Home Sectors Consumer Cyclical Stock Highlights: Sonic Automotive (NYSE: SAH)

Stock Highlights: Sonic Automotive (NYSE: SAH)

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Sonic Automotive trades as part of the consumer cyclical sector and is in the autos industry. The company CEO is David Bruton Smith. Sonic Automotive Inc is an auto dealership group based in the US with more than 100 stores spread across the country. The company deals in the addition of new- and used-vehicle. It provides parts and collision repair, and wholesale auctions services.

Previous Intraday Trading Performance:

The SAH stock showed a previous change of -0.13% with an open at 23.52 and a close of 23.38. It reached an intraday high of 23.72 and a low of 23.06.

SeekingAlpha:  Sonic Automotive Has Cracked The Code To Profits For Dividend Growth Investors

Liquidity:

The stock has a market cap of $1.0b with 43.1m shares outstanding, of which the float is 34.3m shares. Trading volume reached 206,893 shares compared to its average volume of 270,503 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Sonic Automotive shares returned 8.50% and in the past 30 trading days it returned 19.67%. Over three months, it changed 64.43%. In one year it has changed 5.43% and within that year its 52-week high was 24.05 and its 52-week low was 12.78. SAH stock is 82.94% above its 52 Week Low.

Our calculations show a 200 day moving average of 17.03 and a 50 day moving average of 18.56. Currently SAH stock is trading 37.31% above its 200 day moving average.

SeekingAlpha:  Sonic Automotive Has Cracked The Code To Profits For Dividend Growth Investors

Earnings:

The last annual fiscal EPS for the company was reported at 1.2 that ended on 31st of December 2018, which according to the previous close, that is a PE of 19.48. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.19. The TTM EPS is 1.80, which comes to a TTM PE of 12.99. Historically, the PE high was 19.48 and the PE low was 6.10. If the stock reached its PE low, that would represent a price of 10.98, which is a decrease of -53.04%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/25/2019): 0.98
4thQtr of 2018 (Reported on 02/20/2019): 0.51
3rdQtr of 2018 (Reported on 10/25/2018): 0.35
2ndQtr of 2018 (Reported on 07/27/2018): 0.39
1stQtr of 2018 (Reported on 04/26/2018): -0.05

The dividend per share is currently 0.40, which is a dividend yield of 1.71%. Also, the payout ratio is 22.22%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 11.49, which means it may be overvalued by -103.47%.

Indicators to Watch:

Short-interest was 3,883,966, which was 9.02% of shares outstanding. The short-interest ratio or days-to-cover ratio was 17.44. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 1.82.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.37%, return on assets is 2.53%, profit margin is 1.00%, price-to-sales is 0.10 and price-to-book is 1.19.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 1  :Past Performance Score
 3  :Financial Strength Score
 0  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.