SONAE (SON.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:SON - PTSON0AM0001 - Common Stock
1.56 EUR
+0.02 (+1.04%)
Overall SON gets a fundamental rating of 3 out of 10. We evaluated SON against 25 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of SON have multiple concerns. SON is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SON had positive earnings in the past year.
SON had a positive operating cash flow in the past year.
Each year in the past 5 years SON has been profitable.
Each year in the past 5 years SON had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.15%, SON is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
SON has a worse Return On Equity (7.75%) than 64.00% of its industry peers.
SON has a Return On Invested Capital of 3.48%. This is amonst the worse of the industry: SON underperforms 80.00% of its industry peers.
SON had an Average Return On Invested Capital over the past 3 years of 3.62%. This is significantly below the industry average of 9.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 7.75% | ||
| ROIC | 3.48% |
ROA(3y)3.29%
ROA(5y)2.79%
ROE(3y)10.37%
ROE(5y)9.04%
ROIC(3y)3.62%
ROIC(5y)3.3%
1.3 Margins
SON's Profit Margin of 2.31% is fine compared to the rest of the industry. SON outperforms 64.00% of its industry peers.
SON's Profit Margin has declined in the last couple of years.
SON has a Operating Margin (3.46%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SON has remained more or less at the same level.
Looking at the Gross Margin, with a value of 21.73%, SON is doing worse than 64.00% of the companies in the same industry.
SON's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.46% | ||
| PM (TTM) | 2.31% | ||
| GM | 21.73% |
OM growth 3Y3.18%
OM growth 5Y-1.21%
PM growth 3Y-16.47%
PM growth 5Y-2.78%
GM growth 3Y2.33%
GM growth 5Y-7.9%
2. Health
2.1 Basic Checks
SON has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SON has been increased compared to 1 year ago.
SON has less shares outstanding than it did 5 years ago.
SON has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that SON is in the distress zone and has some risk of bankruptcy.
SON's Altman-Z score of 1.34 is on the low side compared to the rest of the industry. SON is outperformed by 92.00% of its industry peers.
The Debt to FCF ratio of SON is 10.14, which is on the high side as it means it would take SON, 10.14 years of fcf income to pay off all of its debts.
SON has a worse Debt to FCF ratio (10.14) than 60.00% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that SON has dependencies on debt financing.
SON's Debt to Equity ratio of 1.15 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 | 1.15 | ||
| Debt/FCF | 10.14 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.6
WACC5.81%
2.3 Liquidity
SON has a Current Ratio of 0.78. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
SON has a worse Current ratio (0.78) than 76.00% of its industry peers.
SON has a Quick Ratio of 0.78. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.36, SON is doing worse than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The earnings per share for SON have decreased strongly by -34.51% in the last year.
The Earnings Per Share has been growing by 8.16% on average over the past years. This is quite good.
SON shows a strong growth in Revenue. In the last year, 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)-34.51%
EPS 3Y-2.1%
EPS 5Y8.16%
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 Y-5.26%
EPS Next 2Y6.2%
EPS Next 3Y6.91%
EPS Next 5Y6.38%
Revenue Next Year14.25%
Revenue Next 2Y9.43%
Revenue Next 3Y8.14%
Revenue Next 5Y6.91%
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 decreasing.
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
With a Price/Earnings ratio of 12.00, 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 26.37.
A Price/Forward Earnings ratio of 10.30 indicates a reasonable valuation of SON.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a somewhat cheap valuation: SON is cheaper than 80.00% of the companies listed in the same industry.
SON's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
SON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SON is cheaper than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y6.2%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
SON's Dividend Yield is a higher than the industry average which is at 3.80.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of SON decreases each year by -11.66%.
Dividend Growth(5Y)-11.66%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
SON pays out 66.73% of its income as dividend. This is not a sustainable payout ratio.
DP66.73%
EPS Next 2Y6.2%
EPS Next 3Y6.91%
ELI:SON (12/3/2025, 7:00:00 PM)
1.56
+0.02 (+1.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners10.88%
Inst Owner ChangeN/A
Ins Owners53.06%
Ins Owner ChangeN/A
Market Cap3.12B
Revenue(TTM)10.93B
Net Income(TTM)240.81M
Analysts80
Price Target1.48 (-5.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend0.08
Dividend Growth(5Y)-11.66%
DP66.73%
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)-2.8%
PT rev (3m)-2.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-4.91%
EPS NY rev (3m)-7.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 10.3 | ||
| P/S | 0.3 | ||
| P/FCF | 7.74 | ||
| P/OCF | 3.65 | ||
| P/B | 1 | ||
| P/tB | 4.48 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.13
EY8.33%
EPS(NY)0.15
Fwd EY9.71%
FCF(TTM)0.2
FCFY12.92%
OCF(TTM)0.43
OCFY27.4%
SpS5.21
BVpS1.55
TBVpS0.35
PEG (NY)N/A
PEG (5Y)1.47
Graham Number2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 7.75% | ||
| ROCE | 4.41% | ||
| ROIC | 3.48% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 5.37% | ||
| OM | 3.46% | ||
| PM (TTM) | 2.31% | ||
| GM | 21.73% | ||
| FCFM | 3.87% |
ROA(3y)3.29%
ROA(5y)2.79%
ROE(3y)10.37%
ROE(5y)9.04%
ROIC(3y)3.62%
ROIC(5y)3.3%
ROICexc(3y)4.05%
ROICexc(5y)3.73%
ROICexgc(3y)5.4%
ROICexgc(5y)4.92%
ROCE(3y)4.59%
ROCE(5y)4.18%
ROICexgc growth 3Y7.22%
ROICexgc growth 5Y8.15%
ROICexc growth 3Y2.69%
ROICexc growth 5Y3.91%
OM growth 3Y3.18%
OM growth 5Y-1.21%
PM growth 3Y-16.47%
PM growth 5Y-2.78%
GM growth 3Y2.33%
GM growth 5Y-7.9%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.14 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 167.43% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.34 |
F-Score5
WACC5.81%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)4.28%
Cap/Sales(5y)4.03%
Profit Quality(3y)128.34%
Profit Quality(5y)187.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.51%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%0%
EPS Next Y-5.26%
EPS Next 2Y6.2%
EPS Next 3Y6.91%
EPS Next 5Y6.38%
Revenue 1Y (TTM)23.74%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%23.51%
Revenue Next Year14.25%
Revenue Next 2Y9.43%
Revenue Next 3Y8.14%
Revenue Next 5Y6.91%
EBIT growth 1Y15.94%
EBIT growth 3Y16.2%
EBIT growth 5Y7.79%
EBIT Next Year131%
EBIT Next 3Y38.24%
EBIT Next 5Y26.14%
FCF growth 1Y37.6%
FCF growth 3Y8.46%
FCF growth 5Y10.74%
OCF growth 1Y34.54%
OCF growth 3Y13.52%
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 5 / 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 3 / 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 and the Price/Book (PB) ratio is 1.
What is the expected EPS growth for SONAE (SON.LS) stock?
The Earnings per Share (EPS) of SONAE (SON.LS) is expected to decline by -5.26% in the next year.