SONAE (SON.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:SON - PTSON0AM0001 - Common Stock
1.676 EUR
0 (-0.24%)
Overall SON gets a fundamental rating of 3 out of 10. We evaluated SON against 26 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 is not valued too expensively and it also shows a decent 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.
SON had positive earnings in each of the past 5 years.
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 42.31% of the companies in the same industry.
SON's Return On Equity of 8.22% is on the low side compared to the rest of the industry. SON is outperformed by 61.54% of its industry peers.
SON has a worse Return On Invested Capital (3.86%) than 76.92% of its industry peers.
SON had an Average Return On Invested Capital over the past 3 years of 3.63%. This is significantly below the industry average of 9.49%.
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
SON's Profit Margin of 2.29% is fine compared to the rest of the industry. SON outperforms 65.38% of its industry peers.
In the last couple of years the Profit Margin of SON has declined.
SON has a Operating Margin (3.70%) which is comparable to the rest of the 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 (22.08%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SON is destroying value.
Compared to 1 year ago, SON has more shares outstanding
The number of shares outstanding for SON has been reduced compared to 5 years ago.
The debt/assets ratio for SON is higher compared to a year ago.
2.2 Solvency
SON has an Altman-Z score of 1.41. 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 1.41 is on the low side compared to the rest of the industry. SON is outperformed by 84.62% 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.
Looking at the Debt to FCF ratio, with a value of 7.87, SON is in line with its industry, outperforming 46.15% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that SON has dependencies on debt financing.
SON has a worse Debt to Equity ratio (1.20) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.87 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.66
WACC5.88%
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 has a worse Current ratio (0.79) than 73.08% of its industry peers.
SON has a Quick 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 Quick ratio of 0.38 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 | 0.79 | ||
| 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.
The Earnings Per Share has been growing slightly by 7.39% on average over the past years.
SON shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.74%.
The Revenue has been growing by 9.11% on average over the past years. This is quite good.
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.
SON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.91% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 12.89, which indicates a correct valuation of SON.
SON's Price/Earnings ratio is a bit cheaper when compared to the industry. SON is cheaper than 76.92% of the companies in the same industry.
SON's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.00.
The Price/Forward Earnings ratio is 9.55, which indicates a very decent valuation of SON.
Based on the Price/Forward Earnings ratio, SON is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SON to the average of the S&P500 Index (23.70), we can say SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SON is valued cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.32 | ||
| 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)1.74
EPS Next 2Y14.27%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.67%, SON has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.79, 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 1.94.
| 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
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 (1/8/2026, 7:00:00 PM)
1.676
0 (-0.24%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners11.22%
Inst Owner ChangeN/A
Ins Owners53.06%
Ins Owner ChangeN/A
Market Cap3.35B
Revenue(TTM)10.93B
Net Income(TTM)250.00M
Analysts78
Price Target1.6 (-4.53%)
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)8.37%
PT rev (3m)5.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.16%
EPS NY rev (3m)23.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 9.55 | ||
| P/S | 0.31 | ||
| P/FCF | 6.32 | ||
| P/OCF | 3.39 | ||
| P/B | 1.1 | ||
| P/tB | 5.34 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.13
EY7.76%
EPS(NY)0.18
Fwd EY10.47%
FCF(TTM)0.27
FCFY15.81%
OCF(TTM)0.5
OCFY29.53%
SpS5.47
BVpS1.52
TBVpS0.31
PEG (NY)0.57
PEG (5Y)1.74
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 | 1.41 |
F-Score7
WACC5.88%
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 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 22.68% in the next year.
Is the dividend of SONAE sustainable?
The dividend rating of SONAE (SON.LS) is 4 / 10 and the dividend payout ratio is 68.8%.