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. There are concerns on the financial health of SONY while its profitability can be described as average. SONY has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SONY was profitable.
In the past year SONY had a positive cash flow from operations.
Each year in the past 5 years SONY has been profitable.
SONY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SONY has a Return On Assets of 3.15%. This is comparable to the rest of the industry: SONY outperforms 42.19% of its industry peers.
The Return On Equity of SONY (13.84%) is better than 60.94% of its industry peers.
SONY's Return On Invested Capital of 4.17% is on the low side compared to the rest of the industry. SONY is outperformed by 62.50% of its industry peers.
SONY had an Average Return On Invested Capital over the past 3 years of 3.81%. This is significantly below the industry average of 12.29%.
The 3 year average ROIC (3.81%) for SONY is below the current ROIC(4.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 13.84% | ||
| ROIC | 4.17% |
ROA(3y)2.99%
ROA(5y)3.05%
ROE(3y)13.46%
ROE(5y)13.98%
ROIC(3y)3.81%
ROIC(5y)3.73%
1.3 Margins
The Profit Margin of SONY (8.20%) is better than 65.63% of its industry peers.
In the last couple of years the Profit Margin of SONY has declined.
Looking at the Operating Margin, with a value of 10.42%, SONY is in line with its industry, outperforming 59.38% of the companies in the same industry.
SONY's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 37.02%, SONY is doing good in the industry, outperforming 73.44% of the companies in the same industry.
In the last couple of years the Gross Margin of SONY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | 8.2% | ||
| GM | 37.02% |
OM growth 3Y-5.54%
OM growth 5Y-1.22%
PM growth 3Y-13.31%
PM growth 5Y-6.75%
GM growth 3Y10.62%
GM growth 5Y1.91%
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 1.12. This is a bad value and indicates that SONY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SONY (1.12) is worse than 73.44% of its industry peers.
The Debt to FCF ratio of SONY is 3.23, which is a good value as it means it would take SONY, 3.23 years of fcf income to pay off all of its debts.
SONY's Debt to FCF ratio of 3.23 is fine compared to the rest of the industry. SONY outperforms 65.63% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that SONY is not too dependend on debt financing.
SONY's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. SONY is outperformed by 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.69
WACC6.04%
2.3 Liquidity
SONY has a Current Ratio of 0.68. 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 0.68, SONY is doing worse than 96.88% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that SONY may have some problems paying its short term obligations.
SONY has a worse Quick ratio (0.56) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
SONY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.69%.
Measured over the past years, SONY shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.67% on average per year.
The Revenue has grown by 9.75% in the past year. This is quite good.
Measured over the past years, SONY shows a quite strong growth in Revenue. The Revenue has been growing by 8.48% on average per year.
EPS 1Y (TTM)-74.69%
EPS 3Y-11.28%
EPS 5Y-1.67%
EPS Q2Q%-79.01%
Revenue 1Y (TTM)9.75%
Revenue growth 3Y13.11%
Revenue growth 5Y8.48%
Sales Q2Q%17.67%
3.2 Future
The Earnings Per Share is expected to decrease by -32.08% on average over the next years. This is quite bad
The Revenue is expected to grow by 2.56% on average over the next years.
EPS Next Y-72.5%
EPS Next 2Y-45.76%
EPS Next 3Y-32.08%
EPS Next 5YN/A
Revenue Next Year6.82%
Revenue Next 2Y3.56%
Revenue Next 3Y2.56%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 19.28, the valuation of SONY can be described as rather expensive.
SONY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SONY to the average of the S&P500 Index (27.75), we can say SONY is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.38, the valuation of SONY can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SONY is valued a bit more expensive than the industry average as 62.50% 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 20.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.28 | ||
| Fwd PE | 18.38 |
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 60.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.04 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
The decent profitability rating of SONY may justify a higher PE ratio.
SONY's earnings are expected to decrease with -32.08% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-45.76%
EPS Next 3Y-32.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, SONY is not a good candidate for dividend investing.
SONY's Dividend Yield is a higher than the industry average which is at 3.62.
With a Dividend Yield of 0.57, SONY pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of SONY decreases each year by -11.90%.
SONY has been paying a dividend for at least 10 years, so it has a reliable track record.
SONY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-11.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
SONY pays out 10.17% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of SONY has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP10.17%
EPS Next 2Y-45.76%
EPS Next 3Y-32.08%
NYSE:SONY (5/2/2025, 11:23:05 AM)
25.255
-0.03 (-0.1%)
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 Cap151.99B
Analysts81.82
Price Target29.46 (16.65%)
Short Float %0.2%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.11
Dividend Growth(5Y)-11.9%
DP10.17%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.67%
Min EPS beat(2)29.12%
Max EPS beat(2)40.22%
EPS beat(4)4
Avg EPS beat(4)25.91%
Min EPS beat(4)13.73%
Max EPS beat(4)40.22%
EPS beat(8)7
Avg EPS beat(8)23.24%
EPS beat(12)10
Avg EPS beat(12)19.28%
EPS beat(16)13
Avg EPS beat(16)26.27%
Revenue beat(2)1
Avg Revenue beat(2)5.34%
Min Revenue beat(2)-5.07%
Max Revenue beat(2)15.75%
Revenue beat(4)3
Avg Revenue beat(4)8.43%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)17.95%
Revenue beat(8)6
Avg Revenue beat(8)7.24%
Revenue beat(12)6
Avg Revenue beat(12)2.43%
Revenue beat(16)10
Avg Revenue beat(16)2.83%
PT rev (1m)7.27%
PT rev (3m)29.89%
EPS NQ rev (1m)8.96%
EPS NQ rev (3m)-26.9%
EPS NY rev (1m)0.5%
EPS NY rev (3m)7.7%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)1.6%
Revenue NY rev (3m)4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.28 | ||
| Fwd PE | 18.38 | ||
| P/S | 1.57 | ||
| P/FCF | 16.04 | ||
| P/OCF | 10.53 | ||
| P/B | 2.66 | ||
| P/tB | 6.11 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)1.31
EY5.19%
EPS(NY)1.37
Fwd EY5.44%
FCF(TTM)1.57
FCFY6.23%
OCF(TTM)2.4
OCFY9.5%
SpS16.04
BVpS9.51
TBVpS4.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 13.84% | ||
| ROCE | 5.78% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.71% | ||
| ROICexgc | 5.84% | ||
| OM | 10.42% | ||
| PM (TTM) | 8.2% | ||
| GM | 37.02% | ||
| FCFM | 9.81% |
ROA(3y)2.99%
ROA(5y)3.05%
ROE(3y)13.46%
ROE(5y)13.98%
ROIC(3y)3.81%
ROIC(5y)3.73%
ROICexc(3y)4.21%
ROICexc(5y)4.23%
ROICexgc(3y)4.96%
ROICexgc(5y)4.91%
ROCE(3y)5.28%
ROCE(5y)5.11%
ROICexcg growth 3Y2.19%
ROICexcg growth 5Y-4.13%
ROICexc growth 3Y-0.11%
ROICexc growth 5Y-5.04%
OM growth 3Y-5.54%
OM growth 5Y-1.22%
PM growth 3Y-13.31%
PM growth 5Y-6.75%
GM growth 3Y10.62%
GM growth 5Y1.91%
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 62.26% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.07% | ||
| Profit Quality | 119.61% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.12 |
F-Score7
WACC6.04%
ROIC/WACC0.69
Cap/Depr(3y)56.13%
Cap/Depr(5y)68.69%
Cap/Sales(3y)4.94%
Cap/Sales(5y)5.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-74.69%
EPS 3Y-11.28%
EPS 5Y-1.67%
EPS Q2Q%-79.01%
EPS Next Y-72.5%
EPS Next 2Y-45.76%
EPS Next 3Y-32.08%
EPS Next 5YN/A
Revenue 1Y (TTM)9.75%
Revenue growth 3Y13.11%
Revenue growth 5Y8.48%
Sales Q2Q%17.67%
Revenue Next Year6.82%
Revenue Next 2Y3.56%
Revenue Next 3Y2.56%
Revenue Next 5YN/A
EBIT growth 1Y29.69%
EBIT growth 3Y6.84%
EBIT growth 5Y7.16%
EBIT Next Year-99.8%
EBIT Next 3Y-87.22%
EBIT Next 5YN/A
FCF growth 1Y798.92%
FCF growth 3Y4.2%
FCF growth 5Y-4.48%
OCF growth 1Y501.38%
OCF growth 3Y6.39%
OCF growth 5Y1.82%