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SON

Sonae SGPSENXTLS:SON Stock Report

Market Cap

€1.8b

7D

-0.6%

1Y

83.9%

Updated

23 Oct, 2021

Data

Company Financials +
SON fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends5/6

SON Overview

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

Sonae SGPS Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sonae SGPS
Historical stock prices
Current Share Price€0.96
52 Week High€0.48
52 Week Low€0.97
Beta1.36
1 Month Change3.68%
3 Month Change20.96%
1 Year Change83.88%
3 Year Change12.05%
5 Year Change31.41%
Change since IPO253.35%

Recent News & Updates

Jul 20
At €0.76, Is It Time To Put Sonae, SGPS, S.A. (ELI:SON) On Your Watch List?

At €0.76, Is It Time To Put Sonae, SGPS, S.A. (ELI:SON) On Your Watch List?

While Sonae, SGPS, S.A. ( ELI:SON ) might not be the most widely known stock at the moment, it received a lot of...

Jun 20
A Look At The Fair Value Of Sonae, SGPS, S.A. (ELI:SON)

A Look At The Fair Value Of Sonae, SGPS, S.A. (ELI:SON)

How far off is Sonae, SGPS, S.A. ( ELI:SON ) from its intrinsic value? Using the most recent financial data, we'll take...

Shareholder Returns

SONPT Consumer RetailingPT Market
7D-0.6%-0.1%3.7%
1Y83.9%11.3%31.7%

Return vs Industry: SON exceeded the Portuguese Consumer Retailing industry which returned 11.3% over the past year.

Return vs Market: SON exceeded the Portuguese Market which returned 31.7% over the past year.

Price Volatility

Is SON's price volatile compared to industry and market?
SON volatility
SON Beta1.36
Industry Beta0.50
Market Beta1

Stable Share Price: SON is less volatile than 75% of Portuguese stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SON's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195940,580Maria Claudia de Azevedohttps://www.sonae.pt

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.

Sonae SGPS Fundamentals Summary

How do Sonae SGPS's earnings and revenue compare to its market cap?
SON fundamental statistics
Market Cap€1.80b
Earnings (TTM)€210.19m
Revenue (TTM)€7.12b

8.6x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SON income statement (TTM)
Revenue€7.12b
Cost of Revenue€5.38b
Gross Profit€1.74b
Expenses€1.53b
Earnings€210.19m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 10, 2021

Earnings per share (EPS)0.11
Gross Margin24.45%
Net Profit Margin2.95%
Debt/Equity Ratio87.7%

How did SON perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

44%

Payout Ratio

Valuation

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

8.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SON (€0.96) is trading above our estimate of fair value (€0.69)

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 European Consumer Retailing industry average (18.3x).

PE vs Market: SON is good value based on its PE Ratio (8.6x) compared to the Portuguese market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: SON is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SON is good value based on its PB Ratio (0.9x) compared to the XE Consumer Retailing industry average (2.3x).


Future Growth

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

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SON's forecast earnings growth (14.4% per year) is above the savings rate (1.4%).

Earnings vs Market: SON's earnings (14.4% per year) are forecast to grow faster than the Portuguese market (12% per year).

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

Revenue vs Market: SON's revenue (2.6% per year) is forecast to grow slower than the Portuguese market (6.5% per year).

High Growth Revenue: SON's revenue (2.6% 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 (10.5%).


Past Performance

How has Sonae SGPS performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SON has high quality earnings.

Growing Profit Margin: SON's current net profit margins (3%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: SON's earnings have declined by 11.5% per year over the past 5 years.

Accelerating Growth: SON's earnings growth over the past year (430.7%) exceeds its 5-year average (-11.5% per year).

Earnings vs Industry: SON earnings growth over the past year (430.7%) exceeded the Consumer Retailing industry 39.4%.


Return on Equity

High ROE: SON's Return on Equity (8.9%) is considered low.


Financial Health

How is Sonae SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: SON's short term assets (€1.6B) do not cover its short term liabilities (€2.0B).

Long Term Liabilities: SON's short term assets (€1.6B) do not cover its long term liabilities (€3.5B).


Debt to Equity History and Analysis

Debt Level: SON's debt to equity ratio (87.7%) is considered high.

Reducing Debt: SON's debt to equity ratio has reduced from 88.9% to 87.7% over the past 5 years.

Debt Coverage: SON's debt is well covered by operating cash flow (24.9%).

Interest Coverage: SON's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

5.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SON's dividend (5.07%) is higher than the bottom 25% of dividend payers in the Portuguese market (1.6%).

High Dividend: SON's dividend (5.07%) is low compared to the top 25% of dividend payers in the Portuguese market (5.32%).


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 reasonably low payout ratio (44.1%), SON's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SON's dividends in 3 years are forecast to be covered by earnings (55.2% payout ratio).


Next Steps

Management

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

4.5yrs

Average board tenure


CEO

Maria Claudia de Azevedo (51 yo)

2.5yrs

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 ($USD1.44M) is about average for companies of similar size in the Portuguese market ($USD1.11M).

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


Board Members

Experienced Board: SON's board of directors are considered experienced (4.5 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 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: €1.799b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 18:34
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.