TSE:6758

Stock Analysis Report

Executive Summary

Sony Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets worldwide.

Rewards

Trading at 0.4% below its fair value

Earnings are forecast to grow 6.71% per year

Earnings grew by 26.3% over the past year

Risk Analysis

No risks detected for 6758 from our risk checks.


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6758 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

6758

-1.4%

JP Consumer Durables

-2.2%

JP Market


1 Year Return

47.0%

6758

28.2%

JP Consumer Durables

9.3%

JP Market

Return vs Industry: 6758 exceeded the JP Consumer Durables industry which returned 29% over the past year.

Return vs Market: 6758 exceeded the JP Market which returned 13% over the past year.


Shareholder returns

6758IndustryMarket
7 Day-1.0%-1.4%-2.2%
30 Day5.6%2.7%-2.0%
90 Day23.6%15.5%1.9%
1 Year48.1%47.0%30.8%28.2%12.1%9.3%
3 Year134.0%129.8%38.7%31.3%20.9%12.8%
5 Year199.8%191.6%65.6%52.3%39.7%25.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6758 (¥7950) is trading below our estimate of fair value (¥7984.12)

Significantly Below Fair Value: 6758 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6758 is poor value based on its PE Ratio (11.8x) compared to the Consumer Durables industry average (10.1x).

PE vs Market: 6758 is good value based on its PE Ratio (11.8x) compared to the JP market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: 6758 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 6758 is overvalued based on its PB Ratio (2.5x) compared to the JP Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Sony forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6758's forecast earnings growth (6.7% per year) is above the savings rate (-0.09%).

Earnings vs Market: 6758's earnings (6.7% per year) are forecast to grow slower than the JP market (9.5% per year).

High Growth Earnings: 6758's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6758's revenue (3.9% per year) is forecast to grow faster than the JP market (3.7% per year).

High Growth Revenue: 6758's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6758's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has Sony performed over the past 5 years?

64.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6758 has high quality earnings.

Growing Profit Margin: 6758's current net profit margins (10%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: 6758 has become profitable over the past 5 years, growing earnings by 64.5% per year.

Accelerating Growth: 6758's earnings growth over the past year (26.3%) is below its 5-year average (64.5% per year).

Earnings vs Industry: 6758 earnings growth over the past year (26.3%) exceeded the Consumer Durables industry 12.8%.


Return on Equity

High ROE: 6758's Return on Equity (19.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sony's financial position?


Financial Position Analysis

Short Term Liabilities: 6758's short term assets (¥5,408.2B) do not cover its short term liabilities (¥6,315.4B).

Long Term Liabilities: 6758's short term assets (¥5,408.2B) do not cover its long term liabilities (¥11,025.0B).


Debt to Equity History and Analysis

Debt Level: 6758's debt to equity ratio (31.1%) is considered satisfactory.

Reducing Debt: 6758's debt to equity ratio has reduced from 35% to 31.1% over the past 5 years.

Debt Coverage: 6758's debt is well covered by operating cash flow (87.6%).

Interest Coverage: 6758 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 6758 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6758's debt is covered by short term assets (assets are 3.8x debt).


Next Steps

Dividend

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

0.51%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sony before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.5%marketbottom25%1.3%markettop25%3.0%industryaverage1.7%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: 6758's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 6758's dividend (0.5%) is low compared to the top 25% of dividend payers in the JP market (2.94%).


Stability and Growth of Payments

Stable Dividend: 6758 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 6758 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 6758 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6758's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

What is the CEO of Sony's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Kenichiro Yoshida (60yo)

1.8yrs

Tenure

JP¥397,000,000

Compensation

Mr. Kenichiro Yoshida has been Representative Corporate Executive Officer of Sony Corporation since April 2014 and its President and Chief Executive Officer since April 1, 2018. Mr. Yoshida served as the C ...


CEO Compensation Analysis

Compensation vs Market: Kenichiro's total compensation ($USD3.61M) is above average for companies of similar size in the JP market ($USD1.77M).

Compensation vs Earnings: Kenichiro's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

59yo

Average Age

Experienced Management: 6758's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.6yrs

Average Tenure

62yo

Average Age

Experienced Board: 6758's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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.


Management Team

  • Kaz Hirai (59yo)

    Senior Adviser

    • Tenure: 2.9yrs
    • Compensation: JP¥2.07b
  • Shoji Nemoto (63yo)

    Head of Disc Manufacturing Business

    • Tenure: 14.2yrs
  • Hiroki Totoki (55yo)

    Senior Executive VP

    • Tenure: 0.6yrs
    • Compensation: JP¥103.00m
  • Kenichiro Yoshida (60yo)

    CEO, President

    • Tenure: 1.8yrs
    • Compensation: JP¥397.00m
  • Shiro Kambe (58yo)

    Executive VP & Corporate Executive Officer

    • Tenure: 10yrs
    • Compensation: JP¥78.00m
  • Yasuhiro Ueda

    Head of Technology Policy and Relations

    • Tenure: 1.8yrs
  • J. Hill

    Head of Investor Relations

    • Kazushi Ambe (58yo)

      Executive VP & Corporate Executive Officer

      • Tenure: 5.2yrs
      • Compensation: JP¥72.00m
    • Toru Katsumoto (62yo)

      Senior EVP & Corporate Executive Officer

      • Compensation: JP¥80.00m
    • Natsuko Takei

      Senior General Manager of Legal & Compliance Department

      • Tenure: 1.8yrs

    Board Members

    • Lou Gerstner (77yo)

      Member of Advisory Board

      • John Roos (64yo)

        Outside Director

        • Tenure: 5.6yrs
      • Kaz Hirai (59yo)

        Senior Adviser

        • Tenure: 2.9yrs
        • Compensation: JP¥2.07b
      • Koichi Miyata (66yo)

        Outside Director

        • Tenure: 5.6yrs
      • Shuzo Sumi (72yo)

        Chairman of the Board

        • Tenure: 0.6yrs
      • Tim Schaaff (60yo)

        Non-Executive Director

        • Tenure: 6.6yrs
      • Hiroki Totoki (55yo)

        Senior Executive VP

        • Tenure: 0.6yrs
        • Compensation: JP¥103.00m
      • Kenichiro Yoshida (60yo)

        CEO, President

        • Tenure: 1.8yrs
        • Compensation: JP¥397.00m
      • Kazuo Matsunaga (67yo)

        Vice Chairman of the Board

        • Eriko Sakurai (59yo)

          Outside Director

          • Tenure: 5.6yrs

        Company Information

        Sony Corporation's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Sony Corporation
        • Ticker: 6758
        • Exchange: TSE
        • Founded: 1946
        • Industry: Consumer Electronics
        • Sector: Consumer Durables
        • Market Cap: JP¥9.533t
        • Shares outstanding: 1.23b
        • Website: https://www.sony.net

        Number of Employees


        Location

        • Sony Corporation
        • 1-7-1 Konan
        • Minato-ku
        • Tokyo
        • 108-0075
        • Japan

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        SNENYSE (New York Stock Exchange)SPONSORED ADRUSUSDSep 1970
        SONADB (Deutsche Boerse AG)SPONSORED ADRDEEURSep 1970
        SNE NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNSep 1970
        0L83LSE (London Stock Exchange)SPONSORED ADRGBUSDSep 1970
        SNEJ.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1975
        6758TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1975
        SONCSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1975
        SON1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975
        SON1WBAG (Wiener Boerse AG)YesCommon StockATEURJan 1975
        SNEBASE (Buenos Aires Stock Exchange)CEDEAR REPR 1/2 ADR(CNV TO 1 ORD NPV)ARARSJul 2007

        Biography

        Sony Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets worldwide. The company distributes software titles and add-on content through digital networks by Sony Interactive Entertainment; network services related to game, video, and music content; and home and portable game consoles, packaged software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications based on animation titles, and various services for music and visual products. In addition, the company offers live-action and animated motion pictures, as well as scripted and unscripted series, daytime serials, game shows, animated series, television movies, and miniseries and other television programs; operates a visual effects and animation unit; manages a studio facility; and operates television and digital networks. Further, it researches, develops, designs, produces, markets, distributes, sells, and services video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; display products, such as projectors and medical equipment; mobile phones, tablets, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, large-scale integration systems, and other semiconductors. Additionally, the company offers Internet broadband network services; creates and distributes content for various electronics product platforms, such as PCs and mobile phones; and provides life and non-life insurance, banking, and other services, as well as batteries, recording media, and storage media products. The company was formerly known as Tokyo Tsushin Kogyo Kabushiki Kaisha and changed its name to Sony Corporation in January 1958. Sony Corporation was founded in 1946 and is headquartered in Tokyo, Japan. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/28 14:50
        End of Day Share Price2020/01/27 00:00
        Earnings2019/09/30
        Annual Earnings2019/03/31


        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.