SONAE (SON.LS)
PTSON0AM0001 - Common Stock
Taking everything into account, SON scores 4 out of 10 in our fundamental rating. SON was compared to 26 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SON. Finally SON also has an excellent dividend rating.
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.
In the past 5 years SON always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.74%, SON perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
With a Return On Equity value of 12.35%, SON perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.13%, SON is doing worse than 69.23% of the companies in the same industry.
SON had an Average Return On Invested Capital over the past 3 years of 3.46%. This is significantly below the industry average of 9.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 12.35% | ||
| ROIC | 3.13% |
ROA(3y)3.71%
ROA(5y)2.77%
ROE(3y)11.45%
ROE(5y)9.14%
ROIC(3y)3.46%
ROIC(5y)3.17%
1.3 Margins
Looking at the Profit Margin, with a value of 4.14%, SON belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
In the last couple of years the Profit Margin of SON has grown nicely.
The Operating Margin of SON (3.20%) is comparable to the rest of the industry.
SON's Operating Margin has improved in the last couple of years.
SON has a Gross Margin (21.02%) which is in line with its industry peers.
SON's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.2% | ||
| PM (TTM) | 4.14% | ||
| GM | 21.02% |
OM growth 3Y9.41%
OM growth 5Y4.35%
PM growth 3Y58.72%
PM growth 5Y3.87%
GM growth 3Y0.81%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SON is destroying value.
The number of shares outstanding for SON has been increased compared to 1 year ago.
Compared to 5 years ago, SON has less shares outstanding
Compared to 1 year ago, SON has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.22, 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 1.22, SON is doing worse than 88.46% of the companies in the same industry.
SON has a debt to FCF ratio of 9.48. This is a negative value and a sign of low solvency as SON would need 9.48 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.48, SON is doing worse than 69.23% of the companies in the same industry.
SON has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SON (1.09) is worse than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 9.48 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.56
WACC5.54%
2.3 Liquidity
SON has a Current Ratio of 0.73. 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 has a worse Current ratio (0.73) than 76.92% of its industry peers.
SON has a Quick Ratio of 0.73. 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 Quick ratio of 0.40 is on the low side compared to the rest of the industry. SON is outperformed by 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.55% over the past year.
Measured over the past years, SON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.96% on average per year.
The Revenue for SON has decreased by -11.49% in the past year. This is quite bad
Measured over the past years, SON shows a small growth in Revenue. The Revenue has been growing by 7.35% on average per year.
EPS 1Y (TTM)23.55%
EPS 3Y76.49%
EPS 5Y11.96%
EPS Q2Q%-26.82%
Revenue 1Y (TTM)-11.49%
Revenue growth 3Y7.97%
Revenue growth 5Y7.35%
Sales Q2Q%-42.94%
3.2 Future
The Earnings Per Share is expected to grow by 0.10% on average over the next years.
The Revenue is expected to grow by 6.29% on average over the next years.
EPS Next Y-5.92%
EPS Next 2Y-4.56%
EPS Next 3Y15.45%
EPS Next 5Y0.1%
Revenue Next Year10.81%
Revenue Next 2Y9.31%
Revenue Next 3Y8.44%
Revenue Next 5Y6.29%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.74, which indicates a rather cheap valuation of SON.
Based on the Price/Earnings ratio, SON is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (27.73), we can say SON is valued rather cheaply.
SON is valuated cheaply with a Price/Forward Earnings ratio of 6.60.
88.46% 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 22.83, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.74 | ||
| Fwd PE | 6.6 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SON is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.59 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as SON's earnings are expected to grow with 15.45% in the coming years.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-4.56%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 6.24%, which is a nice return.
Compared to an average industry Dividend Yield of 4.25, SON pays a better dividend. On top of this SON pays more dividend than 92.31% of the companies listed in the same industry.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
5.2 History
The dividend of SON has a limited annual growth rate of 3.02%.
Dividend Growth(5Y)3.02%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
SON pays out 42.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
SON's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.24%
EPS Next 2Y-4.56%
EPS Next 3Y15.45%
SONAE
ELI:SON (12/20/2024, 7:00:00 PM)
0.9
0 (-0.44%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners10.7%
Inst Owner ChangeN/A
Ins Owners53.04%
Ins Owner ChangeN/A
Market Cap1.80B
Analysts82.22
Price Target1.51 (67.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
Dividend Growth(5Y)3.02%
DP42.24%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.76%
Min EPS beat(2)-0.99%
Max EPS beat(2)48.51%
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)2
Avg Revenue beat(2)2.5%
Min Revenue beat(2)2.44%
Max Revenue beat(2)2.56%
Revenue beat(4)3
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)2.94%
Revenue beat(8)6
Avg Revenue beat(8)15.69%
Revenue beat(12)8
Avg Revenue beat(12)11.57%
Revenue beat(16)8
Avg Revenue beat(16)8.17%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)33.33%
EPS NQ rev (3m)33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.86%
Revenue NQ rev (1m)83.73%
Revenue NQ rev (3m)83.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.74 | ||
| Fwd PE | 6.6 | ||
| P/S | 0.2 | ||
| P/FCF | 4.59 | ||
| P/OCF | 2.29 | ||
| P/B | 0.61 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.19
EY21.11%
EPS(NY)0.14
Fwd EY15.15%
FCF(TTM)0.2
FCFY21.78%
OCF(TTM)0.39
OCFY43.69%
SpS4.42
BVpS1.48
TBVpS0.47
PEG (NY)N/A
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 12.35% | ||
| ROCE | 3.97% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.36% | ||
| ROICexgc | 4.84% | ||
| OM | 3.2% | ||
| PM (TTM) | 4.14% | ||
| GM | 21.02% | ||
| FCFM | 4.44% |
ROA(3y)3.71%
ROA(5y)2.77%
ROE(3y)11.45%
ROE(5y)9.14%
ROIC(3y)3.46%
ROIC(5y)3.17%
ROICexc(3y)3.95%
ROICexc(5y)3.6%
ROICexgc(3y)5.04%
ROICexgc(5y)4.54%
ROCE(3y)4.38%
ROCE(5y)4.01%
ROICexcg growth 3Y13.64%
ROICexcg growth 5Y12.38%
ROICexc growth 3Y14.11%
ROICexc growth 5Y12.3%
OM growth 3Y9.41%
OM growth 5Y4.35%
PM growth 3Y58.72%
PM growth 5Y3.87%
GM growth 3Y0.81%
GM growth 5Y0.2%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 9.48 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 4.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 107.14% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 1.22 |
F-Score5
WACC5.54%
ROIC/WACC0.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)4.02%
Cap/Sales(5y)4.16%
Profit Quality(3y)102.99%
Profit Quality(5y)179.08%
High Growth Momentum
Growth
EPS 1Y (TTM)23.55%
EPS 3Y76.49%
EPS 5Y11.96%
EPS Q2Q%-26.82%
EPS Next Y-5.92%
EPS Next 2Y-4.56%
EPS Next 3Y15.45%
EPS Next 5Y0.1%
Revenue 1Y (TTM)-11.49%
Revenue growth 3Y7.97%
Revenue growth 5Y7.35%
Sales Q2Q%-42.94%
Revenue Next Year10.81%
Revenue Next 2Y9.31%
Revenue Next 3Y8.44%
Revenue Next 5Y6.29%
EBIT growth 1Y3.44%
EBIT growth 3Y18.13%
EBIT growth 5Y12.02%
EBIT Next Year64.51%
EBIT Next 3Y28.19%
EBIT Next 5Y15.21%
FCF growth 1Y16.2%
FCF growth 3Y-5.35%
FCF growth 5Y-1.75%
OCF growth 1Y30.81%
OCF growth 3Y5.55%
OCF growth 5Y2.09%