SONOS INC (SONO) Stock Fundamental Analysis
NASDAQ:SONO - Nasdaq - US83570H1086 - Common Stock
Taking everything into account, SONO scores 3 out of 10 in our fundamental rating. SONO was compared to 67 industry peers in the Household Durables industry. While SONO seems to be doing ok healthwise, there are quite some concerns on its profitability. SONO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SONO has reported negative net income.
In the past year SONO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SONO reported negative net income in multiple years.
Of the past 5 years SONO 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.16%, SONO is doing worse than 70.77% of the companies in the same industry.
The Return On Equity of SONO (-8.90%) is worse than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.16% | ||
| ROE | -8.9% | ||
| ROIC | N/A |
ROA(3y)0.16%
ROA(5y)2.39%
ROE(3y)0.38%
ROE(5y)4.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Gross Margin value of 45.41%, SONO belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
In the last couple of years the Gross Margin of SONO has grown nicely.
SONO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.41% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5Y1.66%
2. Health
2.1 Basic Checks
SONO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SONO has less shares outstanding
SONO has more shares outstanding than it did 5 years ago.
SONO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.84 indicates that SONO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.84, SONO is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
There is no outstanding debt for SONO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.84 |
ROIC/WACCN/A
WACC9.21%
2.3 Liquidity
SONO has a Current Ratio of 1.51. This is a normal value and indicates that SONO is financially healthy and should not expect problems in meeting its short term obligations.
SONO has a Current ratio of 1.51. This is in the lower half of the industry: SONO underperforms 73.85% of its industry peers.
A Quick Ratio of 0.87 indicates that SONO may have some problems paying its short term obligations.
SONO has a Quick ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for SONO have decreased strongly by -230.00% in the last year.
SONO shows a decrease in Revenue. In the last year, the revenue decreased by -8.29%.
Measured over the past years, SONO shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
EPS 1Y (TTM)-230%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-76%
Revenue 1Y (TTM)-8.29%
Revenue growth 3Y-4.02%
Revenue growth 5Y3.78%
Sales Q2Q%-16.31%
3.2 Future
SONO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 56.39% yearly.
Based on estimates for the next years, SONO will show a quite strong growth in Revenue. The Revenue will grow by 11.29% on average per year.
EPS Next Y20.87%
EPS Next 2Y28.44%
EPS Next 3Y26.64%
EPS Next 5Y56.39%
Revenue Next Year-2.2%
Revenue Next 2Y3.16%
Revenue Next 3Y4.35%
Revenue Next 5Y11.29%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for SONO. In the last year negative earnings were reported.
Also next year SONO is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SONO is valued a bit more expensive than 76.92% of the companies in the same industry.
SONO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SONO is cheaper than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.79 | ||
| EV/EBITDA | 91.18 |
4.3 Compensation for Growth
SONO's earnings are expected to grow with 26.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.44%
EPS Next 3Y26.64%
5. Dividend
5.1 Amount
SONO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SONOS INC
NASDAQ:SONO (1/22/2025, 8:00:02 PM)
After market: 14.17 +0.03 (+0.21%)14.14
-0.22 (-1.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners93.58%
Inst Owner Change0.13%
Ins Owners1.98%
Ins Owner Change2.51%
Market Cap1.72B
Analysts76.67
Price Target15.5 (9.62%)
Short Float %5.29%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)94.13%
Min EPS beat(2)-5.86%
Max EPS beat(2)194.12%
EPS beat(4)2
Avg EPS beat(4)57.07%
Min EPS beat(4)-18.84%
Max EPS beat(4)194.12%
EPS beat(8)4
Avg EPS beat(8)27.08%
EPS beat(12)4
Avg EPS beat(12)6.18%
EPS beat(16)7
Avg EPS beat(16)25.49%
Revenue beat(2)1
Avg Revenue beat(2)0.37%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)1.22%
Revenue beat(4)3
Avg Revenue beat(4)0.79%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)2.32%
Revenue beat(8)6
Avg Revenue beat(8)3.29%
Revenue beat(12)9
Avg Revenue beat(12)2.74%
Revenue beat(16)12
Avg Revenue beat(16)5.49%
PT rev (1m)0%
PT rev (3m)-14.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-74.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-82.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.13 | ||
| P/FCF | 12.79 | ||
| P/OCF | 9.07 | ||
| P/B | 4.02 | ||
| P/tB | 6.68 | ||
| EV/EBITDA | 91.18 |
EPS(TTM)-0.33
EYN/A
EPS(NY)-0.26
Fwd EYN/A
FCF(TTM)1.11
FCFY7.82%
OCF(TTM)1.56
OCFY11.03%
SpS12.47
BVpS3.52
TBVpS2.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.16% | ||
| ROE | -8.9% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.41% | ||
| FCFM | 8.87% |
ROA(3y)0.16%
ROA(5y)2.39%
ROE(3y)0.38%
ROE(5y)4.45%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5Y1.66%
F-Score6
Asset Turnover1.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 105.48% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 1173.2% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 3.84 |
F-Score6
WACC9.21%
ROIC/WACCN/A
Cap/Depr(3y)109.39%
Cap/Depr(5y)110.61%
Cap/Sales(3y)3.1%
Cap/Sales(5y)2.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-230%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-76%
EPS Next Y20.87%
EPS Next 2Y28.44%
EPS Next 3Y26.64%
EPS Next 5Y56.39%
Revenue 1Y (TTM)-8.29%
Revenue growth 3Y-4.02%
Revenue growth 5Y3.78%
Sales Q2Q%-16.31%
Revenue Next Year-2.2%
Revenue Next 2Y3.16%
Revenue Next 3Y4.35%
Revenue Next 5Y11.29%
EBIT growth 1Y-80.15%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year342.46%
EBIT Next 3Y76.49%
EBIT Next 5Y66.7%
FCF growth 1Y168.67%
FCF growth 3Y-13.45%
FCF growth 5Y6.69%
OCF growth 1Y89.14%
OCF growth 3Y-9.14%
OCF growth 5Y9.51%