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SONAE (SON.LS) Stock Fundamental Analysis

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

1.128  +0.01 (+0.71%)

Fundamental Rating

3

Taking everything into account, SON scores 3 out of 10 in our fundamental rating. SON was compared to 25 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. SON is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

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.
In the past 5 years SON has always been profitable.
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

SON's Return On Assets of 1.96% is in line compared to the rest of the industry. SON outperforms 41.67% of its industry peers.
Looking at the Return On Equity, with a value of 7.27%, SON is in line with its industry, outperforming 41.67% of the companies in the same industry.
SON has a worse Return On Invested Capital (3.31%) than 75.00% 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 9.13%.
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 70.83% of its industry peers.
SON's Profit Margin has declined in the last couple of years.
SON has a Operating Margin of 3.38%. This is comparable to the rest of the industry: SON outperforms 54.17% of its industry peers.
SON's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 21.54%, SON perfoms like the industry average, outperforming 50.00% of the companies in the same 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SON is destroying value.
SON has more shares outstanding than it did 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

SON has an Altman-Z score of 1.19. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
SON's Altman-Z score of 1.19 is on the low side compared to the rest of the industry. SON is outperformed by 87.50% 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.
The Debt to FCF ratio of SON (8.06) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that SON has dependencies on debt financing.
The Debt to Equity ratio of SON (1.14) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 8.06
Altman-Z 1.19
ROIC/WACC0.55
WACC6.01%
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

A Current Ratio of 0.76 indicates that SON may have some problems paying its short term obligations.
SON has a worse Current ratio (0.76) than 79.17% of its industry peers.
SON has a Quick 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.
With a Quick ratio value of 0.39, SON is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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

SON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.76%.
The Earnings Per Share has been growing by 8.16% on average over the past years. This is quite good.
SON shows a decrease in Revenue. In the last year, the revenue decreased by -3.17%.
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

SON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.35% yearly.
Based on estimates for the next years, SON will show a small growth in Revenue. The Revenue will grow by 6.45% on average per year.
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

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.
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 10.25, the valuation of SON can be described as reasonable.
Based on the Price/Earnings ratio, SON is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.18. SON is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.46 indicates a rather cheap valuation of SON.
100.00% 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 20.81, SON is valued rather cheaply.
Industry RankSector Rank
PE 10.25
Fwd PE 6.46
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

91.67% of the companies in the same industry are more expensive than SON, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.63
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

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.34
PEG (5Y)1.26
EPS Next 2Y19.73%
EPS Next 3Y6.35%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.03%, SON is a good candidate for dividend investing.
SON's Dividend Yield is a higher than the industry average which is at 4.05.
Compared to an average S&P500 Dividend Yield of 2.45, SON pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.03%

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 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 (5/2/2025, 7:00:00 PM)

1.128

+0.01 (+0.71%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)03-20 2025-03-20/amc
Earnings (Next)05-21 2025-05-21
Inst Owners10.73%
Inst Owner ChangeN/A
Ins Owners53.04%
Ins Owner ChangeN/A
Market Cap2.26B
Analysts83.64
Price Target1.46 (29.43%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.03%
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)-0.3%
PT rev (3m)-2.99%
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)0.56%
Revenue NY rev (3m)0.56%
Valuation
Industry RankSector Rank
PE 10.25
Fwd PE 6.46
P/S 0.23
P/FCF 4.63
P/OCF 2.48
P/B 0.74
P/tB 3.44
EV/EBITDA N/A
EPS(TTM)0.11
EY9.75%
EPS(NY)0.17
Fwd EY15.49%
FCF(TTM)0.24
FCFY21.59%
OCF(TTM)0.46
OCFY40.39%
SpS4.97
BVpS1.53
TBVpS0.33
PEG (NY)0.34
PEG (5Y)1.26
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 1.19
F-Score4
WACC6.01%
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 Year116.68%
EBIT Next 3Y37.63%
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%