SONAE (SON.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:SON - PTSON0AM0001 - Common Stock
1.634 EUR
+0.04 (+2.38%)
SON gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 24 industry peers in the Consumer Staples Distribution & Retail industry. SON has a medium profitability rating, but doesn't score so well on its financial health evaluation. SON has a correct valuation and a medium 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.
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 has a Return On Assets (2.22%) which is comparable to the rest of the industry.
SON has a Return On Equity (8.22%) which is in line with its industry peers.
SON has a worse Return On Invested Capital (3.86%) than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SON is significantly below the industry average of 8.82%.
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
With a decent Profit Margin value of 2.29%, SON is doing good in the industry, outperforming 70.83% 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 in the better half of the industry: SON outperforms 62.50% of its industry peers.
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.
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.
SON has more shares outstanding than it did 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
SON has an Altman-Z score of 1.39. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
SON's Altman-Z score of 1.39 is on the low side compared to the rest of the industry. SON is outperformed by 83.33% of its industry peers.
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's Debt to FCF ratio of 7.87 is in line compared to the rest of the industry. SON outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that SON has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.20, SON is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.87 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.66
WACC5.83%
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.
SON's Current ratio of 0.79 is on the low side compared to the rest of the industry. SON is outperformed by 70.83% of its industry peers.
A Quick Ratio of 0.38 indicates that SON may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.38, SON is doing worse than 66.67% of the companies in the same industry.
| 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.
Measured over the past 5 years, SON shows a small growth in Earnings Per Share. The EPS has been growing by 7.39% on average per year.
The Revenue has grown by 23.74% in the past year. This is a very strong growth!
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)-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
Based on estimates for the next years, SON will show a small growth in Earnings Per Share. The EPS will grow by 6.38% on average per year.
The Revenue is expected to grow by 6.91% on average over the next years.
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
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
SON is valuated correctly with a Price/Earnings ratio of 12.57.
Based on the Price/Earnings ratio, SON is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
SON's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
Based on the Price/Forward Earnings ratio of 9.32, the valuation of SON can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. SON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
SON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SON is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.17 | ||
| 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)0.55
PEG (5Y)1.7
EPS Next 2Y14.27%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 3.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.98, SON pays a bit more dividend than its industry peers.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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
68.80% of the earnings are spent on dividend by SON. This is not a sustainable payout ratio.
DP68.8%
EPS Next 2Y14.27%
EPS Next 3Y6.91%
ELI:SON (12/30/2025, 2:27:59 PM)
1.634
+0.04 (+2.38%)
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 Target1.6 (-2.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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)8.37%
PT rev (3m)5.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)29.5%
EPS NY rev (3m)23.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 9.32 | ||
| 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)0.18
Fwd EY10.73%
FCF(TTM)0.27
FCFY16.22%
OCF(TTM)0.5
OCFY30.29%
SpS5.47
BVpS1.52
TBVpS0.31
PEG (NY)0.55
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 | 1.39 |
F-Score7
WACC5.83%
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 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 1Y42.79%
EBIT growth 3Y16.2%
EBIT growth 5Y7.79%
EBIT Next Year134.53%
EBIT Next 3Y38.35%
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 4 / 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 5 / 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 22.68% in the next year.