Demystifying Sonic Automotive: Insights From 6 Analyst Reviews

In the latest quarter, 6 analysts provided ratings for Sonic Automotive SAH, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $85.5, a high estimate of $100.00, and a low estimate of $74.00. Witnessing a positive shift, the current average has risen by 6.88% from the previous average price target of $80.00.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Sonic Automotive's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sonic Automotive. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sonic Automotive compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Sonic Automotive's stock. This analysis reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Sonic Automotive's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Sonic Automotive analyst ratings.

About Sonic Automotive

Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 108 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 18 EchoPark used-vehicle stores, 16 collision centers, and 15 powersports locations. The franchise stores derive revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 86% of franchise new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 59% of new-vehicle revenue. BMW is the largest brand at about 25%. 2024's revenue was $14.2 billion, with Texas and California comprising 51% of the total. EchoPark's portion was $2.1 billion.

Sonic Automotive: A Financial Overview

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Sonic Automotive displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 8.68%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Sonic Automotive's net margin is impressive, surpassing industry averages. With a net margin of 1.5%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Sonic Automotive's ROE excels beyond industry benchmarks, reaching 5.64%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Sonic Automotive's ROA stands out, surpassing industry averages. With an impressive ROA of 1.01%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Sonic Automotive's debt-to-equity ratio is below the industry average. With a ratio of 3.89, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.