Sonic Automotive Intrinsic Value Calculation – Rhumbline Advisers Reduces Stake in Sonic Automotive
December 8, 2023
🌥️Trending News
The company’s operations include sales of new and used cars and light trucks, aftermarket parts and services, finance and insurance products, and extended service contracts. Sonic Automotive ($NYSE:SAH) also offers a variety of customer service programs such as free oil changes, tire rotations, and multi-point vehicle inspections. In addition to its vast retail network, the company also owns several collision centers and finance companies. Despite the recent announcement of Rhumbline Advisers reducing its stake in the company, Sonic Automotive is still a well-respected automotive retailer with a strong presence across the United States. The company continues to focus on providing quality customer service and building long-term relationships with its customers.
Stock Price
Rhumbline Advisers recently reduced its stake in Sonic Automotive Inc., a leading automotive retailer in the United States. On Monday, SONIC AUTOMOTIVE stock opened at $52.9 and closed at $53.6, up by 0.3% from the last closing price of 53.4. The decrease in holdings comes at an interesting time as the company is currently at the cusp of reaching new highs in the market.
Analysts are still uncertain as to why Rhumbline Advisers has chosen to reduce their stake in SONIC AUTOMOTIVE and its implications on their future prospects remain to be seen. Despite this latest development, investors are advised to continue to monitor the company’s performance closely in the coming weeks. Live Quote…
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 |
| 14.38k | -51.4 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sonic Automotive. More…
| Operations | Investing | Financing |
| -135.1 | -195 | 225.7 |
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 |
| 5.05k | 4.19k | 25.3 |
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 |
| 14.0% | 22.3% | 1.2% |
| FCF Margin | ROE | ROA |
| -2.2% | 12.3% | 2.1% |
Analysis – Sonic Automotive Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of SONIC AUTOMOTIVE‘s wellbeing. Our proprietary Valuation Line has calculated the intrinsic value of SONIC AUTOMOTIVE share to be around $61.6. This means that investors can seize the opportunity to purchase SONIC AUTOMOTIVE stock at a discounted rate. More…
Peers
The company operates in a highly competitive industry with several large competitors, including Asbury Automotive Group Inc, Lithia Motors Inc, Penske Automotive Group Inc. Sonic Automotive Inc has a strong market position and is well-positioned to compete effectively against its rivals.
– Asbury Automotive Group Inc ($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
This follows a decrease in the company’s stock price, likely indicating a shift in market sentiment. Analysts suggest that strong market competition, high levels of debt, and falling gross profit margins may be contributing to the stock’s decline. Investors should further investigate Sonic Automotive to determine if these factors could adversely affect their investments.
