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SONAE (SON.LS) Stock Fundamental Analysis

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

1.012  +0.02 (+2.12%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to SON. SON was compared to 28 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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6

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.
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.
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

With a decent Return On Assets value of 3.47%, SON is doing good in the industry, outperforming 60.71% of the companies in the same industry.
SON's Return On Equity of 12.44% is fine compared to the rest of the industry. SON outperforms 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.17%, SON is doing worse than 71.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SON is significantly below the industry average of 9.28%.
Industry RankSector Rank
ROA 3.47%
ROE 12.44%
ROIC 3.17%
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

With an excellent Profit Margin value of 3.98%, SON belongs to the best of the industry, outperforming 96.43% 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 (3.28%) is comparable to the rest of the industry.
SON's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.20%, SON is in line with its industry, outperforming 50.00% of the companies in the same industry.
SON's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.28%
PM (TTM) 3.98%
GM 21.2%
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.
SON has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SON has less shares outstanding
The debt/assets ratio for SON is higher compared to a year ago.
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

SON has an Altman-Z score of 1.17. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
SON has a worse Altman-Z score (1.17) than 89.29% of its industry peers.
The Debt to FCF ratio of SON is 9.82, which is on the high side as it means it would take SON, 9.82 years of fcf income to pay off all of its debts.
SON has a Debt to FCF ratio of 9.82. This is in the lower half of the industry: SON underperforms 64.29% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that SON has dependencies on debt financing.
The Debt to Equity ratio of SON (1.18) is worse than 60.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 9.82
Altman-Z 1.17
ROIC/WACC0.53
WACC5.93%
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 0.75 indicates that SON may have some problems paying its short term obligations.
SON's Current ratio of 0.75 is on the low side compared to the rest of the industry. SON is outperformed by 75.00% of its industry peers.
SON has a Quick Ratio of 0.75. 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: 71.43% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.75
Quick Ratio 0.36
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 37.99% 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 decrease in Revenue. The Revenue has decreased by -8.02% in the last year.
The Revenue has been growing slightly by 7.35% on average over the past years.
EPS 1Y (TTM)37.99%
EPS 3Y76.41%
EPS 5Y11.96%
EPS Q2Q%11.63%
Revenue 1Y (TTM)-8.02%
Revenue growth 3Y7.97%
Revenue growth 5Y7.35%
Sales Q2Q%22.42%

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-7.56%
EPS Next 2Y8.04%
EPS Next 3Y15.1%
EPS Next 5Y0.1%
Revenue Next Year14.42%
Revenue Next 2Y12.09%
Revenue Next 3Y9.3%
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

A Price/Earnings ratio of 5.06 indicates a rather cheap valuation of SON.
Based on the Price/Earnings ratio, SON is valued cheaper than 89.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. SON is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.79, which indicates a rather cheap valuation of SON.
Based on the Price/Forward Earnings ratio, SON is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, SON is valued rather cheaply.
Industry RankSector Rank
PE 5.06
Fwd PE 5.79
SON.LS Price Earnings VS Forward Price EarningsSON.LS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, SON is valued cheaper than 89.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.86
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

SON has a very decent profitability rating, which may justify a higher PE ratio.
SON's earnings are expected to grow with 15.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y8.04%
EPS Next 3Y15.1%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.69%, SON is a good candidate for dividend investing.
SON's Dividend Yield is rather good when compared to the industry average which is at 3.75. SON pays more dividend than 85.71% of the companies in the same industry.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 5.69%

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 43.33% 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.
DP43.33%
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 (3/7/2025, 7:00:00 PM)

1.012

+0.02 (+2.12%)

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)03-13 2025-03-13/amc
Inst Owners10.73%
Inst Owner ChangeN/A
Ins Owners53.04%
Ins Owner ChangeN/A
Market Cap2.02B
Analysts82
Price Target1.45 (43.28%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.69%
Yearly Dividend0.08
Dividend Growth(5Y)3.02%
DP43.33%
Div Incr Years5
Div Non Decr Years5
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)1
Avg Revenue beat(2)-17.34%
Min Revenue beat(2)-37.11%
Max Revenue beat(2)2.44%
Revenue beat(4)2
Avg Revenue beat(4)-8.25%
Min Revenue beat(4)-37.11%
Max Revenue beat(4)2.56%
Revenue beat(8)5
Avg Revenue beat(8)10.37%
Revenue beat(12)8
Avg Revenue beat(12)8.82%
Revenue beat(16)8
Avg Revenue beat(16)5.93%
PT rev (1m)-4.28%
PT rev (3m)-4.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-3.01%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)3.26%
Valuation
Industry RankSector Rank
PE 5.06
Fwd PE 5.79
P/S 0.22
P/FCF 4.86
P/OCF 2.37
P/B 0.68
P/tB 2.49
EV/EBITDA N/A
EPS(TTM)0.2
EY19.76%
EPS(NY)0.17
Fwd EY17.27%
FCF(TTM)0.21
FCFY20.56%
OCF(TTM)0.43
OCFY42.19%
SpS4.66
BVpS1.49
TBVpS0.41
PEG (NY)N/A
PEG (5Y)0.42
Profitability
Industry RankSector Rank
ROA 3.47%
ROE 12.44%
ROCE 4.02%
ROIC 3.17%
ROICexc 3.39%
ROICexgc 4.88%
OM 3.28%
PM (TTM) 3.98%
GM 21.2%
FCFM 4.46%
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-Score6
Asset Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 9.82
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 4.69%
Interest Coverage 250
Cash Conversion N/A
Profit Quality 112.07%
Current Ratio 0.75
Quick Ratio 0.36
Altman-Z 1.17
F-Score6
WACC5.93%
ROIC/WACC0.53
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)37.99%
EPS 3Y76.41%
EPS 5Y11.96%
EPS Q2Q%11.63%
EPS Next Y-7.56%
EPS Next 2Y8.04%
EPS Next 3Y15.1%
EPS Next 5Y0.1%
Revenue 1Y (TTM)-8.02%
Revenue growth 3Y7.97%
Revenue growth 5Y7.35%
Sales Q2Q%22.42%
Revenue Next Year14.42%
Revenue Next 2Y12.09%
Revenue Next 3Y9.3%
Revenue Next 5Y6.29%
EBIT growth 1Y1.48%
EBIT growth 3Y18.13%
EBIT growth 5Y12.02%
EBIT Next Year64.51%
EBIT Next 3Y28.19%
EBIT Next 5Y15.21%
FCF growth 1Y73.53%
FCF growth 3Y-5.35%
FCF growth 5Y-1.75%
OCF growth 1Y65.8%
OCF growth 3Y5.55%
OCF growth 5Y2.09%