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 66 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SONY was profitable.
In the past year SONY had a positive cash flow from operations.
In the past 5 years SONY has always been profitable.
SONY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SONY has a Return On Assets (3.28%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 14.57%, SONY is doing good in the industry, outperforming 64.06% of the companies in the same industry.
SONY has a Return On Invested Capital of 4.32%. This is in the lower half of the industry: SONY underperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SONY is significantly below the industry average of 11.80%.
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
With a decent Profit Margin value of 8.54%, SONY is doing good in the industry, outperforming 68.75% of the companies in the same industry.
SONY's Profit Margin has declined in the last couple of years.
SONY has a Operating Margin (10.84%) which is comparable to the rest of the industry.
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 (35.31%) is better than 73.44% of its industry peers.
SONY's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for SONY has been reduced compared to 1 year ago.
Compared to 5 years ago, SONY has more shares outstanding
SONY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that SONY is in the distress zone and has some risk of bankruptcy.
SONY has a Altman-Z score of 1.10. This is in the lower half of the industry: SONY underperforms 79.69% of its industry peers.
SONY has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as SONY would need 3.53 years to pay back of all of its debts.
SONY has a Debt to FCF ratio of 3.53. This is in the better half of the industry: SONY outperforms 64.06% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that SONY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.49, SONY is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.76
WACC5.69%
2.3 Liquidity
SONY has a Current Ratio of 0.66. 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 (0.66) is worse than 98.44% of its industry peers.
SONY has a Quick Ratio of 0.66. 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 Quick ratio of SONY (0.49) is worse than 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for SONY have decreased strongly by -40.77% in the last year.
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.
SONY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.36%.
SONY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.48% yearly.
EPS 1Y (TTM)-40.77%
EPS 3Y-11.28%
EPS 5Y-1.67%
EPS Q2Q%-65.71%
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 -33.71% on average per year.
Based on estimates for the next years, SONY will show a small growth in Revenue. The Revenue will grow by 1.44% on average per year.
EPS Next Y-74.69%
EPS Next 2Y-47.59%
EPS Next 3Y-33.71%
EPS Next 5YN/A
Revenue Next Year2.42%
Revenue Next 2Y2%
Revenue Next 3Y1.44%
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
The Price/Earnings ratio is 7.79, which indicates a rather cheap valuation of SONY.
Compared to the rest of the industry, the Price/Earnings ratio of SONY indicates a rather cheap valuation: SONY is cheaper than 82.81% of the companies listed in the same industry.
SONY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
Based on the Price/Forward Earnings ratio of 17.86, the valuation of SONY can be described as rather expensive.
SONY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. SONY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 17.86 |
4.2 Price Multiples
SONY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SONY is cheaper than 68.75% of the companies in the same industry.
SONY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SONY is cheaper than 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.29 | ||
| EV/EBITDA | 7.48 |
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 -33.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-47.59%
EPS Next 3Y-33.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, SONY is not a good candidate for dividend investing.
SONY's Dividend Yield is comparable with the industry average which is at 2.94.
Compared to an average S&P500 Dividend Yield of 2.34, SONY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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.
As SONY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-11.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
9.28% of the earnings are spent on dividend by SONY. This is a low number and 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-47.59%
EPS Next 3Y-33.71%
SONY GROUP CORP - SP ADR
NYSE:SONY (12/20/2024, 8:04:01 PM)
After market: 21.1515 +0.13 (+0.63%)21.02
+0.36 (+1.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners46.25%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap126.48B
Analysts82
Price Target21.97 (4.52%)
Short Float %0.15%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)-4.09%
PT rev (3m)-81.44%
EPS NQ rev (1m)-82.79%
EPS NQ rev (3m)-82.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-79.96%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 17.86 | ||
| P/S | 1.51 | ||
| P/FCF | 17.29 | ||
| P/OCF | 10.61 | ||
| P/B | 2.58 | ||
| P/tB | 5.81 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)2.7
EY12.84%
EPS(NY)1.18
Fwd EY5.6%
FCF(TTM)1.22
FCFY5.79%
OCF(TTM)1.98
OCFY9.42%
SpS13.89
BVpS8.14
TBVpS3.62
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 | 1.1 |
F-Score7
WACC5.69%
ROIC/WACC0.76
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)-40.77%
EPS 3Y-11.28%
EPS 5Y-1.67%
EPS Q2Q%-65.71%
EPS Next Y-74.69%
EPS Next 2Y-47.59%
EPS Next 3Y-33.71%
EPS Next 5YN/A
Revenue 1Y (TTM)10.36%
Revenue growth 3Y13.11%
Revenue growth 5Y8.48%
Sales Q2Q%2.72%
Revenue Next Year2.42%
Revenue Next 2Y2%
Revenue Next 3Y1.44%
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%