SONAE (SON.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:SON - PTSON0AM0001 - Common Stock
1.666 EUR
-0.01 (-0.6%)
SON gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 25 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of SON while its profitability can be described as average. SON is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SON was profitable.
In the past year SON had a positive cash flow from operations.
SON had positive earnings in each of the past 5 years.
SON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SON has a Return On Assets (2.23%) which is in line with its industry peers.
SON has a worse Return On Equity (8.23%) than 61.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.86%, SON is doing worse than 76.92% of the companies in the same industry.
SON had an Average Return On Invested Capital over the past 3 years of 3.62%. This is significantly below the industry average of 9.20%.
The last Return On Invested Capital (3.86%) for SON is above the 3 year average (3.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 8.23% | ||
| ROIC | 3.86% |
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
The Profit Margin of SON (2.29%) is better than 65.38% of its industry peers.
In the last couple of years the Profit Margin of SON has declined.
SON has a Operating Margin (3.69%) which is comparable to the rest of the industry.
SON's Operating Margin has been stable in the last couple of years.
The Gross Margin of SON (22.08%) is comparable to the rest of the industry.
SON's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.69% | ||
| PM (TTM) | 2.29% | ||
| GM | 22.08% |
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.
SON has more shares outstanding than it did 1 year ago.
SON has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SON is higher compared to a year ago.
2.2 Solvency
SON has an Altman-Z score of 1.41. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.41, SON is doing worse than 84.62% of the companies in the same industry.
SON has a debt to FCF ratio of 7.86. This is a slightly negative value and a sign of low solvency as SON would need 7.86 years to pay back of all of its debts.
SON's Debt to FCF ratio of 7.86 is in line compared to the rest of the industry. SON outperforms 50.00% of 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 has a Debt to Equity ratio of 1.20. This is in the lower half of the industry: SON underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.86 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.66
WACC5.87%
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.
With a Current ratio value of 0.79, SON is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
A Quick Ratio of 0.38 indicates that SON may have some problems paying its short term obligations.
The Quick ratio of SON (0.38) is worse than 65.38% 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 -35.16% in the last year.
SON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.16% yearly.
Looking at the last year, SON shows a very strong growth in Revenue. The Revenue has grown by 23.74%.
Measured over the past years, SON shows a quite strong growth in Revenue. The Revenue has been growing by 9.11% on average per year.
EPS 1Y (TTM)-35.16%
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
The Earnings Per Share is expected to grow by 6.38% on average over the next years.
Based on estimates for the next years, SON will show a small growth in Revenue. The Revenue will grow by 6.91% on average per year.
EPS Next Y22.68%
EPS Next 2Y14.27%
EPS Next 3Y6.91%
EPS Next 5Y6.38%
Revenue Next Year15.95%
Revenue Next 2Y10.17%
Revenue Next 3Y8.8%
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 12.82, 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 65.38% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (27.19), we can say SON is valued rather cheaply.
SON is valuated reasonably with a Price/Forward Earnings ratio of 9.50.
Based on the Price/Forward Earnings ratio, SON is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
SON is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SON is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.28 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.56
PEG (5Y)1.57
EPS Next 2Y14.27%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 3.53%. 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 2.84.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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
68.53% of the earnings are spent on dividend by SON. This is not a sustainable payout ratio.
DP68.53%
EPS Next 2Y14.27%
EPS Next 3Y6.91%
ELI:SON (1/9/2026, 7:00:00 PM)
1.666
-0.01 (-0.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners11.22%
Inst Owner ChangeN/A
Ins Owners53.06%
Ins Owner ChangeN/A
Market Cap3.33B
Revenue(TTM)10.93B
Net Income(TTM)250.29M
Analysts78
Price Target1.6 (-3.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend0.08
Dividend Growth(5Y)-11.66%
DP68.53%
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)4.27%
PT rev (3m)5.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.16%
EPS NY rev (3m)23.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 9.5 | ||
| P/S | 0.3 | ||
| P/FCF | 6.28 | ||
| P/OCF | 3.37 | ||
| P/B | 1.1 | ||
| P/tB | 5.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.13
EY7.8%
EPS(NY)0.18
Fwd EY10.53%
FCF(TTM)0.27
FCFY15.92%
OCF(TTM)0.49
OCFY29.71%
SpS5.47
BVpS1.52
TBVpS0.31
PEG (NY)0.56
PEG (5Y)1.57
Graham Number2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 8.23% | ||
| ROCE | 4.89% | ||
| ROIC | 3.86% | ||
| ROICexc | 3.86% | ||
| ROICexgc | 5.45% | ||
| OM | 3.69% | ||
| PM (TTM) | 2.29% | ||
| GM | 22.08% | ||
| FCFM | 4.85% |
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-Score8
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.86 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 211.88% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 1.41 |
F-Score8
WACC5.87%
ROIC/WACC0.66
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)-35.16%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%0%
EPS Next Y22.68%
EPS Next 2Y14.27%
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 Year15.95%
Revenue Next 2Y10.17%
Revenue Next 3Y8.8%
Revenue Next 5Y6.91%
EBIT growth 1Y42.67%
EBIT growth 3Y16.2%
EBIT growth 5Y7.79%
EBIT Next Year134.53%
EBIT Next 3Y38.35%
EBIT Next 5Y26.14%
FCF growth 1Y100.53%
FCF growth 3Y8.46%
FCF growth 5Y10.74%
OCF growth 1Y63.47%
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.
Can you provide the valuation status for SONAE?
ChartMill assigns a valuation rating of 6 / 10 to SONAE (SON.LS). This can be considered as Fairly Valued.
Can you provide the profitability details for SONAE?
SONAE (SON.LS) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for SON stock?
The Earnings per Share (EPS) of SONAE (SON.LS) is expected to grow by 22.68% in the next year.
Is the dividend of SONAE sustainable?
The dividend rating of SONAE (SON.LS) is 4 / 10 and the dividend payout ratio is 68.53%.