SONY GROUP CORP - SP ADR (SONY) Stock Fundamental Analysis
NYSE:SONY - New York Stock Exchange, Inc. - US8356993076 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to SONY. SONY was compared to 67 industry peers in the Household Durables industry. While SONY is still in line with the averages on profitability rating, there are concerns on its financial health. SONY has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SONY was profitable.
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
The Return On Assets of SONY (3.28%) is comparable to the rest of the industry.
SONY has a better Return On Equity (14.57%) than 64.62% of its industry peers.
With a Return On Invested Capital value of 4.32%, SONY is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
SONY had an Average Return On Invested Capital over the past 3 years of 3.81%. This is significantly below the industry average of 12.03%.
The last Return On Invested Capital (4.32%) for SONY is above the 3 year average (3.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 14.57% | ||
| ROIC | 4.32% |
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
The Profit Margin of SONY (8.54%) is better than 67.69% of its industry peers.
In the last couple of years the Profit Margin of SONY has declined.
SONY has a Operating Margin of 10.84%. This is in the better half of the industry: SONY outperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of SONY has remained more or less at the same level.
SONY has a Gross Margin of 35.31%. This is in the better half of the industry: SONY outperforms 73.85% of its industry peers.
In the last couple of years the Gross Margin of SONY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.84% | ||
| PM (TTM) | 8.54% | ||
| GM | 35.32% |
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
SONY has more shares outstanding than it did 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 1.17. This is a bad value and indicates that SONY is not financially healthy and even has some risk of bankruptcy.
SONY's Altman-Z score of 1.17 is on the low side compared to the rest of the industry. SONY is outperformed by 78.46% of its industry peers.
The Debt to FCF ratio of SONY is 3.53, which is a good value as it means it would take SONY, 3.53 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.53, SONY is doing good in the industry, outperforming 64.62% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that SONY is not too dependend on debt financing.
The Debt to Equity ratio of SONY (0.49) is worse than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.71
WACC6.12%
2.3 Liquidity
A Current Ratio of 0.66 indicates that SONY may have some problems paying its short term obligations.
SONY has a worse Current ratio (0.66) than 98.46% of its industry peers.
A Quick Ratio of 0.49 indicates that SONY may have some problems paying its short term obligations.
SONY's Quick ratio of 0.49 is on the low side compared to the rest of the industry. SONY is outperformed by 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
SONY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.52%.
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 quite strong growth in Revenue. The Revenue has grown by 10.36% in the last year.
Measured over the past years, SONY shows a quite strong growth in Revenue. The Revenue has been growing by 8.48% on average per year.
EPS 1Y (TTM)-40.52%
EPS 3Y-11.28%
EPS 5Y-1.67%
EPS Q2Q%-65.56%
Revenue 1Y (TTM)10.36%
Revenue growth 3Y13.11%
Revenue growth 5Y8.48%
Sales Q2Q%2.72%
3.2 Future
Based on estimates for the next years, SONY will show a very negative growth in Earnings Per Share. The EPS will decrease by -32.51% on average per year.
Based on estimates for the next years, SONY will show a small growth in Revenue. The Revenue will grow by 2.32% on average per year.
EPS Next Y-73.07%
EPS Next 2Y-45.93%
EPS Next 3Y-32.51%
EPS Next 5YN/A
Revenue Next Year4.84%
Revenue Next 2Y3.16%
Revenue Next 3Y2.32%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.76 indicates a reasonable valuation of SONY.
Based on the Price/Earnings ratio, SONY is valued a bit cheaper than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, SONY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 18.96, the valuation of SONY can be described as rather expensive.
SONY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SONY is more expensive than 61.54% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SONY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SONY is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
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 | 19.45 | ||
| EV/EBITDA | 8.64 |
4.3 Compensation for Growth
The decent profitability rating of SONY may justify a higher PE ratio.
SONY's earnings are expected to decrease with -32.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-45.93%
EPS Next 3Y-32.51%
5. Dividend
5.1 Amount
SONY has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 3.05, SONY has a dividend in line with its industry peers.
With a Dividend Yield of 0.54, SONY pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of SONY decreases each year by -11.90%.
SONY has paid a dividend for at least 10 years, which is a reliable track record.
SONY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-11.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
SONY pays out 9.28% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of SONY has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP9.28%
EPS Next 2Y-45.93%
EPS Next 3Y-32.51%
24.78
-0.14 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners46.86%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap149.30B
Analysts82.42
Price Target24.03 (-3.03%)
Short Float %0.13%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend16.06
Dividend Growth(5Y)-11.9%
DP9.28%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.97%
Min EPS beat(2)13.73%
Max EPS beat(2)40.22%
EPS beat(4)4
Avg EPS beat(4)22.57%
Min EPS beat(4)13.73%
Max EPS beat(4)40.22%
EPS beat(8)7
Avg EPS beat(8)21.2%
EPS beat(12)10
Avg EPS beat(12)20.26%
EPS beat(16)13
Avg EPS beat(16)36.65%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-5.07%
Max Revenue beat(2)5.07%
Revenue beat(4)3
Avg Revenue beat(4)5.38%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)17.95%
Revenue beat(8)5
Avg Revenue beat(8)3.77%
Revenue beat(12)6
Avg Revenue beat(12)1.49%
Revenue beat(16)10
Avg Revenue beat(16)2.28%
PT rev (1m)5.96%
PT rev (3m)4.9%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-82.83%
EPS NY rev (1m)4.2%
EPS NY rev (3m)4.48%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 18.96 | ||
| P/S | 1.7 | ||
| P/FCF | 19.45 | ||
| P/OCF | 11.94 | ||
| P/B | 2.9 | ||
| P/tB | 6.54 | ||
| EV/EBITDA | 8.64 |
EPS(TTM)2.83
EY11.42%
EPS(NY)1.31
Fwd EY5.27%
FCF(TTM)1.27
FCFY5.14%
OCF(TTM)2.07
OCFY8.37%
SpS14.55
BVpS8.53
TBVpS3.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 14.57% | ||
| ROCE | 5.94% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 5.78% | ||
| OM | 10.84% | ||
| PM (TTM) | 8.54% | ||
| GM | 35.32% | ||
| FCFM | 8.76% |
ROA(3y)2.99%
ROA(5y)3.05%
ROE(3y)13.46%
ROE(5y)13.98%
ROIC(3y)3.81%
ROIC(5y)3.73%
ROICexc(3y)4.21%
ROICexc(5y)4.23%
ROICexgc(3y)4.96%
ROICexgc(5y)4.91%
ROCE(3y)5.28%
ROCE(5y)5.11%
ROICexcg growth 3Y2.19%
ROICexcg growth 5Y-4.13%
ROICexc growth 3Y-0.11%
ROICexc growth 5Y-5.04%
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%
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 64.38% | ||
| Cap/Sales | 5.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.55% | ||
| Profit Quality | 102.49% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.17 |
F-Score7
WACC6.12%
ROIC/WACC0.71
Cap/Depr(3y)56.13%
Cap/Depr(5y)68.69%
Cap/Sales(3y)4.94%
Cap/Sales(5y)5.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.52%
EPS 3Y-11.28%
EPS 5Y-1.67%
EPS Q2Q%-65.56%
EPS Next Y-73.07%
EPS Next 2Y-45.93%
EPS Next 3Y-32.51%
EPS Next 5YN/A
Revenue 1Y (TTM)10.36%
Revenue growth 3Y13.11%
Revenue growth 5Y8.48%
Sales Q2Q%2.72%
Revenue Next Year4.84%
Revenue Next 2Y3.16%
Revenue Next 3Y2.32%
Revenue Next 5YN/A
EBIT growth 1Y34.01%
EBIT growth 3Y6.84%
EBIT growth 5Y7.16%
EBIT Next Year-99.81%
EBIT Next 3Y-87.14%
EBIT Next 5YN/A
FCF growth 1Y1130.46%
FCF growth 3Y4.2%
FCF growth 5Y-4.48%
OCF growth 1Y251.4%
OCF growth 3Y6.39%
OCF growth 5Y1.82%