SONAE (SON.LS)

PTSON0AM0001 - Common Stock

0.972  +0.01 (+0.62%)

Fundamental Rating

4

Taking everything into account, SON scores 4 out of 10 in our fundamental rating. SON was compared to 28 industry peers in the Consumer Staples Distribution & Retail industry. SON has a medium profitability rating, but doesn't score so well on its financial health evaluation. SON has a correct valuation and a medium growth rate. SON also has an excellent dividend rating.



6

1. Profitability

1.1 Basic Checks

SON had positive earnings in the past year.
In the past year SON had a positive cash flow from operations.
In the past 5 years SON has always 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 4.33%. This is in the better half of the industry: SON outperforms 64.29% of its industry peers.
With a Return On Equity value of 12.67%, SON perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SON's Return On Invested Capital of 3.86% is on the low side compared to the rest of the industry. SON is outperformed by 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SON is significantly below the industry average of 8.55%.
The last Return On Invested Capital (3.86%) for SON is above the 3 year average (3.46%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.33%
ROE 12.67%
ROIC 3.86%
ROA(3y)3.71%
ROA(5y)2.77%
ROE(3y)11.45%
ROE(5y)9.14%
ROIC(3y)3.46%
ROIC(5y)3.17%

1.3 Margins

SON's Profit Margin of 3.73% is amongst the best of the industry. SON outperforms 92.86% of its industry peers.
SON's Profit Margin has improved in the last couple of years.
SON has a Operating Margin (3.02%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SON has grown nicely.
SON has a Gross Margin (20.82%) which is in line with its industry peers.
SON's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.02%
PM (TTM) 3.73%
GM 20.82%
OM growth 3Y9.41%
OM growth 5Y4.35%
PM growth 3Y58.72%
PM growth 5Y3.87%
GM growth 3Y0.81%
GM growth 5Y0.2%

1

2. Health

2.1 Basic Checks

SON has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SON has been increased compared to 1 year ago.
The number of shares outstanding for SON has been reduced compared to 5 years ago.
SON has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.58, we must say that SON is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SON (1.58) is worse than 85.71% of its industry peers.
The Debt to FCF ratio of SON is 10.83, which is on the high side as it means it would take SON, 10.83 years of fcf income to pay off all of its debts.
SON has a worse Debt to FCF ratio (10.83) than 60.71% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that SON is somewhat dependend on debt financing.
SON's Debt to Equity ratio of 0.81 is fine compared to the rest of the industry. SON outperforms 60.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 10.83
Altman-Z 1.58
ROIC/WACC0.69
WACC5.55%

2.3 Liquidity

A Current Ratio of 0.78 indicates that SON may have some problems paying its short term obligations.
SON has a worse Current ratio (0.78) than 67.86% 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.
The Quick ratio of SON (0.46) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.78
Quick Ratio 0.46

4

3. Growth

3.1 Past

SON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.05%, which is quite impressive.
SON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.96% yearly.
SON shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.96%.
The Revenue has been growing slightly by 7.35% on average over the past years.
EPS 1Y (TTM)21.05%
EPS 3Y76.49%
EPS 5Y11.96%
EPS Q2Q%103.3%
Revenue 1Y (TTM)32.96%
Revenue growth 3Y7.97%
Revenue growth 5Y7.35%
Sales Q2Q%5.8%

3.2 Future

SON is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.29% yearly.
Based on estimates for the next years, SON will show a small growth in Revenue. The Revenue will grow by 4.76% on average per year.
EPS Next Y-36.79%
EPS Next 2Y-16.73%
EPS Next 3Y-10.29%
EPS Next 5YN/A
Revenue Next Year5.77%
Revenue Next 2Y4.67%
Revenue Next 3Y4.76%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 4.63 indicates a rather cheap valuation of SON.
Based on the Price/Earnings ratio, SON is valued cheaper than 96.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.24. SON is valued rather cheaply when compared to this.
SON is valuated reasonably with a Price/Forward Earnings ratio of 10.27.
75.00% of the companies in the same industry are more expensive than SON, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.93, SON is valued a bit cheaper.
Industry RankSector Rank
PE 4.63
Fwd PE 10.27

4.2 Price Multiples

SON's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SON is cheaper than 71.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.88
EV/EBITDA N/A

4.3 Compensation for Growth

SON has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SON's earnings are expected to decrease with -10.29% in the coming years.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-16.73%
EPS Next 3Y-10.29%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.84%, SON is a good candidate for dividend investing.
SON's Dividend Yield is rather good when compared to the industry average which is at 3.74. SON pays more dividend than 96.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SON pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.84%

5.2 History

The dividend of SON has a limited annual growth rate of 3.02%.
Dividend Growth(5Y)3.02%
Div Incr Years4
Div Non Decr Years4

5.3 Sustainability

SON pays out 42.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.21%
EPS Next 2Y-16.73%
EPS Next 3Y-10.29%

SONAE

ELI:SON (5/24/2024, 7:00:00 PM)

0.972

+0.01 (+0.62%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.94B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.84%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
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Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 4.63
Fwd PE 10.27
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.39
Profitability
Industry RankSector Rank
ROA 4.33%
ROE 12.67%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.02%
PM (TTM) 3.73%
GM 20.82%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.16
Health
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.78
Quick Ratio 0.46
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.05%
EPS 3Y76.49%
EPS 5Y
EPS Q2Q%
EPS Next Y-36.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)32.96%
Revenue growth 3Y7.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y