Sonic Stock Analysis (NASDAQ:SONC)
Sonic Analysis Video
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.
- Net margins came in at average 11% for Sonic over the last twelve months.
- Sonic generates a high return on invested capital of 19.5%.
- 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.
- Long term revenue growth of over the past 5 years has been disappointing.
- The company is trading at a price to sales multiple of 2, which is overvalued in comparison to the Retail-Food and Restaurants industry average multiple of 0.7.