At a glance
Sonic Automotive Inc is worth $2.00B, about 19 times its fiscal 2025 earnings. Revenue grew 6.5% to $15.15B in fiscal 2025, with 0.8% kept as profit; over 5 years it has grown 9.2% a year. It pays a 2.5% dividend yield, and returned $-832.0M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +0.4% over the past year with dividends reinvested and +7.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 66.3% in the 2020 crash (S&P 500: 33.7%) and 36.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months after the low.
The business in plain English
Sonic Automotive describes itself as one of the largest automotive retailers in the US by total revenue. It sells new and used cars and light trucks, repairs and services them, and arranges loans, leases, extended warranties and insurance from outside providers, earning fees and commissions. Of about $15.2 billion in 2025 revenue, new-vehicle retail sales made up 46.5%, used vehicles 32.2%, parts, service and collision repair 13.3%, and finance and insurance 5.3%. Those last two are small slices but carry higher profit margins than vehicle sales.
As of December 31, 2025, Sonic reported three segments. Franchised Dealerships sells and services vehicles under agreements with carmakers. It produced 85.0% of 2025 revenue from 111 stores holding 134 franchises for 24 brands in 18 states. Luxury brands supplied 63% of this segment's new-vehicle revenue, led by BMW at 23% and Mercedes at 13%. EchoPark, a chain of 18 used-vehicle stores in 10 states, produced 13.7%. Powersports, which sells motorcycles, personal watercraft and all-terrain vehicles, produced 1.3%.
Revenue leans heavily on two states: Texas supplied 26.2% in 2025 and California 24.6%. Profit margins are thin. In 2025 the gross margin (revenue left after the cost of vehicles and parts sold) was 15.7%. The net margin, the share kept as profit, was 0.8%.
Price history
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SAH +0.4% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Retail new vehicles | $7.05B | 46.5% |
| Used vehicles | $4.87B | 32.2% |
| Parts, service and collision repair | $2.02B | 13.3% |
| Finance, insurance and other, net | $798.9M | 5.3% |
| Wholesale vehicles | $314.1M | 2.1% |
| Fleet new vehicles | $101.5M | 0.7% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $3.99B, up 0.4% from a year earlier, and net income was $41.1M (-12.2%).
- For fiscal 2025, revenue was $15.15B (+6.5% year over year; +9.2% a year from FY2020 to FY2025) with a 0.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +9.2% good |
|---|---|
| Operating margin | 2.4% weak |
| Free cash flow margin | 2.8% watch |
| Return on equity (FY2025) | 11.1% watch |
| Return on assets (FY2025) | 2% weak |
| Net cash (cash minus debt) | $-1.74B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $9.77B | $-51.4M | $153.9M |
| FY2021 | $12.40B | $348.9M | $8.1M |
| FY2022 | $14.00B | $88.5M | $179.0M |
| FY2023 | $14.37B | $178.2M | $-219.3M |
| FY2024 | $14.22B | $216.0M | $-78.1M |
| FY2025 | $15.15B | $118.7M | $417.5M |
Valuation snapshot
| Market value | $2.00B |
|---|---|
| P/E ratio | 18.5 |
| Dividend yield | 2.5% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SAH price data to Oct 28, 2026 | +3.8% | +0.4% | +11.1% | +7.5% | +15.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +3.8% |
| 2025 | -0.3% |
| 2024 | +15.2% |
| 2023 | +16.7% |
| 2022 | +1.9% |
| 2021 | +29.4% |
| 2020 | +26.2% |
| 2019 | +129.3% |
| 2018 | -24.5% |
| 2017 | -18.6% |
| 2016 | +1.7% |
| 2015 | -15.3% |
| 2014 | +11.0% |
| 2013 | +17.8% |
| 2012 | +42.0% |
| 2011 | +12.9% |
| 2010 | +27.7% |
| 2009 | +161.1% |
| 2008 | -78.3% |
| 2007 | -32.1% |
| 2006 | +32.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 95.7% over that stretch · deepest drop along the way 96%, back to its old high 46.7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 65.3% over that stretch · deepest drop along the way 66.3%, back to its old high 2.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 7.8% over that stretch · deepest drop along the way 36.5%, back to its old high 2.1 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 11 open-market purchases ($10.6M) and 5 sales ($9.6M), 5 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 8, 2026 | Jeff Dyke President, Director | sell (plan) | $4.1M |
| Jun 10, 2026 | Jeff Dyke President, Director | sell (plan) | $3.0M |
| Feb 13, 2026 | Paul P. Rusnak 10% owner | buy | $2.9M |
| Oct 5, 2026 | Paul P. Rusnak 10% owner | buy | $1.7M |
| Oct 1, 2026 | Paul P. Rusnak 10% owner | buy | $1.3M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9.1% | Sep 30, 2026 |
| Dimensional Fund Advisors LP | 6.1% | Jun 30, 2025 |
ETFs with the most weight in SAH
| XSVM Invesco S&P SmallCap Value with Momentum ETF | 1.54% |
| RWJ Invesco S&P SmallCap 600 Revenue ETF | 1.1% |
| FYT First Trust Small Cap Value AlphaDEX Fund | 0.6% |
| DGRS WisdomTree US Smallcap Quality Dividend Growth Fund | 0.51% |
| USVM VictoryShares US Small Mid Cap Value Momentum ETF | 0.34% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.34% |
| FYX First Trust Small Cap Core AlphaDEX Fund | 0.29% |
| EES WisdomTree U.S. SmallCap Fund | 0.28% |
What could go wrong
- Heavy reliance on a few luxury brands. In 2025, luxury brands made up 63% of franchised new-vehicle revenue, with BMW alone at 23% and Mercedes at 13%. Weak demand, supply problems or model changes at these carmakers could hurt results.
- Carmakers selling directly to buyers. Tesla sells cars without dealers, and some brands Sonic carries have announced 'agency' direct-sales models in parts of Europe. If state franchise laws weaken or direct sales spread, dealers' role could shrink.
- Shrinking profit on each vehicle sold. Shortages during the COVID-19 pandemic pushed profit per vehicle above historic levels. It has trended down as more inventory became available, and the company expects it may keep falling. Online price comparison adds pressure.
- Significant debt and little cash. As of June 30, 2026, Sonic had about $1.76 billion of total debt, $19.2 million of cash and $1.03 billion of shareholders' equity. Heavy debt can limit acquisitions and make repayment harder if sales slump.
- Tariffs on imported vehicles and parts. Most of Sonic's new-vehicle revenue comes from foreign brands such as BMW, Mercedes, Honda and Toyota. Tariffs or import restrictions could raise its vehicle and parts costs or limit what it can sell profitably.
- Costlier or harder-to-get car loans. Higher interest rates or tighter credit for buyers can cut Sonic's sales. It also leans on carmakers' finance arms for customer loans and floor plan financing, the credit that pays for cars on the lot.
Recent events
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Executive or board change
- Executive or board change; Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released; Investor presentation or announcement
- Executive or board change
For income and retirement investors
Sonic Automotive pays a dividend, yielding 2.5% as of October 28, 2026. In 2025 it paid $48.8 million in dividends. That was about 41% of net income and about 12% of free cash flow (cash left after running and investing in the business), though free cash flow was negative in 2023 and 2024. Dividends per share rose from about $0.40 in 2020 to about $1.41 in 2025. The 2022–2025 totals may include special one-time payments, so they are not a clean record of regular raises. Buybacks have been larger: about $650 million from 2021 through 2025, against about $182 million in dividends.
The shares have fallen hard in downturns. They dropped about 96% in the 2008 financial crisis and did not recover until January 2013. They fell about 66% in the 2020 COVID crash and 36.5% in the 2022 bear market, recovering within a few months each time. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Sonic Automotive make money?
Sonic Automotive makes money mainly by selling cars and light trucks, then servicing them and arranging financing. Of about $15.2 billion in 2025 revenue, new-vehicle retail sales made up 46.5%, used vehicles 32.2%, parts, service and collision repair 13.3%, and finance, insurance and other products 5.3%. Service and finance products are smaller but carry higher margins than vehicle sales. Overall margins are thin: Sonic kept 0.8% of 2025 revenue as net income, or $118.7 million.
Does Sonic Automotive pay a dividend?
Yes. The yield was 2.5% as of October 28, 2026. Dividends per share were about $1.41 in 2025, up from about $0.40 in 2020, though the figures for 2022 through 2025 may include special one-time payments. The 2025 dividend used about 41% of earnings and about 12% of free cash flow. The company also repurchases its own shares. In 2025 it spent about $82.4 million on roughly 1.3 million shares.
What is Sonic Automotive's EchoPark?
EchoPark is Sonic Automotive's chain of used-vehicle stores. It sells pre-owned cars and light trucks and arranges financing and insurance products through outside providers, but it does not offer customer repair services. Sales began in 2014, and as of December 31, 2025, it had 18 stores in 10 states. EchoPark produced 13.7% of Sonic's 2025 revenue, down from 15.0% in 2024. The company's long-term plan is a network that reaches 90% of the US population.
How much debt does Sonic Automotive have?
Sonic Automotive had about $1.76 billion of total debt as of June 30, 2026. It held only $19.2 million of cash and investments and about $1.03 billion of shareholders' equity (assets minus liabilities). That works out to net debt of about $1.74 billion. Sonic's annual report lists its significant debt as a risk. The debt could limit funding for acquisitions, expansion and capital spending, and the company needs enough cash to repay it when it comes due.
How has Sonic Automotive stock performed over the long term?
Long-term returns have been positive, but with deep drops along the way. As of October 28, 2026, the share price had gained about 15.4% a year over 10 years, 7.5% a year over five years and 0.4% over one year. In the year to that date, the shares fell as much as 46.6% from a high. They lost about 96% during the 2008 financial crisis and did not recover until January 2013. Past returns do not predict future results.