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/SAH
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Sonic Automotive Inc

Sonic Automotive Inc

SAH
$75.90USD↓-0.81%-0.62 today

MARKET CAP

2.4B

P/E (TTM)

22.4x

FWD P/E

—

DAY RANGE

$76 – $78

52W RANGE

$54
$114

AI Summary

Stalk
StalkMedium

SAH is trading in a down-sloping channel and sits at critical support near the 200-day SMA with a developing double bottom suggesting bearish momentum exhaustion. Oversold conditions and attractive valuation support a medium-term bullish reversal bias, but price remains below declining short-term EMAs and needs a clear reclaim and acceptance to validate a turn. The long-term uptrend via the rising 200-day SMA remains intact, though cash flow concerns and a prior support failure pattern pose risks. Patience is warranted: wait for pullbacks into the low-70s support zone to be absorbed before engaging.

  • ↑Q2 revenue of $3.9B (+8% YoY) reflects operational resilience.
  • ↑Echo Park retail used volume +17% YoY, boosting low-cost sales.
  • ↓New vehicle gross profit per unit fell 11% YoY, pressuring margins.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Sonic Automotive, Inc. (NYSE: SAH) is a major player in the U.S. automotive retail sector, primarily operating franchised dealerships and its growing Echo Park division, which focuses on used vehicle sales. With a multi-segment platform that includes new and used automotive sales, fixed operations, and financial services, Sonic is well-positioned to adapt to changing market dynamics and consumer preferences amidst the ongoing trends influencing the automotive industry, such as rising vehicle prices and increasing electric vehicle adoption.

Bull says

  • ↑Q2 revenue of $3.9B (+8% YoY) reflects operational resilience.
  • ↑Echo Park retail used volume +17% YoY, boosting low-cost sales.
  • ↑F&I gross profit per unit reached a record $2,721.
  • ↑Returned $0.41/share dividend, repurchased $6.82M; liquidity stands at $676M.
  • ↑Off-street vehicles now 42% of sales, improving inventory margins.
  • ↑Strong earnings yield and solid liquidity underpin attractive risk/reward.

Bear says

  • ↓New vehicle gross profit per unit fell 11% YoY, pressuring margins.
  • ↓Negative growth and profitability factors suggest underlying performance risks.
  • ↓13F ownership down and major sell-side downgrades signal skepticism.
  • ↓Tariff uncertainty and higher rates threaten pricing power and demand.
  • ↓Inventory sourcing tightening raises execution risk amid market volatility.
  • ↓Weak earnings revisions and margin headwinds risk a value trap.

Investment themes with SAH

Hi Short Interest↑ +1.03%

Stocks with high short interest ratios

BYND · PLTR · COIN

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-04-2026neutral

Transcript signals

Bull points

  • adjusted EPS for the Second Quarter was $2.19 per share, which was a 49% increase year over year.
  • we generated Second Quarter record franchise revenues of $3.1 billion, up 6% year over year on a same store basis, this revenue growth was driven by a 5% increase in same store new retail volume, and a 10% increase in same store fixed operations revenues.
  • We believe this continued strength in customer pay revenues is attributable to the increase in technician headcount we achieved in 2024 and our efforts to not only retain these technicians, but to continue to grow our technician capacity in 2025.

Bear points

  • reported GAAP EPS was a loss of $1.34 per share.
  • same store used volume decreased 4% year over year, driven by lower supply of late-model used vehicles and ongoing consumer affordability challenges.
  • Despite this uncertainty, our team remains focused on near-term execution and adapting to ongoing changes in the automotive retail environment and macroeconomic backdrop while making strategic decisions to maximize long-term results.
Read full transcript analysis ›