Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Sonic Automotive Inc

SAH · NYSE · Consumer

Fundamental quality

DEMANDING

43

out of 100

Sonic Automotive Inc earns a fundamental-quality score of 43 out of 100, profiling it as a company with demanding fundamentals. Its score rests mainly on its financial strength (net debt 2.59× EBITDA). Its weakest area is its growth (revenue +8.7%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Sonic Automotive is one of America's big dealership groups, with a differentiated bet: EchoPark, its fixed-price used-car chain. Franchised dealerships, used cars at volume and service bays: the sector's full playbook, family edition.

What will shape its future

  • New and used car margins, the whole sector's tide.
  • EchoPark: its used-car bet must prove sustained profitability.
  • Service and financing, every dealership's stable cushion.

Breakdown by area

I.Growth
34

EPS growth: -5.4% · Revenue growth: 8.7%

II.Profitability
46

Net margin: 1.4% · ROE: 20.7% · ROIC: 18.5%

III.Financial health
50

Net debt/EBITDA: 2.59x · FCF: 1.6%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 23%
ROEbeats 59%
Growthbeats 59%
Cash generationbeats 15%
Less debtbeats 28%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Sonic Automotive Inc strengths

  • Strong return on equity (ROE of 20.7%): it puts shareholder capital to good use.
  • It has turned profitable after years of losses.
  • Revenue growing (8.7% annualized).
  • Positive free cash flow year after year, a self-funding business.

Sonic Automotive Inc risks and weaknesses

  • Declining earnings per share (-5.4% annualized).
  • Its net debt has grown over the period.
  • Thin margins (net margin of 1.4%), little cushion for setbacks.

Sonic Automotive Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20209,767-51154550
202112,3963496051,262
202214,001896331,523
202314,3721781881,648
202414,2242162971,544
202515,1541197171,609

Between 2020 and 2025, revenue went from $9,767M to $15,154M (+55%) and net income went from -$51M to $119M (+331%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+4.3%
  • Net income+373.2%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score3443
  • Net margin0.7%1.4%
  • ROE11.1%20.7%
  • FCF margin3.7%1.6%
  • Net debt/EBITDA3.33×2.59×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.24

per share, yearly

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Sonic Automotive Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Sonic Automotive Inc a good company to invest in?

In terms of business quality, Sonic Automotive Inc scores 43 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Sonic Automotive Inc a profitable company?

Sonic Automotive Inc is profitable, with a net margin of 1.4%, though a thin one.

Does Sonic Automotive Inc have a lot of debt?

A moderate level: its net debt is 2.59 times its EBITDA.

Is Sonic Automotive Inc growing?

Its revenue has grown 8.7% annualized in recent years.

Does Sonic Automotive Inc generate cash?

Yes. It converts about 1.6% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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