NASDAQ:SONC
$8.32
(2/9 1:10PM)
+1.3%
| Open | $8.31 |
Mkt Cap | $501.5 Million |
| High | $8.38 |
52Wk High | $12.63 |
| Low | $8.21 |
52Wk Low | $6.05 |
| Volume | 424,750 |
Avg Vol 10D | 594,100 |
Ockham's Rating/Recommendation Summary
Rating specific information requires Premium Access.
Buy Now
or
Learn More about Ockham's Features and Services.
SONC Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at SONC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.78x and 1.68x respectively.
Utilizing this range we can see that SONC’s current Price to Sales per share ratio of 0.77x is significantly below its average levels historically. In fact, with a current price of $8.19, SONC is a full 66% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for SONC.
SONC Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. SONC is significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from SONC. For example, SONC's Cash Earnings ratio per share has fluctuated between 9.59 and 16.07 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where SONC is with respect to prior business periods.
So with SONC's current price (latest close of $8.19) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, SONC is 61% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with SONC.
SONC Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now SONC gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on SONC at this time.
SONC News Mentioned on Mad Money Recently
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Sonic Corporation.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Sonic Corporation will perform just about the same as the index. At Ockham, our stance is currently Greatly Undervalued, which means we believe that value investors will really be interested in this stock at the current price level. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Sonic Corporation has been talked about more than normal recently.
“… concern regarding internet security. What do you think about SONIC wall ticker symbol snw. >> always a bridesmaid never a …”
Sonic Corporation News Appeared on Mad Money
As always, the latest news on SONC is available to Ockham clients through RazorWire, and it was mentioned recently on Mad Money.
Based on our methodology, Sonic Corporation should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of SONC, it is getting significantly more attention in recent news coverage than we are used to seeing. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… caller: SONIC restaurants went down like 15%. Jumped on the bull. > > SONIC is just -- I have to tell you, I was blown away. I love their ads. …”
Countdown to the Closing Bell: Discussion of Analysts and Sonic Corporation
Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Countdown to the Closing Bell.
A significant sell off of $1.33 is underway right now, so investors in SONC should pay close attention to the news. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; SONC has received less coverage from the financial media in business television and blogs. Based on our methodology, Sonic Corporation should hold some appeal to value investors as we view it as Undervalued as of our latest report. Since that time the stock has fallen 11.5% and unless the fundamentals look much less attractive, we will likely have a bullish stance into next week.
“… Tough quarter started off in negative territory and then positive ter and then saw SONIC drive-in restaurant chain getting hit hard today quarterly numbers and analyst downgrade. ... …”
See Why Sonic Corporation News Was Discussed on Fox Business
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on SONC from Fox Business.
A significant sell off of $1.29 is underway right now, so investors in SONC should pay close attention to the news. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; SONC has received less coverage from the financial media in business television and blogs. Based on our methodology, Sonic Corporation should hold some appeal to value investors as we view it as Undervalued as of our latest report. Since that time the stock has fallen 11.0% and unless the fundamentals look much less attractive, we will likely have a bullish stance into next week.
“… Getting upgrades and downgrades SONIC is down 13%. Buds then it made they think of the other retailers and what about the $0. 99 stores? Many retailers have been mixed. …”
Sonic Corporation News is Being Covered Right Now on The Opening Bell on Fox Business
The latest news on The Opening Bell on Fox Business in regards to SONC came through on RazorWire recently.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Sonic Corporation will perform just about the same as the index. We considered SONC as Undervalued as of our latest report at $10.07. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise or the price falls as it has recently. Please be aware that SONC is trading off $1.12 today, and is clearly being affected by the latest news. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SONC has been less covered in the news compared to the rest of our universe of stocks.
“… Have to get out to SONIC more often. Thank you, sandra. We're nine minutes into the trading session, some promising signs from the job markets this morning and the report, john ... …”
See More News on SONC from Bulls & Bears
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on SONC from Bulls & Bears.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards SONC and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Sonic Corporation has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on SONC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. However, the SONC has fallen in price since the report, and barring a change in fundamentals could be upgraded on our next report. Investors are headed for the exit following today's news as the stock is trading down $0.85.
“… We heard from SONIC. The drive in fast food restaurant company, earnings reporting a dime per share, three pennies before analyst revenue numbers down 26% from a year ago ... …”
Sales Growth at Sonic Corporation Discussed on Countdown to the Closing Bell
Sales growth is an absolutely essential metric to understand when researching a stock. Today, SONC's sales growth was the topic on Countdown to the Closing Bell.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Sonic Corporation will perform just about the same as the index. We consider SONC as Undervalued at the current price of $10.14. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SONC has been less covered in the news compared to the rest of our universe of stocks.
“… Number 4, SONIC solution. Software cop. They hit a 52-week high today. They priced them at a premium. The stock is up 19%. Look at that. …”
SONC's Valuation a Topic on Closing Bell
Sonic Corporation was talked about in relation to their valuation on Closing Bell, and you can see what the pundits are saying with RazorWire.
Based on our methodology, Sonic Corporation should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; SONC has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… The stock lost almost 5%. SONIC upgraded to neutral to underperform, citing valuation. SONIC shares are down 14% since mid-october. Today, though, up . 75% at $9. 62. > > > …”
SONC and Analysts' Opinion Discussed on Squawk On The Street
Wall Street analysts can have a huge affect on stocks, and today Squawk On The Street talked about an analysts' opinion in relation to SONC.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Sonic Corporation will perform just about the same as the index. We consider SONC as Undervalued at the current price of $9.70. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SONC has been less covered in the news compared to the rest of our universe of stocks.
“… SONIC taken off the conviction sell list at goldman sachs. Still a sell, they want you to sell it with a little less conviction. …”
News on SONC From the Pundits on Street Signs
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on SONC from Street Signs.
Based on our methodology, Sonic Corporation should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of SONC, it is getting significantly more attention in recent news coverage than we are used to seeing. Due to deterioration in our valuation, we downgraded SONC as of Saturday, November 07, 2009. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… Fortunately a security team was this time the four pirates were met with gunfire and an ear-splithear- ear-splitting SONIC blaster. …”