SONAE (SON.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:SON - PTSON0AM0001 - Common Stock
1.626 EUR
+0.02 (+1.37%)
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. There are concerns on the financial health of SON while its profitability can be described as average. 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.
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
Looking at the Return On Assets, with a value of 2.22%, SON is in line with its industry, outperforming 44.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.22%, SON is in line with its industry, outperforming 44.00% of the companies in the same 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.
Measured over the past 3 years, the Average Return On Invested Capital for SON 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.
SON's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.70%, SON is in line with its industry, outperforming 56.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SON has remained more or less at the same level.
SON has a Gross Margin of 22.08%. This is in the lower half of the industry: SON underperforms 60.00% of its industry peers.
SON's Gross Margin has declined in the last couple of years.
| 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
SON has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SON has more shares outstanding
Compared to 5 years ago, SON has less shares outstanding
SON has a worse debt/assets ratio than last year.
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.
The Altman-Z score of SON (1.40) is worse than 88.00% of its industry peers.
The Debt to FCF ratio of SON is 7.87, which is on the high side as it means it would take SON, 7.87 years of fcf income to pay off all of its debts.
SON has a Debt to FCF ratio (7.87) which is in line with its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that SON has dependencies on debt financing.
The Debt to Equity ratio of SON (1.20) is worse than 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
WACC5.83%
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.
Looking at the Current ratio, with a value of 0.79, SON is doing worse than 72.00% of the companies in the same industry.
A Quick Ratio of 0.38 indicates that SON may have some problems paying its short term obligations.
SON has a worse Quick ratio (0.38) 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.
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.
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)-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 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.
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
A Price/Earnings ratio of 12.51 indicates a correct valuation of SON.
Based on the Price/Earnings ratio, SON is valued a bit cheaper than 76.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.26, SON is valued rather cheaply.
The Price/Forward Earnings ratio is 9.64, which indicates a very decent valuation of SON.
SON's Price/Forward Earnings ratio is rather cheap when compared to the industry. SON is cheaper than 84.00% of the companies 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 23.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 9.64 |
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 | 6.14 | ||
| 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)1.69
EPS Next 2Y12.06%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 3.67%.
Compared to an average industry Dividend Yield of 2.91, SON pays a bit more dividend than its industry peers.
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 (12/19/2025, 5:29:55 PM)
1.626
+0.02 (+1.37%)
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 Cap3.25B
Revenue(TTM)10.93B
Net Income(TTM)250.00M
Analysts78
Price Target1.54 (-5.29%)
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 | 12.51 | ||
| Fwd PE | 9.64 | ||
| P/S | 0.3 | ||
| P/FCF | 6.14 | ||
| P/OCF | 3.28 | ||
| P/B | 1.07 | ||
| P/tB | 5.18 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.13
EY8%
EPS(NY)0.17
Fwd EY10.37%
FCF(TTM)0.27
FCFY16.3%
OCF(TTM)0.5
OCFY30.44%
SpS5.47
BVpS1.52
TBVpS0.31
PEG (NY)0.66
PEG (5Y)1.69
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
WACC5.83%
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 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 12.51 and the Price/Book (PB) ratio is 1.07.
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.