Recent News
Feb 23, 2026 — An analyst house trimmed its target price on Sonic, citing a softer vehicle-demand outlook for 2026. Feb 6, 2026 — Company regulatory filings disclosed updated share counts and confirmed a Board-approved cash dividend with a record date of March 13, 2026 and a pay date of April 15, 2026.
Technical Analysis
ADX at 11.27 indicates no dominant trend; price action should behave range-like near current levels rather than trending strongly. That low ADX reduces conviction for sustained directional moves and frames near-term moves as technical rotations rather than trend breakouts.
Directional indicators diverge toward bearish placement: DI+ at 18.42 trends lower while DI– at 21.03 shows a dip-and-reversal that increases bearish pressure. That combination supports a near-term bias toward sellers when momentum accelerates, although the weak ADX tempers follow-through risk.
MACD shows a recent peak-and-reversal in momentum, a bearish signal, yet the MACD line currently sits above the signal line, indicating a short-term bullish crossover. Expect short bursts of positive momentum that face resistance from the underlying decline in MACD momentum.
MRO reads -21.96 and recently formed a dip-and-reversal; the negative MRO implies price sits below the model target and therefore carries mechanical upside potential toward fair-value estimates. That suggested upward pressure aligns with the firm’s valuation assessment as under-valued.
RSI at 47.67 and rising signals rebuilding buying momentum without overextension; the indicator supports controlled upside runs while leaving room before overbought conditions appear.
Price sits near short-term averages (20d = $62.31, 50d = $62.51, 12d EMA ≈ $62.47 which has peaked and reversed) and below the 200d average ($70.40). Ichimoku components (Senkou A $63.56, Senkou B $63.23) place the price slightly beneath the cloud, so any rally must first clear the cloud and the 200-day average to confirm a durable shift in trend.
Bollinger bands reflect modest volatility; the stock trades inside the 1x and 2x standard-deviation bands and recent volume sits above the 10-day average, providing liquidity for short-term directional moves but not indicating runaway volatility.
Fundamental Analysis
Revenue growth shows momentum: quarter-over-quarter revenue rose ~52.44% while year-over-year revenue climbed ~6.76%, reflecting strong seasonal or timing effects that lifted recent sales throughput.
Profitability compresses versus peers. EBIT of $121.2M implies an EBIT margin of 3.05%, below the industry peer mean (13.28%) and median (13.71%). EBIT margin declined roughly 5.50% QoQ and fell about 5.01% YoY, signaling margin pressure even as top-line expanded.
Gross margin at 15.49% sits beneath the industry peer mean (41.45%), while operating margin at 3.09% mirrors the thin operating profitability profile. These margin differentials constrain multiple expansion absent clear margin recovery.
EPS came in at $1.52 versus an estimate of $1.50, a $0.02 beat and a 1.33% surprise. The reported beat supports short-term sentiment but does not offset structural margin gaps.
Leverage presents material risk. Total debt stands at $4.162B with net debt about $3.397B; debt-to-assets equals 69.18% and debt-to-equity equals 3.89x. Debt-to-EBITDA near 25.6x and interest-coverage of 2.42x indicate tight coverage and elevated leverage relative to typical peer capacity.
Cash generation remains a relative strength: free cash flow of $134.4M implies a free cash flow yield of 5.13%, which sits above the industry peer mean for FCF yield. Operating cash flow equals $167.9M and cash conversion metrics show working-capital investment (cash conversion cycle ~66 days) but strong cash conversion versus earnings (cash-flow-to-earnings ~2.99x).
Return metrics remain modest: ROE ~4.38% and ROA ~0.78%, both below typical peer averages. Asset turnover at 0.665 sits near the upper peer extreme, indicating efficient use of assets to produce revenue despite low margin capture.
Valuation as determined by WMDST: under-valued. The balance of above-peer free cash flow yield and below-peer margins plus elevated leverage implies valuation upside only if margins or leverage ratios improve; absent that, valuation may reflect structural risk.
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 % |
|