Sonic Stock Analysis (NASDAQ:SONC)

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$25.2 $0.2 (0.79%) SONC stock closing price Jan 23, 2017 (Closing)
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Sonic
Updated on : Jan 23, 2017
previous close
SONC 25.2 (0%)
S&P 500 2265.2 (0%)
Closing Price On: Jan 23, 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:
5.4%
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:
1.87%
PROS      CONS
Operating Margins
Net Margins
ROIC
FCF Margin
Recent Growth
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SONC PS :
2
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
19.5%
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.
  • 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.

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