Sonic Automotive, Inc. (SAH) AI Stock Analysis

Sonic Automotive, Inc. operates as an automotive retailer in the United States through two core segments: Franchised Dealerships and EchoPark. The Franchised Dealerships segment sells new and used cars and light trucks, while providing vehicle maintenance, manufacturer warranty repairs, paint and collision repair, and aftermarket products such as extended warranties, service contracts, financing, and insurance. The EchoPark segment specializes in selling pre-owned vehicles, offering a customer-centric retail experience and facilitating finance and insurance product sales. Headquartered in Charlotte, North Carolina, the company was established in 1997 and employs approximately 11,000 people.

Sonic Automotive grew revenue at a 5-year CAGR of 9.2% from FY2020 to FY2025. Annual revenue expanded from $12.40B in FY2021 to $14.00B in FY2022 and $14.37B in FY2023, before contracting 1.0% to $14.22B in FY2024. In FY2025, revenue rebounded by 6.5% to $15.15B, supported by a 15.7% gross margin and an operating margin of 3.6%, yielding net income of $118.7M and EPS of $6.60. Over the trailing twelve months ending June 30, 2026, revenue stood at $15.47B with an operating margin of 3.4%. In the latest quarter ending June 30, 2026, quarterly revenue grew 7.6% year-over-year, while quarterly earnings declined 12.3%.

As of June 30, 2026, Sonic Automotive held $19.2M in cash and short-term investments against $4.67B in total debt, resulting in net debt of $4.65B. Shareholders' equity was $1.03B, yielding a debt-to-equity ratio of 4.56, while total assets totaled $6.38B and the current ratio was 1.01. Operating cash flow in FY2025 reached $567.4M, funding $149.9M in capital expenditures and generating $417.5M in free cash flow. In FY2025, cash deployment included $82.4M in share buybacks and $48.8M in dividends paid.

Sonic Automotive trades at a trailing P/E of 10.1x and a forward P/E of 8.4x, lower than the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its price-to-sales ratio of 0.1x sits below the peer median of 0.7x, while its EV/EBITDA of 9.9x compares to 11.1x for peers. Over the past year, the stock returned -12.8% against a 16.8% return for the S&P 500 (SPY). Over five years, SAH rose 35.9% compared to 83.0% for SPY.

Sonic Automotive pays a quarterly dividend with an annualized forward payout of $1.64, translating to a dividend yield of 2.58% and a payout ratio of 24.8%. The company has paid dividends for 17 consecutive years, posting a 5-year annualized dividend growth rate of 29.6%. The last ex-dividend date was September 15, 2026.

Wall Street coverage includes 4 Strong Buy, 2 Buy, 4 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target of $87.55 implies a 37.6% upside from the last close of $63.61. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $15.69B and EPS of $6.69, reflecting 1.3% EPS growth. Over the last four quarters, the company beat EPS estimates twice. The next earnings date is October 29, 2026.

This page is an AI-written research summary of Sonic Automotive, Inc. (SAH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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