Sonae SGPS (BATS-CHIXE:SONU) - Share price, News & Analysis

SONU fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	4/6
Financial Health	4/6
Dividends	6/6

SONU Stock Overview

Sonae, SGPS, S.A. engages in retail, financial services, technology, shopping center, and telecommunications businesses.

Rewards

PE ratio (8.5x) is below the UK market (16.3x)

Earnings grew by 245.6% over the past year

Pays a high and reliable dividend of 5%

Risk Analysis

Earnings are forecast to decline by an average of 7.4% per year for the next 3 years

Shares are highly illiquid

Sonae SGPS Competitors

Carrefour

ENXTPA:CA

€15.1b

Jerónimo Martins SGPS

ENXTLS:JMT

€12.4b

Price History & Performance

Summary of all time highs, changes and price drops for Sonae SGPS
Historical stock prices
Current Share Price	€1.00
52 Week High	€1.05
52 Week Low	€0.80
Beta	1.34
1 Month Change	6.50%
3 Month Change	-2.63%
1 Year Change	25.24%
3 Year Change	0.91%
5 Year Change	3.41%
Change since IPO	148.14%

Shareholder Returns

	SONU	GB Consumer Retailing	GB Market
7D	-2.8%	-2.3%	-0.6%
1Y	25.2%	-15.1%	-0.8%

Return vs Industry: SONU exceeded the UK Consumer Retailing industry which returned -16.5% over the past year.

Return vs Market: SONU exceeded the UK Market which returned -1.1% over the past year.

Price Volatility

Is SONU's price volatile compared to industry and market?
SONU volatility
SONU Average Weekly Movement	n/a
Consumer Retailing Industry Average Movement	6.3%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.7%
10% least volatile stocks in GB Market	3.0%

Stable Share Price: Insufficient data to determine SONU's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine SONU's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1959	41,627	Maria Claudia de Azevedo	https://www.sonae.pt

Sonae, SGPS, S.A. engages in retail, financial services, technology, shopping center, and telecommunications businesses. The company operates hypermarkets under the Continente brand; convenience supermarkets under the Continente Modelo and Continente Bom Dia brands; franchised supermarkets under the Meu Super brand; cafeteria under the Bagga brand; healthy food supermarkets and restaurants under the Go Natural brand; book shops and stationery under the Make Notes and Note! brands; health, well-being, and eye care centers under the Well´s brand; and dental and aesthetic medicine clinics under the Dr. Well’s brand, as well as provides dog and cat products and services under the ZU brand.

Sonae SGPS Fundamentals Summary

How do Sonae SGPS's earnings and revenue compare to its market cap?
SONU fundamental statistics
Market Cap	€1.96b
Earnings (TTM)	€230.34m
Revenue (TTM)	€7.18b

8.5x

P/E Ratio

0.3x

P/S Ratio

Is SONU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SONU income statement (TTM)
Revenue	€7.18b
Cost of Revenue	€5.45b
Gross Profit	€1.74b
Other Expenses	€1.51b
Earnings	€230.34m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 18, 2022

Earnings per share (EPS)	0.12
Gross Margin	24.18%
Net Profit Margin	3.21%
Debt/Equity Ratio	45.0%

How did SONU perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

42%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

8.49x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: SONU (€1) is trading above our estimate of fair value (€0.51)

Significantly Below Fair Value: SONU is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: SONU is good value based on its PE Ratio (8.5x) compared to the UK Consumer Retailing industry average (17.8x).

PE vs Market: SONU is good value based on its PE Ratio (8.5x) compared to the UK market (16.3x).

Price to Earnings Growth Ratio

PEG Ratio: SONU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: SONU is good value based on its PB Ratio (0.8x) compared to the GB Consumer Retailing industry average (1.2x).

Future Growth

How is Sonae SGPS forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-7.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SONU's earnings are forecast to decline over the next 3 years (-7.4% per year).

Earnings vs Market: SONU's earnings are forecast to decline over the next 3 years (-7.4% per year).

High Growth Earnings: SONU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SONU's revenue (1.7% per year) is forecast to grow slower than the UK market (4.8% per year).

High Growth Revenue: SONU's revenue (1.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SONU's Return on Equity is forecast to be low in 3 years time (9.6%).

Past Performance

How has Sonae SGPS performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-7.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SONU has high quality earnings.

Growing Profit Margin: SONU's current net profit margins (3.2%) are higher than last year (1%).

Past Earnings Growth Analysis

Earnings Trend: SONU's earnings have declined by 7.5% per year over the past 5 years.

Accelerating Growth: SONU's earnings growth over the past year (245.6%) exceeds its 5-year average (-7.5% per year).

Earnings vs Industry: SONU earnings growth over the past year (245.6%) exceeded the Consumer Retailing industry 48.4%.

Return on Equity

High ROE: SONU's Return on Equity (8.8%) is considered low.

Financial Health

How is Sonae SGPS's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SONU's short term assets (€1.9B) do not cover its short term liabilities (€2.4B).

Long Term Liabilities: SONU's short term assets (€1.9B) do not cover its long term liabilities (€2.8B).

Debt to Equity History and Analysis

Debt Level: SONU's net debt to equity ratio (18.8%) is considered satisfactory.

Reducing Debt: SONU's debt to equity ratio has reduced from 76.1% to 45% over the past 5 years.

Debt Coverage: SONU's debt is well covered by operating cash flow (44%).

Interest Coverage: SONU's interest payments on its debt are well covered by EBIT (3.3x coverage).

Balance Sheet

Dividend

What is Sonae SGPS current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SONU's dividend (5%) is higher than the bottom 25% of dividend payers in the UK market (1.75%).

High Dividend: SONU's dividend (5%) is in the top 25% of dividend payers in the UK market (4.65%)

Stability and Growth of Payments

Stable Dividend: SONU's dividends per share have been stable in the past 10 years.

Growing Dividend: SONU's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.3%), SONU's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (25.6%), SONU's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Consumer Retailing industry.

Management

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

7.0yrs

Average board tenure

CEO

Maria Claudia de Azevedo (51 yo)

3yrs

Tenure

€1,239,200

Compensation

Ms. Maria Claudia Teixeira de Azevedo serves as the Chief Executive Officer of Software & Technology and Onine & Media at Sonaecom, S.G.P.S., S.A. She serves as Director at Sonae Indústria, S.G.P.S., S.A....

CEO Compensation Analysis

Compensation vs Market: Maria Claudia's total compensation ($USD1.31M) is about average for companies of similar size in the UK market ($USD1.85M).

Compensation vs Earnings: Maria Claudia's compensation has increased by more than 20% in the past year.

Board Members

Experienced Board: SONU's board of directors are considered experienced (7 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/04/29 00:00
End of Day Share Price	2022/04/26 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31