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SONAE (SON.LS) Stock Fundamental Analysis

ELI:SON - Euronext Lisbon - PTSON0AM0001 - Common Stock - Currency: EUR

1.239  -0.01 (-0.72%)

Fundamental Rating

3

SON gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 26 industry peers in the Consumer Staples Distribution & Retail industry. SON may be in some trouble as it scores bad on both profitability and health. SON is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

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.
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.
SON.LS Yearly Net Income VS EBIT VS OCF VS FCFSON.LS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

1.2 Ratios

With a Return On Assets value of 1.96%, SON is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
SON has a Return On Equity of 7.27%. This is in the lower half of the industry: SON underperforms 61.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.31%, SON is doing worse than 76.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SON is significantly below the industry average of 9.64%.
Industry RankSector Rank
ROA 1.96%
ROE 7.27%
ROIC 3.31%
ROA(3y)3.29%
ROA(5y)2.79%
ROE(3y)10.37%
ROE(5y)9.04%
ROIC(3y)3.62%
ROIC(5y)3.3%
SON.LS Yearly ROA, ROE, ROICSON.LS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

SON has a Profit Margin of 2.24%. This is in the better half of the industry: SON outperforms 61.54% of its industry peers.
In the last couple of years the Profit Margin of SON has declined.
With a Operating Margin value of 3.38%, SON perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SON has remained more or less at the same level.
SON has a Gross Margin (21.54%) which is comparable to the rest of the industry.
SON's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 3.38%
PM (TTM) 2.24%
GM 21.54%
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%
SON.LS Yearly Profit, Operating, Gross MarginsSON.LS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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1

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.
Compared to 1 year ago, SON has a worse debt to assets ratio.
SON.LS Yearly Shares OutstandingSON.LS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
SON.LS Yearly Total Debt VS Total AssetsSON.LS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 1.21, we must say that SON is in the distress zone and has some risk of bankruptcy.
SON's Altman-Z score of 1.21 is on the low side compared to the rest of the industry. SON is outperformed by 88.46% of its industry peers.
SON has a debt to FCF ratio of 8.06. This is a slightly negative value and a sign of low solvency as SON would need 8.06 years to pay back of all of its debts.
SON's Debt to FCF ratio of 8.06 is in line compared to the rest of the industry. SON outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that SON has dependencies on debt financing.
With a Debt to Equity ratio value of 1.14, SON is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 8.06
Altman-Z 1.21
ROIC/WACC0.55
WACC5.99%
SON.LS Yearly LT Debt VS Equity VS FCFSON.LS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

SON has a Current Ratio of 0.76. 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 0.76 is on the low side compared to the rest of the industry. SON is outperformed by 80.77% of its industry peers.
A Quick Ratio of 0.39 indicates that SON may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.39, SON is doing worse than 69.23% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.39
SON.LS Yearly Current Assets VS Current LiabilitesSON.LS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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3

3. Growth

3.1 Past

The earnings per share for SON have decreased strongly by -44.76% 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 decrease in Revenue. The Revenue has decreased by -3.17% in the last year.
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)-44.76%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%-69.59%
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%26.15%

3.2 Future

The Earnings Per Share is expected to grow by 6.35% on average over the next years.
The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y30.08%
EPS Next 2Y19.73%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue Next Year10.32%
Revenue Next 2Y7.34%
Revenue Next 3Y6.45%
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.
SON.LS Yearly Revenue VS EstimatesSON.LS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B 10B
SON.LS Yearly EPS VS EstimatesSON.LS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.05 0.1 0.15

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.26, the valuation of SON can be described as reasonable.
76.92% of the companies in the same industry are more expensive than SON, based on the Price/Earnings ratio.
SON is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.09 indicates a rather cheap valuation of SON.
Based on the Price/Forward Earnings ratio, SON is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
SON's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.20.
Industry RankSector Rank
PE 11.26
Fwd PE 7.09
SON.LS Price Earnings VS Forward Price EarningsSON.LS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

SON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SON is cheaper than 88.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.09
EV/EBITDA N/A
SON.LS Per share dataSON.LS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

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.
PEG (NY)0.37
PEG (5Y)1.38
EPS Next 2Y19.73%
EPS Next 3Y6.35%

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6

5. Dividend

5.1 Amount

SON has a Yearly Dividend Yield of 5.05%, which is a nice return.
Compared to an average industry Dividend Yield of 3.74, SON pays a better dividend. On top of this SON pays more dividend than 80.77% 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 2.40.
Industry RankSector Rank
Dividend Yield 5.05%

5.2 History

The dividend of SON decreases each year by -11.66%.
Dividend Growth(5Y)-11.66%
Div Incr Years5
Div Non Decr Years5
SON.LS Yearly Dividends per shareSON.LS Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.01 0.02 0.03 0.04 0.05

5.3 Sustainability

72.16% of the earnings are spent on dividend by SON. This is not a sustainable payout ratio.
DP72.16%
EPS Next 2Y19.73%
EPS Next 3Y6.35%
SON.LS Yearly Income VS Free CF VS DividendSON.LS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M
SON.LS Dividend Payout.SON.LS Dividend Payout, showing the Payout Ratio.SON.LS Dividend Payout.PayoutRetained Earnings

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SONAE

ELI:SON (5/28/2025, 5:29:58 PM)

1.239

-0.01 (-0.72%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)05-21 2025-05-21
Earnings (Next)07-30 2025-07-30
Inst Owners10.73%
Inst Owner ChangeN/A
Ins Owners53.04%
Ins Owner ChangeN/A
Market Cap2.48B
Analysts83.64
Price Target1.46 (17.84%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.05%
Yearly Dividend0.08
Dividend Growth(5Y)-11.66%
DP72.16%
Div Incr Years5
Div Non Decr Years5
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)0
Avg Revenue beat(2)-19.05%
Min Revenue beat(2)-37.11%
Max Revenue beat(2)-1%
Revenue beat(4)2
Avg Revenue beat(4)-8.28%
Min Revenue beat(4)-37.11%
Max Revenue beat(4)2.56%
Revenue beat(8)4
Avg Revenue beat(8)8.63%
Revenue beat(12)7
Avg Revenue beat(12)8.35%
Revenue beat(16)8
Avg Revenue beat(16)5.93%
PT rev (1m)0.75%
PT rev (3m)1.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.56%
Valuation
Industry RankSector Rank
PE 11.26
Fwd PE 7.09
P/S 0.25
P/FCF 5.09
P/OCF 2.72
P/B 0.81
P/tB 3.77
EV/EBITDA N/A
EPS(TTM)0.11
EY8.88%
EPS(NY)0.17
Fwd EY14.1%
FCF(TTM)0.24
FCFY19.66%
OCF(TTM)0.46
OCFY36.77%
SpS4.97
BVpS1.53
TBVpS0.33
PEG (NY)0.37
PEG (5Y)1.38
Profitability
Industry RankSector Rank
ROA 1.96%
ROE 7.27%
ROCE 4.19%
ROIC 3.31%
ROICexc 3.58%
ROICexgc 5.3%
OM 3.38%
PM (TTM) 2.24%
GM 21.54%
FCFM 4.9%
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%
ROICexcg growth 3Y7.22%
ROICexcg 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-Score4
Asset Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 8.06
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 4.26%
Interest Coverage 250
Cash Conversion N/A
Profit Quality 218.79%
Current Ratio 0.76
Quick Ratio 0.39
Altman-Z 1.21
F-Score4
WACC5.99%
ROIC/WACC0.55
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)-44.76%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%-69.59%
EPS Next Y30.08%
EPS Next 2Y19.73%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%26.15%
Revenue Next Year10.32%
Revenue Next 2Y7.34%
Revenue Next 3Y6.45%
Revenue Next 5YN/A
EBIT growth 1Y8.12%
EBIT growth 3Y16.2%
EBIT growth 5Y7.79%
EBIT Next Year128.51%
EBIT Next 3Y39.39%
EBIT Next 5YN/A
FCF growth 1Y97.56%
FCF growth 3Y8.46%
FCF growth 5Y10.74%
OCF growth 1Y41.67%
OCF growth 3Y13.52%
OCF growth 5Y8.41%