SONY GROUP CORP - SP ADR (SONY) Stock Fundamental Analysis
NYSE:SONY - US8356993076 - ADR
27.52 USD
-0.48 (-1.71%)
27 USD
-0.52 (-1.89%)
We assign a fundamental rating of 5 out of 10 to SONY. SONY was compared to 61 industry peers in the Household Durables industry. SONY scores excellent on profitability, but there are some minor concerns on its financial health. SONY has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SONY was profitable.
SONY had a positive operating cash flow in the past year.
In the past 5 years SONY has always been profitable.
SONY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.26%, SONY perfoms like the industry average, outperforming 47.54% of the companies in the same industry.
SONY's Return On Equity of 13.83% is fine compared to the rest of the industry. SONY outperforms 60.66% of its industry peers.
With a decent Return On Invested Capital value of 10.42%, SONY is doing good in the industry, outperforming 68.85% of the companies in the same industry.
SONY had an Average Return On Invested Capital over the past 3 years of 3.96%. This is significantly below the industry average of 10.51%.
The last Return On Invested Capital (10.42%) for SONY is above the 3 year average (3.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 13.83% | ||
| ROIC | 10.42% |
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
Looking at the Profit Margin, with a value of 9.13%, SONY is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
In the last couple of years the Profit Margin of SONY has grown nicely.
SONY's Operating Margin of 11.77% is fine compared to the rest of the industry. SONY outperforms 72.13% of its industry peers.
SONY's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 31.29%, SONY is doing good in the industry, outperforming 62.30% 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 | 11.77% | ||
| PM (TTM) | 9.13% | ||
| GM | 31.29% |
OM growth 3Y-0.93%
OM growth 5Y1.55%
PM growth 3Y-0.3%
PM growth 5Y4.56%
GM growth 3Y6.56%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
SONY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SONY has been reduced compared to 1 year ago.
SONY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SONY has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that SONY is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.39, SONY is not doing good in the industry: 77.05% of the companies in the same industry are doing better.
SONY has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.82, SONY belongs to the top of the industry, outperforming 81.97% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that SONY is not too dependend on debt financing.
SONY has a Debt to Equity ratio of 0.17. This is in the better half of the industry: SONY outperforms 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 1.39 |
ROIC/WACC2.45
WACC4.25%
2.3 Liquidity
A Current Ratio of 1.09 indicates that SONY should not have too much problems paying its short term obligations.
The Current ratio of SONY (1.09) is worse than 86.89% of its industry peers.
SONY has a Quick Ratio of 1.03. This is a normal value and indicates that SONY is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.03, SONY perfoms like the industry average, outperforming 54.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
SONY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.90%.
Measured over the past years, SONY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.74% on average per year.
The Revenue has decreased by -0.44% in the past year.
SONY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.42% yearly.
EPS 1Y (TTM)-63.9%
EPS 3Y-35.76%
EPS 5Y-16.74%
EPS Q2Q%3.73%
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y9.31%
Revenue growth 5Y9.42%
Sales Q2Q%-12.95%
3.2 Future
The Earnings Per Share is expected to grow by 5.69% on average over the next years.
The Revenue is expected to decrease by -0.85% on average over the next years.
EPS Next Y-0.47%
EPS Next 2Y5.22%
EPS Next 3Y5.69%
EPS Next 5YN/A
Revenue Next Year-6.89%
Revenue Next 2Y-2.39%
Revenue Next 3Y-0.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
SONY is valuated rather expensively with a Price/Earnings ratio of 21.17.
SONY's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.13. SONY is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.32, which indicates a rather expensive current valuation of SONY.
Based on the Price/Forward Earnings ratio, SONY is valued a bit more expensive than the industry average as 62.30% of the companies are valued more cheaply.
SONY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SONY is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SONY is valued cheaper than 85.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.33 | ||
| EV/EBITDA | 9.17 |
4.3 Compensation for Growth
The decent profitability rating of SONY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.22%
EPS Next 3Y5.69%
5. Dividend
5.1 Amount
SONY has a yearly dividend return of 0.60%, which is pretty low.
SONY's Dividend Yield is a higher than the industry average which is at 2.97.
With a Dividend Yield of 0.60, SONY pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
On average, the dividend of SONY grows each year by 18.81%, which is quite nice.
SONY has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)18.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
10.52% of the earnings are spent on dividend by SONY. This is a low number and sustainable payout ratio.
SONY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.52%
EPS Next 2Y5.22%
EPS Next 3Y5.69%
27.52
-0.48 (-1.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners47.93%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap164.93B
Analysts81.25
Price Target31.09 (12.97%)
Short Float %0.17%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.13
Dividend Growth(5Y)18.81%
DP10.52%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.43%
Min EPS beat(2)8.75%
Max EPS beat(2)22.11%
EPS beat(4)4
Avg EPS beat(4)25.05%
Min EPS beat(4)8.75%
Max EPS beat(4)40.22%
EPS beat(8)7
Avg EPS beat(8)17.57%
EPS beat(12)11
Avg EPS beat(12)20.8%
EPS beat(16)13
Avg EPS beat(16)18.84%
Revenue beat(2)0
Avg Revenue beat(2)-8.93%
Min Revenue beat(2)-15.39%
Max Revenue beat(2)-2.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-15.39%
Max Revenue beat(4)15.75%
Revenue beat(8)4
Avg Revenue beat(8)2.11%
Revenue beat(12)6
Avg Revenue beat(12)2.15%
Revenue beat(16)8
Avg Revenue beat(16)1.11%
PT rev (1m)0.92%
PT rev (3m)6.56%
EPS NQ rev (1m)-3.22%
EPS NQ rev (3m)-7.7%
EPS NY rev (1m)-4.03%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)-1.91%
Revenue NQ rev (3m)-11.11%
Revenue NY rev (1m)-1.97%
Revenue NY rev (3m)-6.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 19.32 | ||
| P/S | 1.93 | ||
| P/FCF | 12.33 | ||
| P/OCF | 9.62 | ||
| P/B | 2.93 | ||
| P/tB | 6.11 | ||
| EV/EBITDA | 9.17 |
EPS(TTM)1.3
EY4.72%
EPS(NY)1.42
Fwd EY5.17%
FCF(TTM)2.23
FCFY8.11%
OCF(TTM)2.86
OCFY10.4%
SpS14.24
BVpS9.4
TBVpS4.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 13.83% | ||
| ROCE | 13.41% | ||
| ROIC | 10.42% | ||
| ROICexc | 12.21% | ||
| ROICexgc | 22.51% | ||
| OM | 11.77% | ||
| PM (TTM) | 9.13% | ||
| GM | 31.29% | ||
| FCFM | 15.67% |
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)4.42%
ROICexc(5y)4.26%
ROICexgc(3y)5.36%
ROICexgc(5y)5.05%
ROCE(3y)5.48%
ROCE(5y)5.26%
ROICexcg growth 3Y8.2%
ROICexcg growth 5Y2.91%
ROICexc growth 3Y5.49%
ROICexc growth 5Y1.09%
OM growth 3Y-0.93%
OM growth 5Y1.55%
PM growth 3Y-0.3%
PM growth 5Y4.56%
GM growth 3Y6.56%
GM growth 5Y-0.81%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.82 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.72% | ||
| Profit Quality | 171.72% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.39 |
F-Score7
WACC4.25%
ROIC/WACC2.45
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)-63.9%
EPS 3Y-35.76%
EPS 5Y-16.74%
EPS Q2Q%3.73%
EPS Next Y-0.47%
EPS Next 2Y5.22%
EPS Next 3Y5.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y9.31%
Revenue growth 5Y9.42%
Sales Q2Q%-12.95%
Revenue Next Year-6.89%
Revenue Next 2Y-2.39%
Revenue Next 3Y-0.85%
Revenue Next 5YN/A
EBIT growth 1Y23.54%
EBIT growth 3Y8.29%
EBIT growth 5Y11.12%
EBIT Next Year-6.56%
EBIT Next 3Y-3.12%
EBIT Next 5YN/A
FCF growth 1Y1975.9%
FCF growth 3Y28.31%
FCF growth 5Y13.04%
OCF growth 1Y244.97%
OCF growth 3Y23.46%
OCF growth 5Y11.51%