SONY GROUP CORP - SP ADR (SONY) Stock Fundamental Analysis
USA - NYSE:SONY - US8356993076 - ADR
27.97 USD
+0.26 (+0.94%)
28.19 USD
+0.22 (+0.79%)
SONY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. While SONY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SONY does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
SONY had positive earnings in the past year.
In the past year SONY had a positive cash flow from operations.
SONY had positive earnings in each of the past 5 years.
Each year in the past 5 years SONY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SONY (3.26%) is comparable to the rest of the industry.
With a decent Return On Equity value of 13.83%, SONY is doing good in the industry, outperforming 67.21% of the companies in the same industry.
SONY's Return On Invested Capital of 10.42% is fine compared to the rest of the industry. SONY outperforms 68.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SONY is significantly below the industry average of 9.90%.
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
With an excellent Profit Margin value of 9.13%, SONY belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
SONY's Profit Margin has improved in the last couple of years.
SONY has a Operating Margin of 11.77%. This is in the better half of the industry: SONY outperforms 77.05% of its industry peers.
In the last couple of years the Operating Margin of SONY has grown nicely.
The Gross Margin of SONY (31.29%) is better than 62.30% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SONY 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.
The debt/assets ratio for SONY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that SONY is in the distress zone and has some risk of bankruptcy.
SONY has a Altman-Z score of 1.41. This is in the lower half of the industry: SONY underperforms 77.05% of its industry peers.
The Debt to FCF ratio of SONY is 0.82, which is an excellent value as it means it would take SONY, only 0.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.82, SONY is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
SONY has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.17, SONY is doing good in the industry, outperforming 68.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 1.41 |
ROIC/WACC2.45
WACC4.26%
2.3 Liquidity
SONY has a Current Ratio of 1.09. This is a normal value and indicates that SONY is financially healthy and should not expect problems in meeting its short term obligations.
SONY's Current ratio of 1.09 is on the low side compared to the rest of the industry. SONY is outperformed by 86.89% of its industry peers.
A Quick Ratio of 1.03 indicates that SONY should not have too much problems paying its short term obligations.
SONY's Quick ratio of 1.03 is in line compared to the rest of the industry. SONY outperforms 54.10% of its industry peers.
| 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 -63.20%.
SONY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.74% yearly.
The Revenue has decreased by -0.44% in the past year.
Measured over the past years, SONY shows a quite strong growth in Revenue. The Revenue has been growing by 9.42% on average per year.
EPS 1Y (TTM)-63.2%
EPS 3Y-35.76%
EPS 5Y-16.74%
EPS Q2Q%13.43%
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y9.31%
Revenue growth 5Y9.42%
Sales Q2Q%-12.95%
3.2 Future
Based on estimates for the next years, SONY will show a small growth in Earnings Per Share. The EPS will grow by 4.19% on average per year.
SONY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.65% yearly.
EPS Next Y-3.08%
EPS Next 2Y3.86%
EPS Next 3Y4.19%
EPS Next 5YN/A
Revenue Next Year-10.1%
Revenue Next 2Y-3.3%
Revenue Next 3Y-1.65%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SONY is valuated rather expensively with a Price/Earnings ratio of 21.85.
Based on the Price/Earnings ratio, SONY is valued a bit more expensive than the industry average as 62.30% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.28, SONY is valued at the same level.
SONY is valuated rather expensively with a Price/Forward Earnings ratio of 20.87.
Based on the Price/Forward Earnings ratio, SONY is valued a bit more expensive than the industry average as 60.66% of the companies are valued more cheaply.
SONY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 20.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SONY.
72.13% of the companies in the same industry are more expensive than SONY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.97 | ||
| EV/EBITDA | 9.56 |
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 2Y3.86%
EPS Next 3Y4.19%
5. Dividend
5.1 Amount
SONY has a yearly dividend return of 0.59%, which is pretty low.
SONY's Dividend Yield is a higher than the industry average which is at 3.32.
With a Dividend Yield of 0.59, SONY pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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
SONY pays out 10.52% of its income as dividend. This is a sustainable payout ratio.
SONY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.52%
EPS Next 2Y3.86%
EPS Next 3Y4.19%
27.97
+0.26 (+0.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners47.92%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap166.84B
Revenue(TTM)12.57T
Net Income(TTM)1.15T
Analysts81.33
Price Target32.16 (14.98%)
Short Float %0.12%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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)20.52%
Min EPS beat(2)18.92%
Max EPS beat(2)22.11%
EPS beat(4)4
Avg EPS beat(4)27.59%
Min EPS beat(4)18.92%
Max EPS beat(4)40.22%
EPS beat(8)7
Avg EPS beat(8)18.84%
EPS beat(12)11
Avg EPS beat(12)21.64%
EPS beat(16)13
Avg EPS beat(16)19.47%
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%
PT rev (3m)4.28%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-2.77%
EPS NY rev (1m)0.58%
EPS NY rev (3m)-6.11%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-3.06%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-5.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 20.87 | ||
| P/S | 2.03 | ||
| P/FCF | 12.97 | ||
| P/OCF | 10.11 | ||
| P/B | 3.08 | ||
| P/tB | 6.43 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)1.28
EY4.58%
EPS(NY)1.34
Fwd EY4.79%
FCF(TTM)2.16
FCFY7.71%
OCF(TTM)2.77
OCFY9.89%
SpS13.76
BVpS9.08
TBVpS4.35
PEG (NY)N/A
PEG (5Y)N/A
Graham Number16.17
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%
ROICexgc growth 3Y8.2%
ROICexgc 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 | 1.41 |
F-Score7
WACC4.26%
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)-63.2%
EPS 3Y-35.76%
EPS 5Y-16.74%
EPS Q2Q%13.43%
EPS Next Y-3.08%
EPS Next 2Y3.86%
EPS Next 3Y4.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y9.31%
Revenue growth 5Y9.42%
Sales Q2Q%-12.95%
Revenue Next Year-10.1%
Revenue Next 2Y-3.3%
Revenue Next 3Y-1.65%
Revenue Next 5YN/A
EBIT growth 1Y23.54%
EBIT growth 3Y8.29%
EBIT growth 5Y11.12%
EBIT Next Year-7.14%
EBIT Next 3Y-0.26%
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%
SONY GROUP CORP - SP ADR / SONY FAQ
What is the fundamental rating for SONY stock?
ChartMill assigns a fundamental rating of 5 / 10 to SONY.
Can you provide the valuation status for SONY GROUP CORP - SP ADR?
ChartMill assigns a valuation rating of 3 / 10 to SONY GROUP CORP - SP ADR (SONY). This can be considered as Overvalued.
How profitable is SONY GROUP CORP - SP ADR (SONY) stock?
SONY GROUP CORP - SP ADR (SONY) has a profitability rating of 7 / 10.
What is the financial health of SONY GROUP CORP - SP ADR (SONY) stock?
The financial health rating of SONY GROUP CORP - SP ADR (SONY) is 5 / 10.
Can you provide the dividend sustainability for SONY stock?
The dividend rating of SONY GROUP CORP - SP ADR (SONY) is 4 / 10 and the dividend payout ratio is 10.52%.