ENXTLS:SONC

Stock Analysis Report

Executive Summary

Sonae Capital, SGPS, SA primarily engages in the resort, hotel, fitness, energy, refrigeration, heating, ventilation, and air conditioning businesses in Portugal and internationally.

Rewards

Trading at 54.7% below its fair value

Earnings are forecast to grow 24.38% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 9.48% is not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

How has Sonae Capital SGPS's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

SONC

1.0%

PT Industrials

0.7%

PT Market


1 Year Return

-12.8%

SONC

18.0%

PT Industrials

13.5%

PT Market

Return vs Industry: SONC underperformed the Portuguese Industrials industry which returned 18% over the past year.

Return vs Market: SONC underperformed the Portuguese Market which returned 13.5% over the past year.


Shareholder returns

SONCIndustryMarket
7 Day-0.6%1.0%0.7%
30 Day-2.7%1.7%-1.0%
90 Day22.6%14.5%3.1%
1 Year-4.9%-12.8%22.2%18.0%18.3%13.5%
3 Year30.1%0.6%19.5%8.7%30.2%-9.0%
5 Year301.1%183.0%65.9%40.8%28.6%-49.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sonae Capital SGPS 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: SONC (€0.78) is trading below our estimate of fair value (€1.72)

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


Price To Earnings Ratio

PE vs Industry: SONC is poor value based on its PE Ratio (35.3x) compared to the Industrials industry average (19.1x).

PE vs Market: SONC is poor value based on its PE Ratio (35.3x) compared to the Portuguese market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: SONC is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SONC is good value based on its PB Ratio (0.8x) compared to the XE Industrials industry average (1x).


Next Steps

Future Growth

How is Sonae Capital SGPS forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SONC's forecast earnings growth (24.4% per year) is above the savings rate (0.4%).

Earnings vs Market: SONC's earnings (24.4% per year) are forecast to grow faster than the Portuguese market (7.1% per year).

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

Revenue vs Market: SONC's revenue (1.5% per year) is forecast to grow slower than the Portuguese market (2.7% per year).

High Growth Revenue: SONC's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SONC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sonae Capital SGPS performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SONC has a large one-off gain of €7.3M impacting its September 30 2019 financial results.

Growing Profit Margin: SONC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SONC has become profitable over the past 5 years, growing earnings by 5.2% per year.

Accelerating Growth: SONC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SONC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Industrials industry (-3.6%).


Return on Equity

High ROE: SONC's Return on Equity (2.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sonae Capital SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: SONC's short term assets (€194.7M) do not cover its short term liabilities (€217.0M).

Long Term Liabilities: SONC's short term assets (€194.7M) exceed its long term liabilities (€167.8M).


Debt to Equity History and Analysis

Debt Level: SONC's debt to equity ratio (57.8%) is considered high.

Reducing Debt: SONC's debt to equity ratio has reduced from 73.2% to 57.8% over the past 5 years.

Debt Coverage: SONC's debt is well covered by operating cash flow (34.4%).

Interest Coverage: SONC's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet

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

Debt Coverage by Assets: SONC's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

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

9.48%

Current Dividend Yield


Dividend Yield vs Market

company9.5%marketbottom25%2.5%markettop25%6.9%industryaverage3.1%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: SONC's dividend (9.48%) is higher than the bottom 25% of dividend payers in the Portuguese market (2.54%).

High Dividend: SONC's dividend (9.48%) is in the top 25% of dividend payers in the Portuguese market (6.95%)


Stability and Growth of Payments

Stable Dividend: SONC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SONC's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (334.2%), SONC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Miguel Moreira da Cruz Gil Mata (45yo)

1.4yrs

Tenure

€278,446

Compensation

Mr. Miguel Jorge Moreira da Cruz Gil Mata has been the Chief Executive Officer since July 17, 2018 at Sonae Capital, SGPS, SA and its Executive Director since April 07, 2016. 


CEO Compensation Analysis

Compensation vs Market: Miguel's total compensation ($USD309.73K) is below average for companies of similar size in the Portuguese market ($USD563.11K).

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


Board Age and Tenure

5.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: SONC's board of directors are considered experienced (5.8 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

  • Anabela de Matos

    Company Secretary

    • Tenure: 0yrs
  • Ivone Maria Pinho Da Silva (46yo)

    CFO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: €266.29k
  • Miguel Moreira da Cruz Gil Mata (45yo)

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: €278.45k
  • Pedro Bruno

    Executive Director

    • Tenure: 0.7yrs

Board Members

  • Francisco de La Fuente Sánchez (77yo)

    Independent Non-Executive Director

    • Tenure: 11.7yrs
    • Compensation: €30.63k
  • Álvaro Carmona E. Costa Portela (68yo)

    Independent Non-Executive Vice-Chairman

    • Tenure: 0yrs
    • Compensation: €76.97k
  • Duarte Paulo de Azevedo (54yo)

    Chairman

    • Tenure: 4.8yrs
    • Compensation: €142.30k
  • Maria Cláudia de Azevedo (49yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: €289.93k
  • Paulo José Jubilado de Pinho (56yo)

    Independent Non Executive Director

    • Tenure: 11.7yrs
    • Compensation: €30.63k
  • Ivone Maria Pinho Da Silva (46yo)

    CFO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: €266.29k
  • António Monteiro Magalhães

    Chairman of Supervisory Board

    • Tenure: 0yrs
  • Miguel Moreira da Cruz Gil Mata (45yo)

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: €278.45k
  • Pedro Bruno

    Executive Director

    • Tenure: 0.7yrs
  • Isabel Vaz (53yo)

    Director

    • Tenure: 0.7yrs

Company Information

Sonae Capital, SGPS, SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sonae Capital, SGPS, SA
  • Ticker: SONC
  • Exchange: ENXTLS
  • Founded: 2007
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: €192.383m
  • Shares outstanding: 246.33m
  • Website: https://www.sonaecapital.pt

Number of Employees


Location

  • Sonae Capital, SGPS, SA
  • Lugar do Espido
  • Via Norte
  • Maia
  • Norte
  • 4471-907
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SONCENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURJan 2008
6SCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2008
0IEFLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 2008
SONCuBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 2008

Biography

Sonae Capital, SGPS, SA primarily engages in the resort, hotel, fitness, energy, refrigeration, heating, ventilation, and air conditioning businesses in Portugal and internationally. It operates through Tr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 21:10
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.