SAH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.5B | $46.8M | $1.33 |
| Q2 2025 | $3.5B | $25.0M | $0.72 |
| Q1 2025 | $3.4B | $42.0M | $1.20 |
| Q3 2024 | $3.5B | $68.4M | $1.92 |
| Q2 2024 | $3.5B | $23.4M | $0.65 |
| Q1 2024 | $3.4B | $42.0M | $1.20 |
| Q3 2023 | $3.4B | $68.4M | $1.92 |
| Q2 2023 | $3.5B | $23.4M | $0.65 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sonic Automotive Inc. Dividends, Buybacks & Capital Allocation
SAH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sonic Automotive Inc. (CIK: 0001043509)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SAH
What is the AI rating for SAH?
Sonic Automotive Inc. (SAH) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SAH's key strengths?
Claude: Positive revenue growth at 6.5% YoY in competitive automotive retail sector. Strong operating cash flow generation ($567.4M) with healthy FCF conversion (2.8% FCF margin).
What are the risks of investing in SAH?
Claude: Dramatic 45% YoY net income collapse despite revenue growth indicates severe margin compression and operational deterioration. Critical liquidity weakness with only $6.3M cash against $6B assets and 0.32x quick ratio creating refinancing vulnerability.
What is SAH's revenue and growth?
Sonic Automotive Inc. reported revenue of $15.2B.
Does SAH pay dividends?
Sonic Automotive Inc. pays dividends, with $-48.8M distributed to shareholders in the trailing twelve months.
Where can I find SAH SEC filings?
Official SEC filings for Sonic Automotive Inc. (CIK: 0001043509) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SAH's EPS?
Sonic Automotive Inc. has a diluted EPS of $3.42.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SAH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sonic Automotive Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SAH stock overvalued or undervalued?
Valuation metrics for SAH: ROE of 11.1% (sector avg: 12%), net margin of 0.8% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy SAH stock in 2026?
Our dual AI analysis gives Sonic Automotive Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SAH's free cash flow?
Sonic Automotive Inc.'s operating cash flow is $567.4M, with capital expenditures of $149.9M. FCF margin is 2.8%.
How does SAH compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 0.8% (avg: 6%), ROE 11.1% (avg: 12%), current ratio 1.09 (avg: 1.2).
Is Sonic Automotive Inc. carrying too much debt?
SAH has a debt-to-equity ratio of 1.51x, which is above the Automotive sector average of 1x. However, the current ratio of 1.09 suggests adequate short-term liquidity.