Is SONIC AUTOMOTIVE INC (SAH) Halal?

NYSE Consumer Cyclical United States $2.2B
✗ NOT HALAL
Confidence: 90/100
SONIC AUTOMOTIVE INC (SAH) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 202.0% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. SONIC AUTOMOTIVE INC operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 202.0%
/ 30%
0.3%
/ 30%
22.4%
/ 30%
1.15%
/ 5%
✗ NOT HALAL
DJIM 202.0%
/ 33%
0.3%
/ 33%
22.4%
/ 33%
1.15%
/ 5%
✗ NOT HALAL
MSCI 70.8%
/ 33%
0.1%
/ 33%
7.9%
/ 33%
1.15%
/ 5%
✗ NOT HALAL
S&P 202.0%
/ 33%
0.3%
/ 33%
22.4%
/ 33%
1.15%
/ 5%
✗ NOT HALAL
FTSE 70.8%
/ 33%
0.1%
/ 33%
7.9%
/ 50%
1.15%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
19.3
Forward: 9.1
EPS
$3.42
Dividend Yield
231.0%
Payout: 42.7%
P/B Ratio
2.1
EV/EBITDA
9.4
EV: $6.1B
Revenue
$15.2B
Growth: -0.6%
Beta
0.9
Average volatility
Current Ratio
1.1

Profitability

Gross Margin 15.7%
Operating Margin 3.3%
Net Margin 0.8%
Return on Equity (ROE) 11.1%
Return on Assets (ROA) 5.4%

Cash Flow & Balance Sheet

Operating Cash Flow$567M
Free Cash Flow$418M
Total Debt$4.2B
Debt-to-Equity395.9
Current Ratio1.1
Total Assets$6.0B

Price & Trading

Last Close$66.80
50-Day MA$62.04
200-Day MA$70.18
Avg Volume274K
Beta0.9
52-Week Range
$52.00
$89.62

About SONIC AUTOMOTIVE INC (SAH)

CEO
Mr. David Bruton Smith
Employees
11,000
Sector
Consumer Cyclical
Industry
Auto & Truck Dealerships
Country
United States
Exchange
NYSE
Market Cap
$2.2B
Currency
USD

Sonic Automotive, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It operates in three segments: Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment engages in the sale of new and used cars and light trucks; sale of replacement parts; provision of vehicle maintenance, manufacturer warranty repairs, and paint and collision repair services; and arrangement of third-party financing, extended warranties, service contracts, insurance, and other aftermarket products. The EchoPark segment sells used cars and light trucks; and arranges third-party finance and insurance product sales for its guests in pre-owned vehicle specialty retail locations. The Powersports segment is involved in the sale of new and used powersports vehicles, such as motorcycles, personal watercraft, and all-terrain vehicles; and provision of fixed operations services, and third-party finance and insurance services. Sonic Automotive, Inc. was incorporated in 1997 and is based in Charlotte, North Carolina.

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Frequently Asked Questions

Is SONIC AUTOMOTIVE INC (SAH) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), SONIC AUTOMOTIVE INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is SONIC AUTOMOTIVE INC's debt ratio?

SONIC AUTOMOTIVE INC's debt ratio is 202.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 70.8%.

What are SONIC AUTOMOTIVE INC's key financial metrics?

SONIC AUTOMOTIVE INC has a market capitalization of $2.2B, trailing P/E ratio of 19.3, and revenue of $15.2B. The company maintains a gross margin of 15.7% and a net margin of 0.8%. Return on equity stands at 11.1%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.