Recent News
Jan. 21, 2026 — Company announced scheduling of fourth-quarter and full-year 2025 results; Feb. 18, 2026 — Sonic Automotive issued its fourth-quarter and full-year 2025 financial results; Apr. 2, 2026 — Company scheduled release of first-quarter 2026 results for April 30, 2026.
Technical Analysis
ADX stands at 18.17, signaling no established trend; directional indicators provide the directional bias. DI+ at 25.39 shows a dip-and-reversal (bullish), while DI- at 17.75 shows a peak-and-reversal (bullish), implying directional momentum currently favors buyers but without strong trend strength.
MACD registers 1.67, with the MACD line rising and trading above the signal at 1.25; the MACD trend is increasing, which constitutes a bullish momentum signal and supports near-term upside pressure on price.
MRO reads 3.5 and has a peak-and-reversal profile; MRO positive indicates the market price sits above the model target and suggests a higher probability of mean reversion or a pullback from current levels despite short-term momentum.
RSI at 55.51 and rising indicates constructive buying momentum without overbought conditions; the improving RSI complements the MACD signal for near-term continuation rather than exhaustion.
Price sits above short- and medium-term averages: 12-day EMA 67.79 (increasing), 20-day average 67.10, 50-day average 63.46, and 200-day average 68.54—current close $71.78 trades above most moving averages, consistent with bullish short-term bias. Ichimoku Tenkan (66.91) and Kijun (65.80) lie below price, reinforcing that bias. Price trades above the 1x Bollinger upper band (upper1x = $69.86) but below the 2x upper ($72.63), a configuration that often precedes either consolidation or modest pullback toward mean if volume fails to confirm continuation.
Volume on the session (178,931) underperforms 50-day (320,632) and 200-day (235,908) averages, reducing conviction behind the advance. Beta measures (42-day 0.85; 52-week 0.98) point to market-like volatility rather than outsized swings. Taken together, technicals signal a moderately bullish near-term bias but flag a risk of a short-term pullback because price sits above model targets and lacks strong volume confirmation.
Fundamental Analysis
Revenue totaled $3,973.8 million with revenue growth year-over-year of 6.76% and a quarter-over-quarter revenue rise of 52.44%, reflecting notable top-line momentum sequentially. Gross profit equaled $615.5 million and gross margin stood at 15.49%.
Operating income registered $122.7 million and EBIT $121.2 million, producing an EBIT margin of 3.05%. That EBIT margin sits below the industry peer mean (13.28%) and industry peer median (13.71%), and falls inside the industry peer range from -8.35% to 20.89%. EBIT margin declined roughly 5.50% quarter-over-quarter and declined about 5.01% year-over-year, indicating margin pressure versus prior periods.
Net income totaled $46.8 million. Reported EPS of $1.52 exceeded the estimate of $1.50 by $0.02, an EPS surprise of approximately 1.33%. Trailing P/E runs near 54.35 with forward P/E around 44.10; price-to-book stands at 2.45, slightly below the industry peer mean (3.29) and close to the industry peer median (2.46).
Cash flow shows strength: operating cash flow $167.9 million and free cash flow $134.4 million produce a free cash flow yield of 5.13%, which sits above the industry peer mean free cash flow yield of 1.03%. Cash conversion ratio approximates 76.57%, and free cash flow to net income near 2.87x supports liquidity-generation despite weaker margins.
Leverage remains elevated. Total debt $4,162.3 million and net debt $3,397.2 million yield debt-to-assets of 69.18% and debt-to-equity of 3.89; debt-to-EBITDA sits at 25.63x while interest coverage near 2.42x. Those leverage metrics signal significant fixed-cost and refinancing sensitivity even as operating cash generation reduces immediate strain.
Return metrics show constrained returns: return on equity 4.38% sits below typical peer central tendencies, and return on assets 0.78% remains modest. Earnings growth displays divergent signals—year-over-year growth reads strongly positive while quarter-over-quarter measures indicate contraction—pointing to earnings volatility over short intervals.
Valuation context: WMDST values the stock as under-valued. The valuation judgment weighs above-average free cash flow yield and positive sequential revenue against low margins and heavy leverage; the net effect supports the under-valued designation but requires monitoring of margin recovery and balance-sheet leverage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2026-02-18 |
| NEXT REPORT DATE: | 2026-05-20 |
| CASH FLOW | Begin Period Cash Flow | $ 110.4 M |
| Operating Cash Flow | $ 167.9 M | |
| Capital Expenditures | $ -33.50 M | |
| Change In Working Capital | $ 78.9 M | |
| Dividends Paid | $ -12.00 M | |
| Cash Flow Delta | $ -21.00 M | |
| End Period Cash Flow | $ 89.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.0 B | |
| Forward Revenue | $ 1.4 B | |
| COSTS | ||
| Cost Of Revenue | $ 3.4 B | |
| Depreciation | $ 35.6 M | |
| Depreciation and Amortization | $ 35.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 3.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 615.5 M | |
| EBITDA | $ 162.4 M | |
| EBIT | $ 121.2 M | |
| Operating Income | $ 122.7 M | |
| Interest Income | $ -1.40 M | |
| Interest Expense | $ 50.0 M | |
| Net Interest Income | $ -51.40 M | |
| Income Before Tax | $ 71.2 M | |
| Tax Provision | $ 24.4 M | |
| Tax Rate | 34.3 % | |
| Net Income | $ 46.8 M | |
| Net Income From Continuing Operations | $ 46.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.50 | |
| EPS Actual | $ 1.52 | |
| EPS Difference | $ 0.02 | |
| EPS Surprise | 1.333 % | |
| Forward EPS | $ 1.92 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.0 B | |
| Intangible Assets | $ 875.4 M | |
| Net Tangible Assets | $ 193.9 M | |
| Total Current Assets | $ 2.8 B | |
| Cash and Short-Term Investments | $ 89.4 M | |
| Cash | $ 89.4 M | |
| Net Receivables | $ 446.5 M | |
| Inventory | $ 2.1 B | |
| Long-Term Investments | $ 138.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 214.7 M | |
| Short-Term Debt | $ 2.0 B | |
| Total Current Liabilities | $ 2.8 B | |
| Net Debt | $ 3.4 B | |
| Total Debt | $ 4.2 B | |
| Total Liabilities | $ 4.9 B | |
| EQUITY | ||
| Total Equity | $ 1.1 B | |
| Retained Earnings | $ 1.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 31.29 | |
| Shares Outstanding | 34.173 M | |
| Revenue Per-Share | $ 116.29 | |
| VALUATION | Market Capitalization | $ 2.6 B |
| Enterprise Value | $ 6.7 B | |
| Enterprise Multiple | 41.205 | |
| Enterprise Multiple QoQ | -90.333 % | |
| Enterprise Multiple YoY | 60.521 % | |
| Enterprise Multiple IPRWA | high: 174.518 mean: 60.234 median: 56.226 SAH: 41.205 low: -68.779 |
|
| EV/R | 1.684 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 5.626 | |
| Asset To Liability | 1.216 | |
| Debt To Capital | 0.796 | |
| Debt To Assets | 0.692 | |
| Debt To Assets QoQ | -1.477 % | |
| Debt To Assets YoY | 104.001 % | |
| Debt To Assets IPRWA | high: 1.051 SAH: 0.692 median: 0.516 mean: 0.489 low: 0.086 |
|
| Debt To Equity | 3.893 | |
| Debt To Equity QoQ | -3.759 % | |
| Debt To Equity YoY | 102.322 % | |
| Debt To Equity IPRWA | high: 5.043 SAH: 3.893 mean: 1.517 median: 1.374 low: -2.375 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.449 | |
| Price To Book QoQ | -4.423 % | |
| Price To Book YoY | 29.792 % | |
| Price To Book IPRWA | high: 8.446 mean: 3.288 median: 2.463 SAH: 2.449 low: -5.158 |
|
| Price To Earnings (P/E) | 54.35 | |
| Price To Earnings QoQ | 57.773 % | |
| Price To Earnings YoY | 22.233 % | |
| Price To Earnings IPRWA | high: 279.007 median: 82.476 mean: 81.564 SAH: 54.35 low: -89.111 |
|
| PE/G Ratio | -1.526 | |
| Price To Sales (P/S) | 0.659 | |
| Price To Sales QoQ | -8.646 % | |
| Price To Sales YoY | 20.141 % | |
| Price To Sales IPRWA | high: 18.293 mean: 8.769 median: 8.085 SAH: 0.659 low: 0.22 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 44.097 | |
| Forward PE/G | -1.238 | |
| Forward P/S | 2.043 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -68.005 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.665 | |
| Asset Turnover Ratio QoQ | 7.378 % | |
| Asset Turnover Ratio YoY | 10.152 % | |
| Asset Turnover Ratio IPRWA | SAH: 0.665 high: 0.661 mean: 0.33 median: 0.329 low: 0.084 |
|
| Receivables Turnover | 9.412 | |
| Receivables Turnover Ratio QoQ | 17.433 % | |
| Receivables Turnover Ratio YoY | 18.315 % | |
| Receivables Turnover Ratio IPRWA | high: 104.964 mean: 15.382 median: 9.92 SAH: 9.412 low: 0.289 |
|
| Inventory Turnover | 1.609 | |
| Inventory Turnover Ratio QoQ | 5.218 % | |
| Inventory Turnover Ratio YoY | 5.619 % | |
| Inventory Turnover Ratio IPRWA | high: 2.29 SAH: 1.609 mean: 0.79 median: 0.702 low: 0.197 |
|
| Days Sales Outstanding (DSO) | 9.695 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 66.262 | |
| Cash Conversion Cycle Days QoQ | 1.507 % | |
| Cash Conversion Cycle Days YoY | -0.081 % | |
| Cash Conversion Cycle Days IPRWA | high: 351.932 SAH: 66.262 median: 41.536 mean: 23.924 low: -107.374 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 76.566 | |
| CapEx To Revenue | -0.008 | |
| CapEx To Depreciation | -0.941 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.5 B | |
| Net Invested Capital | $ 4.6 B | |
| Invested Capital | $ 4.6 B | |
| Net Tangible Assets | $ 193.9 M | |
| Net Working Capital | $ 51.9 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.032 | |
| Current Ratio | 1.019 | |
| Current Ratio QoQ | -0.707 % | |
| Current Ratio YoY | -8.006 % | |
| Current Ratio IPRWA | high: 3.669 mean: 1.206 median: 1.13 SAH: 1.019 low: 0.071 |
|
| Quick Ratio | 0.273 | |
| Quick Ratio QoQ | 12.34 % | |
| Quick Ratio YoY | -22.382 % | |
| Quick Ratio IPRWA | high: 2.26 mean: 0.402 SAH: 0.273 median: 0.245 low: 0.054 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 25.63 | |
| Cost Of Debt | 0.789 % | |
| Interest Coverage Ratio | 2.424 | |
| Interest Coverage Ratio QoQ | -532.996 % | |
| Interest Coverage Ratio YoY | 10.929 % | |
| Interest Coverage Ratio IPRWA | high: 52.0 mean: 13.292 median: 8.634 SAH: 2.424 low: -17.385 |
|
| Operating Cash Flow Ratio | 0.051 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 5.79 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.9 | |
| Dividend Payout Ratio | 0.256 | |
| Dividend Rate | $ 0.35 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.45 % | |
| Revenue Growth | 8.657 % | |
| Revenue Growth QoQ | 5243.827 % | |
| Revenue Growth YoY | 676.413 % | |
| Revenue Growth IPRWA | high: 45.625 % mean: 9.764 % SAH: 8.657 % median: 3.992 % low: -16.233 % |
|
| Earnings Growth | -35.616 % | |
| Earnings Growth QoQ | -174.242 % | |
| Earnings Growth YoY | 149.307 % | |
| Earnings Growth IPRWA | high: 285.714 % median: 8.974 % mean: 1.789 % SAH: -35.616 % low: -300.0 % |
|
| MARGINS | ||
| Gross Margin | 15.489 % | |
| Gross Margin QoQ | -5.933 % | |
| Gross Margin YoY | -0.514 % | |
| Gross Margin IPRWA | high: 97.069 % median: 44.682 % mean: 41.452 % SAH: 15.489 % low: 10.882 % |
|
| EBIT Margin | 3.05 % | |
| EBIT Margin QoQ | -549.853 % | |
| EBIT Margin YoY | -5.014 % | |
| EBIT Margin IPRWA | high: 20.894 % median: 13.714 % mean: 13.279 % SAH: 3.05 % low: -8.354 % |
|
| Return On Sales (ROS) | 3.088 % | |
| Return On Sales QoQ | -24.258 % | |
| Return On Sales YoY | -3.831 % | |
| Return On Sales IPRWA | high: 20.742 % median: 14.013 % mean: 13.122 % SAH: 3.088 % low: -8.039 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 134.4 M | |
| Free Cash Flow Yield | 5.132 % | |
| Free Cash Flow Yield QoQ | 31.826 % | |
| Free Cash Flow Yield YoY | 184.953 % | |
| Free Cash Flow Yield IPRWA | high: 10.42 % SAH: 5.132 % mean: 1.027 % median: 0.763 % low: -13.337 % |
|
| Free Cash Growth | 30.867 % | |
| Free Cash Growth QoQ | -196.771 % | |
| Free Cash Growth YoY | -126.02 % | |
| Free Cash Growth IPRWA | high: 535.911 % SAH: 30.867 % median: -33.254 % mean: -55.984 % low: -670.853 % |
|
| Free Cash To Net Income | 2.872 | |
| Cash Flow Margin | 3.516 % | |
| Cash Flow To Earnings | 2.985 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.783 % | |
| Return On Assets QoQ | -201.425 % | |
| Return On Assets YoY | -38.971 % | |
| Return On Assets IPRWA | high: 4.767 % median: 3.611 % mean: 3.025 % SAH: 0.783 % low: -2.099 % |
|
| Return On Capital Employed (ROCE) | 3.717 % | |
| Return On Equity (ROE) | 0.044 | |
| Return On Equity QoQ | -198.826 % | |
| Return On Equity YoY | -40.123 % | |
| Return On Equity IPRWA | high: 0.238 mean: 0.066 median: 0.063 SAH: 0.044 low: -0.071 |
|
| DuPont ROE | 4.461 % | |
| Return On Invested Capital (ROIC) | 1.748 % | |
| Return On Invested Capital QoQ | -585.556 % | |
| Return On Invested Capital YoY | -61.801 % | |
| Return On Invested Capital IPRWA | high: 15.392 % mean: 7.448 % median: 6.271 % SAH: 1.748 % low: -3.832 % |
|