SONAE (SON.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:SON - PTSON0AM0001 - Common Stock
1.618 EUR
+0 (+0.25%)
Overall SON gets a fundamental rating of 3 out of 10. We evaluated SON against 25 industry peers in the Consumer Staples Distribution & Retail industry. SON has a bad profitability rating. Also its financial health evaluation is rather negative. SON is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SON had positive earnings in the past year.
SON had a positive operating cash flow in the past year.
Each year in the past 5 years SON has been profitable.
Each year in the past 5 years SON had a positive operating cash flow.
1.2 Ratios
SON has a Return On Assets of 2.15%. This is in the lower half of the industry: SON underperforms 60.00% of its industry peers.
With a Return On Equity value of 7.75%, SON is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
SON has a Return On Invested Capital of 3.48%. This is in the lower half of the industry: SON underperforms 76.00% of its industry peers.
SON had an Average Return On Invested Capital over the past 3 years of 3.62%. This is significantly below the industry average of 9.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 7.75% | ||
| ROIC | 3.48% |
ROA(3y)3.29%
ROA(5y)2.79%
ROE(3y)10.37%
ROE(5y)9.04%
ROIC(3y)3.62%
ROIC(5y)3.3%
1.3 Margins
SON's Profit Margin of 2.31% is fine compared to the rest of the industry. SON outperforms 68.00% of its industry peers.
SON's Profit Margin has declined in the last couple of years.
SON's Operating Margin of 3.46% is in line compared to the rest of the industry. SON outperforms 56.00% of its industry peers.
SON's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 21.73%, SON is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of SON has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.46% | ||
| PM (TTM) | 2.31% | ||
| GM | 21.73% |
OM growth 3Y3.18%
OM growth 5Y-1.21%
PM growth 3Y-16.47%
PM growth 5Y-2.78%
GM growth 3Y2.33%
GM growth 5Y-7.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SON is destroying value.
The number of shares outstanding for SON has been increased compared to 1 year ago.
SON has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SON is higher compared to a year ago.
2.2 Solvency
SON has an Altman-Z score of 1.35. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.35, SON is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
SON has a debt to FCF ratio of 10.14. This is a negative value and a sign of low solvency as SON would need 10.14 years to pay back of all of its debts.
The Debt to FCF ratio of SON (10.14) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.15 is on the high side and indicates that SON has dependencies on debt financing.
The Debt to Equity ratio of SON (1.15) is worse than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.14 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.6
WACC5.84%
2.3 Liquidity
A Current Ratio of 0.78 indicates that SON may have some problems paying its short term obligations.
The Current ratio of SON (0.78) is worse than 72.00% of its industry peers.
SON has a Quick Ratio of 0.78. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
SON has a Quick ratio of 0.36. This is in the lower half of the industry: SON underperforms 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The earnings per share for SON have decreased strongly by -34.51% in the last year.
Measured over the past years, SON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.16% on average per year.
Looking at the last year, SON shows a very strong growth in Revenue. The Revenue has grown by 23.74%.
Measured over the past years, SON shows a quite strong growth in Revenue. The Revenue has been growing by 9.11% on average per year.
EPS 1Y (TTM)-34.51%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%0%
Revenue 1Y (TTM)23.74%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%23.51%
3.2 Future
SON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.38% yearly.
Based on estimates for the next years, SON will show a small growth in Revenue. The Revenue will grow by 6.91% on average per year.
EPS Next Y18.92%
EPS Next 2Y12.06%
EPS Next 3Y7.81%
EPS Next 5Y6.38%
Revenue Next Year15.42%
Revenue Next 2Y9.9%
Revenue Next 3Y8.5%
Revenue Next 5Y6.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.45 indicates a correct valuation of SON.
Compared to the rest of the industry, the Price/Earnings ratio of SON indicates a somewhat cheap valuation: SON is cheaper than 76.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. SON is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.59, the valuation of SON can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a somewhat cheap valuation: SON is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
SON's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SON is cheaper than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.03 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.66
PEG (5Y)1.52
EPS Next 2Y12.06%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.82%, SON has a reasonable but not impressive dividend return.
SON's Dividend Yield is a higher than the industry average which is at 3.66.
Compared to an average S&P500 Dividend Yield of 2.27, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
The dividend of SON decreases each year by -11.66%.
Dividend Growth(5Y)-11.66%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
SON pays out 66.73% of its income as dividend. This is not a sustainable payout ratio.
DP66.73%
EPS Next 2Y12.06%
EPS Next 3Y7.81%
ELI:SON (12/12/2025, 7:00:00 PM)
1.618
+0 (+0.25%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners11.12%
Inst Owner ChangeN/A
Ins Owners53.06%
Ins Owner ChangeN/A
Market Cap3.24B
Revenue(TTM)10.93B
Net Income(TTM)240.81M
Analysts78
Price Target1.54 (-4.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend0.08
Dividend Growth(5Y)-11.66%
DP66.73%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.94%
PT rev (3m)1.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)25.53%
EPS NY rev (3m)16.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.31 | ||
| P/FCF | 8.03 | ||
| P/OCF | 3.79 | ||
| P/B | 1.04 | ||
| P/tB | 4.64 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.13
EY8.03%
EPS(NY)0.17
Fwd EY10.42%
FCF(TTM)0.2
FCFY12.46%
OCF(TTM)0.43
OCFY26.41%
SpS5.21
BVpS1.55
TBVpS0.35
PEG (NY)0.66
PEG (5Y)1.52
Graham Number2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 7.75% | ||
| ROCE | 4.41% | ||
| ROIC | 3.48% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 5.37% | ||
| OM | 3.46% | ||
| PM (TTM) | 2.31% | ||
| GM | 21.73% | ||
| FCFM | 3.87% |
ROA(3y)3.29%
ROA(5y)2.79%
ROE(3y)10.37%
ROE(5y)9.04%
ROIC(3y)3.62%
ROIC(5y)3.3%
ROICexc(3y)4.05%
ROICexc(5y)3.73%
ROICexgc(3y)5.4%
ROICexgc(5y)4.92%
ROCE(3y)4.59%
ROCE(5y)4.18%
ROICexgc growth 3Y7.22%
ROICexgc growth 5Y8.15%
ROICexc growth 3Y2.69%
ROICexc growth 5Y3.91%
OM growth 3Y3.18%
OM growth 5Y-1.21%
PM growth 3Y-16.47%
PM growth 5Y-2.78%
GM growth 3Y2.33%
GM growth 5Y-7.9%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.14 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 167.43% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.35 |
F-Score5
WACC5.84%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)4.28%
Cap/Sales(5y)4.03%
Profit Quality(3y)128.34%
Profit Quality(5y)187.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.51%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%0%
EPS Next Y18.92%
EPS Next 2Y12.06%
EPS Next 3Y7.81%
EPS Next 5Y6.38%
Revenue 1Y (TTM)23.74%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%23.51%
Revenue Next Year15.42%
Revenue Next 2Y9.9%
Revenue Next 3Y8.5%
Revenue Next 5Y6.91%
EBIT growth 1Y15.94%
EBIT growth 3Y16.2%
EBIT growth 5Y7.79%
EBIT Next Year138.06%
EBIT Next 3Y38.93%
EBIT Next 5Y26.14%
FCF growth 1Y37.6%
FCF growth 3Y8.46%
FCF growth 5Y10.74%
OCF growth 1Y34.54%
OCF growth 3Y13.52%
OCF growth 5Y8.41%
SONAE / SON.LS FAQ
What is the ChartMill fundamental rating of SONAE (SON.LS) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SON.LS.
What is the valuation status for SON stock?
ChartMill assigns a valuation rating of 6 / 10 to SONAE (SON.LS). This can be considered as Fairly Valued.
What is the profitability of SON stock?
SONAE (SON.LS) has a profitability rating of 3 / 10.
What is the valuation of SONAE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SONAE (SON.LS) is 12.45 and the Price/Book (PB) ratio is 1.04.
What is the expected EPS growth for SONAE (SON.LS) stock?
The Earnings per Share (EPS) of SONAE (SON.LS) is expected to grow by 18.92% in the next year.