NasdaqGS:SONO

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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

Stable Share Price: SONO is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: SONO's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

4.4%

SONO

-5.7%

US Consumer Durables

0.7%

US Market


1 Year Return

66.6%

SONO

16.5%

US Consumer Durables

22.2%

US Market

Return vs Industry: SONO exceeded the US Consumer Durables industry which returned 20.3% over the past year.

Return vs Market: SONO exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

SONOIndustryMarket
7 Day4.4%-5.7%0.7%
30 Day51.1%1.9%11.8%
90 Day66.1%4.7%8.6%
1 Year66.6%66.6%17.9%16.5%25.0%22.2%
3 Yearn/a12.4%8.2%49.4%39.5%
5 Yearn/a48.7%38.9%100.2%78.1%

Long-Term 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?

14.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SONO ($22.29) is trading below our estimate of fair value ($25.98)

Significantly Below Fair Value: SONO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SONO is unprofitable, so we can't compare its PE Ratio to the US Consumer Durables industry average.

PE vs Market: SONO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SONO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SONO is overvalued based on its PB Ratio (8.4x) compared to the US Consumer Durables industry average (1.5x).


Next Steps

Future Growth

How is Sonos forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

35.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SONO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: SONO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SONO's is expected to become profitable in the next 3 years.

Revenue vs Market: SONO's revenue (6.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SONO's revenue (6.8% 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 (36.8%)


Next Steps

Past Performance

How has Sonos performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SONO is currently unprofitable.

Growing Profit Margin: SONO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SONO is unprofitable, but has reduced losses over the past 5 years at a rate of 26.2% per year.

Accelerating Growth: Unable to compare SONO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SONO is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (26%).


Return on Equity

High ROE: SONO has a negative Return on Equity (-6.75%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sonos's financial position?


Financial Position Analysis

Short Term Liabilities: SONO's short term assets ($660.4M) exceed its short term liabilities ($393.0M).

Long Term Liabilities: SONO's short term assets ($660.4M) exceed its long term liabilities ($125.2M).


Debt to Equity History and Analysis

Debt Level: SONO's debt to equity ratio (8.4%) is considered satisfactory.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SONO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SONO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 57% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


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

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

3.3yrs

Average management tenure


CEO

Patrick Spence (45 yo)

3.92yrs

Tenure

US$11,568,706

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: Patrick's total compensation ($USD11.57M) is above average for companies of similar size in the US market ($USD5.21M).

Compensation vs Earnings: Patrick's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Spence
CEO, President & Director3.92yrsUS$11.57m0.11%
$ 2.9m
Brittany Bagley
Chief Financial Officer1.67yrsUS$8.02m0.10%
$ 2.6m
Edward Lazarus
Chief Legal Officer & Corporate Secretary1.92yrsUS$2.54m0.038%
$ 949.6k
Matthew Siegel
Chief Commercial Officer3.25yrsUS$3.48m0.075%
$ 1.9m
Nicholas Millington
Chief Innovation Officer3.83yrsUS$3.53m0.074%
$ 1.9m
Thomas Cullen
Co-Founder and VP of Sales & Marketingno datano datano data
Maxime Bouvat-Merlin
Senior Vice President of Hardware & Operations0.92yrno datano data
Michael Groeninger
Vice President of Corporate Finance5.75yrsno datano data
Anna Fraser
Chief People Officer3.92yrsno data0.038%
$ 944.0k
Ingvar Meijers
Managing Director of Sales and Operations for EMEAno datano datano data
Bob Werner
Managing Director of Sales for AMPACno datano datano data
Alaina Kwasizur
Chief Diversity & Inclusion Officer1.92yrsno datano data

3.3yrs

Average Tenure

44yo

Average Age

Experienced Management: SONO's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Spence
CEO, President & Director3.92yrsUS$11.57m0.11%
$ 2.9m
Robert Bach
Independent Director9.33yrsUS$300.64k0.20%
$ 5.1m
Julius Genachowski
Independent Director7.25yrsUS$316.91k0.035%
$ 887.9k
Michelangelo A. Volpi
Independent Chairperson10.08yrsno datano data
Thomas Conrad
Independent Director3.75yrsUS$272.48k0.018%
$ 442.0k
John Maeda
Independent Director8.5yrsUS$300.64k0.056%
$ 1.4m
Deirdre Findlay
Director0.83yrno datano data
Joanna Coles
Director0.83yrno datano data
Karen Boone
Independent Director3.5yrsUS$279.96k0.018%
$ 442.0k
Panos Panay
Director0.33yrno datano data

3.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: SONO's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

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$2.515b
  • Shares outstanding: 112.85m
  • 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 Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provide...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:44
End of Day Share Price2020/12/02 00:00
Earnings2020/10/03
Annual Earnings2020/10/03


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.