WBAG:SONO

Stock Analysis Report

Executive Summary

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Sonos's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SONO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

SONO

4.5%

AT Consumer Durables

2.7%

AT Market


1 Year Return

-13.3%

SONO

-29.2%

AT Consumer Durables

-30.4%

AT Market

Return vs Industry: SONO exceeded the Austrian Consumer Durables industry which returned -25.8% over the past year.

Return vs Market: SONO exceeded the Austrian Market which returned -28.3% over the past year.


Shareholder returns

SONOIndustryMarket
7 Day7.9%4.5%2.7%
30 Day-27.3%-34.9%-28.0%
90 Day-41.0%-35.0%-34.1%
1 Year-13.3%-13.3%-24.1%-29.2%-28.0%-30.4%
3 Yearn/a-18.0%-29.6%-16.1%-23.6%
5 Yearn/a12.2%-10.8%1.0%-13.2%

Price Volatility Vs. Market

How volatile is Sonos's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sonos undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SONO (€7.93) is trading below our estimate of fair value (€30.87)

Significantly Below Fair Value: SONO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SONO is poor value based on its PE Ratio (209.7x) compared to the Consumer Durables industry average (8.5x).

PE vs Market: SONO is poor value based on its PE Ratio (209.7x) compared to the Austrian market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: SONO is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: SONO is overvalued based on its PB Ratio (2.6x) compared to the XE Consumer Durables industry average (1x).


Next Steps

Future Growth

How is Sonos forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

56.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SONO's forecast earnings growth (56.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: SONO's earnings (56.8% per year) are forecast to grow faster than the Austrian market (11.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SONO's revenue (7.8% per year) is forecast to grow faster than the Austrian market (2% per year).

High Growth Revenue: SONO's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SONO's Return on Equity is forecast to be high in 3 years time (32.5%)


Next Steps

Past Performance

How has Sonos performed over the past 5 years?

87.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SONO has high quality earnings.

Growing Profit Margin: SONO's current net profit margins (0.3%) are lower than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: SONO has become profitable over the past 5 years, growing earnings by 87% per year.

Accelerating Growth: SONO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SONO had negative earnings growth (-54%) over the past year, making it difficult to compare to the Consumer Durables industry average (-1.9%).


Return on Equity

High ROE: SONO's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is Sonos's financial position?


Financial Position Analysis

Short Term Liabilities: SONO's short term assets ($688.6M) exceed its short term liabilities ($375.1M).

Long Term Liabilities: SONO's short term assets ($688.6M) exceed its long term liabilities ($131.5M).


Debt to Equity History and Analysis

Debt Level: SONO's debt to equity ratio (8.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SONO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: SONO has a high level of physical assets or inventory.

Debt Coverage by Assets: SONO's debt is covered by short term assets (assets are 21.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SONO is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: SONO is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Sonos's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SONO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SONO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SONO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SONO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SONO's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Patrick Spence (44yo)

3.17s

Tenure

US$11,568,706

Compensation

Mr. Patrick Spence has been Chief Executive Officer and as a member of board of directors at Sonos, Inc. since January 2017, and has been its President since July 2016. He served as Managing Director of G ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD11.57M) is above average for companies of similar size in the Austrian market ($USD1.37M).

Compensation vs Earnings: Patrick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Spence
CEO, President & Director3.17yrsUS$11.57m0.065% $552.5k
Brittany Bagley
Chief Financial Officer0.92yrUS$8.02mno data
Edward Lazarus
Chief Legal Officer & Corporate Secretary1.17yrsUS$2.54m0.018% $151.3k
Matthew Siegel
Chief Commercial Officer2.5yrsUS$3.48m0.040% $338.9k
Nicholas Millington
Chief Product Officer3.08yrsUS$3.53m0.082% $701.0k
Thomas Cullen
Co-Founder and VP of Sales & Marketingno datano datano data
Michael Groeninger
Vice President of Corporate Finance5yrsno datano data
Anna Fraser
Chief People Officer3.17yrsno data0.027% $233.7k
Ingvar Meijers
Managing Director of Sales and Operations for EMEAno datano datano data
Bob Werner
Managing Director of Sales for AMPACno datano datano data

3.1yrs

Average Tenure

43yo

Average Age

Experienced Management: SONO's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Spence
CEO, President & Director3.17yrsUS$11.57m0.065% $552.5k
Robert Bach
Independent Director8.58yrsUS$300.64k0.21% $1.8m
Julius Genachowski
Independent Director6.5yrsUS$316.91k0.036% $308.6k
Michelangelo A. Volpi
Independent Chairperson9.33yrsno datano data
Thomas Conrad
Independent Director3yrsUS$272.48k0.018% $153.7k
John Maeda
Independent Director7.75yrsUS$300.64k0.081% $693.3k
Deirdre Findlay
Director0.083yrno datano data
Joanna Coles
Director0.083yrno datano data
Karen Boone
Independent Director2.75yrsUS$279.96k0.018% $153.7k

3.2yrs

Average Tenure

52.5yo

Average Age

Experienced Board: SONO's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39.6%.


Top Shareholders

Company Information

Sonos, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sonos, Inc.
  • Ticker: SONO
  • Exchange: WBAG
  • Founded: 2002
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: US$944.916m
  • Listing Market Cap: US$852.220m
  • Shares outstanding: 110.00m
  • Website: https://www.sonos.com

Number of Employees


Location

  • Sonos, Inc.
  • 614 Chapala Street
  • Santa Barbara
  • California
  • 93103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SONONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2018
8SODB (Deutsche Boerse AG)YesCommon StockDEEURAug 2018
0ZFNLSE (London Stock Exchange)YesCommon StockGBUSDAug 2018
SONOWBAG (Wiener Boerse AG)YesCommon StockATEURAug 2018

Biography

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides wireless speakers, home theater speakers, components, and accessories. It offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its Website sonos.com. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was founded in 2002 and is headquartered in Santa Barbara, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 00:05
End of Day Share Price2020/03/27 00:00
Earnings2019/12/28
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.