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Sonic Automotive Inc Class A SAH Stock Quote

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NYSE: SAH

Morningstar‘s Stock Analysis SAH

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Sonic Automotive's Third Quarter Solid and Used Vehicle Improvement Likely Coming in 2023

David Whiston Sector Strategist

Analyst Note

| David Whiston |

Sonic Automotive’s third quarter results looked mostly solid to us and give us no reason to change our fair value estimate. Diluted EPS of $2.23 rose 13.8% year over year and include about a $3 million impact from Hurricane Ian, though Sonic’s Florida stores did not incur severe damage. The EPS did miss the Refinitiv consensus of $2.47 probably due to the hurricane and mostly we think from consensus not able to correctly gauge the impact of expensive used vehicle procurement costs at auction impacting both franchise stores and the EchoPark standalone used vehicle stores. Franchise used vehicle gross profit fell by 9% while EchoPark suffered its sixth straight quarterly pretax loss, this one for $29 million. Total company liquidity seems adequate to us to handle a downturn at $488 million, though $245.2 million of share repurchases this year have lowered that figure from $702.8 million at year end.

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Key Statistics SAH

Company Profile SAH

Business Description

Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 111 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 50 EchoPark and Northwest Motorsport brand used-vehicle stores. In addition to new- and used-vehicle sales, the company derives revenue from parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 88% of new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 60% of new-vehicle revenue. BMW is the largest brand at over 26%. 2021's revenue was $12.4 billion, with EchoPark's portion totaling $2.3 billion. Sonic bought RFJ Auto in December 2021, which added $3.2 billion in sales.

Contact
4401 Colwick Road
Charlotte, NC, 28211
Industry Auto & Truck Dealerships
Employees 10,200

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FAQs for Sonic Automotive Inc Class A Stock

Yes. SAH has a forward dividend yield of 2.21%. See SAH’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

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SAH’s market cap is 1.89 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

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SAH’s stock style is Small Value.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

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SAH’s price/sales is 0.15.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

SAH’s price/forward earnings is 6.09.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

SAH’s price/book is 1.68.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

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SAH’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

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