LSV Asset Management Decreases Investment in Sonic Automotive by 9.8% in Q4 2022
May 18, 2023
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In Q4 2022, LSV Asset Management decreased its stake in Sonic Automotive ($NYSE:SAH), Inc. by 9.8%. This decrease in investment is likely due to a variety of factors such as slow economic growth or declining consumer confidence. It is also possible that LSV Asset Management was simply looking to diversify its portfolio and move away from the automotive space. Whatever the underlying reason may be, this decrease in investment could have significant implications for Sonic Automotive’s ability to continue to grow and remain competitive in the industry.
It will be interesting to see how Sonic Automotive responds to this decrease in investment from LSV Asset Management and whether or not it will be able to continue to achieve success in the future. Although this decrease is not indicative of an overall downturn in the automotive industry yet, it could be a sign of tougher times ahead for Sonic Automotive.
Analysis
At GoodWhale, we recently conducted an analysis of SONIC AUTOMOTIVE‘s wellbeing. After evaluating a variety of factors, we concluded that the company is a medium risk investment in terms of financial and business aspects. Our analysis revealed two risk warnings in SONIC AUTOMOTIVE’s income sheet, which were not related to the financial information. If you’re interested in learning more about our findings, please visit our website goodwhale.com and register for more information. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sonic Automotive. More…
| Total Revenues | Net Income | Net Margin |
| 13.91k | 38.9 | 1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sonic Automotive. More…
| Operations | Investing | Financing |
| 406.1 | -299.7 | -176.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sonic Automotive. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.98k | 4.08k | 25.21 |
Key Ratios Snapshot
Some of the financial key ratios for Sonic Automotive are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.3% | 27.1% | 1.9% |
| FCF Margin | ROE | ROA |
| 1.3% | 18.3% | 3.3% |
Peers
The company operates in a highly competitive industry with several large competitors, including Asbury Automotive Group Inc, Lithia Motors Inc, Penske Automotive Group Inc. Sonic Automotive Inc has a strong market position and is well-positioned to compete effectively against its rivals.
– Asbury Automotive Group Inc ($NYSE:ABG)
Asbury Automotive Group Inc is a large publicly traded company that operates in the automotive retailing industry. The company has a market capitalization of 3.9 billion as of 2022 and a return on equity of 31.39%. Asbury Automotive Group Inc is one of the largest automotive retailers in the United States and operates over 100 dealerships across the country. The company sells and services a variety of new and used vehicles, and also provides financing and insurance products to its customers.
– Lithia Motors Inc ($NYSE:LAD)
Lithia Motors Inc is an American automotive retailer. It is the ninth largest automotive retailer in the United States and is publicly traded on the New York Stock Exchange. The company operates through three segments: Domestic, Import, and Luxury. Lithia also has a minority investment in an electric vehicle (EV) company.
Lithia’s market cap is 6.48B as of 2022. The company has a Return on Equity of 26.55%. Lithia Motors Inc is an American automotive retailer. It is the ninth largest automotive retailer in the United States and is publicly traded on the New York Stock Exchange. The company operates through three segments: Domestic, Import, and Luxury. Lithia also has a minority investment in an electric vehicle (EV) company.
– Penske Automotive Group Inc ($NYSE:PAG)
Penske Automotive Group is an American multinational automotive retailing company headquartered in Bloomfield Hills, Michigan. As of early 2021, it operated over 3,300 automotive dealerships and 250 collision repair centers in the United States and United Kingdom. Penske Automotive Group is a Fortune 500 company with revenue of $19.6 billion as of 2020. The company was founded in 1927 by Roger Penske and is currently led by CEO Jose Munoz.
Summary
Sonic Automotive Inc. experienced a notable reduction in ownership from LSV Asset Management in Q4 2022, with the firm reducing its stake by 9.8%. This may be indicative of a shift in investor sentiment around the automotive retail store company. Analysts may want to consider the company’s financials, such as its total revenue and net income, recent performance, and its competitive landscape when assessing whether to invest.
Additionally, looking at its debt-to-equity ratio, cash flow, and other important metrics should provide investors with a comprehensive overview of its financial health. It is also worth looking at the company’s management team to gauge their ability to drive the business forward. Finally, investors should be aware of any recent news or events that could potentially impact Sonic Automotive’s share price.
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