Sonic Automotive Stock Buy Hold or Sell Recommendation
SAH Stock | USD 51.12 0.22 0.43% |
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 52.51 | Target Price 52.67 | Hype Value 51.11 | Market Value 51.12 | Naive Value 52.99 |
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.
Sonic |
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
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
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 | |
On 15th of April 2024 Sonic Automotive paid $ 0.3 per share dividend to its current shareholders | |
Latest headline from zacks.com: Earnings Preview Penske Automotive Q1 Earnings Expected to Decline |
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 | -0.01 | Value At Risk | -3.42 | Potential Upside | 3.72 | Standard Deviation | 2.15 |
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 | Charles Schwab Investment Management Inc | 2023-12-31 | 378.3 K | Geode Capital Management, Llc | 2023-12-31 | 318.3 K | Northern Trust Corp | 2023-12-31 | 304.9 K | Jacobs Levy Equity Management, Inc. | 2023-09-30 | 301.5 K | Bank Of New York Mellon Corp | 2023-12-31 | 267.3 K | Cooper Creek Partners Management Llc | 2023-12-31 | 257.6 K | Nuveen Asset Management, Llc | 2023-12-31 | 164.2 K | Citadel Advisors Llc | 2023-09-30 | 163.5 K | State Of Wisconsin Investment Board | 2023-12-31 | 159.6 K | Blackrock Inc | 2023-12-31 | 2.5 M | Dimensional Fund Advisors, Inc. | 2023-12-31 | 1.9 M |
Sonic Automotive Cash Flow Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Change To Inventory | (78.5M) | 278.1M | 252.4M | 81.4M | (375.2M) | (356.4M) | |
Change In Cash | 23.2M | 141.2M | 129.1M | (70.2M) | (200.3M) | (190.3M) | |
Free Cash Flow | 45.3M | 153.9M | 8.1M | 179M | (256.5M) | (243.7M) | |
Depreciation | 90.0M | 87.6M | 93.8M | 113.9M | 142.3M | 149.4M | |
Other Non Cash Items | (45.1M) | 266.4M | 15.8M | 316.3M | 49.9M | 70.2M | |
Capital Expenditures | 125.6M | 127.2M | 298.2M | 227.1M | 203.6M | 149.3M | |
Net Income | 144.1M | (51.4M) | 348.9M | 88.5M | 178.2M | 187.1M | |
End Period Cash Flow | 29.1M | 170.3M | 299.4M | 229.2M | 28.9M | 27.5M | |
Dividends Paid | 15.5M | 17.1M | 18.3M | 34.5M | 40M | 21.2M | |
Net Borrowings | 67.4M | 10.3M | 1.1B | 185.4M | 213.2M | 169.2M | |
Change To Netincome | 26.8M | 332.5M | (42.6M) | 317.6M | 365.2M | 383.5M | |
Investments | 136.8M | (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 | -0.17 | |
β | Beta against NYSE Composite | 1.91 | |
σ | Overall volatility | 2.13 | |
Ir | Information ratio | -0.05 |
Sonic Automotive Volatility Alert
Sonic Automotive exhibits very low volatility with skewness of 0.17 and kurtosis of -0.51. 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 |
Fundamentals | Sonic Automotive | Peer Average |
Return On Equity | 0.2 | -0.31 |
Return On Asset | 0.0616 | -0.14 |
Profit Margin | 0.01 % | (1.27) % |
Operating Margin | 0.03 % | (5.51) % |
Current Valuation | 5.23 B | 16.62 B |
Shares Outstanding | 22.07 M | 571.82 M |
Shares Owned By Insiders | 33.51 % | 10.09 % |
Shares Owned By Institutions | 74.00 % | 39.21 % |
Number Of Shares Shorted | 2.19 M | 4.71 M |
Price To Earning | 11.02 X | 28.72 X |
Price To Book | 1.91 X | 9.51 X |
Price To Sales | 0.12 X | 11.42 X |
Revenue | 14.37 B | 9.43 B |
Gross Profit | 2.32 B | 27.38 B |
EBITDA | 665.9 M | 3.9 B |
Net Income | 178.2 M | 570.98 M |
Cash And Equivalents | 229.2 M | 2.7 B |
Cash Per Share | 4.68 X | 5.01 X |
Total Debt | 3.86 B | 5.32 B |
Debt To Equity | 2.80 % | 48.70 % |
Current Ratio | 1.02 X | 2.16 X |
Book Value Per Share | 26.26 X | 1.93 K |
Cash Flow From Operations | (52.9 M) | 971.22 M |
Short Ratio | 10.37 X | 4.00 X |
Earnings Per Share | 4.97 X | 3.12 X |
Price To Earnings To Growth | 0.42 X | 4.89 X |
Target Price | 53.83 | |
Number Of Employees | 10.5 K | 18.84 K |
Beta | 1.78 | -0.15 |
Market Capitalization | 1.74 B | 19.03 B |
Total Asset | 5.36 B | 29.47 B |
Retained Earnings | 1.24 B | 9.33 B |
Working Capital | 227.5 M | 1.48 B |
Note: Disposition of 100 shares by Heath Byrd of Sonic Automotive at 16.76 subject to Rule 16b-3 [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 Total | 3.3B | 3.5B | 3.9B | 2.0B | Total Assets | 5.0B | 5.0B | 5.4B | 3.1B |
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.Did You Try This Idea?
Run Compulsion Thematic Idea Now
Compulsion
Companies involved in research, development, and manufacturing of products with compulsion characteristics such as cigarettes, addictive drugs and alcohol. The Compulsion theme has 40 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 Compulsion Theme or any other thematic opportunities.
View All Next | Launch |
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 Correlations module to find global opportunities by holding instruments from different markets.
Complementary Tools for Sonic Stock analysis
When running Sonic Automotive's price analysis, check to measure Sonic Automotive's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sonic Automotive is operating at the current time. Most of Sonic Automotive's value examination focuses on studying past and present price action to predict the probability of Sonic Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sonic Automotive's price. Additionally, you may evaluate how the addition of Sonic Automotive to your portfolios can decrease your overall portfolio volatility.
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |
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.