Sonic Automotive Inc. (SAH) exhibits 15.7% gross margins and 11.1% return on invested capital within Consumer Discretionary (Retail-Auto Dealers and Gas Stations), balanced against a 7.2x enterprise multiple and 4.8% implied options volatility.
Sustained 15.7% gross profitability converts into 2.4% operating margin and 11.1% ROIC, outpacing sector cost of capital.
ROIC: 11.1% // GM: 15.7%YoY revenue trajectory of +6.5% paired with 20.76% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +6.5% // FCF YLD: 20.76%Altman Z-Score of 3.80 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.80 // F-SCORE: 6/9Trading at 16.9x trailing P/E (15.7x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 16.9x // EV/EBITDA: 7.2xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $63.61 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Retail-Auto Dealers and Gas Stations require continuous execution to defend 0.8% net margins.
NET MARGIN: 0.8% // D/E: 1.46x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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