SONAE (SON.LS) Stock Fundamental Analysis
Europe • Euronext Lisbon • ELI:SON • PTSON0AM0001
1.77 EUR
+0.01 (+0.45%)
Last: Jan 30, 2026, 07:00 PM
Overall SON gets a fundamental rating of 3 out of 10. We evaluated SON 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.
- In the past year SON had a positive cash flow from operations.
- 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
- SON has a Return On Assets (2.23%) which is in line with its industry peers.
- SON's Return On Equity of 8.23% is on the low side compared to the rest of the industry. SON is outperformed by 62.50% of its industry peers.
- SON has a Return On Invested Capital of 3.86%. This is in the lower half of the industry: SON underperforms 79.17% 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 9.20%.
- The 3 year average ROIC (3.62%) for SON is below the current ROIC(3.86%), indicating increased profibility in the last year.
| 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
- SON's Profit Margin of 2.29% is fine compared to the rest of the industry. SON outperforms 66.67% of its industry peers.
- SON's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 3.69%, SON perfoms like the industry average, outperforming 58.33% 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 of 22.08%. This is in the lower half of the industry: SON underperforms 62.50% of its industry peers.
- In the last couple of years the Gross Margin of SON has declined.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SON is destroying value.
- The number of shares outstanding for SON has been increased compared to 1 year ago.
- The number of shares outstanding for SON has been reduced compared to 5 years ago.
- Compared to 1 year ago, SON has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.42, we must say that SON is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.42, SON is doing worse than 87.50% 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.
- The Debt to FCF ratio of SON (7.86) is comparable to the rest of the industry.
- SON has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
- SON has a worse Debt to Equity ratio (1.20) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.86 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.65
WACC5.93%
2.3 Liquidity
- A Current Ratio of 0.79 indicates that SON may have some problems paying 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 75.00% of its industry peers.
- 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- SON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.16%.
- Measured over the past years, SON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.16% on average per year.
- The Revenue has grown by 23.74% in the past year. This is a very strong growth!
- SON shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.11% yearly.
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
- 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 Y23.93%
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 decreasing: in the next years the growth will be less 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
- A Price/Earnings ratio of 13.62 indicates a correct valuation of SON.
- 62.50% of the companies in the same industry are more expensive than SON, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.32. SON is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 10.09, which indicates a very decent valuation of SON.
- 87.50% of the companies in the same industry are more expensive than SON, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
- 83.33% of the companies in the same industry are more expensive than SON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.68 | ||
| 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)0.57
PEG (5Y)1.67
EPS Next 2Y14.27%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
- SON has a Yearly Dividend Yield of 3.36%.
- Compared to an average industry Dividend Yield of 2.82, SON has a dividend in line with its industry peers.
- SON's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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 68.53% of its income as dividend. This is not a sustainable payout ratio.
DP68.53%
EPS Next 2Y14.27%
EPS Next 3Y6.91%
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 23.93% in the next year.
Is the dividend of SONAE sustainable?
The dividend rating of SONAE (SON.LS) is 3 / 10 and the dividend payout ratio is 68.53%.