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Sonic Automotive, Inc.
$2.6B
Market Cap
18.1
P/E
0.80
PEG
4.8%
ROCE
11.1%
ROE
3.86
D/E
2.4%
OPM
-30.7%
% from 52W High
33
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for SAH including FX impact
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About

Sonic Automotive, Inc., together with its subsidiaries, operates as an automotive retailer in the United States.

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📈 Growth Pattern
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⭐ Superinvestors Holding SAH
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 88.1K $6.0M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Sonic Automotive Q1 2026: Record revenues $3.7B, gross profit $598.8M, adjusted EPS $1.62.
Revenue & Profitability
Q1 2026 total revenues of $3.7 billion were up 1% year-over-year. Total gross profit of $598.8 million increased 6%. Reported GAAP EPS was $1.79; adjusted EPS was $1.62, a 9% increase year-over-year. Franchised segment revenues were flat at $3.1 billion. EchoPark revenues rose 4% to $581 million, with adjusted segment income of $12.6 million (up 25%) and adjusted EBITDA of $18.6 million (up 18%). Powersports revenues grew 19% to a record $41 million.
Outlook
Management notes that new car pricing exceeded $60,000 on a same-store basis in Q1, an all-time high, driving affordability issues that benefit the used car market. Tariff uncertainties on vehicle production, pricing, and consumer demand remain key considerations. The full year 2026 outlook incorporates these uncertainties, but management expects continued growth in used vehicle sales and fixed operations. April trends are showing better-than-normal pre-owned margins.
Growth Drivers
Growth levers include EchoPark store openings beginning in late 2026, primarily in Florida and Texas, funded by brand marketing investments. The Powersports segment is growing through acquisitions (five Harley-Davidson dealerships) and a focus on used vehicle sales, with used volume up 56% year-over-year in Q1. Fixed operations growth is driven by technician hiring and a value service program, aiming for over $100 million in monthly gross profit. The company also benefits from OEM pull-aheads on BEV leases.
Balance Sheet & CapEx
The company plans to increase advertising expenses by $10 million to $20 million in 2026, with the majority in the second half, to support EchoPark brand awareness. New EchoPark store costs are expected to be lower than historical builds, aiding faster profitability. An AI team is beginning to analyze fixed operations processes for efficiency gains. No specific CapEx guidance was provided.
Margins
Fixed operations and F&I combined contributed over 75% of total gross profit, with F&I GPU reaching a record $2,670 per unit (up 9% year-over-year). Same-store new vehicle GPU was $3,002 (down 4%), while reported new GPU was $3,144 (up 2%). EchoPark achieved a record total GPU of $3,502 per unit (up 3%), driven by non-auction sourcing. EchoPark's SG&A as a percent of gross was below 70%. Efficiency is supported by sales associates averaging over 30 units per month.
Key Risks
Key risks include the impact of tariffs on vehicle production, pricing, and consumer demand, as well as affordability concerns for new vehicles, especially entry-level luxury models. Analysts raised the risk of narrowing wholesale-retail spreads in the used car market, though management believes non-auction sourcing provides insulation. Weather's impact is not considered by management. Warranty challenges, particularly in the Honda brand, were noted as a potential headwind.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (4 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (4)
Q2 2026 Q2 2026 2026-07-30
Record Q2 revenues and gross profit were driven by strong used vehicle and Powersports growth, with EchoPark outpacing industry trends. Affordability challenges and tariff impacts pressured new vehicle margins, but robust F&I and fixed operations provided stability. Liquidity remains strong, supporting expansion and shareholder returns.
Q1 2026 Q1 2026 2026-04-30
Record Q1 revenue and gross profit were driven by strong EchoPark and Powersports growth, high-margin fixed operations, and robust capital returns. Guidance remains confident despite tariff and margin risks, with continued investment in brand and expansion.
Q4 2025 Q4 2025 2026-02-18
Record annual revenues and gross profit were achieved, with strong growth in Adjusted EPS and EBITDA. EchoPark delivered record profitability despite lower sales, and significant investments in brand and technology are planned to drive future growth. Tariffs, OEM pricing, and affordability remain key risks.
Q2 2025 Q2 2025 2025-07-24
Adjusted EPS surged 49% year over year, with record revenues and strong F&I and fixed ops driving profitability. EchoPark and Powersports segments set new records, while strategic acquisitions and cost reductions position the company for continued growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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