Latest Ratios: P/E Ratio 9.6x · EV/EBITDA 9.7x · ROE 11.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.1B | $2.1B | $2.2B | $2.0B | $2.0B | $2.1B | $1.6B | $1.4B | $591M | $818M | $1.1B |
| Enterprise Value | $6.3B | $6.4B | $6.3B | $5.9B | $5.2B | $5.2B | $3.9B | $4.0B | $3.1B | $3.4B | $3.5B |
| P/E Ratio → | 9.64 | 18.09 | 10.25 | 11.33 | 22.09 | 6.14 | — | 9.37 | 11.47 | 8.83 | 11.28 |
| P/S Ratio | 0.13 | 0.14 | 0.16 | 0.14 | 0.14 | 0.17 | 0.17 | 0.13 | 0.06 | 0.08 | 0.11 |
| P/B Ratio | 2.00 | 2.01 | 2.09 | 2.26 | 2.19 | 1.99 | 2.01 | 1.43 | 0.72 | 1.04 | 1.45 |
| P/FCF | — | 5.14 | — | — | 10.93 | 264.22 | 10.65 | 29.98 | — | — | 103.81 |
| P/OCF | 3.62 | 3.78 | 20.30 | — | 4.82 | 6.99 | 5.83 | 7.93 | 4.11 | 5.02 | 4.86 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.42 | 0.44 | 0.41 | 0.37 | 0.42 | 0.40 | 0.38 | 0.31 | 0.34 | 0.36 |
| EV / EBITDA | 9.69 | 9.33 | 10.58 | 9.33 | 6.97 | 8.16 | 32.24 | 9.95 | 11.27 | 11.12 | 11.11 |
| EV / EBIT | 11.60 | 17.60 | 13.86 | 13.81 | 16.59 | 9.96 | 124.75 | 13.14 | 17.24 | 17.00 | 15.34 |
| EV / FCF | — | 15.25 | — | — | 29.13 | 637.00 | 25.45 | 87.55 | — | — | 341.13 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.7% | 15.7% | 15.4% | 15.6% | 16.5% | 15.4% | 14.6% | 14.5% | 14.5% | 14.8% | 14.7% |
| Operating Margin | 3.6% | 3.6% | 3.3% | 3.5% | 4.5% | 4.3% | 0.3% | 2.9% | 1.8% | 2.1% | 2.4% |
| Net Profit Margin | 0.8% | 0.8% | 1.5% | 1.2% | 0.6% | 2.8% | -0.5% | 1.4% | 0.5% | 0.9% | 1.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.1% | 11.1% | 22.1% | 19.9% | 9.0% | 36.9% | -5.8% | 16.3% | 6.4% | 12.3% | 12.8% |
| ROA | 2.0% | 2.0% | 3.8% | 3.4% | 1.8% | 8.0% | -1.3% | 3.7% | 1.4% | 2.5% | 2.6% |
| ROIC | 7.8% | 7.8% | 7.1% | 8.5% | 11.5% | 11.2% | 0.8% | 6.7% | 4.0% | 4.9% | 5.7% |
| ROCE | 16.3% | 16.3% | 14.7% | 16.2% | 20.4% | 21.5% | 1.7% | 16.0% | 9.6% | 11.9% | 13.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.96 | 3.96 | 3.89 | 4.33 | 3.89 | 3.08 | 3.01 | 2.79 | 3.01 | 3.23 | 3.32 |
| Debt / EBITDA | 6.19 | 6.19 | 6.93 | 6.16 | 4.66 | 5.25 | 20.16 | 6.62 | 9.12 | 8.43 | 7.74 |
| Net Debt / Equity | — | 3.95 | 3.85 | 4.30 | 3.64 | 2.81 | 2.80 | 2.75 | 3.00 | 3.22 | 3.32 |
| Net Debt / EBITDA | 6.18 | 6.18 | 6.86 | 6.11 | 4.35 | 4.78 | 18.75 | 6.54 | 9.10 | 8.41 | 7.73 |
| Debt / FCF | — | 10.11 | — | — | 18.20 | 372.78 | 14.81 | 57.57 | — | — | 237.32 |
| Interest Coverage | 1.86 | 1.86 | 2.23 | 2.34 | 2.54 | 8.20 | 0.45 | 2.89 | 1.73 | 2.29 | 3.10 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.09 | 1.09 | 1.09 | 1.10 | 1.20 | 1.10 | 1.03 | 0.98 | 1.02 | 1.03 | 1.05 |
| Quick Ratio | 0.32 | 0.32 | 0.35 | 0.41 | 0.54 | 0.44 | 0.35 | 0.24 | 0.24 | 0.26 | 0.24 |
| Cash Ratio | 0.00 | 0.00 | 0.02 | 0.01 | 0.12 | 0.16 | 0.09 | 0.01 | 0.00 | 0.00 | 0.00 |
| Asset Turnover | — | 2.54 | 2.41 | 2.68 | 2.81 | 2.49 | 2.61 | 2.57 | 2.62 | 2.58 | 2.67 |
| Inventory Turnover | 6.34 | 6.34 | 6.15 | 7.68 | 9.60 | 8.31 | 6.69 | 5.89 | 5.56 | 5.56 | 5.29 |
| Days Sales Outstanding | — | 11.30 | 12.72 | 13.41 | 12.05 | 11.81 | 13.89 | 15.11 | 16.07 | 17.83 | 16.14 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.3% | 1.8% | 2.0% | 1.8% | 0.9% | 1.0% | 1.1% | 1.7% | 1.1% | 0.8% |
| Payout Ratio | 41.1% | 41.1% | 18.9% | 22.4% | 39.0% | 5.2% | — | 10.8% | 19.0% | 9.5% | 9.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.4% | 5.5% | 9.8% | 8.8% | 4.5% | 16.3% | — | 10.7% | 8.7% | 11.3% | 8.9% |
| FCF Yield | — | 19.4% | — | — | 9.2% | 0.4% | 9.4% | 3.3% | — | — | 1.0% |
| Buyback Yield | 4.0% | 3.8% | 1.6% | 8.8% | 13.4% | 4.4% | 4.4% | 0.2% | 4.1% | 4.6% | 9.5% |
| Total Shareholder Yield | 6.3% | 6.1% | 3.4% | 10.8% | 15.2% | 5.2% | 5.4% | 1.3% | 5.7% | 5.6% | 10.3% |
| Shares Outstanding | — | $35M | $35M | $36M | $40M | $43M | $42M | $44M | $43M | $44M | $46M |
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Quick answers to the most common questions about buying SAH stock.
Sonic Automotive, Inc.'s current P/E ratio is 9.6x. The historical average is 12.4x. This places it at the 30th percentile of its historical range.
Sonic Automotive, Inc.'s current EV/EBITDA is 9.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.5x.
Sonic Automotive, Inc.'s return on equity (ROE) is 11.1%. The historical average is 9.4%.
Based on historical data, Sonic Automotive, Inc. is trading at a P/E of 9.6x. This is at the 30th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sonic Automotive, Inc.'s current dividend yield is 2.28% with a payout ratio of 41.1%.
Sonic Automotive, Inc. has 15.7% gross margin and 3.6% operating margin.
Sonic Automotive, Inc.'s Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Leverage with thin liquidity
Metrics are mathematically derived from official filings.
Low Multiples Reflect Cyclical Earnings Skepticism
Based on reported figures, SAH trades at 18.04 trailing P/E but only 9.72 forward P/E, with EV/EBITDA of 8.91, a gap that implies the market expects earnings to recover from recent compression rather than continue declining over the coming year.
The sharp difference between trailing and forward P/E suggests analysts anticipate earnings normalization after a period of depressed net margins near 1.0%. Against peers such as AutoNation at 10.80 P/E and Group 1 at 10.40, SAH screens in line to modestly expensive on trailing earnings yet cheap on forward estimates. Investors should monitor whether the forward earnings assumption holds given the recent net margin trajectory.
Debt Burden Rising Against Stagnant Equity
As reported in financial statements, SAH's debt-to-equity ratio sat at 4.45 in 2026Q3, up from 3.89 a year earlier, while interest coverage fell to 2.05 times, indicating debt service has become less comfortable as earnings buffers have narrowed.
Rising leverage alongside flat equity suggests the balance sheet is expanding through borrowing rather than retained profit, which may constrain flexibility if margins compress further. The decline in interest coverage from above 20 times in 2025 to near 2 times in the latest quarter is a material shift that warrants further investigation into the debt structure and refinancing schedule. Peers such as Penske at 1.58 and Asbury at 1.63 carry materially lower leverage, making SAH an outlier in the group.
Thin Margins Limit Earnings Power
Based on SAH's reported figures, net margin of 1.0% in 2026Q3 and operating margin of 2.8% trail peers such as Penske at 2.9% net and Asbury at 2.7%, while gross margin of 15.5% has held in a narrow band across the period.
Stable gross margins alongside compressing operating margins indicate that SG&A growth is absorbing gross profit gains rather than pricing or mix driving earnings. The gap between operating and net margin suggests interest expense is consuming a significant share of operating income given the elevated leverage. Gross margin alone does not capture true earning power in a dealership model, so investors should focus on operating margin trends.
Current Ratio Below Parity Under Stress
As reported in financial statements, SAH's current ratio of 0.95 and quick ratio of 0.20 in 2026Q3 indicate current liabilities exceed current assets, a position that depends on continued operating inflows and access to credit lines not fully visible in the dataset.
A quick ratio of 0.20 means the company relies heavily on inventory conversion to meet short-term obligations, which may be vulnerable in a sustained sales slowdown. Based on the reported figures, cash of roughly $10.7M provides a very limited buffer against the scale of current liabilities. Under severe stress, inventory liquidation at depressed prices could strain the position, though the actual financing arrangements are not disclosed in the provided data.
Debt-to-Equity Overstates Financial Risk
Bulls would argue that SAH's debt-to-equity of 4.45 is inflated by floor-plan financing that is self-liquidating against vehicle inventory, and that the dataset does not fully disclose lease or floor-plan structure to confirm this.
Dealership debt is often operational rather than structural, so headline leverage ratios may misrepresent true risk if floor-plan borrowings turn over quickly with inventory. The sharp decline in interest coverage could partly reflect rate environment effects rather than a deterioration in underlying operations. This interpretation cannot be confirmed from the supplied data and warrants further investigation into the debt composition.