SONAE (SON.LS) Stock Fundamental Analysis
ELI:SON - Euronext Lisbon - PTSON0AM0001 - Common Stock - Currency: EUR
Taking everything into account, SON scores 3 out of 10 in our fundamental rating. 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 is cheap, but on the other hand it scores bad on growth.
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.
SON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.15%, SON is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
SON has a worse Return On Equity (7.75%) than 60.00% of its industry peers.
With a Return On Invested Capital value of 3.48%, 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 3.62%. This is significantly below the industry average of 9.19%.
| 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
Looking at the Profit Margin, with a value of 2.31%, 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 3.46%, SON is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
SON's Operating Margin has been stable in the last couple of years.
SON has a Gross Margin (21.73%) which 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 | 3.46% | ||
| 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.
SON has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SON has been reduced compared to 5 years ago.
SON has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that SON is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.30, SON is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 10.14, SON is in line with its industry, outperforming 44.00% of the companies in the same industry.
A Debt/Equity ratio of 1.15 is on the high side and indicates that SON has dependencies on debt financing.
SON has a Debt to Equity ratio of 1.15. This is in the lower half of the industry: SON underperforms 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.14 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.62
WACC5.61%
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.
With a Current ratio value of 0.78, SON is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.36, SON is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
SON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.71%.
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 decrease in Revenue. The Revenue has decreased by -0.58% in the last year.
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)-39.71%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%72.44%
Revenue 1Y (TTM)-0.58%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%22.67%
3.2 Future
SON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.12% yearly.
The Revenue is expected to grow by 6.65% on average over the next years.
EPS Next Y30.08%
EPS Next 2Y19.73%
EPS Next 3Y6.35%
EPS Next 5Y3.12%
Revenue Next Year10.32%
Revenue Next 2Y7.34%
Revenue Next 3Y6.45%
Revenue Next 5Y6.65%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 10.67, which indicates a very decent valuation of SON.
SON's Price/Earnings ratio is a bit cheaper when compared to the industry. SON is cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. SON is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.65, the valuation of SON can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SON is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.35 | ||
| 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)0.35
PEG (5Y)1.31
EPS Next 2Y19.73%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 4.70%, which is a nice return.
SON's Dividend Yield is a higher than the industry average which is at 3.86.
Compared to an average S&P500 Dividend Yield of 2.35, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
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 2Y19.73%
EPS Next 3Y6.35%
ELI:SON (7/18/2025, 7:00:00 PM)
1.28
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners10.77%
Inst Owner ChangeN/A
Ins Owners53.04%
Ins Owner ChangeN/A
Market Cap2.56B
Analysts81.82
Price Target1.54 (20.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
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)2.26%
PT rev (3m)5.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.25 | ||
| P/FCF | 6.35 | ||
| P/OCF | 3 | ||
| P/B | 0.82 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.12
EY9.38%
EPS(NY)0.19
Fwd EY15.05%
FCF(TTM)0.2
FCFY15.75%
OCF(TTM)0.43
OCFY33.39%
SpS5.21
BVpS1.55
TBVpS0.35
PEG (NY)0.35
PEG (5Y)1.31
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%
ROICexcg growth 3Y7.22%
ROICexcg 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 | 1.3 |
F-Score5
WACC5.61%
ROIC/WACC0.62
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)-39.71%
EPS 3Y-2.1%
EPS 5Y8.16%
EPS Q2Q%72.44%
EPS Next Y30.08%
EPS Next 2Y19.73%
EPS Next 3Y6.35%
EPS Next 5Y3.12%
Revenue 1Y (TTM)-0.58%
Revenue growth 3Y12.61%
Revenue growth 5Y9.11%
Sales Q2Q%22.67%
Revenue Next Year10.32%
Revenue Next 2Y7.34%
Revenue Next 3Y6.45%
Revenue Next 5Y6.65%
EBIT growth 1Y15.94%
EBIT growth 3Y16.2%
EBIT growth 5Y7.79%
EBIT Next Year128.51%
EBIT Next 3Y39.39%
EBIT Next 5Y26.66%
FCF growth 1Y37.6%
FCF growth 3Y8.46%
FCF growth 5Y10.74%
OCF growth 1Y34.54%
OCF growth 3Y13.52%
OCF growth 5Y8.41%