SONY GROUP CORP - SP ADR (SONY)
US8356993076 - ADR
Taking everything into account, SONY scores 4 out of 10 in our fundamental rating. SONY was compared to 65 industry peers in the Household Durables industry. There are concerns on the financial health of SONY while its profitability can be described as average. SONY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SONY had positive earnings in the past year.
SONY had a positive operating cash flow in the past year.
SONY had positive earnings in each of the past 5 years.
SONY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.84%, SONY perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
The Return On Equity of SONY (12.53%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.68%, SONY is doing worse than 61.90% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SONY is significantly below the industry average of 10.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 12.53% | ||
| ROIC | 3.68% |
ROA(3y)2.99%
ROA(5y)3.05%
ROE(3y)13.46%
ROE(5y)13.98%
ROIC(3y)3.81%
ROIC(5y)3.73%
1.3 Margins
SONY has a Profit Margin of 7.53%. This is comparable to the rest of the industry: SONY outperforms 57.14% of its industry peers.
SONY's Profit Margin has declined in the last couple of years.
The Operating Margin of SONY (9.39%) is comparable to the rest of the industry.
SONY's Operating Margin has been stable in the last couple of years.
The Gross Margin of SONY (35.53%) is better than 76.19% of its industry peers.
SONY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.39% | ||
| PM (TTM) | 7.53% | ||
| GM | 35.53% |
OM growth 3Y-5.54%
OM growth 5Y-1.22%
PM growth 3Y-13.31%
PM growth 5Y-6.75%
GM growth 3Y10.62%
GM growth 5Y1.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SONY is destroying value.
Compared to 1 year ago, SONY has less shares outstanding
The number of shares outstanding for SONY has been reduced compared to 5 years ago.
The debt/assets ratio for SONY has been reduced compared to a year ago.
2.2 Solvency
SONY has an Altman-Z score of 0.99. This is a bad value and indicates that SONY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SONY (0.99) is worse than 82.54% of its industry peers.
SONY has a debt to FCF ratio of 7.53. This is a slightly negative value and a sign of low solvency as SONY would need 7.53 years to pay back of all of its debts.
The Debt to FCF ratio of SONY (7.53) is comparable to the rest of the industry.
SONY has a Debt/Equity ratio of 0.50. This is a neutral value indicating SONY is somewhat dependend on debt financing.
The Debt to Equity ratio of SONY (0.50) is worse than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 7.53 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.6
WACC6.09%
2.3 Liquidity
SONY has a Current Ratio of 0.63. This is a bad value and indicates that SONY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SONY (0.63) is worse than 98.41% of its industry peers.
SONY has a Quick Ratio of 0.63. This is a bad value and indicates that SONY is not financially healthy enough and could expect problems in meeting its short term obligations.
SONY's Quick ratio of 0.47 is on the low side compared to the rest of the industry. SONY is outperformed by 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
SONY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.51%.
Measured over the past years, SONY shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.67% on average per year.
Looking at the last year, SONY shows a small growth in Revenue. The Revenue has grown by 7.19% in the last year.
The Revenue has been growing by 8.48% on average over the past years. This is quite good.
EPS 1Y (TTM)-30.51%
EPS 3Y-11.28%
EPS 5Y-1.67%
EPS Q2Q%-78.45%
Revenue 1Y (TTM)7.19%
Revenue growth 3Y13.11%
Revenue growth 5Y8.48%
Sales Q2Q%1.62%
3.2 Future
SONY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.88% yearly.
SONY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.97% yearly.
EPS Next Y27.42%
EPS Next 2Y17.56%
EPS Next 3Y13.88%
EPS Next 5YN/A
Revenue Next Year2.27%
Revenue Next 2Y2.32%
Revenue Next 3Y1.97%
Revenue Next 5YN/A
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 accelerating.
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
SONY is valuated quite expensively with a Price/Earnings ratio of 26.50.
Based on the Price/Earnings ratio, SONY is valued a bit more expensive than 65.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of SONY to the average of the S&P500 Index (30.97), we can say SONY is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 15.19, the valuation of SONY can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as SONY.
When comparing the Price/Forward Earnings ratio of SONY to the average of the S&P500 Index (22.29), we can say SONY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SONY is valued cheaper than 88.89% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SONY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.71 | ||
| EV/EBITDA | 7.04 |
4.3 Compensation for Growth
SONY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SONY's earnings are expected to grow with 13.88% in the coming years.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y17.56%
EPS Next 3Y13.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, SONY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.41, SONY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.22, SONY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
On average, the dividend of SONY grows each year by 21.56%, which is quite nice.
SONY has been paying a dividend for at least 10 years, so it has a reliable track record.
As SONY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)21.56%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
SONY pays out 10.57% of its income as dividend. This is a sustainable payout ratio.
SONY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.57%
EPS Next 2Y17.56%
EPS Next 3Y13.88%
SONY GROUP CORP - SP ADR
NYSE:SONY (10/8/2024, 8:24:34 PM)
Premarket: 19 -76.14 (-80.03%)95.14
-0.52 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap115.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 15.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 12.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.39% | ||
| PM (TTM) | 7.53% | ||
| GM | 35.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-30.51%
EPS 3Y-11.28%
EPS 5Y
EPS Q2Q%
EPS Next Y27.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.19%
Revenue growth 3Y13.11%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y