SONAE (SON.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:SON - PTSON0AM0001 - Common Stock
1.634 EUR
+0.02 (+1.24%)
We assign a fundamental rating of 3 out of 10 to SON. SON was compared to 25 industry peers in the Consumer Staples Distribution & Retail industry. While SON is still in line with the averages on profitability rating, there are concerns on its financial health. SON has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SON was profitable.
SON had a positive operating cash flow in the past year.
In the past 5 years SON has always been profitable.
In the past 5 years SON always reported a positive cash flow from operatings.
1.2 Ratios
SON's Return On Assets of 2.22% is in line compared to the rest of the industry. SON outperforms 44.00% of its industry peers.
The Return On Equity of SON (8.22%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.86%, SON is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
SON had an Average Return On Invested Capital over the past 3 years of 3.63%. This is significantly below the industry average of 9.37%.
The 3 year average ROIC (3.63%) for SON is below the current ROIC(3.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 8.22% | ||
| ROIC | 3.86% |
ROA(3y)3.3%
ROA(5y)2.79%
ROE(3y)10.37%
ROE(5y)9.04%
ROIC(3y)3.63%
ROIC(5y)3.3%
1.3 Margins
Looking at the Profit Margin, with a value of 2.29%, SON is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SON has declined.
SON has a Operating Margin of 3.70%. This is comparable to the rest of the industry: SON outperforms 56.00% of its industry peers.
In the last couple of years the Operating Margin of SON has remained more or less at the same level.
SON has a worse Gross Margin (22.08%) than 60.00% of its industry peers.
In the last couple of years the Gross Margin of SON has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.7% | ||
| PM (TTM) | 2.29% | ||
| GM | 22.08% |
OM growth 3Y3.19%
OM growth 5Y-1.2%
PM growth 3Y-16.42%
PM growth 5Y-2.75%
GM growth 3Y2.33%
GM growth 5Y-7.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SON is destroying value.
The number of shares outstanding for SON has been increased compared to 1 year ago.
The number of shares outstanding for SON has been reduced compared to 5 years ago.
Compared to 1 year ago, SON has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that SON is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.40, SON is doing worse than 88.00% of the companies in the same industry.
SON has a debt to FCF ratio of 7.87. This is a slightly negative value and a sign of low solvency as SON would need 7.87 years to pay back of all of its debts.
SON has a Debt to FCF ratio (7.87) which is in line with its industry peers.
SON has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
SON's Debt to Equity ratio of 1.20 is on the low side compared to the rest of the industry. SON is outperformed by 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.87 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.66
WACC5.84%
2.3 Liquidity
SON has a Current Ratio of 0.79. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SON (0.79) is worse than 72.00% of its industry peers.
SON has a Quick Ratio of 0.79. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SON (0.38) is worse than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
The earnings per share for SON have decreased strongly by -34.71% in the last year.
SON shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.39% yearly.
Looking at the last year, SON shows a very strong growth in Revenue. The Revenue has grown by 23.74%.
The Revenue has been growing by 9.11% on average over the past years. This is quite good.
EPS 1Y (TTM)-34.71%
EPS 3Y-3.26%
EPS 5Y7.39%
EPS Q2Q%0%
Revenue 1Y (TTM)23.74%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%23.51%
3.2 Future
SON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.38% yearly.
The Revenue is expected to grow by 6.91% on average over the next years.
EPS Next Y18.92%
EPS Next 2Y12.06%
EPS Next 3Y7.81%
EPS Next 5Y6.38%
Revenue Next Year15.42%
Revenue Next 2Y9.9%
Revenue Next 3Y8.5%
Revenue Next 5Y6.91%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 12.57, SON is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SON indicates a somewhat cheap valuation: SON is cheaper than 76.00% of the companies listed in the same industry.
SON's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.55.
Based on the Price/Forward Earnings ratio of 9.69, the valuation of SON can be described as reasonable.
Based on the Price/Forward Earnings ratio, SON is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. SON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SON is valued cheaper than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SON's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.66
PEG (5Y)1.7
EPS Next 2Y12.06%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 3.67%.
SON's Dividend Yield is a higher than the industry average which is at 2.91.
Compared to an average S&P500 Dividend Yield of 1.87, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
The dividend of SON decreases each year by -11.64%.
Dividend Growth(5Y)-11.64%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
SON pays out 68.80% of its income as dividend. This is not a sustainable payout ratio.
DP68.8%
EPS Next 2Y12.06%
EPS Next 3Y7.81%
ELI:SON (12/16/2025, 1:24:17 PM)
1.634
+0.02 (+1.24%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners11.12%
Inst Owner ChangeN/A
Ins Owners53.06%
Ins Owner ChangeN/A
Market Cap3.27B
Revenue(TTM)10.93B
Net Income(TTM)250.00M
Analysts78
Price Target1.54 (-5.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly Dividend0.08
Dividend Growth(5Y)-11.64%
DP68.8%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.94%
PT rev (3m)1.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)25.53%
EPS NY rev (3m)16.3%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.3 | ||
| P/FCF | 6.17 | ||
| P/OCF | 3.3 | ||
| P/B | 1.08 | ||
| P/tB | 5.2 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.13
EY7.96%
EPS(NY)0.17
Fwd EY10.32%
FCF(TTM)0.27
FCFY16.22%
OCF(TTM)0.5
OCFY30.29%
SpS5.47
BVpS1.52
TBVpS0.31
PEG (NY)0.66
PEG (5Y)1.7
Graham Number2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 8.22% | ||
| ROCE | 4.89% | ||
| ROIC | 3.86% | ||
| ROICexc | 3.86% | ||
| ROICexgc | 5.46% | ||
| OM | 3.7% | ||
| PM (TTM) | 2.29% | ||
| GM | 22.08% | ||
| FCFM | 4.85% |
ROA(3y)3.3%
ROA(5y)2.79%
ROE(3y)10.37%
ROE(5y)9.04%
ROIC(3y)3.63%
ROIC(5y)3.3%
ROICexc(3y)4.06%
ROICexc(5y)3.74%
ROICexgc(3y)5.41%
ROICexgc(5y)4.92%
ROCE(3y)4.59%
ROCE(5y)4.18%
ROICexgc growth 3Y7.21%
ROICexgc growth 5Y8.15%
ROICexc growth 3Y2.68%
ROICexc growth 5Y3.91%
OM growth 3Y3.19%
OM growth 5Y-1.2%
PM growth 3Y-16.42%
PM growth 5Y-2.75%
GM growth 3Y2.33%
GM growth 5Y-7.9%
F-Score7
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.87 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 4.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 212% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 1.4 |
F-Score7
WACC5.84%
ROIC/WACC0.66
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)4.29%
Cap/Sales(5y)4.03%
Profit Quality(3y)128.15%
Profit Quality(5y)187.43%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.71%
EPS 3Y-3.26%
EPS 5Y7.39%
EPS Q2Q%0%
EPS Next Y18.92%
EPS Next 2Y12.06%
EPS Next 3Y7.81%
EPS Next 5Y6.38%
Revenue 1Y (TTM)23.74%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%23.51%
Revenue Next Year15.42%
Revenue Next 2Y9.9%
Revenue Next 3Y8.5%
Revenue Next 5Y6.91%
EBIT growth 1Y42.79%
EBIT growth 3Y16.2%
EBIT growth 5Y7.79%
EBIT Next Year138.06%
EBIT Next 3Y38.93%
EBIT Next 5Y26.14%
FCF growth 1Y100.41%
FCF growth 3Y8.45%
FCF growth 5Y10.73%
OCF growth 1Y63.48%
OCF growth 3Y13.51%
OCF growth 5Y8.41%
SONAE / SON.LS FAQ
What is the ChartMill fundamental rating of SONAE (SON.LS) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SON.LS.
What is the valuation status for SON stock?
ChartMill assigns a valuation rating of 6 / 10 to SONAE (SON.LS). This can be considered as Fairly Valued.
What is the profitability of SON stock?
SONAE (SON.LS) has a profitability rating of 4 / 10.
What is the valuation of SONAE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SONAE (SON.LS) is 12.57 and the Price/Book (PB) ratio is 1.08.
What is the expected EPS growth for SONAE (SON.LS) stock?
The Earnings per Share (EPS) of SONAE (SON.LS) is expected to grow by 18.92% in the next year.