SONAE (SON.LS) Stock Fundamental Analysis
Europe - ELI:SON - PTSON0AM0001 - Common Stock
1.428 EUR
-0.01 (-0.83%)
SON gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of SON have multiple concerns. SON has a correct valuation and a medium growth rate.
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.
SON had positive earnings in each of the past 5 years.
In the past 5 years SON always reported a positive cash flow from operatings.
1.2 Ratios
SON has a Return On Assets of 2.15%. This is in the lower half of the industry: SON underperforms 61.90% of its industry peers.
SON's Return On Equity of 7.75% is on the low side compared to the rest of the industry. SON is outperformed by 61.90% of its industry peers.
SON has a Return On Invested Capital of 3.48%. This is in the lower half of the industry: SON underperforms 76.19% of its industry peers.
SON had an Average Return On Invested Capital over the past 3 years of 3.62%. This is significantly below the industry average of 9.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 7.75% | ||
| ROIC | 3.48% |
ROA(3y)3.29%
ROA(5y)2.79%
ROE(3y)10.37%
ROE(5y)9.04%
ROIC(3y)3.62%
ROIC(5y)3.3%
1.3 Margins
Looking at the Profit Margin, with a value of 2.31%, SON is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SON's Profit Margin has declined in the last couple of years.
The Operating Margin of SON (3.46%) is comparable to the rest of the 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 (21.73%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SON has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.46% | ||
| PM (TTM) | 2.31% | ||
| GM | 21.73% |
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%
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.
Compared to 5 years ago, SON has less shares outstanding
Compared to 1 year ago, SON has a worse debt to assets ratio.
2.2 Solvency
SON has an Altman-Z score of 1.33. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.33, SON is doing worse than 90.48% of the companies in the same industry.
SON has a debt to FCF ratio of 10.14. This is a negative value and a sign of low solvency as SON would need 10.14 years to pay back of all of its debts.
SON has a Debt to FCF ratio (10.14) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.15 is on the high side and indicates that SON has dependencies on debt financing.
SON has a worse Debt to Equity ratio (1.15) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.14 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.61
WACC5.72%
2.3 Liquidity
SON has a Current 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.
SON has a Current ratio of 0.78. This is in the lower half of the industry: SON underperforms 71.43% 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.
SON has a Quick ratio of 0.36. This is in the lower half of the industry: SON underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
SON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.51%.
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.
SON shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.74%.
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)-34.51%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%0%
Revenue 1Y (TTM)23.74%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%23.51%
3.2 Future
Based on estimates for the next years, SON will show a small growth in Earnings Per Share. The EPS will grow by 2.32% on average per year.
SON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.36% yearly.
EPS Next Y-5.26%
EPS Next 2Y6.2%
EPS Next 3Y6.91%
EPS Next 5Y2.32%
Revenue Next Year14.25%
Revenue Next 2Y9.43%
Revenue Next 3Y8.14%
Revenue Next 5Y6.36%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.98, the valuation of SON can be described as very reasonable.
Based on the Price/Earnings ratio, SON is valued a bit cheaper than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, SON is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.43, the valuation of SON can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SON is valued cheaper than 80.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SON to the average of the S&P500 Index (33.72), we can say SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SON indicates a rather cheap valuation: SON is cheaper than 80.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.35
EPS Next 2Y6.2%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, SON is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.91, SON pays a bit more dividend than its industry peers.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
The dividend of SON decreases each year by -11.66%.
Dividend Growth(5Y)-11.66%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
66.73% of the earnings are spent on dividend by SON. This is not a sustainable payout ratio.
DP66.73%
EPS Next 2Y6.2%
EPS Next 3Y6.91%
ELI:SON (11/11/2025, 7:00:00 PM)
1.428
-0.01 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners10.88%
Inst Owner ChangeN/A
Ins Owners53.06%
Ins Owner ChangeN/A
Market Cap2.86B
Revenue(TTM)10.93B
Net Income(TTM)240.81M
Analysts80
Price Target1.48 (3.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend0.08
Dividend Growth(5Y)-11.66%
DP66.73%
Div Incr Years6
Div Non Decr Years6
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.8%
PT rev (3m)-2.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-4.91%
EPS NY rev (3m)-27.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 9.43 | ||
| P/S | 0.27 | ||
| P/FCF | 7.08 | ||
| P/OCF | 3.34 | ||
| P/B | 0.92 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.13
EY9.1%
EPS(NY)0.15
Fwd EY10.61%
FCF(TTM)0.2
FCFY14.12%
OCF(TTM)0.43
OCFY29.93%
SpS5.21
BVpS1.55
TBVpS0.35
PEG (NY)N/A
PEG (5Y)1.35
Graham Number2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 7.75% | ||
| ROCE | 4.41% | ||
| ROIC | 3.48% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 5.37% | ||
| OM | 3.46% | ||
| PM (TTM) | 2.31% | ||
| GM | 21.73% | ||
| FCFM | 3.87% |
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%
ROICexgc growth 3Y7.22%
ROICexgc 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-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.14 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 167.43% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.33 |
F-Score5
WACC5.72%
ROIC/WACC0.61
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)-34.51%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%0%
EPS Next Y-5.26%
EPS Next 2Y6.2%
EPS Next 3Y6.91%
EPS Next 5Y2.32%
Revenue 1Y (TTM)23.74%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%23.51%
Revenue Next Year14.25%
Revenue Next 2Y9.43%
Revenue Next 3Y8.14%
Revenue Next 5Y6.36%
EBIT growth 1Y15.94%
EBIT growth 3Y16.2%
EBIT growth 5Y7.79%
EBIT Next Year131%
EBIT Next 3Y38.24%
EBIT Next 5Y26.14%
FCF growth 1Y37.6%
FCF growth 3Y8.46%
FCF growth 5Y10.74%
OCF growth 1Y34.54%
OCF growth 3Y13.52%
OCF growth 5Y8.41%
SONAE / SON.LS FAQ
What is the ChartMill fundamental rating of SONAE (SON.LS) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SON.LS.
What is the valuation status for SON stock?
ChartMill assigns a valuation rating of 6 / 10 to SONAE (SON.LS). This can be considered as Fairly Valued.
What is the profitability of SON stock?
SONAE (SON.LS) has a profitability rating of 3 / 10.
What is the valuation of SONAE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SONAE (SON.LS) is 10.98 and the Price/Book (PB) ratio is 0.92.
What is the expected EPS growth for SONAE (SON.LS) stock?
The Earnings per Share (EPS) of SONAE (SON.LS) is expected to decline by -5.26% in the next year.