Sonic Automotive, Inc. cash flow to debt ratio of 13.42% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Sonic Automotive, Inc.'s free cash flow has increased -565.96% from $-89.60M last year to $417.50M, signaling increasing performance

Sonic Automotive, Inc.'s debt to equity ratio is 4.56, which means that the company's assets are unhealthy financed, signaling financial risk.

Sonic Automotive, Inc.'s debt has increased relative to shareholder equity from 3.89 last year to 4.56 today, signaling weakened financials

Sonic Automotive, Inc. has a net debt to EBITDA ratio of 8.04x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Sonic Automotive, Inc.'s interest coverage ratio of 2.57 indicates that earnings with margin can cover interest payments on company debt

Sonic Automotive, Inc.'s profit margin has decreased (9.78%) in the last year from 1.52% to 1.37%, signaling decreasing performance

Sonic Automotive, Inc.'s short-term assets of $2.83B exceed its short-term liabilities of $2.60B

Sonic Automotive, Inc.'s return on assets of 3.32% is lower than the 5.00% threshold, indicating inefficient asset utilization

Sonic Automotive, Inc.'s return on equity of 20.45%, is higher than 15.00%, indicating good performance

Sonic Automotive, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Sonic Automotive, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Sonic Automotive, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Sonic Automotive, Inc. has a free cash flow yield of 15.67%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Sonic Automotive, Inc.'s yearly earnings has decreased 45.05% since last year from $216.00M to $118.70M, signaling decreasing performance

Sonic Automotive, Inc.'s yearly revenue has increased 6.53% since last year from $14.22B to $15.15B, signaling increasing performance

ROIC 6.01% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Sonic Automotive, Inc.'s 3-year revenue CAGR of 2.67% is positive, indicating growing revenue over the past 3 years

Sonic Automotive, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Sonic Automotive, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Sonic Automotive, Inc. is overvalued relative to its fair value price of 16.13 based on Discounted Cash Flow model

Sonic Automotive, Inc. has an earnings yield of 8.38%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Sonic Automotive, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Sonic Automotive, Inc. has an EV/EBITDA ratio of 13.11x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Sonic Automotive, Inc. is undervalued relative to its fair value price of 333.78 based on Earnings Fair Value model

Sonic Automotive, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Sonic Automotive, Inc. has a price-to-book ratio of 2.47x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Sonic Automotive, Inc. has a price-to-sales ratio of 0.16x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue