NasdaqGS:SONO

Stock Analysis Report

Executive Summary

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the United States and internationally.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

SONO

2.6%

US Consumer Durables

0.4%

US Market


1 Year Return

9.0%

SONO

45.1%

US Consumer Durables

6.9%

US Market

Return vs Industry: SONO underperformed the US Consumer Durables industry which returned 45.1% over the past year.

Return vs Market: SONO exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

SONOIndustryMarket
7 Day-0.8%2.6%0.4%
30 Day-11.2%4.2%-1.1%
90 Day25.1%8.0%-0.5%
1 Year9.0%9.0%47.1%45.1%9.3%6.9%
3 Yearn/a53.2%48.5%45.8%36.4%
5 Yearn/a41.9%33.0%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SONO ($13.24) is trading below our estimate of fair value ($30.31)

Significantly Undervalued: SONO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SONO is poor value based on its PE Ratio (56.2x) compared to the Consumer Durables industry average (13.8x).

PE vs Market: SONO is poor value based on its PE Ratio (56.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SONO is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SONO is overvalued based on its PB Ratio (4.9x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Sonos forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

42.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SONO's forecast earnings growth (42.9% per year) is above the savings rate (2.7%).

Earnings vs Market: SONO's earnings (42.9% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: SONO's revenue (7.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SONO's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SONO's Return on Equity is forecast to be high in 3 years time (21.9%)


Next Steps

Past Performance

How has Sonos performed over the past 5 years?

91.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SONO's earnings have grown significantly by 91.8% per year over the past 5 years.

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

Earnings vs Industry: SONO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (13.5%).


Return on Equity

High ROE: SONO's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: SONO's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SONO's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Sonos's financial position?


Financial Position Analysis

Short Term Liabilities: SONO's short term assets ($566.4M) exceeds its short term liabilities ($275.5M)

Long Term Liabilities: SONO's short term assets (566.4M) exceeds its long term liabilities (80.0M)


Debt to Equity History and Analysis

Debt Level: SONO's debt to equity ratio (13.8%) is considered satisfactory

Reducing Debt: Insufficient data to determine if SONO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SONO's debt is well covered by operating cash flow (315.7%).

Interest Coverage: SONO's interest payments on its debt are well covered by EBIT (245.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: SONO's debt is covered by short term assets (assets are 14.223620x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SONO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SONO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SONO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SONO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Patrick Spence (44yo)

2.8yrs

Tenure

US$2,353,753

Compensation

Mr. Patrick Spence has been Chief Executive Officer and as a member of board of directors at Sonos, Inc. since January 2017, and has been its President since July 2016. He served as Managing Director of G ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Patrick's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

2.7yrs

Average Tenure

43yo

Average Age

Experienced Management: SONO's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

6.1yrs

Average Tenure

52yo

Average Age

Experienced Board: SONO's board of directors are considered experienced (6.1 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.


Recent Insider Transactions

SellUS$5,446,27120 May 19
Index Ventures
EntityCompany
Shares517,992
Max PriceUS$10.51
SellUS$2,054,81208 Mar 19
Index Ventures
EntityCompany
Shares209,039
Max PriceUS$9.83
SellUS$75,58128 Feb 19
Index Ventures
EntityCompany
Shares6,871
Max PriceUS$11.00
SellUS$6,021,86027 Feb 19
Index Ventures
EntityCompany
Shares541,062
Max PriceUS$11.15
SellUS$8,829,11525 Feb 19
Index Ventures
EntityCompany
Shares793,476
Max PriceUS$11.15
SellUS$5,312,18521 Feb 19
Index Ventures
EntityCompany
Shares466,799
Max PriceUS$11.54

Ownership Breakdown


Management Team

  • Thomas Cullen

    Co-Founder and VP of Sales & Marketing

    • Tenure: 0yrs
  • Ingvar Meijers

    Managing Director of Sales and Operations for EMEA

    • Tenure: 0yrs
  • Matt Siegel (46yo)

    Chief Commercial Officer

    • Tenure: 2.1yrs
    • Compensation: US$918.79k
  • Patrick Spence (44yo)

    CEO, President & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.35m
  • Brittany Bagley (36yo)

    Chief Financial Officer

    • Tenure: 0.5yrs
    • Compensation: US$65.00k
  • Eddie Lazarus (60yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 0.8yrs
  • Nicholas Millington (42yo)

    Chief Product Officer

    • Tenure: 2.7yrs
    • Compensation: US$976.99k
  • Michael Groeninger

    Vice President of Corporate Finance

    • Tenure: 4.6yrs
  • Anna Fraser (37yo)

    Chief People Officer

    • Tenure: 2.8yrs
  • David Perri

    Chief Operations Officer

    • Tenure: 2.7yrs

Board Members

  • Robbie Bach (57yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: US$103.11k
  • Julius Genachowski (56yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$118.11k
  • Mike A. Volpi (53yo)

    Chairperson

    • Tenure: 8.9yrs
  • Tom Conrad (49yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$60.00k
  • John Maeda (52yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$103.11k
  • Patrick Spence (44yo)

    CEO, President & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.35m
  • Karen Boone (45yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$65.00k

Company Information

Sonos, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sonos, Inc.
  • Ticker: SONO
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: US$1.408b
  • Shares outstanding: 106.32m
  • Website: https://www.sonos.com

Number of Employees


Location

  • Sonos, Inc.
  • 614 Chapala Street
  • Santa Barbara
  • California
  • 93103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SONONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2018
8SODB (Deutsche Boerse AG)YesCommon StockDEEURAug 2018
0ZFNLSE (London Stock Exchange)YesCommon StockGBUSDAug 2018
SONOWBAG (Wiener Boerse AG)YesCommon StockATEURAug 2018

Biography

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the United States and internationally. It provides wireless speakers, home theater speak ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:50
End of Day Share Price2019/10/18 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


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.