Sonic Automotive, Inc.
- Open
- 100.92
- Day high
- 104.30
- Day low
- 100.92
- Prev close
- 99.74
- Volume
- 262K
- Mkt cap
- $3.2B
- P/E (TTM)
- 31.9
- EPS (TTM)
- $3.22
- P/B
- 3.3
- P/S
- 0.2
- Yield
- 1.51%
- Per share
- $1.55
- ▼Insiders net selling -$9.2M over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions mixed (13F)
Sonic Automotive, Inc. (SAH) is a Consumer Cyclical company listed on NYSE. The stock is up 35% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4).
Sonic Automotive, Inc. (SAH) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SAH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $1.46 | $1.62 | +11.0% | $3.7B | -1.1% |
| Feb 18, 2026 | $1.53 | $1.52 | -0.7% | $3.9B | +2.3% |
| Oct 23, 2025 | $1.82 | $1.41 | -22.5% | $4.0B | +0.8% |
| Jul 24, 2025 | $1.63 | $2.19 | +34.4% | $3.7B | +2.2% |
| Apr 24, 2025 | $1.46 | $1.48 | +1.4% | $3.7B | +0.1% |
| Feb 12, 2025 | $1.46 | $1.51 | +3.4% | $3.9B | +7.9% |
| Oct 24, 2024 | $1.42 | $1.26 | -11.3% | $3.5B | -2.8% |
| Apr 25, 2024 | $1.30 | $1.36 | +4.6% | $3.4B | -2.3% |
| Feb 14, 2024 | $1.80 | $1.63 | -9.4% | $3.6B | -1.0% |
| Oct 26, 2023 | $1.79 | $2.02 | +12.8% | $3.6B | +2.6% |
| Jul 27, 2023 | $1.63 | $1.83 | +12.3% | $3.7B | +1.4% |
| Apr 27, 2023 | $1.86 | $1.33 | -28.5% | $3.5B | -1.8% |
SAH insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 10, 2026 | DYKE JEFFdirector, officer: President | Sell | 35,114 | $85.22 |
| Jun 10, 2026 | DYKE JEFFdirector, officer: President | Sell | 14,886 | $85.13 |
| Jun 8, 2026 | DYKE JEFFdirector, officer: President | Sell | 50,000 | $82.97 |
| Jun 1, 2026 | Byrd Heathofficer: EVP and CFO | Sell | 9,526 | $85.00 |
| May 6, 2026 | Byrd Heathofficer: EVP and CFO | Grant | 26,183 | — |
| May 6, 2026 | SMITH DAVID BRUTONdirector, 10 percent owner, officer: Chairman and CEO | Grant | 69,872 | — |
| May 6, 2026 | DYKE JEFFdirector, officer: President | Grant | 38,175 | — |
| May 1, 2026 | SMITH BRYAN SCOTTdirector, 10 percent owner: | Grant | 4,373 | — |
| Apr 30, 2026 | BELK WILLIAM Idirector | Grant | 2,843 | — |
| Apr 30, 2026 | BROOKS WILLIAM Rdirector | Grant | 2,916 | — |
| Apr 30, 2026 | Kaiser Keri Adirector | Grant | 3,061 | — |
| Apr 30, 2026 | SMITH MARCUS Gdirector, 10 percent owner: | Grant | 4,373 | — |
| Apr 30, 2026 | Hodge Michael Edwarddirector | Grant | 3,608 | — |
| Apr 30, 2026 | TAYLOR R EUGENEdirector | Grant | 2,843 | — |
| Apr 2, 2026 | Byrd Heathofficer: EVP and CFO | Option | 5,872 | — |
Source: SAH SEC Form 4 filings, latest Jun 10, 2026. For informational purposes only — not investment advice.
See the full SAH insider & 13F page →Sonic Automotive, Inc. company profile
Overview
Sonic Automotive, Inc. (NYSE:SAH) is a major automotive retailer that has operated in the United States since its incorporation in 1997. The company went public the same year and is headquartered in Charlotte, North Carolina. Sonic has grown from a regional dealership operator into one of the largest automotive retail companies in the country, operating across multiple states through its network of franchised dealerships, used car specialty stores, and collision repair centers. The company has strategically positioned itself in the automotive retail ecosystem through both traditional new vehicle franchises and innovative used car retail concepts.
Business
Sonic Automotive operates as a comprehensive automotive retailer across three main business segments. The automotive dealership industry serves as an intermediary between vehicle manufacturers and consumers, providing sales, financing, and service functions that manufacturers typically do not handle directly. The Franchised Dealerships segment represents the company's core business, generating approximately 87% of total revenues. This segment operates 140 new vehicle franchises representing 28 different automotive brands across 17 states. These dealerships sell new and used vehicles, provide maintenance and repair services, offer manufacturer warranty work, and arrange financing and insurance products for customers. The dealerships also operate 17 collision repair centers. This traditional dealership model benefits from exclusive territorial rights granted by manufacturers and generates revenue through multiple touchpoints with customers throughout the vehicle ownership lifecycle. The EchoPark segment accounts for roughly 13% of revenues and represents Sonic's expansion into the used vehicle specialty retail market. EchoPark operates 46 standalone used car stores across 16 states, focusing exclusively on pre-owned vehicles typically 1-5 years old. This segment also arranges financing and insurance products but operates independently from manufacturer franchise agreements, allowing for greater flexibility in inventory sourcing and pricing strategies. The PowerSports segment is the company's newest division, launched to diversify into recreational vehicle sales including motorcycles, ATVs, and other powersports equipment. This segment currently generates minimal revenue but represents a strategic expansion into adjacent automotive retail markets.
Revenue model
Sonic Automotive generates revenue through multiple complementary streams within the automotive retail ecosystem. The primary revenue model centers on product sales of new and used vehicles, where the company earns gross profit margins on each unit sold. New vehicle sales typically generate lower per-unit margins (around $3,000 gross profit per unit) but benefit from manufacturer incentives and higher transaction volumes. The company also operates a significant service-based revenue model through its fixed operations departments, which provide ongoing maintenance, warranty repairs, and collision services. This creates recurring revenue streams that are less cyclical than vehicle sales. Additionally, Sonic earns commission and fee income by arranging third-party financing, insurance, extended warranties, and other aftermarket products for customers. Several factors influence Sonic's profit margins. Manufacturer incentive programs and vehicle allocation policies directly impact new vehicle profitability, while interest rate environments affect both consumer demand and the company's floor plan financing costs. Used vehicle wholesale prices significantly impact both trade-in values and EchoPark's inventory costs. The company faces margin pressure from electric vehicle inventory, which currently creates approximately $400-440 headwind per unit due to slower turnover and pricing challenges. Technician availability represents both a constraint and opportunity, as skilled service technicians are essential for the high-margin fixed operations business. The company has invested heavily in technician hiring, adding 335 net technicians in 2024 with expectations of generating $100 million in annualized fixed operations gross profit from this expansion. Digital disruption and direct-to-consumer sales models from manufacturers pose long-term competitive pressures, though franchise laws currently provide some protection.
Competitive moat
Sonic Automotive's competitive moat is moderately strong but faces evolving challenges. The company's primary moat stems from its exclusive franchise agreements with automotive manufacturers, which provide territorial protection and limit direct competition within specific geographic markets. These franchise rights create barriers to entry and ensure a steady flow of new vehicle inventory and manufacturer support. The company's scale advantages provide operational leverage in areas such as advertising, training, and purchasing power with lenders and insurance providers. Sonic's diversified brand portfolio across luxury and mainstream segments offers some protection against individual manufacturer performance fluctuations. The fixed operations business creates customer stickiness through ongoing service relationships that extend well beyond the initial vehicle purchase. However, this moat faces significant disruption risks. Manufacturer consolidation and direct-sales initiatives could potentially bypass traditional dealership models, particularly as electric vehicle adoption accelerates. Tesla's direct-sales success demonstrates the vulnerability of the traditional franchise system. Digital platforms and online vehicle sales are increasingly capturing market share, though regulatory protection through franchise laws provides some buffer. The EchoPark concept represents an attempt to build a moat in the used vehicle market through operational efficiency and customer experience, but this segment faces intense competition from both traditional dealers and new digital platforms like Carvana and Vroom. The used car market lacks the regulatory protection of new vehicle franchises, making it more susceptible to disruption and margin compression.
Risks & safety
Sonic Automotive presents moderate financial risk with some concerning leverage metrics but adequate liquidity management. • Debt and Solvency: Debt-to-equity ratio of 3.89x represents high leverage typical for the automotive retail industry. Current ratio of 1.09x provides minimal working capital cushion. However, $834 million in available liquidity and $418 million in combined cash and floor plan deposits provide adequate short-term flexibility. • Cash Flow: Free cash flow turned positive at $150.8 million in Q1 2025 after negative $78.1 million for full year 2024, indicating improving cash generation. Operating cash flow of $195.8 million in Q1 2025 shows strong operational performance. • Valuation Metrics: Trading at 6.8x P/E ratio and 8.0x EV/EBITDA suggests reasonable valuation relative to earnings. Price-to-book ratio of 1.77x appears reasonable for a capital-intensive retail business. • Other Considerations: Floor plan financing creates seasonal working capital swings typical for auto dealers. High fixed cost structure creates operating leverage that amplifies both positive and negative earnings cycles.
Recent development
Over the past few years, Sonic Automotive has executed several strategic pivots to adapt to changing automotive retail dynamics. The company has significantly expanded its technician workforce, adding 335 net technicians in 2024 alone as part of a strategy to capitalize on the high-margin fixed operations business. This initiative targets $100 million in annualized gross profit from expanded service capacity. EchoPark has undergone major operational restructuring to achieve profitability. The company paused store expansion, closed underperforming Northwest Motorsport locations, and refined its inventory management strategy. EchoPark achieved record quarterly adjusted EBITDA of $10.3 million in Q1 2025, marking a significant turnaround from previous losses. The segment now focuses on inventory optimization and plans to resume selective store expansion in 2026. The company has actively pursued acquisition opportunities, particularly targeting luxury and import dealership franchises across multiple markets from California to Texas. This strategy aims to enhance the portfolio mix toward higher-margin brands that may be more resilient to electric vehicle disruption. Digital and operational efficiency initiatives have been implemented to improve customer experience and operational leverage. The company has also launched its PowerSports segment to diversify beyond traditional automotive retail, though this remains a small portion of overall business. Management has taken a cautious approach to capital allocation, maintaining conservative balance sheet management while continuing to return capital to shareholders through dividends and selective share repurchases. The company has expressed particular caution regarding electric vehicle inventory management due to slower turnover and pricing challenges.
SAH company profile · for informational purposes only — not investment advice.
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