Diversified Resilience | Sonic Automotive's multi-faceted business model spans new and used vehicle sales, financing, service, and parts, providing stability amid market fluctuations |
Earnings Normalization | Explore the company's transition through post-COVID market conditions, with analysts projecting negative year-over-year earnings in the short term |
Market Adaptation | Delve into Sonic's strategy to navigate industry shifts, including rising used car demand and increased service needs as consumers retain vehicles longe |
Analyst Perspectives | Average price target of $61, reflecting a balanced view on Sonic's risk-reward profile amidst ongoing market challenges and potential growth opportunities |
Sonic Automotive, Inc. operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests. The EchoPark segment sells used cars and light trucks; and arranges finance and insurance product sales for its guests in pre-owned vehicle specialty retail locations. The Powersports Segment sells new and used powersports vehicles, such as motorcycles, and personal watercraft and all-terrain vehicles; and offers finance and insurance services. The company was incorporated in 1997 and is based in Charlotte, North Carolina.
Metrics to compare | SAH | Sector Sector - Average of metrics from a broad group of related Consumer Cyclicals sector companies | Relationship RelationshipSAHPeersSector | |
---|---|---|---|---|
P/E Ratio | 10.0x | 0.0x | 10.4x | |
PEG Ratio | 0.02 | 0.55 | 0.02 | |
Price/Book | 1.9x | 0.8x | 1.4x | |
Price / LTM Sales | 0.1x | 0.1x | 0.9x | |
Upside (Analyst Target) | 12.9% | 13.2% | 23.5% | |
Fair Value Upside | Unlock | 7.0% | 8.5% | Unlock |