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SONO

Sonos NasdaqGS:SONO Stock Report

Last Price

US$14.01

Market Cap

US$1.8b

7D

-2.4%

1Y

-56.7%

Updated

29 Sep, 2022

Data

Company Financials +
SONO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance2/6
Financial Health6/6
Dividends0/6

SONO Stock Overview

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Sonos Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sonos
Historical stock prices
Current Share PriceUS$14.01
52 Week HighUS$35.46
52 Week LowUS$13.69
Beta1.99
1 Month Change-7.77%
3 Month Change-21.82%
1 Year Change-56.71%
3 Year Change6.95%
5 Year Changen/a
Change since IPO-29.63%

Recent News & Updates

Sep 26
Sonos (NASDAQ:SONO) Might Have The Makings Of A Multi-Bagger

Sonos (NASDAQ:SONO) Might Have The Makings Of A Multi-Bagger

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...

Sep 05
Why Sonos, Inc. (NASDAQ:SONO) Could Be Worth Watching

Why Sonos, Inc. (NASDAQ:SONO) Could Be Worth Watching

Sonos, Inc. ( NASDAQ:SONO ), is not the largest company out there, but it saw significant share price movement during...

Shareholder Returns

SONOUS Consumer DurablesUS Market
7D-2.4%-2.1%-3.1%
1Y-56.7%-32.6%-21.5%

Return vs Industry: SONO underperformed the US Consumer Durables industry which returned -32.7% over the past year.

Return vs Market: SONO underperformed the US Market which returned -20.3% over the past year.

Price Volatility

Is SONO's price volatile compared to industry and market?
SONO volatility
SONO Average Weekly Movement8.9%
Consumer Durables Industry Average Movement6.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: SONO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: SONO's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20021,525Patrick Spencehttps://www.sonos.com

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides wireless speakers, home theater speakers, components, and accessories. It offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its Website sonos.com.

Sonos Fundamentals Summary

How do Sonos's earnings and revenue compare to its market cap?
SONO fundamental statistics
Market CapUS$1.78b
Earnings (TTM)US$122.71m
Revenue (TTM)US$1.80b

14.5x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SONO income statement (TTM)
RevenueUS$1.80b
Cost of RevenueUS$956.39m
Gross ProfitUS$839.20m
Other ExpensesUS$716.49m
EarningsUS$122.71m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.96
Gross Margin46.74%
Net Profit Margin6.83%
Debt/Equity Ratio0%

How did SONO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SONO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SONO?

Other financial metrics that can be useful for relative valuation.

SONO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA8x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does SONO's PE Ratio compare to its peers?

SONO PE Ratio vs Peers
The above table shows the PE ratio for SONO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.2x
GPRO GoPro
2.1x-19.1%US$777.1m
GRMN Garmin
15.5x11.0%US$15.8b
CVCO Cavco Industries
8x1.4%US$1.8b
TPH Tri Pointe Homes
3.1x-11.0%US$1.6b
SONO Sonos
14.5x25.7%US$1.8b

Price-To-Earnings vs Peers: SONO is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (7.2x).


Price to Earnings Ratio vs Industry

How does SONO's PE Ratio compare vs other companies in the US Consumer Durables Industry?

Price-To-Earnings vs Industry: SONO is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the US Consumer Durables industry average (6.3x)


Price to Earnings Ratio vs Fair Ratio

What is SONO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SONO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: SONO is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).


Share Price vs Fair Value

What is the Fair Price of SONO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SONO ($14.01) is trading below our estimate of fair value ($66.66)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Sonos forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


25.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SONO's forecast earnings growth (25.7% per year) is above the savings rate (1.9%).

Earnings vs Market: SONO's earnings (25.7% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: SONO's revenue (8.1% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: SONO's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SONO's Return on Equity is forecast to be high in 3 years time (29.6%)


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Past Performance

How has Sonos performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


67.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SONO has high quality earnings.

Growing Profit Margin: SONO's current net profit margins (6.8%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: SONO has become profitable over the past 5 years, growing earnings by 67.1% per year.

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

Earnings vs Industry: SONO had negative earnings growth (-33.6%) over the past year, making it difficult to compare to the Consumer Durables industry average (29%).


Return on Equity

High ROE: SONO's Return on Equity (19.1%) is considered low.


Discover strong past performing companies

Financial Health

How is Sonos's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SONO's short term assets ($923.5M) exceed its short term liabilities ($505.2M).

Long Term Liabilities: SONO's short term assets ($923.5M) exceed its long term liabilities ($95.3M).


Debt to Equity History and Analysis

Debt Level: SONO is debt free.

Reducing Debt: SONO has no debt compared to 5 years ago when its debt to equity ratio was 43.1%.

Debt Coverage: SONO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SONO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Sonos Dividend Yield vs Market
How does Sonos dividend yield compare to the market?
SegmentDividend Yield
Company (Sonos)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Consumer Durables)2.8%
Analyst forecast in 3 Years (Sonos)0%

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

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


Stability and Growth of Payments

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SONO has not reported any payouts.


Discover strong dividend paying companies

Management

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

5.6yrs

Average management tenure


CEO

Patrick Spence (47 yo)

5.67yrs

Tenure

US$5,482,555

Compensation

Mr. Patrick Spence has been Chief Executive Officer and Director at Sonos, Inc. since January 2017 and has been its President since July 2016. He served as Managing Director of Global Sales & Regional Mark...


CEO Compensation Analysis

Patrick Spence's Compensation vs Sonos Earnings
How has Patrick Spence's remuneration changed compared to Sonos's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 02 2022n/an/a

US$123m

Apr 02 2022n/an/a

US$141m

Jan 01 2022n/an/a

US$150m

Oct 02 2021US$5mUS$523k

US$159m

Jul 03 2021n/an/a

US$186m

Apr 03 2021n/an/a

US$111m

Jan 02 2021n/an/a

US$41m

Oct 03 2020US$3mUS$528k

-US$20m

Jun 27 2020n/an/a

-US$68m

Mar 28 2020n/an/a

-US$25m

Dec 28 2019n/an/a

US$4m

Sep 28 2019US$12mUS$550k

-US$5m

Jun 29 2019n/an/a

US$23m

Mar 30 2019n/an/a

US$10m

Dec 29 2018n/an/a

US$10m

Sep 29 2018US$2mUS$350k

-US$16m

Jun 30 2018n/an/a

-US$28m

Mar 31 2018n/an/a

-US$16m

Dec 30 2017n/an/a

-US$3m

Sep 30 2017US$418kUS$350k

-US$14m

Compensation vs Market: Patrick's total compensation ($USD5.48M) is about average for companies of similar size in the US market ($USD5.56M).

Compensation vs Earnings: Patrick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: SONO's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: SONO's board of directors are considered experienced (5.4 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

What is the ownership structure of SONO?
Owner TypeNumber of SharesOwnership Percentage
Private Companies113,7630.09%
Individual Insiders1,819,8551.4%
General Public4,949,7083.9%
Hedge Funds6,974,8975.5%
Institutions113,394,10189.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 72.83% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.69%
BlackRock, Inc.
21,238,690$297.6m-5.03%0.01%
10.78%
The Vanguard Group, Inc.
13,721,872$192.2m0.87%no data
5.48%
Coliseum Capital Management, LLC
6,974,897$97.7m28.39%7.94%
3.54%
American Century Investment Management Inc
4,509,283$63.2m-3.33%0.05%
3.38%
State Street Global Advisors, Inc.
4,303,510$60.3m3.04%no data
3.21%
Thrivent Investment Management, Inc.
4,078,674$57.1m7.08%0.15%
3.18%
Morgan Stanley, Investment Banking and Brokerage Investments
4,041,495$56.6m-17.68%0.01%
3.04%
Franklin Resources, Inc.
3,869,753$54.2m4.13%0.02%
2.57%
J.P. Morgan Asset Management, Inc.
3,267,415$45.8m0.27%0.01%
2.41%
Trigran Investments, Inc.
3,067,357$43.0m13.7%5.83%
2.38%
Scopia Capital Management LP
3,023,209$42.4m66.32%4.08%
1.79%
Antipodes Partners Ltd.
2,271,784$31.8m14.64%1.31%
1.77%
Geode Capital Management, LLC
2,246,878$31.5m-0.94%no data
1.46%
Invesco Ltd.
1,856,780$26.0m2.05%0.01%
1.31%
Hawk Ridge Management LLC
1,667,844$23.4m98.42%1.74%
1.15%
BNY Mellon Asset Management
1,464,431$20.5m10.92%no data
1.15%
Aristotle Capital Boston, LLC
1,457,330$20.4m21.4%0.63%
1.13%
Dimensional Fund Advisors LP
1,432,971$20.1m26.84%0.01%
1.11%
Norges Bank Investment Management
1,411,277$19.8m0%no data
1.04%
Northern Trust Global Investments
1,317,314$18.5m-0.75%no data
1.01%
Principal Global Investors, LLC
1,290,363$18.1m-23.37%0.01%
0.93%
Park Presidio Capital LLC
1,181,622$16.6m0%3.59%
0.79%
Deroy & Devereaux Private Investment Counsel, Inc.
1,011,282$14.2m2.51%1.22%
0.79%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
1,000,638$14.0m-12.51%no data
0.77%
Charles Schwab Investment Management, Inc.
975,797$13.7m2.07%no data

Company Information

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


Key Information

  • Name: Sonos, Inc.
  • Ticker: SONO
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Implied Market Cap: US$1.783b
  • Shares outstanding: 127.25m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/07/02
Annual Earnings2021/10/02


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.