Sonic Automotive, Inc. — Earnings Quality Grade F
SAH · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
Insufficient data
Insufficient data
Revenue 6.5%, CFFO 419.6%. Cash follows revenue
Expense Quality
Inventory 2.8% vs COGS 6.1%. Normal
CapEx growth -20.0% vs revenue 6.5%. Normal
SG&A/Gross Profit = 70.4%, exceeds 70%
Gross margin 15.7%, change +0.3pp. Stable
Cash Flow Quality
CFFO/NI = 4.78. Profits backed by cash
FCF < 50% of Net Income for 2 years
Accruals ratio = -7.5%. Low accruals
Cash $0.0B covers only 0% of debt $4.2B
Balance Sheet Health
Goodwill+Intangibles $0.9B = 82% of equity. Over 50%
Debt/EBITDA = 8.0x (>4x). Financial stress
Other assets grew 25.9% vs revenue 6.5%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles change 11% YoY. Normal
Manipulation Score
Insufficient data
Portfolio monitoring
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Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25