olivLaw · US equity research
Sonic Automotive, Inc. SAH
Retail-Auto Dealers & Gasoline Stations · SIC 5500 · Vertical: Retail-Auto Dealers & Gasoline Stations (SIC 5500)
Sonic Automotive is one of the largest US automotive retailers, earning revenue from new and used vehicle sales, service, financing and insurance, plus a powersports division. In the second quarter of 2026 it reported revenue of 3.9 billion dollars and record quarterly gross profit, even as weaker demand and price competition in new vehicle sales weighed on margins, making its diversified model worth examining.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Sonic Automotive, Inc. (SAH) stock was 64.05 USD (+5.55% on the day), with P/E 10.3 on diluted EPS of 6.22 USD over the last 12 months, dividend yield 0.37%, beta 0.91, 52-week range 58.28–112.66 USD. Latest reported quarter (Q3 2026): revenue of 4.0 bn USD (+0.4% YoY), net income of 41.1 m USD (−12.2% YoY), diluted EPS 1.28 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 50.6
- neutral
- Bollinger (20, 2)
- 59.60 – 65.03
- in the upper half of the band · %B 0.82 · band width 8.7%
- SMA 50 / 200
- 67.01 / 73.22
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.90 / -1.43
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +2.3% | −2.0% | +4.3 pp | — |
| 3 months | −26.2% | −2.2% | −24.1 pp | — |
| 6 months | −18.9% | +4.3% | −23.2 pp | — |
| Year to date | +3.5% | +10.6% | −7.0 pp | — |
| 1 year | +4.3% | +10.5% | −6.1 pp | −5.6% |
| 3 years | +20.9% | +73.7% | −52.7 pp | −0.4% |
| 5 years | +24.1% | +61.7% | −37.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.9 bn | 3.7 bn | 3.7 bn | 4.0 bn | 3.9 bn | 3.7 bn | 3.9 bn | 4.0 bn |
| Cost of revenue | 3.3 bn | 3.1 bn | 3.1 bn | 3.4 bn | 3.3 bn | 3.1 bn | 3.3 bn | 3.4 bn |
| Gross profit | 573.9 m | 566.4 m | 602.2 m | 615.5 m | 598.7 m | 598.8 m | 616.2 m | 617.5 m |
| SG&A | 399.6 m | 380.3 m | 412.6 m | 451.6 m | 433.7 m | 427.0 m | 444.6 m | 466.8 m |
| Operating income | 133.5 m | 145.0 m | -23.3 m | 122.7 m | 123.2 m | 132.7 m | 131.6 m | 112.4 m |
| Depreciation & amortisation | 39.3 m | 39.7 m | 40.5 m | 41.2 m | 41.8 m | 38.7 m | 40.0 m | 38.3 m |
| Pre-tax income | 82.1 m | 97.4 m | -69.1 m | 71.2 m | 73.2 m | 85.1 m | 80.3 m | 57.5 m |
| Income tax | 23.5 m | 26.8 m | -23.5 m | 24.4 m | -81.9 m | 24.3 m | 22.9 m | 16.4 m |
| Net income | 58.6 m | 70.6 m | -45.6 m | 46.8 m | 46.9 m | 60.8 m | 57.4 m | 41.1 m |
| Diluted EPS | 1.65 ≈ | 2.04 | -1.34 | 1.33 | 1.36 ≈ | 1.79 | 1.79 | 1.28 |
| Operating cash flow | 87.7 m | 195.8 m | 136.8 m ≈ | 167.9 m ≈ | 66.9 m | 35.5 m | -100.2 m ≈ | 50.2 m ≈ |
| Capex | -333.2 m | 45.0 m | 34.1 m | 33.5 m | -262.5 m | 37.0 m | 117.6 m | 69.2 m |
| Dividends paid | -71.4 m | 11.9 m | 11.9 m ≈ | 12.0 m ≈ | -84.6 m | 12.8 m | 12.5 m ≈ | 12.9 m ≈ |
| Share repurchases | -61.5 m | 35.3 m | 8.8 m ≈ | 0 ≈ | -126.5 m | 135.7 m | 6.3 m ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 50 percentile of its own 34-quarter history (min 4.1, median 10.4, max 72.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10.0 bn | 10.5 bn | 9.8 bn | 12.4 bn | 14.0 bn | 14.4 bn | 14.2 bn | 15.2 bn |
| Revenue YoY | +0.9% | +5.1% | −6.6% | +26.9% | +12.9% | +2.7% | −1.0% | +6.5% |
| Net income | 51.7 m | 144.1 m | -51.4 m | 348.9 m | 88.5 m | 178.2 m | 216.0 m | 118.7 m |
| Net income YoY | −44.5% | +179.0% | −135.7% | unavailable | −74.6% | +101.4% | +21.2% | −45.0% |
| Diluted EPS | 1.20 | 3.30 | -1.21 | 8.06 | 2.23 | 4.97 | 6.18 | 3.42 |
| Diluted EPS YoY | −42.6% | +175.0% | −136.7% | unavailable | −72.3% | +122.9% | +24.3% | −44.7% |
| net % | 0.5% | 1.4% | -0.5% | 2.8% | 0.6% | 1.2% | 1.5% | 0.8% |
| Free cash flow | -19.9 m | 45.2 m | 153.9 m | 8.1 m | 179.0 m | -219.3 m | -78.1 m | 417.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 6.3 m USD
- Financial debt
- 1.6 bn USD
- Net debt
- 1.6 bn USD
- Equity
- 1.1 bn USD
- Total assets
- 6.0 bn USD
- Debt / equity
- 1.51x
- Current ratio
- 1.09x
- ROE
- 11.1%
- ROA
- 2.0%
- FCF margin
- 2.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 9.8 bn | 12.4 bn | 14.0 bn | 14.4 bn | 14.2 bn | 15.2 bn | SEC (XBRL)· 23 Feb 2026verified |
| Cost of revenue | 8.3 bn | 10.5 bn | 11.7 bn | 12.1 bn | 12.0 bn | 12.8 bn | SEC (XBRL)· 23 Feb 2026verified |
| Gross profit | 1.4 bn | 1.9 bn | 2.3 bn | 2.2 bn | 2.2 bn | 2.4 bn | SEC (XBRL)· 23 Feb 2026verified |
| SG&A | 1.0 bn | 1.3 bn | 1.6 bn | 1.6 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 23 Feb 2026verified |
| Operating income | 33.9 m | 538.4 m | 314.0 m | 423.6 m | 461.5 m | 367.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Depreciation & amortisation | 91.0 m | 101.1 m | 127.5 m | 142.3 m | 150.4 m | 163.4 m | SEC (XBRL)· 23 Feb 2026verified |
| EBITDA | 124.9 m ≈ | 639.5 m ≈ | 441.5 m ≈ | 565.9 m ≈ | 611.9 m ≈ | 530.9 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Pre-tax income | -34.8 m | 458.2 m | 190.0 m | 241.9 m | 256.1 m | 172.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Income tax | 15.9 m | 109.3 m | 101.5 m | 63.7 m | 40.1 m | -54.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Net income | -51.4 m | 348.9 m | 88.5 m | 178.2 m | 216.0 m | 118.7 m | SEC (XBRL)· 23 Feb 2026verified |
| Diluted EPS | -1.21 | 8.06 | 2.23 | 4.97 | 6.18 | 3.42 | SEC (XBRL)· 23 Feb 2026verified |
| Weighted average diluted shares | 42.5 m | 43.3 m | 39.7 m | 35.9 m | 35.0 m | 34.7 m | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 170.3 m | 299.4 m | 229.2 m | 28.9 m | 44.0 m | 6.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Inventories | 1.2 bn | 1.3 bn | 1.2 bn | 1.6 bn | 2.0 bn | 2.0 bn | SEC (XBRL)· 23 Feb 2026verified |
| Current assets | 1.9 bn | 2.1 bn | 2.2 bn | 2.5 bn | 2.9 bn | 2.8 bn | SEC (XBRL)· 23 Feb 2026verified |
| Property, plant & equipment, net | 1.1 bn | 1.5 bn | 1.6 bn | 1.6 bn | 1.6 bn | 1.6 bn | SEC (XBRL)· 23 Feb 2026verified |
| Goodwill | 214.0 m | 416.4 m | 231.0 m | 253.8 m | 358.5 m | 421.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Intangibles (excl. goodwill) | 64.3 m | 480.2 m | 396.7 m | 417.4 m | 430.3 m | 454.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Total assets | 3.7 bn | 5.0 bn | 5.0 bn | 5.4 bn | 5.9 bn | 6.0 bn | SEC (XBRL)· 23 Feb 2026verified |
| Accounts payable | 105.1 m | 133.3 m | 138.4 m | 149.8 m | 172.0 m | 151.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Short-term debt | 68.2 m | 50.6 m | 79.5 m | 60.1 m | 76.1 m | 52.4 m | SEC (XBRL)· 23 Feb 2026verified |
| Long-term debt | 651.8 m | 1.5 bn | 1.7 bn | 1.6 bn | 1.5 bn | 1.6 bn | SEC (XBRL)· 23 Feb 2026verified |
| Current liabilities | 1.8 bn | 1.9 bn | 1.8 bn | 2.3 bn | 2.6 bn | 2.6 bn | SEC (XBRL)· 23 Feb 2026verified |
| Equity | 814.8 m † | 1.1 bn † | 895.2 m † | 891.9 m † | 1.1 bn † | 1.1 bn † | SEC (XBRL)· 23 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 281.1 m | 306.3 m | 406.1 m | -15.7 m | 109.2 m | 567.4 m | SEC (XBRL)· 23 Feb 2026verified |
| Capex | 127.2 m | -298.2 m | -227.1 m | -203.6 m | -187.3 m | -149.9 m | SEC (XBRL)· 23 Feb 2026verified |
| Free cash flow | 153.9 m ≈ | 8.1 m ≈ | 179.0 m ≈ | -219.3 m ≈ | -78.1 m ≈ | 417.5 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Investing cash flow | -100.2 m | -1.3 bn | -299.7 m | -218.7 m | -178.3 m | -499.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Financing cash flow | -39.7 m | 1.1 bn | -176.6 m | 34.1 m | 84.3 m | -106.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Dividends paid | 17.1 m | -18.3 m | -34.5 m | -40.0 m | -40.8 m | -48.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Share repurchases | 71.7 m | -93.3 m | -261.9 m | -177.6 m | -34.4 m | -82.4 m | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 40 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
- Valuation58
- Returns0
- Quality38
- Balance sheet18
- Growth61
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.15 – 138.48 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E55.74 – 138.48 (Mid 87.65)11 companies used · median multiple 14.1x · quartiles 9.0x – 22.3xABG, AN, CASY, CPRT, GPI, KMX, LAD, MUSA, OPLN, PAG, RUSHA
- Dividend discount (DDM)3.15 – 4.24 (Mid 3.62)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 40/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 15.9% | 63 (vs peers) | 15% |
| Net margin · Quality | 1.3% | 35 (vs peers) | 9% |
| FCF conversion · Quality | 6.6% | 0 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 2.7% | 22 (on a fixed band) | 12% |
| EPS CAGR 3Y · Growth | 15.3% | 100 (on a fixed band) | 12% |
| Net debt / EBITDA · Balance sheet | 2.6x | 20 (vs peers) | 15% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.0x | 13 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 10.3x | 58 (vs peers) | 15% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | 338.7% | 0 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet18/100 · 2/3 factors with a value
- Growth61/100 · 2/2 factors with a value
- Quality38/100 · 3/3 factors with a value
- Returns· partial0/100 · 1/2 factors with a value
- Valuation· partial58/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
SONIC AUTOMOTIVE, INC. (SAH). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 15.2 bn USD in 2025; YoY growth 6.5%; net margin 1.3%; ROE 19.4%; net debt/EBITDA 2.6x.
The estimated value range is 29.45–71.36 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 45.63 USD, the price of 64.05 USD leaves a potential of -28.8% (value / price − 1) and a margin of safety of -40.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 40/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns, valuation. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EPS CAGR 3Y: 15.3%
What contradicts it
- FCF conversion: 6.6%
- Revenue CAGR 3Y: 2.7%
- Net debt / EBITDA: 2.6x
- Current ratio: 1.0x
- Payout ratio (FCF): 338.7%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Interest coverage, EV/EBITDA, FCF yield, Shareholder yield (distributions).
Versus the vertical median
Retail-Auto Dealers & Gasoline Stations (SIC 5500) · same industry (4-digit SIC) · compared with 18 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CPRTCopart, Inc. | 28.8 bn | 20.0 | 16.2% | 31.8% | +0.4% | −20% / −38% |
| CASYCasey’s General Stores, Inc. | 24.6 bn | 32.0 | 20.0% | 4.1% | +10.2% | +17% / +142% |
| PAGPenske Automotive Group, Inc. | 13.9 bn | 15.5 | 15.5% | 2.8% | −0.2% | +31% / +42% |
| MUSAMurphy USA Inc. | 9.1 bn | 14.1 | 99.0% | 2.9% | −4.2% | +30% / +36% |
| KMXCarmax, Inc. | 7.8 bn | 26.9 | 4.7% | 1.1% | −1.8% | +43% / −14% |
| LADLithia Motors, Inc. | 6.8 bn | 9.1 | 11.8% | 2.1% | +4.0% | −1% / +18% |
| ANAutonation, Inc. | 5.9 bn | 8.8 | 30.2% | 2.6% | +3.2% | −13% / +36% |
| OPLNOPENLANE, Inc. | 4.5 bn | 24.5 | 13.4% | 9.7% | +8.2% | +44% / +151% |
| ABGAsbury Automotive Group, Inc. | 3.8 bn | 8.3 | 11.8% | 2.7% | +4.7% | −10% / −0% |
| GPIGroup 1 Automotive, Inc | 3.3 bn | 8.6 | 12.4% | 1.7% | +13.2% | −32% / −3% |
| NXXTNextnrg, Inc. | 427.3 m | — | — | -61.3% | +194.7% | +108% / −43% |
| VRMVroom, Inc. | 36.5 m | — | -45.0% | — | −54.2% | −66% / unavailable |
| KXINKaixin Holdings | 12.2 m | — | -307.2% | -41,788.4% | unavailable | −96% / −100% |
| CRMTAmerica’s Car-Mart, Inc. | 10.5 m | — | -43.0% | -18.6% | −7.9% | −94% / −98% |
| JZXNJiuzi Holdings Inc. | 1.4 m | — | -90.7% | -353.5% | +105.9% | −86% / −100% |
| RUSHARush Enterprises, Inc. | — | 14.0 | 11.8% | 3.7% | −4.7% | +33% / +75% |
| CVNACarvana Co. | 0 | 0.0 | 51.5% | 6.2% | +48.6% | +4% / +1,138% |
| CWHCamping World Holdings, Inc. | 0 | — | -33.2% | -1.6% | +4.4% | −52% / −74% |
| SAHSonic Automotive, Inc. | — | 10.3 | 19.4% | 1.3% | +6.5% | +4% / +21% |
1- and 3-year price returns: for SAH from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
Sonic Automotive is one of the largest US automotive retailers, earning revenue from new and used vehicle sales, service, financing and insurance, plus a powersports division. In the second quarter of 2026 it reported revenue of 3.9 billion dollars and record quarterly gross profit, even as weaker demand and price competition in new vehicle sales weighed on margins, making its diversified model worth examining.
SWOT
Strengths
- Diversification across several segments and revenue streams, including service and F&I with higher margins, provides stability.
- Scale and presence in several states help with acquisitions and negotiations with manufacturers.
- Balance sheet and liquidity considered sufficient to fund investment and dividends, according to the release 3.
Weaknesses
- Reliance on new vehicle sales, with shrinking margins, exposes the company to market cycles.
- EchoPark profit per unit declined and segment profitability was below the prior year in Q2 2026 3.
- Concentration in premium and mid-line import brands increases exposure to manufacturer decisions.
Opportunities
- The Harley-Davidson store acquisitions could expand the Powersports division 3.
- Growth in used vehicle sales and Fixed Operations could offset declines in new vehicle sales.
- The fragmented market could offer acquisition opportunities as consolidation continues.
Threats
- Direct manufacturer sales and technology companies could reduce the dealer role 1.
- Tariffs and trade restrictions could raise costs and reduce vehicle affordability.
- High interest rates and tighter credit could reduce consumers' ability to buy.
Risks
- Competition and online saleshigh
Dealers compete with online platforms and with manufacturers that could sell directly, which may reduce margins 1.
- Dependence on new vehicleshigh
New vehicle sales are the largest revenue component and are sensitive to consumer demand and manufacturer supply 1.
- Access to used vehicle inventorymedium
Shortages of quality used stock and higher acquisition costs could affect volume and margins, especially at EchoPark 1.
- Tariffs and international trademedium
Tariffs on imported vehicles and parts could raise prices and reduce demand for certain models 1.
- Depreciation and inventory losseslow
Used vehicles depreciate and excess inventory can generate losses, according to 1.
Investment thesis
What would need to be true (bull case)
- If growth in used vehicle volumes and Fixed Operations continues, the company could offset pressure on new vehicle margins.
- The Harley-Davidson acquisition could add recurring revenue to Powersports if integration goes well 3.
- If market consolidation continues, the company could acquire dealerships on favorable terms and strengthen its position.
What would break the thesis
- If new vehicle demand falls as the 2026 estimates suggest, profit could be significantly affected 2.
- If manufacturer direct sales expand, the dealer role could diminish over the long term 1.
- Falling gross profit per unit and rising inventory could keep compressing margins in the new vehicle business 23.
What to watch
- Trend in gross profit per new vehicle unitQ3 2026
- Opening of new EchoPark stores and expansion disciplineQ4 2026
- Integration of the five Harley-Davidson stores and their contribution to Powersports2027
- Updated US new vehicle volume estimatesnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
Sonic Automotive, incorporated in Delaware, runs three reportable segments: Franchised Dealerships, EchoPark and Powersports. Franchised Dealerships sells new and used vehicles and provides Fixed Operations (parts, service and collision repair) and F&I services, meaning third-party financing, extended warranties and insurance. EchoPark sells mainly used vehicles in specialty locations without customer-facing service, while Powersports sells motorcycles, personal watercraft and all-terrain vehicles. According to 1, Franchised Dealerships represented approximately 85.0% of total revenue in 2025, and EchoPark approximately 13.7%.
The company says higher-margin income comes from F&I and Fixed Operations, which are less sensitive to economic cycles than vehicle sales. At December 31, 2025 it operated 111 Franchised Dealerships stores, 18 EchoPark stores and 14 Powersports stores 1. By June 30, 2026 Powersports stores had risen to 20 and Franchised Dealerships stores had fallen to 107, according to 2.
Strategy also includes dealership acquisitions, EchoPark network expansion and share repurchases. The company announced in April 2026 the acquisition of five Harley-Davidson stores, which could add meaningful annualized revenue to Powersports 3.
Segments
Franchised Dealerships
This is the core segment, with 127 new vehicle franchises across 24 car and light truck brands as of June 30, 2026 2. In Q2 2026 same store revenue rose 2% while gross profit fell 3%, and gross profit per new retail unit dropped 16% to 2,872 dollars 32. Fixed Operations reached a quarterly record with a gross margin of 51.0% 3.
Powersports
The segment reached record second-quarter revenue of 73.5 million dollars in 2026, up 53%, while gross profit grew 58% 3. The acquisition of five Harley-Davidson stores could expand this division materially.
Market context
According to 1, total US new vehicle sales were about 16.3 million in 2025, and the light vehicle parc was about 298.7 million units. For 2026 the company estimates new vehicle volume between 15.5 million and 16.0 million, a decline from 2025 2. The market remains fragmented and further consolidation could follow.
Tariffs, interest rates and consumer confidence affect demand and access to financing. If these conditions worsen, vehicle sales could fall; if they improve, they could support volumes again.
Competitive position
Competition comes from dealerships selling the same brands, multi-franchise and used vehicle groups, as well as online platforms and technology companies that could change the distribution model 1. Key factors are location, pricing, customer experience and service quality.
Margin risk grows if manufacturers expand direct sales, since the dealer role could diminish. The company also notes that other groups are investing heavily in online sales 1.
- AutoNation, Inc.AN
US auto dealer group operating in similar markets; not named in the sources provided, so the ticker is indicative.
- Lithia Motors, Inc.LAD
Multi-franchise US dealer group, a general competitor in new and used vehicle sales; not named in the sources provided.
- Technology companies selling vehicles directly
Companies that sell vehicles online or directly, cited in 1 as potential competitors whose models could reduce dealer roles.
- Online automotive sales platforms
Brokers and online services that refer customers to other dealerships or sell directly, cited in 1 as pressure on margins.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- The Missed Opportunities of Sonic 06Hacker News · 23 Oct 2026 · EN
- Rațiu i-a îndeplinit visul! VIDEO. Fundașul României, gest superb pentru un puști prezent la meciul cu Suedia: „Are și masca cu Sonic” - GOLAZO.roSurge — Google News · 26 Sept 2026 · RO
- Rațiu i-a îndeplinit visul! VIDEO. Fundașul României, gest superb pentru un puști prezent la meciul cu Suedia: „Are și masca cu Sonic” - GOLAZO.roSurge — Google News · 26 Sept 2026 · RO
- Can Sonic (SAH) Automotive’s Luxury Bet Outrun Margin Pressure?Yahoo Finance — News · 23 Sept 2026 · EN
- Fast-food chains are chasing the specialty drink boom. Inside Sonic's strategyYahoo Finance — News · 20 Sept 2026 · EN
- Netflix și Sega pregătesc un nou serial animat cu Sonic. - Sortir à ParisSurge — Google News · 18 Sept 2026 · RO
- Netflix is making a Crazy Taxi movie and a Sonic show with ‘edge’The Verge · 14 Sept 2026 · EN
- Parchetul General al Serbiei: Nu a fost folosit niciun „tun sonic” la protestul din Belgrad din 15 martie 2025 / Procurorii susțin că înregistrările în care se aude un sunet neobișnuit, un „răget”, au fost modificate ulteriorG4Media · 13 Sept 2026 · RO
- Summer Sonic’s future is looking more JapaneseThe Japan Times · 20 Aug 2026 · EN
- Cartesia Ships Sonic-3.6: A Streaming TTS Model That Now Leads Both Artificial Analysis Speech ArenasMarkTechPost (Asia AI) · 18 Aug 2026 · EN
- The man behind 25 years of Summer SonicThe Japan Times · 13 Aug 2026 · EN
- Too much music, not enough weekend: A guide to Summer Sonic 2026The Japan Times · 10 Aug 2026 · EN
- Sonic Pi v5 ReleasedHacker News · 07 Aug 2026 · EN
- Sonic the Hedgehog chases Mario in IP business, 35 years since debutNikkei Asia · 23 Jun 2026 · RO
- Serbia: Procurorii susțin că studenții au plănuit simularea unui atac cu „tun sonic” la proteste. Oficialii vorbesc despre război civilDigi24 · 19 Jun 2026 · RO
- S-a auzit un dublu boom sonic și clădirile s-au zguduit: momentul în care un meteor s-a fragmentat deasupra SUAAdevărul · 31 May 2026 · RO
- Cisco making SONiC available to all customers – not just hyperscalersThe Register · 27 May 2026 · RO
The latest news item in our archive is from 23 Oct 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report30 Jul 2026
- Current report30 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report08 May 2026Departure or appointment of officers
- Current report01 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report30 Apr 2026
- Current report30 Apr 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report02 Apr 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Proxy statement06 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Sonic Automotive, Inc. · 23 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Sonic Automotive, Inc. · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Sonic Automotive, Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.