SONY GROUP CORP - SP ADR (SONY) Stock Fundamental Analysis
NYSE:SONY - New York Stock Exchange, Inc. - US8356993076 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to SONY. SONY was compared to 64 industry peers in the Household Durables industry. SONY has a medium profitability rating, but doesn't score so well on its financial health evaluation. SONY is valued expensive and 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
The Return On Assets of SONY (3.23%) is comparable to the rest of the industry.
SONY has a Return On Equity of 13.96%. This is in the better half of the industry: SONY outperforms 65.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.17%, SONY is in line with its industry, outperforming 40.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SONY is significantly below the industry average of 10.35%.
The last Return On Invested Capital (4.17%) for SONY is above the 3 year average (3.96%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 8.81%, SONY is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
In the last couple of years the Profit Margin of SONY has grown nicely.
SONY has a Operating Margin (10.92%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SONY has grown nicely.
SONY has a better Gross Margin (32.95%) than 65.63% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SONY is destroying value.
SONY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SONY has been increased compared to 5 years ago.
SONY has a better debt/assets ratio than last year.
2.2 Solvency
SONY has an Altman-Z score of 1.13. 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 1.13. 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.
SONY's Debt to FCF ratio of 2.51 is fine compared to the rest of the industry. SONY outperforms 70.31% of its industry peers.
SONY has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.48, SONY is in line with its industry, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.99
WACC4.22%
2.3 Liquidity
A Current Ratio of 0.70 indicates that SONY may have some problems paying its short term obligations.
SONY has a Current ratio of 0.70. This is amonst the worse of the industry: SONY underperforms 95.31% of its industry peers.
SONY has a Quick 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 Quick ratio, with a value of 0.57, SONY is doing worse than 62.50% 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.
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.
Looking at the last year, SONY shows a decrease in Revenue. The Revenue has decreased by -0.49% in the last 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)-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
SONY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.08% yearly.
SONY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.05% yearly.
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.
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
Based on the Price/Earnings ratio of 18.75, the valuation of SONY can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SONY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.34. SONY is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.12, SONY is valued on the expensive side.
SONY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SONY is more expensive than 64.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SONY to the average of the S&P500 Index (21.03), we can say SONY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 18.12 |
4.2 Price Multiples
SONY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SONY is valued a bit cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 7.74 |
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.
SONY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.12
PEG (5Y)N/A
EPS Next 2Y5.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SONY has a yearly dividend return of 0.68%, which is pretty low.
SONY's Dividend Yield is a higher than the industry average which is at 3.53.
With a Dividend Yield of 0.68, SONY pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
NYSE:SONY (6/23/2025, 1:45:36 PM)
24.375
-0.37 (-1.52%)
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 Cap146.72B
Analysts80.61
Price Target31.24 (28.16%)
Short Float %0.2%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)7.06%
PT rev (3m)13.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 18.12 | ||
| P/S | 1.65 | ||
| P/FCF | 12.76 | ||
| P/OCF | 9.2 | ||
| P/B | 2.61 | ||
| P/tB | 5.7 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)1.3
EY5.33%
EPS(NY)1.35
Fwd EY5.52%
FCF(TTM)1.91
FCFY7.84%
OCF(TTM)2.65
OCFY10.87%
SpS14.78
BVpS9.33
TBVpS4.28
PEG (NY)5.12
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 | 1.13 |
F-Score7
WACC4.22%
ROIC/WACC0.99
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%