Sonic Automotive, Inc. (SAH)
NYSEConsumer DiscretionaryAuto - DealershipsSnapshot 2026-09-09
$76.25+0.33%
Close 2026-09-09 · 1-day change
NYSEConsumer DiscretionaryAuto - DealershipsSnapshot 2026-09-09
Intact: The reason to own it still holds.
Sonic Automotive grew earnings 16% in Q1 2026. The company plans $500 million more buybacks. Analysts expect about 5% revenue growth this year. Profit margins should stay near 1.35 dollars per unit sold.
Revenue fell from $3.97B to $3.69B in recent quarters. Gross profit stayed flat at $598.8M. Buybacks are authorized but not yet happening. These show growth and profit risks.
The price is about 9% below our fair value near $96. Analysts expect 4.6% revenue growth. Our value is 25% above the Street median, showing upside if Sonic meets targets.
Breaks if: No meaningful buybacks executed by end of 2026-Q1
Expand the share repurchase program with an additional $500 million authorization.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth through acquisitions and disciplined capital allocation. The current thesis state is intact, with management executing on key priorities despite some near-term risks.
The market appears to have priced in a neutral valuation, suggesting that expectations are modest compared to peers. The company's valuation is seen as cheap relative to its competitors, indicating that there may be room for improvement if performance continues to stabilize.
Fundamentals are likely to show continued growth in the Powersports and EchoPark segments, as management is on track with its priorities. However, there is an elevated risk due to potential guidance cuts and inflation pressures that could affect performance.
The long-term thesis hinges on management's ability to maintain growth in key segments and navigate sector headwinds. Additionally, external factors such as inflation trends and performance of sector peers will be crucial in shaping future outcomes.
The most important moves since the prior daily snapshot.
Valuation rose by 18.5 points (from 41.3 to 59.8).
Yes, our read has strengthened. The latest earnings beat supports this view. Sonic Automotive reported record profit despite margin pressure. It also targets revenue growth and new locations. These factors improve our outlook for the company.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Gross margin falls below $1.3 per unit in FY26
Breaks if: YoY revenue growth falls below 4.6% in FY26
Overall, SAH's trajectory looks stable, but it faces challenges that could impact its performance. Not investment advice.