Sonic Stock Analysis (NASDAQ:SONC)

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$23 $0.1 (0.43%) SONC stock closing price Mar 24, 2017 (Closing)
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Sonic
Updated on : Mar 24, 2017
previous close
SONC 23 (0%)
S&P 500 2344 (0%)
Closing Price On: Mar 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Food and Restaurants
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
1.6%
Operating Profit
Operating Margin:
21.8%
Sector Average:
7.3%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$19.2M
Net Income:
$13.1M
Dividend Yield
SONC dividend yield:
2.04%
PROS      CONS
Operating Margins
Net Margins
ROIC
FCF Margin
Recent Growth
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SONC PS :
1.8
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
19.6%
Free Cash Flow Margin:
11.7%
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Sonic Analysis Video

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View Sonic stock analysis video. This is our SONC analyst opinion covering the buy and sell arguments for SONC stock.

Sonic Corporation Stock Rating (3.3/5)

Our Sonic stock opinion is based on fundamentals of the company. This Sonic stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy SONC stock?

  • Sonic had a healthy average operating margin of 21.8% over the last 4 quarters.
  • LTM Net margins were good at 11% for Sonic.
  • Sonic has an attractive ROIC (Return on Invested Capital) of 19.6%
  • The company has a good Free Cash Flow (FCF) margin of 11.7%.

Should you sell SONC stock?

  • Sonic revenue saw a decline of -11.1% YoY in 2017 Q1.
  • Revenue growth of 1.6% has been weak over the last 5 years.
  • The company is trading at a price to sales multiple of 1.8, which is overvalued in comparison to the Retail-Food and Restaurants industry average multiple of 0.7.

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