Sonic AutomotiveSAH +2.69%82 Gross Margin % is 16.23% as of Mar. 2026, which is 7% above its 10-year median of 15.10. GuruFocus rates SAH with a GF Score™ of 82/100 and a GF Value™ of $64.31 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Sonic Automotive ranks worse than 64.97% on this metric.
The historical rank and industry rank for Sonic Automotive's Gross Margin % or its related term are showing as below:
SAH'
s Gross Margin % Range Over the Past 10 Years
Min: 14.53 Med: 15.1 Max: 16.55
Current: 15.9
During the past 13 years, the highestGross Margin % of Sonic Automotive was 16.55%. The lowest was 14.53%. And the median was 15.10%.
SAH's Gross Margin % is ranked worse than 64.97% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs SAH: 15.90
Sonic Automotive had a gross margin of 16.23% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sonic Automotive was 0.90% per year.
Sonic Automotive (NYSE:SAH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sonic Automotive had a gross margin of 16.23% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sonic Automotive Gross Margin % Related Terms
Sonic Automotive Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sonic Automotive's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto & Truck Dealerships subindustry, Sonic Automotive's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sonic Automotive Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sonic Automotive (SAH) has a Gross Margin % of 16.23% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sonic Automotive and its competitors. This is near median its historical median of 15.10. Over the past decade, Sonic Automotive's Gross Margin % has ranged from 14.53 to 16.55. According to the industry distribution chart, Sonic Automotive ranks #853 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 65%.
Is Sonic Automotive's Gross Margin % too high?
Sonic Automotive's current Gross Margin % of 16.23% is near median its 10-year median of 15.10. Over the past 10 years, this metric has ranged from a low of 14.53 to a high of 16.55. The Vehicles & Parts industry median Gross Margin % is 19.84. Sonic Automotive's value of 16.23% is 18.2% below this industry median. Based on the distribution chart, Sonic Automotive ranks #853 out of 1313 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Sonic Automotive has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sonic Automotive's Gross Margin % compare to CARG and MCW?
According to the Vehicles & Parts industry distribution chart, Sonic Automotive ranks #853 out of 1313 companies for Gross Margin %. This places Sonic Automotive in the lower half of its industry. The industry median Gross Margin % is 19.84. Sonic Automotive's value of 16.23% is 18.2% below this benchmark. Historically, Sonic Automotive's own Gross Margin % has ranged from 14.53 to 16.55 over the past decade. While the company's 10-year median is 15.10 vs. the industry median of 19.84, Sonic Automotive has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonic Automotive's current Gross Margin % of 16.23% is 18.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sonic Automotive and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Automotive's current Gross Margin % is 16.23%, which is near median its own 10-year median of 15.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Automotive stock overvalued right now?
Based on GuruFocus' analysis, Sonic Automotive (SAH) is currently considered Modestly Overvalued. The stock's GF Value™ is $64.31, compared to a current price of $83.62 — trading 30% above its estimated fair value. The current Gross Margin % is 16.23%, which is near median its 10-year median of 15.10 and 18.2% below the Vehicles & Parts industry median of 19.84. Sonic Automotive's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sonic Automotive (SAH), the current Gross Margin % is 16.23% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sonic Automotive (SAH) Overvalued in 2026?
Based on GuruFocus' analysis, Sonic Automotive stock appears to be overvalued.
The current stock price of $83.62 is trading 30% above its estimated GF Value™ of $64.31.
GuruFocus considers Sonic Automotive to be Modestly Overvalued.
Key valuation signals for SAH:
Gross Margin %: 16.23% (near median its 10-year median of 15.10)
GF Value™: $64.31 vs. price of $83.62 (30% above fair value)
Industry Position: 18.2% below the Vehicles & Parts median (#853 of 1313)
No single metric tells the full story. See the SAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 107 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 18 EchoPark used-vehicle stores in 10 states, 16 collision centers, and 20 powersports locations. The franchise stores derive revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 86% of franchise new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 56% of new-vehicle revenue. BMW is the largest brand at about 23%. 2025 revenue was $15.2 billion, with Texas and California constituting 51% of the total. EchoPark's portion was $2.1 billion.
82GF Score
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