SONAE (SON.LS)
PTSON0AM0001 - Common Stock
Taking everything into account, SON scores 5 out of 10 in our fundamental rating. SON was compared to 29 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 is valued quite cheap, while showing a decent growth score. This is a good combination! Finally SON also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SON was profitable.
SON had a positive operating cash flow in the past year.
SON had positive earnings in each of the past 5 years.
Each year in the past 5 years SON had a positive operating cash flow.
1.2 Ratios
SON has a Return On Assets (3.29%) which is comparable to the rest of the industry.
The Return On Equity of SON (10.39%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.67%, SON is doing worse than 60.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SON is significantly below the industry average of 8.37%.
The 3 year average ROIC (2.96%) for SON is below the current ROIC(3.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 10.39% | ||
| ROIC | 3.67% |
ROA(3y)2.68%
ROA(5y)2.44%
ROE(3y)8.77%
ROE(5y)8.82%
ROIC(3y)2.96%
ROIC(5y)2.79%
1.3 Margins
With an excellent Profit Margin value of 2.89%, SON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of SON has grown nicely.
SON has a Operating Margin of 2.97%. This is comparable to the rest of the industry: SON outperforms 46.43% of its industry peers.
In the last couple of years the Operating Margin of SON has grown nicely.
SON has a Gross Margin (20.60%) which is comparable to the rest of the industry.
SON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.97% | ||
| PM (TTM) | 2.89% | ||
| GM | 20.6% |
OM growth 3Y-5.42%
OM growth 5Y6.1%
PM growth 3Y19.71%
PM growth 5Y6.9%
GM growth 3Y-14.74%
GM growth 5Y1.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SON is destroying value.
Compared to 1 year ago, SON has more shares outstanding
SON has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SON has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that SON is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SON (1.48) is worse than 82.14% of its industry peers.
The Debt to FCF ratio of SON is 9.86, which is on the high side as it means it would take SON, 9.86 years of fcf income to pay off all of its debts.
SON's Debt to FCF ratio of 9.86 is on the low side compared to the rest of the industry. SON is outperformed by 60.71% of its industry peers.
SON has a Debt/Equity ratio of 0.88. This is a neutral value indicating SON is somewhat dependend on debt financing.
SON's Debt to Equity ratio of 0.88 is fine compared to the rest of the industry. SON outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.67
WACC5.49%
2.3 Liquidity
SON has a Current Ratio of 0.73. 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 Current ratio of SON (0.73) is worse than 71.43% of its industry peers.
A Quick Ratio of 0.40 indicates that SON may have some problems paying its short term obligations.
The Quick ratio of SON (0.40) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
SON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.01%.
The Earnings Per Share has been growing by 14.02% on average over the past years. This is quite good.
The Revenue has grown by 35.20% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.01% on average over the past years.
EPS 1Y (TTM)-14.01%
EPS 3Y30.21%
EPS 5Y14.02%
EPS growth Q2Q-28.16%
Revenue 1Y (TTM)35.2%
Revenue growth 3Y6.29%
Revenue growth 5Y7.01%
Revenue growth Q2Q7.81%
3.2 Future
SON is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.00% yearly.
The Revenue is expected to grow by 5.64% on average over the next years.
EPS Next Y17.62%
EPS Next 2Y-13.78%
EPS Next 3Y-6.57%
EPS Next 5Y-4%
Revenue Next Year8.35%
Revenue Next 2Y7.05%
Revenue Next 3Y5.88%
Revenue Next 5Y5.64%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.45, which indicates a rather cheap valuation of SON.
92.86% of the companies in the same industry are more expensive than SON, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.80. SON is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.54 indicates a reasonable valuation of SON.
85.71% 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 21.27, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 9.54 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SON is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SON's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 -6.57% in the coming years.
PEG (NY)0.37
PEG (5Y)0.46
EPS Next 2Y-13.78%
EPS Next 3Y-6.57%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 6.00%, which is a nice return.
Compared to an average industry Dividend Yield of 3.95, SON pays a better dividend. On top of this SON pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
5.2 History
The dividend of SON is nicely growing with an annual growth rate of 17.25%!
Dividend Growth(5Y)17.25%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
55.20% of the earnings are spent on dividend by SON. This is a bit on the high side, but may be sustainable.
The Dividend Rate of SON has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP55.2%
EPS Next 2Y-13.78%
EPS Next 3Y-6.57%
SONAE
ELI:SON (4/18/2024, 7:00:00 PM)
0.903
+0.03 (+3.44%)
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 Cap1.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 9.54 | ||
| 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)0.37
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 10.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.97% | ||
| PM (TTM) | 2.89% | ||
| GM | 20.6% | ||
| 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 Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.4 | ||
| 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)
Growth
EPS 1Y (TTM)-14.01%
EPS 3Y30.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)35.2%
Revenue growth 3Y6.29%
Revenue growth 5Y
Revenue growth 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