SONAE (SON.LS)
PTSON0AM0001 - Common Stock
SON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 27 industry peers in the Consumer Staples Distribution & Retail industry. While SON is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SON. SON also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SON was profitable.
In the past year SON had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.99%, SON is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
The Return On Equity of SON (12.54%) is comparable to the rest of the industry.
SON's Return On Invested Capital of 3.53% is on the low side compared to the rest of the industry. SON is outperformed by 62.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SON is significantly below the industry average of 8.55%.
The 3 year average ROIC (3.46%) for SON is below the current ROIC(3.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 12.54% | ||
| ROIC | 3.53% |
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
With an excellent Profit Margin value of 3.64%, SON belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
In the last couple of years the Profit Margin of SON has grown nicely.
Looking at the Operating Margin, with a value of 2.97%, SON is in line with its industry, outperforming 44.44% of the companies in the same industry.
SON's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.98%, SON perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
SON's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.97% | ||
| PM (TTM) | 3.64% | ||
| GM | 20.98% |
OM growth 3Y9.41%
OM growth 5Y4.35%
PM growth 3Y58.72%
PM growth 5Y3.87%
GM growth 3Y0.81%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Based on the Altman-Z score of 1.44, we must say that SON is in the distress zone and has some risk of bankruptcy.
SON has a worse Altman-Z score (1.44) than 81.48% of its industry peers.
The Debt to FCF ratio of SON is 8.80, which is on the high side as it means it would take SON, 8.80 years of fcf income to pay off all of its debts.
SON has a Debt to FCF ratio (8.80) which is in line with its industry peers.
SON has a Debt/Equity ratio of 0.98. This is a neutral value indicating SON is somewhat dependend on debt financing.
SON has a Debt to Equity ratio of 0.98. This is comparable to the rest of the industry: SON outperforms 51.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.63
WACC5.56%
2.3 Liquidity
SON has a Current Ratio of 0.70. 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's Current ratio of 0.70 is on the low side compared to the rest of the industry. SON is outperformed by 74.07% of its industry peers.
SON has a Quick Ratio of 0.70. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.39, SON is doing worse than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
SON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.54%, 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 32.28%.
SON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.35% yearly.
EPS 1Y (TTM)25.54%
EPS 3Y76.49%
EPS 5Y11.96%
EPS Q2Q%-13.6%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y7.97%
Revenue growth 5Y7.35%
Sales Q2Q%11.11%
3.2 Future
The Earnings Per Share is expected to grow by 6.24% on average over the next years.
Based on estimates for the next years, SON will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y-1.33%
EPS Next 2Y-1.1%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue Next Year7.74%
Revenue Next 2Y6.61%
Revenue Next 3Y6.19%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.63, the valuation of SON can be described as very cheap.
92.59% of the companies in the same industry are more expensive than SON, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (24.41), we can say SON is valued rather cheaply.
The Price/Forward Earnings ratio is 6.33, which indicates a rather cheap valuation of SON.
96.30% of the companies in the same industry are more expensive than SON, based on the Price/Forward Earnings ratio.
SON's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.64 | ||
| Fwd PE | 6.33 |
4.2 Price Multiples
81.48% of the companies in the same industry are more expensive than SON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.77 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-1.1%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.07%, SON is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.02, SON pays a better dividend. On top of this SON pays more dividend than 92.59% of the companies listed in the same industry.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
5.2 History
The dividend of SON has a limited annual growth rate of 3.02%.
Dividend Growth(5Y)3.02%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
42.36% of the earnings are spent on dividend by SON. This is a bit on the high side, but may be sustainable.
SON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP42.36%
EPS Next 2Y-1.1%
EPS Next 3Y6.24%
SONAE
ELI:SON (7/26/2024, 7:00:00 PM)
0.927
-0.01 (-0.54%)
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 Cap1.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
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(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 | 4.64 | ||
| Fwd PE | 6.33 | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 12.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.97% | ||
| PM (TTM) | 3.64% | ||
| GM | 20.98% | ||
| 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 Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.39 | ||
| 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)25.54%
EPS 3Y76.49%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)32.28%
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