SONY GROUP CORP - SP ADR (SONY) Stock Fundamental Analysis
NYSE:SONY - New York Stock Exchange, Inc. - US8356993076 - ADR - Currency: USD
Taking everything into account, SONY scores 4 out of 10 in our fundamental rating. SONY was compared to 64 industry peers in the Household Durables industry. SONY has a medium profitability rating, but doesn't score so well on its financial health evaluation. SONY is valued expensive and it does not seem to be growing.
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
SONY has a Return On Assets (3.15%) which is in line with its industry peers.
SONY has a better Return On Equity (13.84%) than 60.94% of its industry peers.
With a Return On Invested Capital value of 4.17%, SONY is not doing good in the industry: 62.50% 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 12.34%.
The last Return On Invested Capital (4.17%) for SONY is above the 3 year average (3.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 13.84% | ||
| ROIC | 4.17% |
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
With a decent Profit Margin value of 8.20%, SONY is doing good in the industry, outperforming 65.63% of the companies in the same industry.
SONY's Profit Margin has declined in the last couple of years.
SONY has a Operating Margin (10.42%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SONY has remained more or less at the same level.
The Gross Margin of SONY (37.02%) is better than 73.44% of its industry peers.
In the last couple of years the Gross Margin of SONY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | 8.2% | ||
| GM | 37.02% |
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
SONY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SONY has less shares outstanding
The number of shares outstanding for SONY has been increased compared to 5 years ago.
Compared to 1 year ago, SONY has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that SONY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.11, SONY is doing worse than 73.44% of the companies in the same industry.
The Debt to FCF ratio of SONY is 3.23, which is a good value as it means it would take SONY, 3.23 years of fcf income to pay off all of its debts.
SONY's Debt to FCF ratio of 3.23 is fine compared to the rest of the industry. SONY outperforms 67.19% of its industry peers.
SONY has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
SONY has a worse Debt to Equity ratio (0.50) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.69
WACC6.06%
2.3 Liquidity
A Current Ratio of 0.68 indicates that SONY may have some problems paying its short term obligations.
SONY has a Current ratio of 0.68. This is amonst the worse of the industry: SONY underperforms 96.88% of its industry peers.
A Quick Ratio of 0.56 indicates that SONY may have some problems paying its short term obligations.
SONY's Quick ratio of 0.56 is on the low side compared to the rest of the industry. SONY is outperformed by 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
SONY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.69%.
SONY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.67% yearly.
SONY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.75%.
The Revenue has been growing by 8.48% on average over the past years. This is quite good.
EPS 1Y (TTM)-74.69%
EPS 3Y-11.28%
EPS 5Y-1.67%
EPS Q2Q%-79.01%
Revenue 1Y (TTM)9.75%
Revenue growth 3Y13.11%
Revenue growth 5Y8.48%
Sales Q2Q%17.67%
3.2 Future
SONY is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -32.08% yearly.
The Revenue is expected to grow by 2.56% on average over the next years.
EPS Next Y-72.5%
EPS Next 2Y-45.76%
EPS Next 3Y-32.08%
EPS Next 5YN/A
Revenue Next Year6.82%
Revenue Next 2Y3.56%
Revenue Next 3Y2.56%
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 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.06, the valuation of SONY can be described as rather expensive.
SONY's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.79, SONY is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.21, SONY is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SONY indicates a slightly more expensive valuation: SONY is more expensive than 62.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SONY to the average of the S&P500 Index (21.38), we can say SONY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 18.21 |
4.2 Price Multiples
SONY's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SONY is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.9 | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
The decent profitability rating of SONY may justify a higher PE ratio.
A cheap valuation may be justified as SONY's earnings are expected to decrease with -32.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-45.76%
EPS Next 3Y-32.08%
5. Dividend
5.1 Amount
SONY has a yearly dividend return of 0.57%, which is pretty low.
Compared to an average industry Dividend Yield of 3.65, SONY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.47, SONY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of SONY decreases each year by -11.90%.
SONY has been paying a dividend for at least 10 years, so it has 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 10.17% 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.
DP10.17%
EPS Next 2Y-45.76%
EPS Next 3Y-32.08%
24.97
-0.15 (-0.6%)
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 Cap150.27B
Analysts81.82
Price Target29.46 (17.98%)
Short Float %0.23%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.11
Dividend Growth(5Y)-11.9%
DP10.17%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.67%
Min EPS beat(2)29.12%
Max EPS beat(2)40.22%
EPS beat(4)4
Avg EPS beat(4)25.91%
Min EPS beat(4)13.73%
Max EPS beat(4)40.22%
EPS beat(8)7
Avg EPS beat(8)23.24%
EPS beat(12)10
Avg EPS beat(12)19.28%
EPS beat(16)13
Avg EPS beat(16)26.27%
Revenue beat(2)1
Avg Revenue beat(2)5.34%
Min Revenue beat(2)-5.07%
Max Revenue beat(2)15.75%
Revenue beat(4)3
Avg Revenue beat(4)8.43%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)17.95%
Revenue beat(8)6
Avg Revenue beat(8)7.24%
Revenue beat(12)6
Avg Revenue beat(12)2.43%
Revenue beat(16)10
Avg Revenue beat(16)2.83%
PT rev (1m)7.27%
PT rev (3m)29.89%
EPS NQ rev (1m)8.96%
EPS NQ rev (3m)-26.9%
EPS NY rev (1m)0.5%
EPS NY rev (3m)7.7%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)1.6%
Revenue NY rev (3m)4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 18.21 | ||
| P/S | 1.56 | ||
| P/FCF | 15.9 | ||
| P/OCF | 10.43 | ||
| P/B | 2.63 | ||
| P/tB | 6.05 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)1.31
EY5.25%
EPS(NY)1.37
Fwd EY5.49%
FCF(TTM)1.57
FCFY6.29%
OCF(TTM)2.39
OCFY9.59%
SpS16.01
BVpS9.49
TBVpS4.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 13.84% | ||
| ROCE | 5.78% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.71% | ||
| ROICexgc | 5.84% | ||
| OM | 10.42% | ||
| PM (TTM) | 8.2% | ||
| GM | 37.02% | ||
| FCFM | 9.81% |
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 | 0.5 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 62.26% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.07% | ||
| Profit Quality | 119.61% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.11 |
F-Score7
WACC6.06%
ROIC/WACC0.69
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)-74.69%
EPS 3Y-11.28%
EPS 5Y-1.67%
EPS Q2Q%-79.01%
EPS Next Y-72.5%
EPS Next 2Y-45.76%
EPS Next 3Y-32.08%
EPS Next 5YN/A
Revenue 1Y (TTM)9.75%
Revenue growth 3Y13.11%
Revenue growth 5Y8.48%
Sales Q2Q%17.67%
Revenue Next Year6.82%
Revenue Next 2Y3.56%
Revenue Next 3Y2.56%
Revenue Next 5YN/A
EBIT growth 1Y29.69%
EBIT growth 3Y6.84%
EBIT growth 5Y7.16%
EBIT Next Year-99.8%
EBIT Next 3Y-87.22%
EBIT Next 5YN/A
FCF growth 1Y798.92%
FCF growth 3Y4.2%
FCF growth 5Y-4.48%
OCF growth 1Y501.38%
OCF growth 3Y6.39%
OCF growth 5Y1.82%