Stock analysis · Bull Rankings model

SAH analysis

Sonic Automotive, Inc.Auto & Truck Dealerships. Scored on the same transparent model behind the daily rankings.

SAH
Sonic Automotive, Inc. · Auto & Truck Dealerships
FCF$245mC
Rev+5.3%C+
D/E4.56D
P/E12.3xA-
PEG0.81B+
64.6Score
$77.45$2.4B
1Y Target$98.55Analyst consensus · 11 analysts
5Y Target$124.41Compound horizon
10Y Target$159.55Long-dated conviction
FCF$245mTTM
C
FCF $245m — modest; watch for margin expansion
Rev+5.3%TTM YoY
C+
Revenue +5.3% — steady but below market-beating range
D/E4.56
D
D/E 4.56 — most levered decile in Consumer Cyclical (≈95th pctile)
P/E12.3x
A-
P/E 12.3 — cheaper than most Consumer Cyclical peers (≈25th pctile)
PEG0.81
B+
PEG 0.81 — near fair value, classic Lynch benchmark (1.0)

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 64.6
Quality65.4
Growth66.2
Value62.3
Why this score
  • Raising its dividend
Entry · Margin of safety
52-week rangeMid-range
32% off the 12-month high
vs DCF fair value47% belowest. fair value ~$147
What the price assumes: free cash flow compounding at ~-8% a year for the next decade — vs the ~10% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability38% · B+gross profit ÷ total assets (Novy-Marx)
ROIC15.4% · A-return on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Auto & Truck Dealerships · market cap $2.4b. Down 32% from 52-week high of $113.67 — deep drawdown territory. PEG 0.81 — paying under fair value for the growth rate. 11 sell-side analysts rate this a Buy with a mean 1-yr target of $98.55 (implying +27% upside).
Moat
ROE 21% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 115% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
D/E 4.56 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 32% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Net margin 1.4% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $98.55 (11-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $124.41 at ~10% CAGR — dividend + buyback compounding. 10 yr $159.55 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

SAH vs the Top Picks average

PillarSAHBook avgDiff
Quality0.650.84-0.18
Growth0.660.84-0.18
Value0.620.78-0.16

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+3.7 over 45 daily scores
From 60.9 (Jun 22) → 64.6 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+0.5%
90-day change+1.5%
Forward EPS estimate$7.65

Over the last 90 days, what analysts expect SAH to earn is drifting higher (+1.5%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
25
Position size
$1,936
3.9% of portfolio
Stop price
$58.09
25% below $77.45
$ at risk if stopped
$484.06
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Sonic Automotive, Inc. (SAH): score, valuation & FAQ

Sonic Automotive, Inc. (SAH) is a Auto & Truck Dealerships company that scores 64.6 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A-) and PEG (B+), while D/E (D) rate weaker. On valuation, SAH sits about 47% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -8% annual free-cash-flow growth over the next decade.

Is SAH a good stock to buy?

Bull Rankings scores SAH 64.6 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A-) and PEG (B+). A score is a quantitative screen of Sonic Automotive, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does SAH score 64.6 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). SAH earns its highest marks on P/E (A-) and PEG (B+), and is held back by D/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is SAH overvalued or undervalued?

Based on $77.45, SAH sits about 47% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -8% annual free-cash-flow growth over the next decade. It trades at a 12.3x P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in SAH?

D/E 4.56 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 32% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Net margin 1.4% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

More Auto Dealerships stocks by score

All Consumer Cyclical rankings →

Analyze another ticker →