Sonic Automotive Stock Analysis, Valuation (NYSE:SAH)

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$21.1 $0.25 (1.2%) SAH stock closing price Aug 15, 2018 (Closing)

Take a look at Amigobulls Sonic Automotive stock analysis video. This is our analyst opinion covering the buy and sell arguments for SAH stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Sonic Automotive Inc Stock Rating 2.1/5

Amigobulls SAH stock analysis relies on business fundamentals such as Sonic Automotive revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for Sonic Automotive valuation analysis. Sonic Automotive stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy SAH stock?

  • SAH stock is trading at an earnings multiple of 11.3 which is better than the sector average of 21.4.
  • SAH stock is trading at a favorable price to sales multiple of 0.1 as against the Retail-Wholesale sector average multiple of 0.8.

Should you sell SAH stock?

  • Long term revenue growth of 3.2 over the past 5 years has been disappointing.
  • Sonic Automotive had a poor average operating margin of 2.02 over the last 4 quarters.
  • Sonic Automotive's LTM Net margins were poor at 1%.

Comments on this video and Sonic Automotive stock

Investors can use Amigobulls Sonic Automotive stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Sonic Automotive revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about SAH stock.