Sonic Automotive’s third-quarter adjusted diluted EPS of $1.30 fell 8% year over year and missed the $1.67 LSEG consensus. Management also said several times on the earnings call that big news is coming for the EchoPark stand-alone used-vehicle stores.
Auto dealerships are well-diversified businesses that have lucrative parts and servicing operations, which help them be profitable in almost any environment.
Dealerships are prone to macroeconomic cycles, and used-vehicle profitability is under huge pressure following the chip shortage. Used profitability will improve but it will take time.
Metric | SAH | KMX | AN |
|---|---|---|---|
Price/Earnings (Normalized) | 9.77 | 15.20 | 9.05 |
Price/Book Value | 1.85 | 1.22 | 2.62 |
Price/Sales | 0.13 | 0.28 | 0.23 |
Price/Cash Flow | 5.22 | 2.75 | 5.70 |
Metric | SAH | KMX | AN |
|---|---|---|---|
Quick Ratio | 0.12 | 0.18 | 0.14 |
Current Ratio | 0.95 | 2.33 | 0.77 |
Interest Coverage | 2.50 | −0.57 | 2.44 |
Metric | SAH | KMX | AN |
|---|---|---|---|
Return on Assets (Normalized) | 3.34% | 1.90% | 4.77% |
Return on Equity (Normalized) | 19.91% | 8.17% | 30.54% |
Return on Invested Capital (Normalized) | 6.29% | −0.45% | 6.73% |
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United States