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SONOS INC (SONO) Stock Fundamental Analysis

NASDAQ:SONO - Nasdaq - US83570H1086 - Common Stock - Currency: USD

11.25  +0.82 (+7.86%)

After market: 11.1 -0.15 (-1.33%)

Fundamental Rating

4

Taking everything into account, SONO scores 4 out of 10 in our fundamental rating. SONO was compared to 64 industry peers in the Household Durables industry. SONO has a great financial health rating, but its profitability evaluates not so good. SONO is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M

1.2 Ratios

Looking at the Return On Assets, with a value of -7.15%, SONO is doing worse than 78.13% of the companies in the same industry.
SONO has a Return On Equity of -14.68%. This is in the lower half of the industry: SONO underperforms 76.56% of its industry peers.
Industry RankSector Rank
ROA -7.15%
ROE -14.68%
ROIC N/A
ROA(3y)0.16%
ROA(5y)2.39%
ROE(3y)0.38%
ROE(5y)4.45%
ROIC(3y)N/A
ROIC(5y)N/A
SONO Yearly ROA, ROE, ROICSONO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60

1.3 Margins

SONO has a Gross Margin of 44.51%. This is amongst the best in the industry. SONO outperforms 85.94% of its industry peers.
In the last couple of years the Gross Margin of SONO has grown nicely.
SONO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 44.51%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5Y1.66%
SONO Yearly Profit, Operating, Gross MarginsSONO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

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7

2. Health

2.1 Basic Checks

SONO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SONO has less shares outstanding
The number of shares outstanding for SONO has been increased compared to 5 years ago.
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 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 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 3.08 indicates that SONO is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.08, SONO perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
SONO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.08
ROIC/WACCN/A
WACC9.05%
SONO Yearly LT Debt VS Equity VS FCFSONO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

2.3 Liquidity

SONO has a Current Ratio of 1.64. This is a normal value and indicates that SONO is financially healthy and should not expect problems in meeting its short term obligations.
SONO has a worse Current ratio (1.64) than 73.44% of its industry peers.
SONO has a Quick Ratio of 1.27. This is a normal value and indicates that SONO is financially healthy and should not expect problems in meeting its short term obligations.
SONO has a Quick ratio of 1.27. This is in the better half of the industry: SONO outperforms 65.63% of its industry peers.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 1.27
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 200M 400M 600M 800M

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4

3. Growth

3.1 Past

SONO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.71%, which is quite impressive.
Looking at the last year, SONO shows a decrease in Revenue. The Revenue has decreased by -8.29% in the last year.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)45.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%67.86%
Revenue 1Y (TTM)-8.29%
Revenue growth 3Y-4.02%
Revenue growth 5Y3.78%
Sales Q2Q%2.81%

3.2 Future

Based on estimates for the next years, SONO will show a very strong growth in Earnings Per Share. The EPS will grow by 56.39% on average per year.
SONO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.29% yearly.
EPS Next Y-29.3%
EPS Next 2Y14.22%
EPS Next 3Y29.16%
EPS Next 5Y56.39%
Revenue Next Year-5.38%
Revenue Next 2Y-0.19%
Revenue Next 3Y2.01%
Revenue Next 5Y11.29%

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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B 2.5B
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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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SONO. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SONO. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
SONO Price Earnings VS Forward Price EarningsSONO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, SONO is valued a bit more expensive than 67.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 159.44
EV/EBITDA N/A
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

SONO's earnings are expected to grow with 29.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.22%
EPS Next 3Y29.16%

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0

5. Dividend

5.1 Amount

SONO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SONOS INC

NASDAQ:SONO (5/12/2025, 8:00:02 PM)

After market: 11.1 -0.15 (-1.33%)

11.25

+0.82 (+7.86%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners94.8%
Inst Owner Change-4.08%
Ins Owners2.18%
Ins Owner Change3.9%
Market Cap1.34B
Analysts75
Price Target13.73 (22.04%)
Short Float %4.72%
Short Ratio2.72
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)76.07%
Min EPS beat(2)-5.86%
Max EPS beat(2)158%
EPS beat(4)2
Avg EPS beat(4)81.86%
Min EPS beat(4)-18.84%
Max EPS beat(4)194.12%
EPS beat(8)4
Avg EPS beat(8)42.02%
EPS beat(12)5
Avg EPS beat(12)19.96%
EPS beat(16)7
Avg EPS beat(16)34.58%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)1.22%
Max Revenue beat(2)3.96%
Revenue beat(4)3
Avg Revenue beat(4)1.2%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)3.96%
Revenue beat(8)6
Avg Revenue beat(8)2.08%
Revenue beat(12)9
Avg Revenue beat(12)2.89%
Revenue beat(16)12
Avg Revenue beat(16)5.28%
PT rev (1m)-19.88%
PT rev (3m)-14.81%
EPS NQ rev (1m)-6.12%
EPS NQ rev (3m)-32.48%
EPS NY rev (1m)-63.41%
EPS NY rev (3m)-90.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-3.25%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.92
P/FCF 159.44
P/OCF 18.95
P/B 2.86
P/tB 4.44
EV/EBITDA N/A
EPS(TTM)-0.19
EYN/A
EPS(NY)-0.23
Fwd EYN/A
FCF(TTM)0.07
FCFY0.63%
OCF(TTM)0.59
OCFY5.28%
SpS12.23
BVpS3.94
TBVpS2.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.15%
ROE -14.68%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 44.51%
FCFM 0.58%
ROA(3y)0.16%
ROA(5y)2.39%
ROE(3y)0.38%
ROE(5y)4.45%
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
ROICexcg growth 3YN/A
ROICexcg 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-1.27%
GM growth 5Y1.66%
F-Score5
Asset Turnover1.51
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 107.17%
Cap/Sales 4.28%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.64
Quick Ratio 1.27
Altman-Z 3.08
F-Score5
WACC9.05%
ROIC/WACCN/A
Cap/Depr(3y)109.39%
Cap/Depr(5y)110.61%
Cap/Sales(3y)3.1%
Cap/Sales(5y)2.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%67.86%
EPS Next Y-29.3%
EPS Next 2Y14.22%
EPS Next 3Y29.16%
EPS Next 5Y56.39%
Revenue 1Y (TTM)-8.29%
Revenue growth 3Y-4.02%
Revenue growth 5Y3.78%
Sales Q2Q%2.81%
Revenue Next Year-5.38%
Revenue Next 2Y-0.19%
Revenue Next 3Y2.01%
Revenue Next 5Y11.29%
EBIT growth 1Y-161.89%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year351.9%
EBIT Next 3Y81.6%
EBIT Next 5Y66.7%
FCF growth 1Y110.45%
FCF growth 3Y-13.45%
FCF growth 5Y6.69%
OCF growth 1Y372.89%
OCF growth 3Y-9.14%
OCF growth 5Y9.51%