📊 SAH Key Takeaways
Is Sonic Automotive Inc. (SAH) a Good Investment?
Sonic Automotive faces severe operational deterioration with net income down 45% YoY despite 6.5% revenue growth, indicating dangerous margin compression and cost pressures. Critical liquidity constraints (5.7M cash, 0.29x quick ratio) combined with 1.76x debt-to-equity leverage and negative free cash flow present substantial financial distress risk.
Sonic Automotive Inc. Key Strengths (SAH)
- Revenue growth of 6.5% YoY demonstrates ongoing market demand in automotive retail
- Strong interest coverage ratio of 265.4x indicates current debt servicing capacity
- Gross margin of 16.2% is reasonable for competitive retail automotive sector
SAH Stock Risks: Sonic Automotive Inc. Investment Risks
- Net income collapsed 45% YoY while revenue grew only 6.5%, signaling severe operating margin compression and potential one-time charges
- Dangerously low liquidity: only 5.7M cash with 1.03x current ratio and 0.29x quick ratio indicate short-term funding stress
- Negative free cash flow of -1.5M combined with 1.76x debt-to-equity ratio creates refinancing and covenant compliance risk
- Microscopic net margin of 1.6% and ROE of 6.2% suggest business is destroying shareholder value
Key Metrics to Watch
- Operating margin trend and net income recovery in next two quarters
- Free cash flow generation and total cash balance trajectory
- Debt covenant compliance and refinancing ability given deteriorating profitability
Sonic Automotive Inc. (SAH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Sonic Automotive Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| Q1 2026 | $3.7B | $60.8M | $1.79 |
| 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 |
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 grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SAH's key strengths?
Claude: Revenue growth of 6.5% YoY demonstrates ongoing market demand in automotive retail. Strong interest coverage ratio of 265.4x indicates current debt servicing capacity.
What are the risks of investing in SAH?
Claude: Net income collapsed 45% YoY while revenue grew only 6.5%, signaling severe operating margin compression and potential one-time charges. Dangerously low liquidity: only 5.7M cash with 1.03x current ratio and 0.29x quick ratio indicate short-term funding stress.
What is SAH's revenue and growth?
Sonic Automotive Inc. reported revenue of $3.7B.
Does SAH pay dividends?
Sonic Automotive Inc. pays dividends, with $12.8M 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 $1.79.
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 grade reflects both perspectives for balanced insights.
What is SAH's fundamental grade?
Based on our AI fundamental analysis in May 2026, Sonic Automotive Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SAH stock overvalued or undervalued?
Valuation metrics for SAH: ROE of 6.2% (sector avg: 12%), net margin of 1.6% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is SAH's AI grade for 2026?
Our dual AI analysis gives Sonic Automotive Inc. a combined C grade 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 $35.5M, with capital expenditures of $37.0M. FCF margin is 0.0%.
How does SAH compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 1.6% (avg: 6%), ROE 6.2% (avg: 12%), current ratio 1.03 (avg: 1.2).
Is Sonic Automotive Inc. carrying too much debt?
SAH has a debt-to-equity ratio of 1.76x, which is above the Automotive sector average of 1x. However, the current ratio of 1.03 suggests adequate short-term liquidity.