Sonic AutomotiveSAH +2.69%82 Altman Z-Score is 3.35 as of Jun. 25, 2026, which is at its 10-year median of 3.35. 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 better than 65.12% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 3.34 is strong.
Sonic Automotive has a Altman Z-Score of 3.35, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Sonic Automotive's Altman Z-Score or its related term are showing as below:
SAH'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.95 Med: 3.35 Max: 4.8
Current: 3.34
During the past 13 years, Sonic Automotive's highest Altman Z-Score was 4.80. The lowest was 2.95. And the median was 3.35.
Sonic Automotive (NYSE:SAH) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Sonic Automotive Altman Z-Score Related Terms
Sonic Automotive Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Sonic Automotive's Altman Z-Score 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 Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Sonic Automotive's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.0146
+
1.4
*
0.25
+
3.3
*
0.0571
+
0.6
*
0.5145
+
1.0
*
2.4831
=
3.35
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Sonic Automotive (SAH) has a Altman Z-Score of 3.35 as of Jun. 25, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Sonic Automotive and its competitors. This is near median its historical median of 3.35. Over the past decade, Sonic Automotive's Altman Z-Score has ranged from 2.95 to 4.80. According to the industry distribution chart, Sonic Automotive ranks #458 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 34.9%.
Is Sonic Automotive's Altman Z-Score too high?
Sonic Automotive's current Altman Z-Score of 3.35 is near median its 10-year median of 3.35. Over the past 10 years, this metric has ranged from a low of 2.95 to a high of 4.80. The Vehicles & Parts industry median Altman Z-Score is 2.56. Sonic Automotive's value of 3.35 is 30.9% above this industry median. Based on the distribution chart, Sonic Automotive ranks #458 out of 1313 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 Altman Z-Score compare to CARG and MCW?
According to the Vehicles & Parts industry distribution chart, Sonic Automotive ranks #458 out of 1313 companies for Altman Z-Score. This puts Sonic Automotive in the upper half of its industry. The industry median Altman Z-Score is 2.56. Sonic Automotive's value of 3.35 is 30.9% above this benchmark. Historically, Sonic Automotive's own Altman Z-Score has ranged from 2.95 to 4.80 over the past decade. While the company's 10-year median is 3.35 vs. the industry median of 2.56, 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 Altman Z-Score for a Vehicles & Parts company?
The median Altman Z-Score among Vehicles & Parts companies is 2.56, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonic Automotive's current Altman Z-Score of 3.35 is 30.9% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Sonic Automotive and its competitors. For the Vehicles & Parts industry, the median Altman Z-Score is 2.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Automotive's current Altman Z-Score is 3.35, which is near median its own 10-year median of 3.35. 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 Altman Z-Score is 3.35, which is near median its 10-year median of 3.35 and 30.9% above the Vehicles & Parts industry median of 2.56. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Sonic Automotive (SAH), the current Altman Z-Score is 3.35 as of Jun. 25, 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:
Altman Z-Score: 3.35 (near median its 10-year median of 3.35)
GF Value™: $64.31 vs. price of $83.62 (30% above fair value)
Industry Position: 30.9% above the Vehicles & Parts median (#458 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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