Sonic Automotive Stock Buy Hold or Sell Recommendation
| SAH Stock | USD 66.57 3.37 5.33% |
Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding Sonic Automotive is 'Buy'. The recommendation algorithm takes into account all of Sonic Automotive's available fundamental, technical, and predictive indicators you will find on this site.
Check out Sonic Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Sonic Stock please use our How to Invest in Sonic Automotive guide. In addition, we conduct extensive research on individual companies such as Sonic and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards 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.
Sonic |
Execute Sonic Automotive Buy or Sell Advice
The Sonic recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Sonic Automotive. Macroaxis does not own or have any residual interests in Sonic Automotive or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Sonic Automotive's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Insignificant | 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 | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Sonic Automotive Trading Alerts and Improvement Suggestions
| 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 1-Year High Time to Buy |
Sonic Automotive Returns Distribution Density
The distribution of Sonic Automotive's historical returns is an attempt to chart the uncertainty of Sonic Automotive's future price movements. The chart of the probability distribution of Sonic Automotive daily returns describes the distribution of returns around its average expected value. We use Sonic Automotive price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Sonic Automotive returns is essential to provide solid investment advice for Sonic Automotive.
| Mean Return | 0.20 | Value At Risk | -3.31 | Potential Upside | 4.62 | Standard Deviation | 2.55 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Sonic Automotive historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Sonic Stock Institutional Investors
| 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 Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (78.5M) | 278.1M | 252.4M | 81.4M | (375.2M) | (356.4M) | |
| Change In Cash | 23.2M | 141.2M | 129.1M | (70.2M) | (200.3M) | (190.3M) | |
| Free Cash Flow | 45.3M | 153.9M | 8.1M | 179M | (219.3M) | (208.3M) | |
| Depreciation | 90.0M | 87.6M | 93.8M | 113.9M | 124.2M | 130.4M | |
| Other Non Cash Items | (45.1M) | 266.4M | 15.8M | 316.3M | 68M | 70.9M | |
| Capital Expenditures | 125.6M | 127.2M | 298.2M | 227.1M | 203.6M | 149.3M | |
| Net Income | 144.1M | (51.4M) | 348.9M | 88.5M | 178.2M | 187.1M | |
| End Period Cash Flow | 29.1M | 170.3M | 299.4M | 229.2M | 28.9M | 27.5M | |
| Dividends Paid | 15.5M | 17.1M | 18.3M | 34.5M | 40M | 21.2M | |
| Net Borrowings | 67.4M | 10.3M | 1.1B | 185.4M | 213.2M | 169.2M | |
| Change To Netincome | 26.8M | 332.5M | (42.6M) | 317.6M | 365.2M | 383.5M | |
| Investments | 136.8M | (100.2M) | (1.3B) | (299.7M) | (195M) | (204.8M) |
Sonic Automotive Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Sonic Automotive or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Sonic Automotive's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Sonic stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.09 | |
β | Beta against Dow Jones | 2.33 | |
σ | Overall volatility | 2.53 | |
Ir | Information ratio | 0.03 |
Sonic Automotive Volatility Alert
Sonic Automotive has relatively low volatility with skewness of 1.11 and kurtosis of 3.44. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sonic Automotive's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sonic Automotive's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Sonic Automotive Fundamentals Vs Peers
Comparing Sonic Automotive's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Sonic Automotive's direct or indirect competition across all of the common fundamentals between Sonic Automotive and the related equities. This way, we can detect undervalued stocks with similar characteristics as Sonic Automotive or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Sonic Automotive's fundamental indicators could also be used in its relative valuation, which is a method of valuing Sonic Automotive by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Sonic Automotive to competition |
| Fundamentals | Sonic Automotive | Peer Average |
| Return On Equity | 0.21 | -0.31 |
| Return On Asset | 0.0531 | -0.14 |
| Profit Margin | 0.01 % | (1.27) % |
| Operating Margin | 0.03 % | (5.51) % |
| Current Valuation | 6.35 B | 16.62 B |
| Shares Outstanding | 22.16 M | 571.82 M |
| Shares Owned By Insiders | 33.33 % | 10.09 % |
| Shares Owned By Institutions | 71.74 % | 39.21 % |
| Number Of Shares Shorted | 1.43 M | 4.71 M |
| Price To Earning | 11.02 X | 28.72 X |
| Price To Book | 2.24 X | 9.51 X |
| Price To Sales | 0.16 X | 11.42 X |
| Revenue | 14.37 B | 9.43 B |
| Gross Profit | 2.32 B | 27.38 B |
| EBITDA | 565 M | 3.9 B |
| Net Income | 178.2 M | 570.98 M |
| Cash And Equivalents | 229.2 M | 2.7 B |
| Cash Per Share | 4.68 X | 5.01 X |
| Total Debt | 3.86 B | 5.32 B |
| Debt To Equity | 2.80 % | 48.70 % |
| Current Ratio | 1.02 X | 2.16 X |
| Book Value Per Share | 29.69 X | 1.93 K |
| Cash Flow From Operations | (15.7 M) | 971.22 M |
| Short Ratio | 8.79 X | 4.00 X |
| Earnings Per Share | 5.64 X | 3.12 X |
| Price To Earnings To Growth | 0.65 X | 4.89 X |
| Target Price | 67.56 | |
| Number Of Employees | 10.5 K | 18.84 K |
| Beta | 1.62 | -0.15 |
| Market Capitalization | 2.28 B | 19.03 B |
| Total Asset | 5.36 B | 29.47 B |
| Retained Earnings | 1.24 B | 9.33 B |
| Working Capital | 227.5 M | 1.48 B |
Note: Disposition of 1094 shares by David Smith of Sonic Automotive subject to Rule 16b-3 [view details]
Sonic Automotive Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Sonic . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Sonic Automotive Buy or Sell Advice
When is the right time to buy or sell Sonic Automotive? Buying financial instruments such as Sonic Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Companies providing marketing and public relation (PR) services as well as news and media distribution. The Marketing theme has 43 constituents at this time.
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Check out Sonic Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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.
Please note, there is a significant difference between Sonic Automotive's value and its price as these two are different measures arrived at by different 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.