Positioning no disclosures inside 60 days, left as found
Options put/call open interest 1.73, read 2026-10-29
Ethical does not pass the values gate
Price61.28 USD
Fair value93.75
Ethical score70.0/100
Our investment reviews on this name
2026-10-22Read Markup60.68+1.0% to today ✓Distribution gives way to Markup first Markup read since July
2026-10-02Read Distribution63.66-3.7% to today ✓Markdown gives way to Distribution after an 18% slide in 3 weeks
2026-09-12Read Markdown78.04-21.5% to today ✓Distribution gives way to Markdown after a 5% slide in 4 weeks
2026-08-12Read Distribution82.44-25.7% to today ✓Markup gives way to Distribution with results news in the headlines
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Sonic Automotive, Inc. holds its Markup at $61.28. The statistical read favours the sellers, held for 22 days.
As held on the ledger · 2026-10-23
Phase
Markup
Quantitative state
The statistical read favours the sellers, held for 22 days
Price at the screen
$61.28
Valuation
9.68 trailing · 8.36 forward price to earnings
Values screen
FAIL· score 70.0
Beta
0.93
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
70.81%
Below 33%
Interest-bearing debt is 70.8% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
7.96%
Below 49%
Money owed to the company is 8.0% of assets, under the 49% limit.
Pass
Revenue purity
0.00%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Sonic Automotive,'s business is in a permissible area, but its interest-bearing debt is about 71% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-29. It updates when the underlying figures move, and past reads are kept below.
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Get an email when SAH's ethical verdict changes
Today SAH does not pass the screen. If new figures move it to a pass, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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Fair value range in USD, drawn from the 2026-10-23 screen. The gold marker is the market price at the same screen. A 53.0% margin of safety to the base estimate.
Third-party analyst targets: 11 covering, consensus Buy. The average target sits +22% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-10-23 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Dealership margins stay thin even when cars sell
Every time a buyer trades in a used car or signs finance papers at a US lot, thin slices of revenue flow through the retailer. Sonic operates franchised dealerships alongside its EchoPark and powersports units, yet revenue growth sits at just one percent and net margins remain stuck at one percent.
The forward multiple of 13.2 times looks modest next to an 11 percent return on equity, but this is a cyclical business where low multiples often flag peak earnings rather than a bargain. Our fair value sits only nine percent above the current price, the consensus target from eleven analysts lies below it, and the opportunity rating stays none despite an ethical pass.
Sector swings can compress volumes fast, and an unknown moat leaves little protection when rates or consumer spending turn. Analysis, not advice.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; it carries a real debt load, which raises the stakes if revenue slips.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
SAH trades on the NYSE. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-29Markup$61.28+1.0%Entry 15
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 1.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83. Insiders have been net buyers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-28Markup$60.68+0.0%Entry 14
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83. Insiders have been net buyers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-27Markup$60.68+0.0%Entry 13
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83. Insiders have been net buyers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-26Markup$60.68+0.0%Entry 12
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83. Insiders have been net buyers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-25Markup$60.68+0.0%Entry 11
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83. Insiders have been net buyers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-24Markup$60.68+0.0%Entry 10
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83. Insiders have been net buyers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-23Markup$60.68+0.0%Entry 9
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83. Insiders have been net buyers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-22Markup · changed$60.68+1.0%Entry 8
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 1.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83. Insiders have been net buyers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-18Distribution$60.05-5.7%Entry 7
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 5.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83. Insiders have been net buyers over the past quarter.
The framework has shifted from markdown to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 18.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it buy, with a mean price target of $83.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
