SONY GROUP CORP - SP ADR (SONY) Stock Fundamental Analysis
NYSE:SONY - New York Stock Exchange, Inc. - US8356993076 - ADR - Currency: USD
Taking everything into account, SONY scores 4 out of 10 in our fundamental rating. SONY was compared to 64 industry peers in the Household Durables industry. While SONY is still in line with the averages on profitability rating, there are concerns on its financial health. SONY does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year SONY was profitable.
SONY had a positive operating cash flow in the past year.
Each year in the past 5 years SONY has been profitable.
In the past 5 years SONY always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.23%, SONY perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
SONY has a better Return On Equity (13.96%) than 65.63% of its industry peers.
SONY has a Return On Invested Capital (4.17%) which is in line with its industry peers.
SONY had an Average Return On Invested Capital over the past 3 years of 3.96%. This is significantly below the industry average of 10.43%.
The 3 year average ROIC (3.96%) for SONY is below the current ROIC(4.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 13.96% | ||
| ROIC | 4.17% |
ROA(3y)3.1%
ROA(5y)3.19%
ROE(3y)13.99%
ROE(5y)13.95%
ROIC(3y)3.96%
ROIC(5y)3.81%
1.3 Margins
SONY has a Profit Margin of 8.81%. This is in the better half of the industry: SONY outperforms 71.88% of its industry peers.
SONY's Profit Margin has improved in the last couple of years.
SONY has a Operating Margin (10.92%) which is comparable to the rest of the industry.
SONY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.95%, SONY is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
SONY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.92% | ||
| PM (TTM) | 8.81% | ||
| GM | 32.95% |
OM growth 3Y-0.87%
OM growth 5Y1.59%
PM growth 3Y-0.3%
PM growth 5Y4.56%
GM growth 3Y6.56%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SONY is destroying value.
SONY has less shares outstanding than it did 1 year ago.
SONY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SONY has an improved debt to assets ratio.
2.2 Solvency
SONY has an Altman-Z score of 1.16. This is a bad value and indicates that SONY is not financially healthy and even has some risk of bankruptcy.
SONY has a Altman-Z score of 1.16. This is in the lower half of the industry: SONY underperforms 76.56% of its industry peers.
SONY has a debt to FCF ratio of 2.51. This is a good value and a sign of high solvency as SONY would need 2.51 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.51, SONY is doing good in the industry, outperforming 68.75% of the companies in the same industry.
SONY has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, SONY perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.7
WACC5.93%
2.3 Liquidity
SONY has a Current Ratio of 0.70. This is a bad value and indicates that SONY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.70, SONY is doing worse than 95.31% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that SONY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, SONY is doing worse than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for SONY have decreased strongly by -71.62% in the last year.
SONY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.74% yearly.
Looking at the last year, SONY shows a decrease in Revenue. The Revenue has decreased by -0.49% in the last year.
The Revenue has been growing by 9.42% on average over the past years. This is quite good.
EPS 1Y (TTM)-71.62%
EPS 3Y-35.76%
EPS 5Y-16.74%
EPS Q2Q%6.28%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y9.31%
Revenue growth 5Y9.42%
Sales Q2Q%-23.5%
3.2 Future
The Earnings Per Share is expected to grow by 5.08% on average over the next years.
Based on estimates for the next years, SONY will show a small growth in Revenue. The Revenue will grow by 0.05% on average per year.
EPS Next Y3.66%
EPS Next 2Y5.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.34%
Revenue Next 2Y0.05%
Revenue Next 3YN/A
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 accelerating.
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
A Price/Earnings ratio of 20.14 indicates a rather expensive valuation of SONY.
Based on the Price/Earnings ratio, SONY is valued a bit more expensive than 60.94% of the companies in the same industry.
SONY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 19.35, which indicates a rather expensive current valuation of SONY.
SONY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SONY is more expensive than 67.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SONY to the average of the S&P500 Index (22.15), we can say SONY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 19.35 |
4.2 Price Multiples
SONY's Enterprise Value to EBITDA is on the same level as the industry average.
SONY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SONY is cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.63 | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SONY does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SONY may justify a higher PE ratio.
PEG (NY)5.5
PEG (5Y)N/A
EPS Next 2Y5.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SONY has a yearly dividend return of 0.63%, which is pretty low.
SONY's Dividend Yield is a higher than the industry average which is at 3.61.
With a Dividend Yield of 0.63, SONY pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
The dividend of SONY decreases each year by -13.89%.
SONY has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-13.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SONY pays out 10.10% of its income as dividend. This is a sustainable payout ratio.
DP10.1%
EPS Next 2Y5.08%
EPS Next 3YN/A
26.38
-0.24 (-0.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners46.86%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap158.79B
Analysts80.61
Price Target29.17 (10.58%)
Short Float %0.21%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend0.13
Dividend Growth(5Y)-13.89%
DP10.1%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.62%
Min EPS beat(2)22.11%
Max EPS beat(2)29.12%
EPS beat(4)4
Avg EPS beat(4)26.3%
Min EPS beat(4)13.73%
Max EPS beat(4)40.22%
EPS beat(8)7
Avg EPS beat(8)19.16%
EPS beat(12)10
Avg EPS beat(12)19.85%
EPS beat(16)13
Avg EPS beat(16)20.57%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-15.39%
Max Revenue beat(2)15.75%
Revenue beat(4)2
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-15.39%
Max Revenue beat(4)15.75%
Revenue beat(8)5
Avg Revenue beat(8)4.86%
Revenue beat(12)6
Avg Revenue beat(12)1.47%
Revenue beat(16)9
Avg Revenue beat(16)1.65%
PT rev (1m)-0.97%
PT rev (3m)21.4%
EPS NQ rev (1m)-12.2%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-6.07%
Revenue NQ rev (3m)-6.34%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 19.35 | ||
| P/S | 1.76 | ||
| P/FCF | 13.63 | ||
| P/OCF | 9.83 | ||
| P/B | 2.79 | ||
| P/tB | 6.08 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)1.31
EY4.97%
EPS(NY)1.36
Fwd EY5.17%
FCF(TTM)1.94
FCFY7.34%
OCF(TTM)2.68
OCFY10.17%
SpS14.98
BVpS9.46
TBVpS4.34
PEG (NY)5.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 13.96% | ||
| ROCE | 5.75% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 5.98% | ||
| OM | 10.92% | ||
| PM (TTM) | 8.81% | ||
| GM | 32.95% | ||
| FCFM | 12.92% |
ROA(3y)3.1%
ROA(5y)3.19%
ROE(3y)13.99%
ROE(5y)13.95%
ROIC(3y)3.96%
ROIC(5y)3.81%
ROICexc(3y)4.43%
ROICexc(5y)4.26%
ROICexgc(3y)5.37%
ROICexgc(5y)5.05%
ROCE(3y)5.49%
ROCE(5y)5.27%
ROICexcg growth 3Y8.26%
ROICexcg growth 5Y2.94%
ROICexc growth 3Y5.54%
ROICexc growth 5Y1.12%
OM growth 3Y-0.87%
OM growth 5Y1.59%
PM growth 3Y-0.3%
PM growth 5Y4.56%
GM growth 3Y6.56%
GM growth 5Y-0.81%
F-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.51 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 56.16% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.41% | ||
| Profit Quality | 146.65% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.16 |
F-Score7
WACC5.93%
ROIC/WACC0.7
Cap/Depr(3y)57.25%
Cap/Depr(5y)58.82%
Cap/Sales(3y)5.13%
Cap/Sales(5y)5.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-71.62%
EPS 3Y-35.76%
EPS 5Y-16.74%
EPS Q2Q%6.28%
EPS Next Y3.66%
EPS Next 2Y5.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y9.31%
Revenue growth 5Y9.42%
Sales Q2Q%-23.5%
Revenue Next Year-0.34%
Revenue Next 2Y0.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.08%
EBIT growth 3Y8.35%
EBIT growth 5Y11.16%
EBIT Next Year-6.56%
EBIT Next 3Y-3.12%
EBIT Next 5YN/A
FCF growth 1Y123.44%
FCF growth 3Y28.31%
FCF growth 5Y13.04%
OCF growth 1Y69.07%
OCF growth 3Y23.46%
OCF growth 5Y11.51%