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.
- 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.