Sonic Automotive Stock Buy Hold or Sell Recommendation

SAH Stock  USD 56.90  0.71  1.26%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Sonic Automotive is 'Strong Hold'. Macroaxis provides Sonic Automotive buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding SAH positions. The advice algorithm takes into account all of Sonic Automotive's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Sonic Automotive's buy or sell advice are summarized below:
Real Value
54.22
Target Price
52.67
Hype Value
56.92
Market Value
56.9
Naive Value
57.73
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Sonic Automotive given historical horizon and risk tolerance towards Sonic Automotive. When Macroaxis issues a 'buy' or 'sell' recommendation for Sonic Automotive, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Sonic Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in Sonic Stock please use our How to Invest in Sonic Automotive guide.
In addition, we conduct extensive research on individual companies such as Sonic and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Sonic Automotive. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Execute Sonic Automotive Buy or Sell Advice

The Sonic recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Sonic Automotive. Macroaxis does not own or have any residual interests in Sonic Automotive or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Sonic Automotive's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Sonic AutomotiveBuy Sonic Automotive
Strong Hold

Market Performance

WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very SmallDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Sonic Automotive has a Risk Adjusted Performance of 0.0134, Jensen Alpha of (0.23), Total Risk Alpha of (0.48), Sortino Ratio of (0.05) and Treynor Ratio of 0.0068
Our recommendation module provides unbiased trade recommendation that can be used to complement current average analyst sentiment on Sonic Automotive. Our recommendation engine provides an advice for the company potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure Sonic Automotive is not overpriced, please validate all Sonic Automotive fundamentals, including its debt to equity, number of employees, and the relationship between the net income and short ratio . Given that Sonic Automotive has a price to book of 2.07 X, we advise you to double-check Sonic Automotive market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Sonic Automotive Trading Alerts and Improvement Suggestions

Sonic Automotive is unlikely to experience financial distress in the next 2 years
Sonic Automotive has about 229.2 M in cash with (52.9 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.68.
Roughly 74.0% of the company shares are owned by institutional investors
Latest headline from news.google.com: Moving Average Crossover Alert Sonic Automotive - Yahoo Movies Canada

Sonic Automotive Returns Distribution Density

The distribution of Sonic Automotive's historical returns is an attempt to chart the uncertainty of Sonic Automotive's future price movements. The chart of the probability distribution of Sonic Automotive daily returns describes the distribution of returns around its average expected value. We use Sonic Automotive price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Sonic Automotive returns is essential to provide solid investment advice for Sonic Automotive.
Mean Return
0.02
Value At Risk
-3.88
Potential Upside
3.72
Standard Deviation
2.18
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Sonic Automotive historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Sonic Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Sonic Automotive is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Sonic Automotive backward and forwards among themselves. Sonic Automotive's institutional investor refers to the entity that pools money to purchase Sonic Automotive's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Northern Trust Corp2023-09-30
311.8 K
Jacobs Levy Equity Management, Inc.2023-09-30
301.5 K
Bank Of New York Mellon Corp2023-09-30
267.5 K
Morgan Stanley - Brokerage Accounts2023-09-30
216.3 K
Bridgeway Capital Management, Llc2023-09-30
190.3 K
Nuveen Asset Management, Llc2023-09-30
178.5 K
Citadel Advisors Llc2023-09-30
163.5 K
State Of Wisconsin Investment Board2023-09-30
163.4 K
Teewinot Capital Advisers Llc2023-09-30
137.7 K
Blackrock Inc2023-09-30
2.5 M
Dimensional Fund Advisors, Inc.2023-12-31
1.9 M
Note, although Sonic Automotive's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Sonic Automotive Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(78.5M)278.1M252.4M81.4M(375.2M)(356.4M)
Change In Cash23.2M141.2M129.1M(70.2M)(200.3M)(190.3M)
Free Cash Flow45.3M153.9M8.1M179M(256.5M)(243.7M)
Depreciation90.0M87.6M93.8M113.9M142.3M149.4M
Other Non Cash Items(45.1M)266.4M15.8M316.3M49.9M70.2M
Capital Expenditures125.6M127.2M298.2M227.1M203.6M149.3M
Net Income144.1M(51.4M)348.9M88.5M178.2M187.1M
End Period Cash Flow29.1M170.3M299.4M229.2M28.9M27.5M
Dividends Paid15.5M17.1M18.3M34.5M(40M)(38M)
Net Borrowings67.4M10.3M1.1B185.4M213.2M169.2M
Change To Netincome26.8M332.5M(42.6M)317.6M365.2M383.5M
Investments136.8M(100.2M)(1.3B)(299.7M)(195M)(204.8M)

Sonic Automotive Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Sonic Automotive or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Sonic Automotive's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Sonic stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.23
β
Beta against NYSE Composite1.94
σ
Overall volatility
2.22
Ir
Information ratio -0.05

Sonic Automotive Volatility Alert

Sonic Automotive currently demonstrates below-average downside deviation. It has Information Ratio of -0.05 and Jensen Alpha of -0.23. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sonic Automotive's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sonic Automotive's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Sonic Automotive Fundamentals Vs Peers

Comparing Sonic Automotive's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Sonic Automotive's direct or indirect competition across all of the common fundamentals between Sonic Automotive and the related equities. This way, we can detect undervalued stocks with similar characteristics as Sonic Automotive or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Sonic Automotive's fundamental indicators could also be used in its relative valuation, which is a method of valuing Sonic Automotive by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Sonic Automotive to competition
FundamentalsSonic AutomotivePeer Average
Return On Equity0.2-0.31
Return On Asset0.0616-0.14
Profit Margin0.01 %(1.27) %
Operating Margin0.03 %(5.51) %
Current Valuation5.68 B16.62 B
Shares Outstanding22.07 M571.82 M
Shares Owned By Insiders33.56 %10.09 %
Shares Owned By Institutions74.08 %39.21 %
Number Of Shares Shorted2.36 M4.71 M
Price To Earning11.02 X28.72 X
Price To Book2.07 X9.51 X
Price To Sales0.13 X11.42 X
Revenue14.37 B9.43 B
Gross Profit2.32 B27.38 B
EBITDA665.9 M3.9 B
Net Income178.2 M570.98 M
Cash And Equivalents229.2 M2.7 B
Cash Per Share4.68 X5.01 X
Total Debt3.86 B5.32 B
Debt To Equity2.80 %48.70 %
Current Ratio1.02 X2.16 X
Book Value Per Share26.26 X1.93 K
Cash Flow From Operations(52.9 M)971.22 M
Short Ratio8.85 X4.00 X
Earnings Per Share4.97 X3.12 X
Price To Earnings To Growth0.46 X4.89 X
Target Price53.83
Number Of Employees10.5 K18.84 K
Beta1.83-0.15
Market Capitalization1.85 B19.03 B
Total Asset5.36 B29.47 B
Retained Earnings1.24 B9.33 B
Working Capital227.5 M1.48 B
Note: Purchase by Smith O Bruton of 17421 shares of Sonic Automotive [view details]

Sonic Automotive Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Sonic . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Sonic Automotive Buy or Sell Advice

When is the right time to buy or sell Sonic Automotive? Buying financial instruments such as Sonic Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total3.3B3.5B3.9B2.0B
Total Assets5.0B5.0B5.4B3.1B

Use Investing Ideas to Build Portfolios

In addition to having Sonic Automotive in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Large Growth Funds Thematic Idea Now

Large Growth Funds
Large Growth Funds Theme
Funds or Etfs that invest in stocks of large-sized companies with above-average risk and growth rate. The Large Growth Funds theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Large Growth Funds Theme or any other thematic opportunities.
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When determining whether Sonic Automotive offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sonic Automotive's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sonic Automotive Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sonic Automotive Stock:
Check out Sonic Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in Sonic Stock please use our How to Invest in Sonic Automotive guide.
Note that the Sonic Automotive information on this page should be used as a complementary analysis to other Sonic Automotive's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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Is Sonic Automotive's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sonic Automotive. If investors know Sonic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sonic Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.14)
Dividend Share
1.16
Earnings Share
4.97
Revenue Per Share
410.64
Quarterly Revenue Growth
(0)
The market value of Sonic Automotive is measured differently than its book value, which is the value of Sonic that is recorded on the company's balance sheet. Investors also form their own opinion of Sonic Automotive's value that differs from its market value or its book value, called intrinsic value, which is Sonic Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sonic Automotive's market value can be influenced by many factors that don't directly affect Sonic Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sonic Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sonic Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sonic Automotive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.