Sonic AutomotiveSAH -0.07%82 Return-on-Tangible-Equity is 153.05% as of Mar. 2026, which is 198% above its 10-year median of 51.40. GuruFocus rates SAH with a GF Score™ of 82/100 and a GF Value™ of $64.40 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Sonic Automotive ranks better than 94.94% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sonic Automotive's annualized net income for the quarter that ended in Mar. 2026 was $243 Mil. Sonic Automotive's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $159 Mil. Therefore, Sonic Automotive's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 153.05%.
The historical rank and industry rank for Sonic Automotive's Return-on-Tangible-Equity or its related term are showing as below:
SAH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.92 Med: 51.4 Max: 97.42
Current: 53.65
During the past 13 years, Sonic Automotive's highest Return-on-Tangible-Equity was 97.42%. The lowest was -10.92%. And the median was 51.40%.
SAH's Return-on-Tangible-Equity is ranked better than 94.94% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.51
vs SAH: 53.65
Sonic Automotive (NYSE:SAH) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sonic Automotive Return-on-Tangible-Equity Related Terms
Sonic Automotive Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sonic Automotive's Return-on-Tangible-Equity 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.
SAH vs CARG, DRVN, GPI: Return-on-Tangible-Equity Comparison
For the Auto & Truck Dealerships subindustry, Sonic Automotive's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 153.05% mean?
Sonic Automotive (SAH) has a Return-on-Tangible-Equity of 153.05% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sonic Automotive and its competitors. This is 198% above median its historical median of 51.40. According to the industry distribution chart, Sonic Automotive ranks #65 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 5.1%.
Is Sonic Automotive's Return-on-Tangible-Equity too high?
Sonic Automotive's current Return-on-Tangible-Equity of 153.05% is 198% above median its 10-year median of 51.40. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.51. Sonic Automotive's value of 153.05% is 1937.9% above this industry median. Based on the distribution chart, Sonic Automotive ranks #65 out of 1285 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position 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 Return-on-Tangible-Equity compare to CARG and DRVN?
According to the Vehicles & Parts industry distribution chart, Sonic Automotive ranks #65 out of 1285 companies for Return-on-Tangible-Equity. This places Sonic Automotive in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.51. Sonic Automotive's value of 153.05% is 1937.9% above this benchmark. While the company's 10-year median is 51.40 vs. the industry median of 7.51, Sonic Automotive has consistently been above 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 Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.51, based on 1,285 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonic Automotive's current Return-on-Tangible-Equity of 153.05% is 1937.9% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sonic Automotive and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Automotive's current Return-on-Tangible-Equity is 153.05%, which is 198% above median its own 10-year median of 51.40. 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 $64.40, compared to a current price of $82.99 — trading 28.9% above its estimated fair value. The current Return-on-Tangible-Equity is 153.05%, which is 198% above median its 10-year median of 51.40 and 1937.9% above the Vehicles & Parts industry median of 7.51. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sonic Automotive (SAH), the current Return-on-Tangible-Equity is 153.05% 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 $82.99 is trading 28.9% above its estimated GF Value™ of $64.40.
GuruFocus considers Sonic Automotive to be Modestly Overvalued.
Key valuation signals for SAH:
Return-on-Tangible-Equity: 153.05% (198% above median its 10-year median of 51.40)
GF Value™: $64.40 vs. price of $82.99 (28.9% above fair value)
Industry Position: 1937.9% above the Vehicles & Parts median (#65 of 1285)
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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