SONOS INC (SONO) Fundamental Analysis & Valuation

NASDAQ:SONO • US83570H1086

Current stock price

13.39 USD
-0.09 (-0.67%)
Last:

This SONO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. SONO Profitability Analysis

1.1 Basic Checks

  • In the past year SONO has reported negative net income.
  • SONO had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: SONO reported negative net income in multiple years.
  • SONO had a positive operating cash flow in 4 of the past 5 years.
SONO Yearly Net Income VS EBIT VS OCF VS FCFSONO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

1.2 Ratios

  • Looking at the Return On Assets, with a value of -1.85%, SONO is doing worse than 68.33% of the companies in the same industry.
  • The Return On Equity of SONO (-3.97%) is worse than 70.00% of its industry peers.
  • SONO's Return On Invested Capital of 5.00% is in line compared to the rest of the industry. SONO outperforms 41.67% of its industry peers.
Industry RankSector Rank
ROA -1.85%
ROE -3.97%
ROIC 5%
ROA(3y)-4.2%
ROA(5y)1.4%
ROE(3y)-9.36%
ROE(5y)2.36%
ROIC(3y)N/A
ROIC(5y)N/A
SONO Yearly ROA, ROE, ROICSONO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40 -60

1.3 Margins

  • With a Operating Margin value of 2.46%, SONO is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
  • SONO's Gross Margin of 44.92% is amongst the best of the industry. SONO outperforms 83.33% of its industry peers.
  • In the last couple of years the Gross Margin of SONO has remained more or less at the same level.
Industry RankSector Rank
OM 2.46%
PM (TTM) N/A
GM 44.92%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.13%
GM growth 5Y0.37%
SONO Yearly Profit, Operating, Gross MarginsSONO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

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7

2. SONO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SONO is destroying value.
  • Compared to 1 year ago, SONO has less shares outstanding
  • Compared to 5 years ago, SONO has more shares outstanding
  • SONO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
SONO Yearly Shares OutstandingSONO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
SONO Yearly Total Debt VS Total AssetsSONO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • SONO has an Altman-Z score of 3.87. This indicates that SONO is financially healthy and has little risk of bankruptcy at the moment.
  • SONO's Altman-Z score of 3.87 is fine compared to the rest of the industry. SONO outperforms 68.33% of its industry peers.
  • There is no outstanding debt for SONO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.87
ROIC/WACC0.51
WACC9.76%
SONO Yearly LT Debt VS Equity VS FCFSONO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M

2.3 Liquidity

  • A Current Ratio of 1.65 indicates that SONO should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.65, SONO is doing worse than 80.00% of the companies in the same industry.
  • A Quick Ratio of 1.33 indicates that SONO should not have too much problems paying its short term obligations.
  • The Quick ratio of SONO (1.33) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.65
Quick Ratio 1.33
SONO Yearly Current Assets VS Current LiabilitesSONO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. SONO Growth Analysis

3.1 Past

  • SONO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.18%, which is quite impressive.
  • Looking at the last year, SONO shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
  • Measured over the past years, SONO shows a small growth in Revenue. The Revenue has been growing by 1.70% on average per year.
EPS 1Y (TTM)70.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.5%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y-6.26%
Revenue growth 5Y1.7%
Sales Q2Q%-0.94%

3.2 Future

  • The Earnings Per Share is expected to grow by 49.68% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 6.55% on average over the next years.
EPS Next Y175.85%
EPS Next 2Y67.46%
EPS Next 3Y50.26%
EPS Next 5Y49.68%
Revenue Next Year3.76%
Revenue Next 2Y5.14%
Revenue Next 3Y6.24%
Revenue Next 5Y6.55%

3.3 Evolution

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SONO Yearly Revenue VS EstimatesSONO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B
SONO Yearly EPS VS EstimatesSONO Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 2

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3

4. SONO Valuation Analysis

4.1 Price/Earnings Ratio

  • SONO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • With a Price/Forward Earnings ratio of 32.02, SONO can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, SONO is valued a bit more expensive than 71.67% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of SONO to the average of the S&P500 Index (22.67), we can say SONO is valued slightly more expensively.
Industry RankSector Rank
PE N/A
Fwd PE 32.02
SONO Price Earnings VS Forward Price EarningsSONO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40 -60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SONO is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, SONO is valued a bit cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.44
EV/EBITDA 12.91
SONO Per share dataSONO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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.
  • SONO's earnings are expected to grow with 50.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y67.46%
EPS Next 3Y50.26%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SONO Dividend Analysis

5.1 Amount

  • SONO does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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SONO Fundamentals: All Metrics, Ratios and Statistics

SONOS INC

NASDAQ:SONO (3/25/2026, 2:19:02 PM)

13.39

-0.09 (-0.67%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners99.24%
Inst Owner Change4.21%
Ins Owners1.63%
Ins Owner Change1.58%
Market Cap1.62B
Revenue(TTM)1.44B
Net Income(TTM)-17.58M
Analysts82
Price Target19.76 (47.57%)
Short Float %8.86%
Short Ratio5.64
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.87%
Min EPS beat(2)-26.63%
Max EPS beat(2)14.89%
EPS beat(4)2
Avg EPS beat(4)5.89%
Min EPS beat(4)-36.69%
Max EPS beat(4)71.99%
EPS beat(8)4
Avg EPS beat(8)43.87%
EPS beat(12)6
Avg EPS beat(12)29.97%
EPS beat(16)7
Avg EPS beat(16)16.44%
Revenue beat(2)1
Avg Revenue beat(2)0.98%
Min Revenue beat(2)-0.36%
Max Revenue beat(2)2.33%
Revenue beat(4)3
Avg Revenue beat(4)1.81%
Min Revenue beat(4)-0.36%
Max Revenue beat(4)4.05%
Revenue beat(8)6
Avg Revenue beat(8)1.51%
Revenue beat(12)9
Avg Revenue beat(12)1.99%
Revenue beat(16)12
Avg Revenue beat(16)2.62%
PT rev (1m)1.31%
PT rev (3m)14.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.33%
EPS NY rev (1m)251.52%
EPS NY rev (3m)271.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.66%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 32.02
P/S 1.13
P/FCF 13.44
P/OCF 11.4
P/B 3.65
P/tB 5.59
EV/EBITDA 12.91
EPS(TTM)-0.17
EYN/A
EPS(NY)0.42
Fwd EY3.12%
FCF(TTM)1
FCFY7.44%
OCF(TTM)1.17
OCFY8.77%
SpS11.9
BVpS3.67
TBVpS2.4
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -1.85%
ROE -3.97%
ROCE 6.33%
ROIC 5%
ROICexc 14.25%
ROICexgc 65.92%
OM 2.46%
PM (TTM) N/A
GM 44.92%
FCFM 8.38%
ROA(3y)-4.2%
ROA(5y)1.4%
ROE(3y)-9.36%
ROE(5y)2.36%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.13%
GM growth 5Y0.37%
F-Score8
Asset Turnover1.52
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 36.65%
Cap/Sales 1.5%
Interest Coverage 125.1
Cash Conversion 150.82%
Profit Quality N/A
Current Ratio 1.65
Quick Ratio 1.33
Altman-Z 3.87
F-Score8
WACC9.76%
ROIC/WACC0.51
Cap/Depr(3y)84.73%
Cap/Depr(5y)101.68%
Cap/Sales(3y)2.89%
Cap/Sales(5y)2.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.5%
EPS Next Y175.85%
EPS Next 2Y67.46%
EPS Next 3Y50.26%
EPS Next 5Y49.68%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y-6.26%
Revenue growth 5Y1.7%
Sales Q2Q%-0.94%
Revenue Next Year3.76%
Revenue Next 2Y5.14%
Revenue Next 3Y6.24%
Revenue Next 5Y6.55%
EBIT growth 1Y151.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year382.05%
EBIT Next 3Y83.08%
EBIT Next 5Y63.95%
FCF growth 1Y-20.68%
FCF growth 3YN/A
FCF growth 5Y-3.46%
OCF growth 1Y-26.63%
OCF growth 3YN/A
OCF growth 5Y-3.32%

SONOS INC / SONO Fundamental Analysis FAQ

What is the fundamental rating for SONO stock?

ChartMill assigns a fundamental rating of 4 / 10 to SONO.


What is the valuation status for SONO stock?

ChartMill assigns a valuation rating of 3 / 10 to SONOS INC (SONO). This can be considered as Overvalued.


How profitable is SONOS INC (SONO) stock?

SONOS INC (SONO) has a profitability rating of 2 / 10.


Can you provide the expected EPS growth for SONO stock?

The Earnings per Share (EPS) of SONOS INC (SONO) is expected to grow by 175.85% in the next year.