ENXTLS:SON

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sonae, SGPS, S.A. engages in retail, real estate, financial services, technology, and telecommunication businesses.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.7%

SON

1.9%

PT Consumer Retailing

1.6%

PT Market


1 Year Return

-19.4%

SON

-0.2%

PT Consumer Retailing

-1.8%

PT Market

Return vs Industry: SON underperformed the Portuguese Consumer Retailing industry which returned -0.2% over the past year.

Return vs Market: SON underperformed the Portuguese Market which returned -1.8% over the past year.


Shareholder returns

SONIndustryMarket
7 Day2.7%1.9%1.6%
30 Day-2.8%0.5%3.5%
90 Day-5.4%1.6%-8.0%
1 Year-13.3%-19.4%3.1%-0.2%1.5%-1.8%
3 Year-11.0%-24.1%0.7%-9.1%4.8%-6.3%
5 Year-22.8%-39.1%5.0%-11.0%-2.4%8.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SON (€0.67) is trading above our estimate of fair value (€0.61)

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


Price To Earnings Ratio

PE vs Industry: SON is good value based on its PE Ratio (8.6x) compared to the Consumer Retailing industry average (20.1x).

PE vs Market: SON is good value based on its PE Ratio (8.6x) compared to the Portuguese market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: SON is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: SON is good value based on its PB Ratio (0.6x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

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

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SON's forecast earnings growth (1.6% per year) is below the savings rate (2.1%).

Earnings vs Market: SON's earnings (1.6% per year) are forecast to grow slower than the Portuguese market (14.2% per year).

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

Revenue vs Market: SON's revenue (2.1% per year) is forecast to grow slower than the Portuguese market (4.6% per year).

High Growth Revenue: SON's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SON's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has Sonae SGPS performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SON has high quality earnings.

Growing Profit Margin: SON's current net profit margins (2.8%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: SON's earnings have grown by 0.8% per year over the past 5 years.

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

Earnings vs Industry: SON had negative earnings growth (-22.8%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-1.1%).


Return on Equity

High ROE: SON's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Sonae SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: SON's short term assets (€1.7B) do not cover its short term liabilities (€2.0B).

Long Term Liabilities: SON's short term assets (€1.7B) do not cover its long term liabilities (€3.4B).


Debt to Equity History and Analysis

Debt Level: SON's debt to equity ratio (73.9%) is considered high.

Reducing Debt: SON's debt to equity ratio has reduced from 109% to 73.9% over the past 5 years.

Debt Coverage: SON's debt is well covered by operating cash flow (32.3%).

Interest Coverage: SON's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

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

6.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SON's dividend (6.9%) is higher than the bottom 25% of dividend payers in the Portuguese market (2.93%).

High Dividend: SON's dividend (6.9%) is low compared to the top 25% of dividend payers in the Portuguese market (7.25%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59%), SON's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SON's dividends in 3 years are forecast to be covered by earnings (79.9% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Maria Cláudia de Azevedo (49yo)

1.42yrs

Tenure

€869,987

Compensation

Ms. Maria Cláudia Teixeira de Azevedo serves as the Chief Executive Officer of Software & Technology and Onine & Media at Sonaecom, S.G.P.S., S.A. Ms. de Azevedo has been the Chief Executive Officer of Son ...


CEO Compensation Analysis

Compensation vs Market: Maria Cláudia's total compensation ($USD967.19K) is about average for companies of similar size in the Portuguese market ($USD969.74K).

Compensation vs Earnings: Insufficient data to compare Maria Cláudia's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Maria Cláudia de Azevedo
CEO & Executive Director1.42yrs€869.99k0.039% 504.4k
João Pedro Magalhaes Da Silva Dolores
CFO & Executive Director1.08yrs€453.12k0.00055% 7.2k
Patrícia Pinto
Head of Investor Relationsno datano datano data
Luzia Leonor Gomes e Ferreira
Head of General Counsel & Corporate Governanceno datano datano data
Catarina Fernandes
Head of Communicationno datano datano data
José Côrte-Real
Head of Human Resourcesno datano datano data
David Pedro Parente Ferreira Alves
Senior Executive and Head of Tax Managementno datano datano data
Nuno Gama
Head of Innovation & Future Techno datano datano data
João Amaral
Chief Development Officer1.17yrsno datano data
Luis Miguel Mesquita Moutinho
Sonae MC CEOno datano datano data

1.2yrs

Average Tenure

Experienced Management: SON's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Maria Cláudia de Azevedo
CEO & Executive Director1.42yrs€869.99k0.039% 504.4k
João Pedro Magalhaes Da Silva Dolores
CFO & Executive Director1.08yrs€453.12k0.00055% 7.2k
Luis Miguel Mesquita Moutinho
Sonae MC CEOno datano datano data
José Manuel Tromdade Adelino
Lead Non-Executive Director5.08yrs€69.77kno data
Ângelo Gabriel dos Santos Paupério
Non-Executive Director20.42yrs€466.92k0.17% 2.2m
Duarte Paulo de Azevedo
Non-Executive Chairman5.08yrs€548.02k0.056% 732.9k
Margaret Trainer
Senior Independent Non-Executive Director1.08yrs€59.23kno data
Marcelo de Lima
Independent Non-Executive Director5.17yrs€52.27kno data
José Manuel Fortunato
Directorno datano datano data
Maria José Martins Lourenço Fonseca
Chair of Statutory Audit Board1.08yrsno datano data

3.1yrs

Average Tenure

59yo

Average Age

Experienced Board: SON's board of directors are considered experienced (3.1 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.


Top Shareholders

Company Information

Sonae, SGPS, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sonae, SGPS, S.A.
  • Ticker: SON
  • Exchange: ENXTLS
  • Founded: 1959
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: €1.307b
  • Shares outstanding: 1.88b
  • Website: https://www.sonae.pt

Number of Employees


Location

  • Sonae, SGPS, S.A.
  • Lugar do Espido
  • Via Norte
  • Maia
  • Norte
  • 4471-909
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YSONDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SONENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURJan 1992
SOSS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
0ML0LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
SONUBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

Sonae, SGPS, S.A. engages in retail, real estate, financial services, technology, and telecommunication 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/restaurants under the Bom Bocado and Bagga brands; 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. It also offers sports clothing under Deeply brand name; clothing, footwear, and accessories under the MO brands; baby and children clothing, footwear, and accessories, as well as childcare products under the Zippy and Losan brands; and jeans, clothing, and accessories under the Salsa brand. In addition, the company sells consumer electronics and entertainment products under the Worten brand; and mobile telecommunications products under the Worten Mobile brand, as well as develops real estate properties. Further, it engages in the investment management activities; the provision of financial services, including money transfer, store credit, and insurance brokerage services, as well as various cards; and operates sports retail stores under JD, Sprinter, and Size? brand names. Further, it owns, manages, and leases shopping centers; and provides telecommunication services to residential, personal, corporate, and wholesale markets. The company operates in Portugal, Spain, France, the United Kingdom, Germany, Italy, Romania, Brazil, Mexico, the Netherlands, and internationally. Sonae, SGPS, S.A. was founded in 1959 and is headquartered in Maia, Portugal. Sonae, SGPS, S.A. is a subsidiary of Sonae, SGPS, S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 20:56
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.