Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Sonic Automotive, Inc. (SAH)

Company Dividend Discount ModelIndustry: Auto - DealershipsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$633.43 - $746.28$699.38
Multi-Stage$180.06 - $197.35$188.55
Blended Fair Value$443.96
Current Price$76.09
Upside483.47%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS21.37%22.73%1.171.150.990.530.490.450.280.250.250.15
YoY Growth--2.00%15.94%88.52%6.81%10.59%57.66%11.03%1.72%71.35%-3.48%
Dividend Yield--2.06%2.05%1.83%1.24%0.99%3.36%1.87%1.34%1.25%0.79%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)130.40
(-) Cash Dividends Paid (M)46.00
(=) Cash Retained (M)84.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)26.0816.309.78
Cash Retained (M)84.4084.4084.40
(-) Cash Required (M)-26.08-16.30-9.78
(=) Excess Retained (M)58.3268.1074.62
(/) Shares Outstanding (M)34.7534.7534.75
(=) Excess Retained per Share1.681.962.15
LTM Dividend per Share1.321.321.32
(+) Excess Retained per Share1.681.962.15
(=) Adjusted Dividend3.003.283.47
WACC / Discount Rate5.17%5.17%5.17%
Growth Rate5.50%6.50%7.50%
Fair Value$633.43$699.38$746.28
Upside / Downside732.47%819.14%880.79%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)130.40138.88147.90157.52167.76178.66184.02
Payout Ratio35.28%46.22%57.17%68.11%79.06%90.00%92.50%
Projected Dividends (M)46.0064.1984.55107.29132.62160.79170.22

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.17%5.17%5.17%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)60.4661.0361.61
Year 2 PV (M)75.0176.4477.88
Year 3 PV (M)89.6592.2294.84
Year 4 PV (M)104.38108.39112.52
Year 5 PV (M)119.20124.96130.93
PV of Terminal Value (M)5,808.386,088.936,380.21
Equity Value (M)6,257.076,551.976,858.00
Shares Outstanding (M)34.7534.7534.75
Fair Value$180.06$188.55$197.35
Upside / Downside136.64%147.79%159.37%

High-Yield Dividend Screener

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