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SONAE (SON.LS) Stock Fundamental Analysis

ELI:SON - Euronext Lisbon - PTSON0AM0001 - Common Stock - Currency: EUR

0.908  +0.01 (+0.55%)

Fundamental Rating

4

SON gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 27 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 valued quite cheap, while showing a decent growth score. This is a good combination! SON also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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5

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.
In the past 5 years SON always reported a positive cash flow from operatings.
SON.LS Yearly Net Income VS EBIT VS OCF VS FCFSON.LS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

1.2 Ratios

SON has a Return On Assets of 3.74%. This is comparable to the rest of the industry: SON outperforms 57.69% of its industry peers.
With a Return On Equity value of 12.35%, SON perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
With a Return On Invested Capital value of 3.13%, SON is not doing good in the industry: 69.23% 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 9.71%.
Industry RankSector 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%
SON.LS Yearly ROA, ROE, ROICSON.LS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

SON's Profit Margin of 4.14% is amongst the best of the industry. SON outperforms 96.15% of its industry peers.
In the last couple of years the Profit Margin of SON has grown nicely.
With a Operating Margin value of 3.20%, SON perfoms like the industry average, outperforming 42.31% of the companies in the same 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.
In the last couple of years the Gross Margin of SON has remained more or less at the same level.
Industry RankSector 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%
SON.LS Yearly Profit, Operating, Gross MarginsSON.LS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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0

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.
The number of shares outstanding for SON has been increased compared to 1 year ago.
SON has less shares outstanding than it did 5 years ago.
SON has a worse debt/assets ratio than last year.
SON.LS Yearly Shares OutstandingSON.LS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
SON.LS Yearly Total Debt VS Total AssetsSON.LS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

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.
SON has a worse Altman-Z score (1.22) than 88.46% of its industry peers.
The Debt to FCF ratio of SON is 9.48, which is on the high side as it means it would take SON, 9.48 years of fcf income to pay off all of its debts.
SON has a worse Debt to FCF ratio (9.48) than 69.23% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that SON has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.09, SON is doing worse than 65.38% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 9.48
Altman-Z 1.22
ROIC/WACC0.57
WACC5.53%
SON.LS Yearly LT Debt VS Equity VS FCFSON.LS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 0.73 indicates that SON may have some problems paying its short term obligations.
SON has a Current ratio of 0.73. This is in the lower half of the industry: SON underperforms 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.
With a Quick ratio value of 0.40, SON is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.4
SON.LS Yearly Current Assets VS Current LiabilitesSON.LS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.55% over the past year.
The Earnings Per Share has been growing by 11.96% on average over the past years. This is quite good.
Looking at the last year, SON shows a very negative growth in Revenue. The Revenue has decreased by -11.49% in the last year.
The Revenue has been growing slightly by 7.35% on average over the past years.
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

SON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.10% yearly.
The Revenue is expected to grow by 6.29% on average over the next years.
EPS Next Y-4.69%
EPS Next 2Y8.04%
EPS Next 3Y15.1%
EPS Next 5Y0.1%
Revenue Next Year13.83%
Revenue Next 2Y12.09%
Revenue Next 3Y9.02%
Revenue Next 5Y6.29%

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 decreasing.
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.
SON.LS Yearly Revenue VS EstimatesSON.LS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B 10B
SON.LS Yearly EPS VS EstimatesSON.LS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.05 0.1 0.15 0.2

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 4.78, the valuation of SON can be described as very cheap.
SON's Price/Earnings ratio is rather cheap when compared to the industry. SON is cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (28.47), we can say SON is valued rather cheaply.
A Price/Forward Earnings ratio of 5.20 indicates a rather cheap valuation of SON.
Based on the Price/Forward Earnings ratio, SON is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SON to the average of the S&P500 Index (92.74), we can say SON is valued rather cheaply.
Industry RankSector Rank
PE 4.78
Fwd PE 5.2
SON.LS Price Earnings VS Forward Price EarningsSON.LS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

80.77% of the companies in the same industry are more expensive than SON, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.63
EV/EBITDA N/A
SON.LS Per share dataSON.LS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

A more expensive valuation may be justified as SON's earnings are expected to grow with 15.10% in the coming years.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y8.04%
EPS Next 3Y15.1%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.23%, SON is a good candidate for dividend investing.
SON's Dividend Yield is rather good when compared to the industry average which is at 3.91. SON pays more dividend than 84.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SON pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.23%

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
SON.LS Yearly Dividends per shareSON.LS Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 0.01 0.02 0.03 0.04 0.05

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.
The dividend of SON is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.24%
EPS Next 2Y8.04%
EPS Next 3Y15.1%
SON.LS Yearly Income VS Free CF VS DividendSON.LS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M
SON.LS Dividend Payout.SON.LS Dividend Payout, showing the Payout Ratio.SON.LS Dividend Payout.PayoutRetained Earnings

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SONAE

ELI:SON (2/4/2025, 7:00:00 PM)

0.908

+0.01 (+0.55%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)11-13 2024-11-13
Earnings (Next)N/A N/A
Inst Owners10.7%
Inst Owner ChangeN/A
Ins Owners53.04%
Ins Owner ChangeN/A
Market Cap1.82B
Analysts82.22
Price Target1.51 (66.3%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.23%
Yearly Dividend0.08
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)0%
EPS NQ rev (3m)33.33%
EPS NY rev (1m)1.31%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)83.73%
Revenue NY rev (1m)2.72%
Revenue NY rev (3m)2.72%
Valuation
Industry RankSector Rank
PE 4.78
Fwd PE 5.2
P/S 0.21
P/FCF 4.63
P/OCF 2.31
P/B 0.61
P/tB 1.94
EV/EBITDA N/A
EPS(TTM)0.19
EY20.93%
EPS(NY)0.17
Fwd EY19.24%
FCF(TTM)0.2
FCFY21.59%
OCF(TTM)0.39
OCFY43.3%
SpS4.42
BVpS1.48
TBVpS0.47
PEG (NY)N/A
PEG (5Y)0.4
Profitability
Industry RankSector 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 RankSector 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
WACC5.53%
ROIC/WACC0.57
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-4.69%
EPS Next 2Y8.04%
EPS Next 3Y15.1%
EPS Next 5Y0.1%
Revenue 1Y (TTM)-11.49%
Revenue growth 3Y7.97%
Revenue growth 5Y7.35%
Sales Q2Q%-42.94%
Revenue Next Year13.83%
Revenue Next 2Y12.09%
Revenue Next 3Y9.02%
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%