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 (3/5)
Our Sonic stock opinion is based on fundamentals of the company. This Sonic stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy SONC stock?
- Sonic's average operating margin of 23.1% was exceptional.
- LTM Net margins were good at 11.6% for Sonic.
- Sonic has an attractive ROIC (Return on Invested Capital) of 20%
- The company has a healthy free cash flow margin of 11.6%.
Should you sell SONC stock?
- Sonic sales declined by -24.8% year on year in 2017 Q2.
- Long term revenue growth of 0.4% over the past 5 years has been disappointing.
- The company is trading at a price to sales multiple of 2, which is higher in comparison to the Retail-Food and Restaurants industry average of 0.7, making SONC stock expensive.