What 5 Analyst Ratings Have To Say About Sonic Automotive

In the latest quarter, 5 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 $74.4, a high estimate of $93.00, and a low estimate of $64.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 18.24%.

Breaking Down Analyst Ratings: A Detailed Examination

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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Sonic Automotive. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Sonic Automotive compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Sonic Automotive's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Sonic Automotive's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Sonic Automotive analyst ratings.

Unveiling the Story Behind 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.

Key Indicators: Sonic Automotive's Financial Health

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3M period, Sonic Automotive showcased positive performance, achieving a revenue growth rate of 7.9% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 1.93%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Sonic Automotive's ROE excels beyond industry benchmarks, reaching 6.56%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Sonic Automotive's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.2%, the company showcases efficient use of assets and strong financial health.

Debt Management: Sonic Automotive's debt-to-equity ratio is below the industry average. With a ratio of 3.71, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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