Sonic Automotive Stock Price and Value Analysis

Should you buy Sonic Automotive stock? (NYSE:SAH). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is solid.
  • This company is making money at a modest rate.
  • This stock looks overpriced.
  • This company has a low dividend yield.
  • This company has wild ups and downs.

Inside the SAH Numbers

SAH Price
(Sonic Automotive stock price per share)
$44.91
[?] SAH Fair Price
(based on intrinsic value)
$25.44
[?] SAH Safety Price (based on a variable margin of safety) $16.54
[?] PE Ratio versus Sector 26% lower than other Consumer Goods stocks
[?] PE Ratio versus Industry 49% lower than other Auto & Truck Dealerships stocks
[?] Cash Yield -1.57%
[?] Free Cash Flow Jitter 331%
[?] Dividend Yield 1%
Shares Shorted 3,512,149

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 3,512,149 shares shorted. With 20,979,158 shares available for purchase and an average trading volume over the past 10 trading days of 372,420, it would take at least 9.431 days for all of the short holders to cover their shorts.

Is Sonic Automotive Stock on Sale?

We believe that Sonic Automotive may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Sonic Automotive looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy SAH Stock?

Does Sonic Automotive have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.