Sonic AutomotiveSAH +2.69%82 Interest Coverage is 2.87 as of Mar. 2026, which is 6% below its 10-year median of 3.05. GuruFocus rates SAH with a GF Score™ of 82/100 and a GF Value™ of $64.31 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Sonic Automotive ranks worse than 75.89% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Sonic Automotive's
Operating Income
for the
three
months ended in Mar. 2026 was $133 Mil. Sonic Automotive's Interest Expense for the
three
months ended in Mar. 2026 was $-46 Mil.
Sonic Automotive's interest coverage for the quarter that ended in Mar. 2026 was 2.87.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sonic Automotive's Interest Coverage or its related term are showing as below:
SAH'
s Interest Coverage Range Over the Past 10 Years
Min: 2.02 Med: 3.05 Max: 8.99
Current: 2.79
SAH's Interest Coverage is ranked worse than 75.89% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs SAH: 2.79
Sonic Automotive (NYSE:SAH) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Sonic Automotive Interest Coverage Related Terms
Sonic Automotive Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sonic Automotive's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
SAH vs CARG, MCW, DRVN: Interest Coverage Comparison
For the Auto & Truck Dealerships subindustry, Sonic Automotive's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Sonic Automotive (SAH) has a Interest Coverage of 2.87 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sonic Automotive and its competitors. This is near median its historical median of 3.05. Over the past decade, Sonic Automotive's Interest Coverage has ranged from 2.02 to 8.99. According to the industry distribution chart, Sonic Automotive ranks #809 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 75.9%.
Is Sonic Automotive's Interest Coverage too high?
Sonic Automotive's current Interest Coverage of 2.87 is near median its 10-year median of 3.05. Over the past 10 years, this metric has ranged from a low of 2.02 to a high of 8.99. The Vehicles & Parts industry median Interest Coverage is 8.30. Sonic Automotive's value of 2.87 is 65.4% below this industry median. Based on the distribution chart, Sonic Automotive ranks #809 out of 1066 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. 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 Interest Coverage compare to CARG and MCW?
According to the Vehicles & Parts industry distribution chart, Sonic Automotive ranks #809 out of 1066 companies for Interest Coverage. This places Sonic Automotive in the lower half of its industry. The industry median Interest Coverage is 8.30. Sonic Automotive's value of 2.87 is 65.4% below this benchmark. Historically, Sonic Automotive's own Interest Coverage has ranged from 2.02 to 8.99 over the past decade. While the company's 10-year median is 3.05 vs. the industry median of 8.30, 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 Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonic Automotive's current Interest Coverage of 2.87 is 65.4% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sonic Automotive and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Automotive's current Interest Coverage is 2.87, which is near median its own 10-year median of 3.05. 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 Interest Coverage is 2.87, which is near median its 10-year median of 3.05 and 65.4% below the Vehicles & Parts industry median of 8.30. Sonic Automotive's overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Sonic Automotive (SAH), the current Interest Coverage is 2.87 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:
Interest Coverage: 2.87 (near median its 10-year median of 3.05)
GF Value™: $64.31 vs. price of $83.62 (30% above fair value)
Industry Position: 65.4% below the Vehicles & Parts median (#809 of 1066)
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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