Latest Ratios: P/E Ratio 25.5x · EV/EBITDA 10.2x · ROE 11.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.0B | $2.1B | $2.2B | $2.0B | $2.0B | $2.1B | $1.6B | $1.4B | $591M | $818M | $1.1B |
| Enterprise Value | $7.2B | $6.4B | $6.3B | $5.9B | $5.2B | $5.2B | $3.9B | $4.0B | $3.1B | $3.4B | $3.5B |
| P/E Ratio → | 25.51 | 18.09 | 10.25 | 11.33 | 22.09 | 6.14 | — | 9.37 | 11.47 | 8.83 | 11.28 |
| P/S Ratio | 0.20 | 0.14 | 0.16 | 0.14 | 0.14 | 0.17 | 0.17 | 0.13 | 0.06 | 0.08 | 0.11 |
| P/B Ratio | 2.83 | 2.01 | 2.09 | 2.26 | 2.19 | 1.99 | 2.01 | 1.43 | 0.72 | 1.04 | 1.45 |
| P/FCF | 7.09 | 5.14 | — | — | 12.71 | 4.25 | 3.81 | 244.54 | — | — | 19.83 |
| P/OCF | 5.22 | 3.78 | 22.69 | — | 5.13 | 2.67 | 2.94 | 10.33 | 4.66 | 3.91 | 4.06 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.42 | 0.44 | 0.41 | 0.37 | 0.42 | 0.40 | 0.38 | 0.31 | 0.34 | 0.36 |
| EV / EBITDA | 10.19 | 9.04 | 10.23 | 9.07 | 6.84 | 8.07 | 32.24 | 9.95 | 11.27 | 11.12 | 11.11 |
| EV / EBIT | 13.27 | 17.60 | 13.86 | 13.81 | 16.59 | 9.96 | 124.75 | 13.14 | 17.24 | 17.00 | 15.34 |
| EV / FCF | — | 15.25 | — | — | 33.88 | 10.25 | 9.12 | 714.18 | — | — | 65.16 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.7% | 15.7% | 15.4% | 15.6% | 16.5% | 15.4% | 14.6% | 14.5% | 14.5% | 14.8% | 14.7% |
| Operating Margin | 3.6% | 3.6% | 3.3% | 3.5% | 4.5% | 4.3% | 0.3% | 2.9% | 1.8% | 2.1% | 2.4% |
| Net Profit Margin | 0.8% | 0.8% | 1.5% | 1.2% | 0.6% | 2.8% | -0.5% | 1.4% | 0.5% | 0.9% | 1.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.1% | 11.1% | 22.1% | 19.9% | 9.0% | 36.9% | -5.8% | 16.3% | 6.4% | 12.3% | 12.8% |
| ROA | 2.0% | 2.0% | 3.8% | 3.4% | 1.8% | 8.0% | -1.3% | 3.7% | 1.4% | 2.5% | 2.6% |
| ROIC | 7.8% | 7.8% | 7.1% | 8.5% | 11.5% | 11.2% | 0.8% | 6.7% | 4.0% | 4.9% | 5.7% |
| ROCE | 16.3% | 16.3% | 14.7% | 16.2% | 20.4% | 21.5% | 1.7% | 16.0% | 9.6% | 11.9% | 13.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.96 | 3.96 | 3.89 | 4.33 | 3.89 | 3.08 | 3.01 | 2.79 | 3.01 | 3.23 | 3.32 |
| Debt / EBITDA | 6.00 | 6.00 | 6.70 | 5.99 | 4.58 | 5.19 | 20.16 | 6.62 | 9.12 | 8.43 | 7.74 |
| Net Debt / Equity | — | 3.95 | 3.85 | 4.30 | 3.64 | 2.81 | 2.80 | 2.75 | 3.00 | 3.22 | 3.32 |
| Net Debt / EBITDA | 5.99 | 5.99 | 6.63 | 5.94 | 4.28 | 4.72 | 18.75 | 6.54 | 9.10 | 8.41 | 7.73 |
| Debt / FCF | — | 10.11 | — | — | 21.17 | 6.00 | 5.30 | 469.63 | — | — | 45.33 |
| Interest Coverage | 1.86 | 1.86 | 2.23 | 2.34 | 2.54 | 8.20 | 0.45 | 2.89 | 1.73 | 2.29 | 3.10 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.09 | 1.09 | 1.09 | 1.10 | 1.20 | 1.10 | 1.03 | 0.98 | 1.02 | 1.03 | 1.05 |
| Quick Ratio | 0.32 | 0.32 | 0.35 | 0.41 | 0.54 | 0.44 | 0.35 | 0.24 | 0.24 | 0.26 | 0.24 |
| Cash Ratio | 0.00 | 0.00 | 0.02 | 0.01 | 0.12 | 0.16 | 0.09 | 0.01 | 0.00 | 0.00 | 0.00 |
| Asset Turnover | — | 2.54 | 2.41 | 2.68 | 2.81 | 2.49 | 2.61 | 2.57 | 2.62 | 2.58 | 2.67 |
| Inventory Turnover | 6.34 | 6.34 | 6.15 | 7.68 | 9.60 | 8.31 | 6.69 | 5.89 | 5.56 | 5.56 | 5.29 |
| Days Sales Outstanding | — | 11.30 | 12.72 | 13.41 | 12.05 | 11.81 | 13.89 | 15.11 | 16.07 | 17.83 | 16.14 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.6% | 2.3% | 1.8% | 2.0% | 1.8% | 0.9% | 1.0% | 1.1% | 1.7% | 1.1% | 0.8% |
| Payout Ratio | 41.1% | 41.1% | 18.9% | 22.4% | 39.0% | 5.2% | — | 10.8% | 19.0% | 9.5% | 9.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 5.5% | 9.8% | 8.8% | 4.5% | 16.3% | — | 10.7% | 8.7% | 11.3% | 8.9% |
| FCF Yield | 14.1% | 19.4% | — | — | 7.9% | 23.5% | 26.2% | 0.4% | — | — | 5.0% |
| Buyback Yield | 2.8% | 3.8% | 1.6% | 8.8% | 13.4% | 4.4% | 4.4% | 0.2% | 4.1% | 4.6% | 9.5% |
| Total Shareholder Yield | 4.4% | 6.1% | 3.4% | 10.8% | 15.2% | 5.2% | 5.4% | 1.3% | 5.7% | 5.6% | 10.3% |
| Shares Outstanding | — | $35M | $35M | $36M | $40M | $43M | $42M | $44M | $43M | $44M | $46M |
High floorplan interest sensitivity
Based on current market data, Sonic Automotive trades at a forward P/E of 12.25, which appears to reflect investor skepticism regarding the company's ability to integrate its capital-intensive EchoPark expansion while maintaining the profitability of its core franchised dealership segment compared to more specialized industry peers.
The valuation discount relative to peers like Penske and Lithia suggests that the market is applying a conglomerate discount to the combined business model. Investors should monitor whether the current P/S ratio of 0.19 indicates an undervalued asset or a permanent market assessment of the company's thin net margins and high leverage.
As reported in recent financial statements, Sonic Automotive's ROIC has stagnated at approximately 1.9% in 2026Q1, a level that warrants further investigation as it suggests the company is struggling to generate returns that exceed its cost of capital during this aggressive expansion phase.
The persistent low ROIC indicates that the capital deployed into the EchoPark segment and dealership acquisitions has not yet reached an inflection point of efficiency. This trend suggests that management's focus on scale may be coming at the expense of shareholder value creation, as returns remain significantly below industry averages.
According to the latest quarterly data, the cash conversion cycle has fluctuated around 66 days in 2026Q1, reflecting the inherent difficulty in managing inventory turnover across both the franchised and EchoPark segments in a volatile consumer environment.
The reliance on floorplan financing to manage inventory levels creates a structural drag on efficiency, as evidenced by the high DIO. Investors should monitor whether the company can optimize its inventory mix to reduce the cash conversion cycle, which currently appears to be a bottleneck for liquidity.
Based on reported figures, Sonic Automotive's debt-to-equity ratio reached 4.51 in 2026Q1, a level that appears increasingly strained compared to historical norms and suggests that the company's reliance on debt to fund operations is creating significant interest coverage risks.
The interest coverage ratio of 2.75 in 2026Q1 indicates that the company has limited room for error in a high-interest rate environment. This leverage profile warrants close monitoring, as any further compression in operating margins could jeopardize the company's ability to service its debt obligations comfortably.
The P/E ratio is frequently misapplied to Sonic Automotive because it obscures the massive impact of floorplan interest expense and non-cash depreciation, which are inherent to the dealership business model and often distort the true underlying earning power of the company's service-heavy operations.
Analysts should instead focus on EV/EBITDA or F&I-adjusted margins to better capture the operational reality of the business. Relying on P/E ignores the significant capital structure differences between franchised dealers and pure-play retailers, leading to potentially flawed conclusions about the company's valuation relative to its peers.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SAH stock.
Sonic Automotive, Inc.'s current P/E ratio is 25.5x. The historical average is 12.4x. This places it at the 100th percentile of its historical range.
Sonic Automotive, Inc.'s current EV/EBITDA is 10.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.4x.
Sonic Automotive, Inc.'s return on equity (ROE) is 11.1%. The historical average is 9.4%.
Based on historical data, Sonic Automotive, Inc. is trading at a P/E of 25.5x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sonic Automotive, Inc.'s current dividend yield is 1.61% with a payout ratio of 41.1%.
Sonic Automotive, Inc. has 15.7% gross margin and 3.6% operating margin.
Sonic Automotive, Inc.'s Debt/EBITDA ratio is 6.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.