Sonic Automotive, Inc. (SAH)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Sonic Automotive, Inc. (SAH) trades at $83.73 with AI Score 62/100 (Grade B+). Sonic Automotive, Inc. is a leading automotive retailer in the United States, operating through franchised dealerships and EchoPark pre-owned vehicle stores. Market cap: $2.84B, Sector: Consumer cyclical.
Price live · AI analysis from May 9, 2026SAH stock analysis for 2026: Analysts have set a consensus price target of $67.67 for Sonic Automotive, Inc., suggesting 19.2% downside from the current price of $83.73. The AI MoonshotScore is 62/100, indicating a bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
SAH: 1/1 perspectives are bullish.
How is this calculated? →Sonic Automotive, Inc. (SAH) Consumer Business Overview
Sonic Automotive, Inc. (SAH) is a Fortune 500 company operating franchised and EchoPark dealerships across the US, offering new and used vehicles, parts, maintenance, and financing. With a focus on customer experience and a diverse brand portfolio, SAH navigates the evolving automotive retail landscape.
What Is the Investment Thesis for SAH?
Sonic Automotive presents a mixed investment thesis. The company's diverse revenue streams, spanning new and used vehicle sales, service, and financing, provide resilience against market fluctuations. The EchoPark segment represents a growth opportunity in the pre-owned vehicle market. However, the company's high debt-to-equity ratio of 395.85 and a low profit margin of 0.7% raise concerns about financial leverage and profitability. The company's beta of 0.83 suggests lower volatility compared to the market. Investors should closely monitor SAH's ability to improve profitability and manage its debt effectively. Upcoming expansion of EchoPark stores could be a catalyst for growth, while potential economic downturns pose a risk to sales volumes.
Based on FMP financials and quantitative analysis
SAH Key Highlights
- Operates 140 new vehicle franchises representing 28 brands of cars and light trucks as of December 31, 2021.
- Operates 46 EchoPark stores in 16 states as of December 31, 2021, focusing on pre-owned vehicle sales.
- Debt-to-equity ratio of 395.85 indicates significant financial leverage.
- Profit margin of 0.7% reflects relatively low profitability.
- Beta of 0.83 suggests lower volatility compared to the overall market.
Who Are SAH's Competitors?
SAH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CAKE The Cheesecake Factory Incorporated | $76.97 | -2.80% | $3.82B | 70 |
| CARG CarGurus, Inc. | $35.95 | -0.80% | $3.47B | 68 |
| CANG Cango Inc. | $0.23 | +7.45% | $89.65M | 62 |
| ACVA ACV Auctions Inc. | $7.43 | +1.85% | $1.30B | 60 |
| CZOO Cazoo Group Ltd | $6.04 | +0.17% | $29.54M | 56 |
| SDA SunCar Technology Group Inc. | $0.90 | +10.46% | 92M | 53 |
| ALTB Alpine Auto Brokers Inc. | $9.00 | +0.00% | $8.96B | 53 |
| CVNA Carvana Co. | $70.38 | +2.59% | $77.20B | 52 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SAH's Key Strengths?
- Established network of franchised dealerships.
- Growing EchoPark segment focused on used vehicles.
- Comprehensive range of automotive services.
- Strong relationships with vehicle manufacturers.
What Are SAH's Weaknesses?
- High debt-to-equity ratio.
- Low profit margin.
- Dependence on economic conditions.
- Exposure to manufacturer recalls and warranty issues.
What Could Drive SAH Stock Higher?
- Expansion of EchoPark stores into new markets, driving revenue growth in the pre-owned vehicle segment.
- Implementation of digital sales platforms to enhance customer experience and online sales.
- Potential strategic acquisitions to expand geographic footprint and brand portfolio.
- Focus on increasing finance and insurance product sales to boost profitability.
What Are the Key Risks for SAH?
- Economic downturns impacting consumer spending and vehicle demand.
- Increased competition from online car retailers and other dealership groups.
- Changes in manufacturer incentives and policies affecting profitability.
- Rising interest rates impacting vehicle financing and affordability.
What Are the Growth Opportunities for SAH?
- Expansion of EchoPark Segment: Sonic Automotive has the opportunity to expand its EchoPark segment, focusing on the pre-owned vehicle market. The used car market is substantial, and EchoPark's specialized retail locations could attract a growing customer base. Further expansion into new geographic markets and increased brand awareness could drive significant revenue growth. The used car market is estimated to be worth hundreds of billions of dollars annually, offering a substantial growth runway for EchoPark.
- Increased Focus on Aftermarket Services: Sonic Automotive can enhance its revenue streams by focusing on aftermarket services, including vehicle maintenance, repair, and parts sales. As vehicles age, the demand for these services increases, providing a stable source of revenue. Expanding service offerings and improving customer retention could drive growth in this segment. The automotive aftermarket services market is a multi-billion dollar industry, offering significant potential for Sonic Automotive.
- Digitalization of Sales Process: Investing in digital platforms and online sales channels can enhance the customer experience and expand Sonic Automotive's reach. Online car sales are gaining traction, and a seamless digital experience can attract tech-savvy customers. Improving online inventory management, virtual tours, and online financing options can drive sales growth. The online car sales market is rapidly growing, representing a significant opportunity for Sonic Automotive.
- Strategic Acquisitions: Sonic Automotive can pursue strategic acquisitions to expand its geographic footprint and brand portfolio. Acquiring smaller dealerships or regional chains can provide access to new markets and customers. Integrating acquired businesses effectively can drive synergies and improve overall profitability. The automotive retail industry is fragmented, offering opportunities for consolidation through strategic acquisitions.
- Enhancing Finance and Insurance Product Sales: Sonic Automotive can increase its revenue by focusing on finance and insurance (F&I) product sales. Offering a range of financing options and insurance products can enhance the customer experience and drive profitability. Training sales staff to effectively present these products and building relationships with lenders and insurance providers can boost F&I revenue. F&I products represent a significant profit center for automotive retailers, offering substantial growth potential.
What Opportunities Does SAH Have?
- Expansion of EchoPark segment.
- Increased focus on aftermarket services.
- Digitalization of sales process.
- Strategic acquisitions.
What Threats Does SAH Face?
- Economic downturns affecting consumer spending.
- Increased competition from online car retailers.
- Changes in manufacturer incentives and policies.
- Rising interest rates impacting vehicle financing.
What Are SAH's Competitive Advantages?
- Established network of franchised dealerships and EchoPark stores.
- Strong relationships with vehicle manufacturers.
- Comprehensive range of automotive services.
- Brand recognition and customer loyalty.
What Does SAH Do?
Sonic Automotive, Inc., incorporated in 1997 and headquartered in Charlotte, North Carolina, has grown into one of the largest automotive retailers in the United States. The company operates through two primary segments: Franchised Dealerships and EchoPark. The Franchised Dealerships segment focuses on the sale of new and used cars and light trucks, providing replacement parts, vehicle maintenance, warranty repairs, and paint and collision repair services. This segment also arranges extended warranties, service contracts, financing, insurance, and other aftermarket products. Sonic Automotive represents 28 brands of cars and light trucks through its 140 new vehicle franchises. The EchoPark segment specializes in the sale of used cars and light trucks, offering finance and insurance products in pre-owned vehicle specialty retail locations. As of December 31, 2021, EchoPark operated 46 stores across 16 states, including 11 Northwest Motorsport pre-owned vehicle stores. Sonic Automotive's business model emphasizes customer satisfaction and a comprehensive range of automotive services, positioning it as a key player in the automotive retail sector.
What Products and Services Does SAH Offer?
- Sells new and used cars and light trucks through franchised dealerships.
- Operates EchoPark stores specializing in pre-owned vehicle sales.
- Provides vehicle maintenance and repair services.
- Sells replacement parts for vehicles.
- Arranges financing and insurance products for customers.
- Offers paint and collision repair services.
- Sells extended warranties and service contracts.
How Does SAH Make Money?
- Generates revenue from the sale of new and used vehicles.
- Earns revenue from vehicle maintenance and repair services.
- Receives commissions from arranging financing and insurance products.
- Sells replacement parts and aftermarket products.
What Industry Does SAH Operate In?
Sonic Automotive operates within the competitive automotive retail industry, which is influenced by factors such as consumer spending, interest rates, and manufacturer incentives. The industry is undergoing a transformation with the rise of electric vehicles and online car sales platforms. Sonic Automotive's EchoPark segment positions it to capitalize on the growing demand for used vehicles. The company faces competition from other large dealership groups and online retailers. The overall automotive retail market is expected to grow moderately, driven by increasing vehicle demand and technological advancements.
Who Are SAH's Key Customers?
- Individual consumers seeking to purchase new or used vehicles.
- Customers requiring vehicle maintenance and repair services.
- Businesses purchasing vehicles for commercial use.
- Customers seeking financing and insurance products for their vehicles.
Sonic Automotive, Inc. (SAH) Valuation Context
Valued at $2.84B, SAH is classified as a mid-cap stock. Relative to its peer group, SAH's quantitative score of 62/100 is roughly in line with the peer average of 63/100.
ROE 11%Key Financial Metrics
Return on equity for Sonic Automotive, Inc. stands at 10.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.8%, showing how much profit it generates from its asset base. SAH trades at a trailing price-to-earnings ratio of 26.12, below the Consumer Cyclical sector average of ~39x. Its free cash flow yield is 9.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.03 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.9%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 7/9Financial Health
Sonic Automotive, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.37 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project Sonic Automotive, Inc. revenue of about $15.57B for fiscal 2026, with EPS near $6.90. The estimate reflects 8 contributing analysts.
SAH Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying indicates confidence in Sonic Automotive's future performance, suggesting insiders believe the stock is undervalued.
- Positive community sentiment has emerged around the company's expansion plans, with many investors optimistic about its growth trajectory.
- Sonic's strategic focus on electric vehicle sales aligns well with market trends, appealing to environmentally conscious consumers.
- The automotive retail sector shows signs of recovery, and Sonic's diversified dealership network positions it well to capitalize on this rebound.
Bear Case
- Concerns about rising interest rates could impact consumer financing options, potentially slowing vehicle sales for Sonic Automotive.
- Some community members express skepticism about the company's ability to maintain margins amid increasing competition in the automotive market.
- Recent supply chain challenges have raised doubts about the availability of vehicles, which could hinder sales growth in the near term.
- Market sentiment remains cautious, with some investors worried about economic uncertainties that may affect consumer spending on big-ticket items like cars.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
SAH Latest News
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Sonic Automotive Insider Sold Shares Worth $430,185, According to a Recent SEC Filing
MT Newswires · Jun 3, 2026
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Why Sonic Automotive (SAH) is a Top Value Stock for the Long-Term
zacks.com · Jun 2, 2026
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Here's Why Sonic Automotive (SAH) is a Strong Growth Stock
zacks.com · May 29, 2026
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UBS Initiates Coverage On Sonic Automotive with Buy Rating, Announces Price Target of $90
benzinga · May 27, 2026
SAH Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SAH.
Price Targets
Consensus target: $67.67
SAH MoonshotScore
What does this score mean?
The MoonshotScore rates SAH's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Sonic Automotive Insider Sold Shares Worth $430,185, According to a Recent SEC Filing
Why Sonic Automotive (SAH) is a Top Value Stock for the Long-Term
Here's Why Sonic Automotive (SAH) is a Strong Growth Stock
UBS Initiates Coverage On Sonic Automotive with Buy Rating, Announces Price Target of $90
Latest Sonic Automotive, Inc. Analysis
Leadership: David Bruton Smith
CEO
David Bruton Smith serves as the CEO of Sonic Automotive, Inc. His career within the automotive industry spans several decades, providing him with deep insights into retail operations, market dynamics, and customer preferences. He has been instrumental in shaping Sonic Automotive's strategic direction, focusing on growth initiatives and operational efficiency. His leadership emphasizes innovation and customer-centric approaches to drive long-term value. He manages a workforce of approximately 10,800 employees.
Track Record: Under David Bruton Smith's leadership, Sonic Automotive has expanded its EchoPark segment and enhanced its digital capabilities. He has overseen strategic acquisitions and initiatives aimed at improving profitability and customer satisfaction. His focus on operational excellence has contributed to the company's growth and market position. He has navigated the company through economic cycles and industry shifts, maintaining a focus on long-term value creation.
Common Questions About SAH (Consumer Cyclical)
What does Sonic Automotive, Inc. do?
Sonic Automotive, Inc. operates as an automotive retailer in the United States, with two main segments: Franchised Dealerships and EchoPark. The Franchised Dealerships segment sells new and used cars and light trucks, provides maintenance and repair services, and arranges financing and insurance. The EchoPark segment focuses on selling used cars and light trucks through specialty retail locations. Sonic Automotive aims to provide a comprehensive automotive retail experience, catering to a wide range of customer needs.
What do analysts say about SAH stock?
Analyst consensus on Sonic Automotive (SAH) stock is mixed, reflecting the company's growth opportunities and financial challenges. Key valuation metrics, such as price-to-earnings ratio and enterprise value-to-EBITDA, are closely monitored. Growth considerations include the expansion of the EchoPark segment and the company's ability to improve profitability. Analysts also consider the impact of economic conditions and industry trends on SAH's performance. Analyst ratings and price targets vary, reflecting different perspectives on the company's outlook.
What are the main risks for SAH?
The main risks for Sonic Automotive include economic downturns affecting consumer spending on vehicles, increased competition from online car retailers, and changes in manufacturer incentives and policies. Rising interest rates can also impact vehicle financing and affordability, potentially reducing sales volumes. The company's high debt-to-equity ratio poses a financial risk, and any operational challenges or supply chain disruptions could affect profitability. Effective risk management is crucial for Sonic Automotive to navigate these challenges.
What are the key factors to evaluate for SAH?
Sonic Automotive, Inc. (SAH) holds an AI score of 62/100 (moderate). P/E: 26.1x vs the S&P 500's ~20-25x. Analysts target $67.67 (-19%). Not financial advice.
How frequently does SAH data refresh on this page?
SAH prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven SAH's recent stock price performance?
Sonic Automotive, Inc. (SAH) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established network of franchised dealerships. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SAH overvalued or undervalued right now?
Sonic Automotive, Inc. (SAH) trades at 26.1x earnings. Analysts target $67.67 (-19%) — downside risk seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying SAH?
Before investing in Sonic Automotive, Inc. (SAH), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data as of December 31, 2021. Market conditions and company performance may have changed since then.