- The current semiconductor chip shortage could potentially remain an issue till 2022, with the major automotive OEMs already guiding for lower production and profits in the current year.
- Sonic Automotive's diversified revenue and earnings mix help to offset the negative impact of the ongoing chip storage, which explains why Wall Street still expects strong growth for the company.
- The company currently trades at consensus forward FY 2021 and FY 2022 normalized P/E multiples of 9.7 times and 8.9 times, respectively.
For further details see:
Sonic Automotive: Spotlight On Chip Shortage And Revenue Mix