Sonic AutomotiveFRA:SA8A +2.10%22 Net Margin % is 1.65% as of Mar. 2026, which is 74% above its 10-year median of 0.95. GuruFocus rates FRA:SA8A with a GF Score™ of 22/100 and a GF Value™ of €55.55 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,326 Vehicles & Parts companies, Sonic Automotive ranks worse than 70.66% on this metric.
The historical rank and industry rank for Sonic Automotive's Net Margin % or its related term are showing as below:
FRA:SA8A'
s Net Margin % Range Over the Past 10 Years
Min: -0.53 Med: 0.95 Max: 2.81
Current: 0.72
FRA:SA8A's Net Margin % is ranked worse than 70.66% of 1326
companies
in the Vehicles & Parts industry
Industry Median: 3.205
vs FRA:SA8A: 0.72
Sonic Automotive (FRA:SA8A) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Sonic Automotive Net Margin % Related Terms
Sonic Automotive Net Margin % Historical Data
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The historical data trend for Sonic Automotive's Net 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.
FRA:SA8A vs CARG, MCW, DRVN: Net Margin % Comparison
For the Auto & Truck Dealerships subindustry, Sonic Automotive's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's Net 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.
Sonic Automotive (FRA:SA8A) has a Net Margin % of 1.65% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Sonic Automotive and its competitors. This is 74% above median its historical median of 0.95. According to the industry distribution chart, Sonic Automotive ranks #937 out of 1326 companies in the Vehicles & Parts industry, placing it in the top 70.7%.
Is Sonic Automotive's Net Margin % too high?
Sonic Automotive's current Net Margin % of 1.65% is 74% above median its 10-year median of 0.95. The Vehicles & Parts industry median Net Margin % is 3.21. Sonic Automotive's value of 1.65% is 48.5% below this industry median. Based on the distribution chart, Sonic Automotive ranks #937 out of 1326 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Sonic Automotive has a GF Score™ of 22/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sonic Automotive's Net Margin % compare to CARG and MCW?
According to the Vehicles & Parts industry distribution chart, Sonic Automotive ranks #937 out of 1326 companies for Net Margin %. This places Sonic Automotive in the lower half of its industry. The industry median Net Margin % is 3.21. Sonic Automotive's value of 1.65% is 48.5% below this benchmark. While the company's 10-year median is 0.95 vs. the industry median of 3.21, 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 Net Margin % for a Vehicles & Parts company?
The median Net Margin % among Vehicles & Parts companies is 3.21, based on 1,326 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonic Automotive's current Net Margin % of 1.65% is 48.5% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Sonic Automotive and its competitors. For the Vehicles & Parts industry, the median Net Margin % is 3.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Automotive's current Net Margin % is 1.65%, which is 74% above median its own 10-year median of 0.95. 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 (FRA:SA8A) is currently considered Significantly Overvalued. The stock's GF Value™ is €55.55, compared to a current price of €73.00 — trading 31.4% above its estimated fair value. The current Net Margin % is 1.65%, which is 74% above median its 10-year median of 0.95 and 48.5% below the Vehicles & Parts industry median of 3.21. Sonic Automotive's overall GF Score™ is 22/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Sonic Automotive (FRA:SA8A), the current Net Margin % is 1.65% 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 (FRA:SA8A) Overvalued in 2026?
Based on GuruFocus' analysis, Sonic Automotive stock appears to be overvalued.
The current stock price of €73.00 is trading 31.4% above its estimated GF Value™ of €55.55.
GuruFocus considers Sonic Automotive to be Significantly Overvalued.
Key valuation signals for FRA:SA8A:
Net Margin %: 1.65% (74% above median its 10-year median of 0.95)
GF Value™: €55.55 vs. price of €73.00 (31.4% above fair value)
Industry Position: 48.5% below the Vehicles & Parts median (#937 of 1326)
No single metric tells the full story. See the FRA:SA8A 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.
22GF Score
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