Sonic AutomotiveSAH +2.69%82 ROE % is 23.73% as of Mar. 2026, which is 89% above its 10-year median of 12.56. 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 1,308 Vehicles & Parts companies, Sonic Automotive ranks better than 65.98% on this metric.
The historical rank and industry rank for Sonic Automotive's ROE % or its related term are showing as below:
SAH'
s ROE % Range Over the Past 10 Years
Min: -5.84 Med: 12.56 Max: 36.9
Current: 10.39
During the past 13 years, Sonic Automotive's highest ROE % was 36.90%. The lowest was -5.84%. And the median was 12.56%.
SAH's ROE % is ranked better than 65.98% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs SAH: 10.39
Sonic Automotive (NYSE:SAH) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Sonic Automotive ROE % Related Terms
Sonic Automotive ROE % Historical Data
* Premium members only.
The historical data trend for Sonic Automotive's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's ROE % distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Sonic Automotive (SAH) has a ROE % of 23.73% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sonic Automotive and its competitors. This is 89% above median its historical median of 12.56. According to the industry distribution chart, Sonic Automotive ranks #445 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 34%.
Is Sonic Automotive's ROE % too high?
Sonic Automotive's current ROE % of 23.73% is 89% above median its 10-year median of 12.56. The Vehicles & Parts industry median ROE % is 6.62. Sonic Automotive's value of 23.73% is 258.5% above this industry median. Based on the distribution chart, Sonic Automotive ranks #445 out of 1308 companies in the Vehicles & Parts industry, which is above 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 ROE % compare to CARG and MCW?
According to the Vehicles & Parts industry distribution chart, Sonic Automotive ranks #445 out of 1308 companies for ROE %. This puts Sonic Automotive in the upper half of its industry. The industry median ROE % is 6.62. Sonic Automotive's value of 23.73% is 258.5% above this benchmark. While the company's 10-year median is 12.56 vs. the industry median of 6.62, 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 ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonic Automotive's current ROE % of 23.73% is 258.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sonic Automotive and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Automotive's current ROE % is 23.73%, which is 89% above median its own 10-year median of 12.56. 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 ROE % is 23.73%, which is 89% above median its 10-year median of 12.56 and 258.5% above the Vehicles & Parts industry median of 6.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Sonic Automotive (SAH), the current ROE % is 23.73% 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:
ROE %: 23.73% (89% above median its 10-year median of 12.56)
GF Value™: $64.31 vs. price of $83.62 (30% above fair value)
Industry Position: 258.5% above the Vehicles & Parts median (#445 of 1308)
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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