NYSE:SOGO

Stock Analysis Report

Executive Summary

Sogou Inc. provides search and search-related services in the People’s Republic of China.

Rewards

Trading at 46.2% below its fair value

Earnings are forecast to grow 21.65% per year

Risk Analysis

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.4%

SOGO

-0.5%

US Interactive Media and Services

0.6%

US Market


1 Year Return

-14.9%

SOGO

24.3%

US Interactive Media and Services

20.8%

US Market

Return vs Industry: SOGO underperformed the US Interactive Media and Services industry which returned 24.3% over the past year.

Return vs Market: SOGO underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

SOGOIndustryMarket
7 Day0.4%-0.5%0.6%
30 Day-6.3%2.2%2.5%
90 Day-3.7%4.5%4.9%
1 Year-14.9%-14.9%24.4%24.3%23.5%20.8%
3 Yearn/a53.8%53.7%46.5%37.0%
5 Yearn/a114.0%113.4%64.6%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOGO ($4.95) is trading below our estimate of fair value ($9.2)

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


Price To Earnings Ratio

PE vs Industry: SOGO is good value based on its PE Ratio (24x) compared to the Interactive Media and Services industry average (28.7x).

PE vs Market: SOGO is poor value based on its PE Ratio (24x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SOGO is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SOGO is good value based on its PB Ratio (1.9x) compared to the US Interactive Media and Services industry average (2.7x).


Next Steps

Future Growth

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

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOGO's forecast earnings growth (21.6% per year) is above the savings rate (1.7%).

Earnings vs Market: SOGO's earnings (21.6% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: SOGO's revenue (9.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: SOGO's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOGO's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Sogou performed over the past 5 years?

55.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOGO has a large one-off gain of $22.3M impacting its September 30 2019 financial results.

Growing Profit Margin: SOGO's current net profit margins (6.9%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: SOGO's earnings have grown significantly by 55.9% per year over the past 5 years.

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

Earnings vs Industry: SOGO had negative earnings growth (-12.1%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (15.9%).


Return on Equity

High ROE: SOGO's Return on Equity (7.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sogou's financial position?


Financial Position Analysis

Short Term Liabilities: SOGO's short term assets ($1.3B) exceed its short term liabilities ($463.1M).

Long Term Liabilities: SOGO's short term assets ($1.3B) exceed its long term liabilities ($7.0M).


Debt to Equity History and Analysis

Debt Level: SOGO is debt free.

Reducing Debt: SOGO has not had any debt for past 5 years.

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

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


Balance Sheet

Inventory Level: SOGO has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SOGO's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if SOGO'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 SOGO'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 Sogou's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Xiaochuan Wang (41yo)

9.9yrs

Tenure

0

Mr. Xiaochuan Wang serves as an Independent Director at Sunlands Online Education Grou since March 2018. Mr. Wang serves as an Independent Director at Sunlands Technology Group since March 2018. He serves  ...


CEO Compensation Analysis

Compensation vs Market: Xiaochuan's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

3.9yrs

Average Tenure

41.5yo

Average Age

Experienced Management: SOGO's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

49yo

Average Age

Experienced Board: SOGO's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 5.6%.


Management Team

  • Xiaochuan Wang (41yo)

    CEO & Director

    • Tenure: 9.9yrs
  • Hongtao Yang (39yo)

    Chief Technology Officer

    • Tenure: 3.9yrs
  • Tao Hong (42yo)

    Chief Marketing Officer

    • Tenure: 3.9yrs
  • Joe Zhou (43yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
  • Jessie Zheng

    Investor Relations Director

    • Tenure: 0yrs

Board Members

  • Chi Zhang (55yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Jinmei He (49yo)

    Independent Director

    • Tenure: 1.2yrs
  • Xiaochuan Wang (41yo)

    CEO & Director

    • Tenure: 9.9yrs
  • Janice Lee (49yo)

    Independent Director

    • Tenure: 0yrs
  • Bin Gao (57yo)

    Independent Director

    • Tenure: 0yrs
  • Joanna Lu (48yo)

    Director

    • Tenure: 3.9yrs
  • Yu Yin (42yo)

    Director

    • Tenure: 0.9yrs

Company Information

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


Key Information

  • Name: Sogou Inc.
  • Ticker: SOGO
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$1.937b
  • Shares outstanding: 391.35m
  • Website: https://www.sogou.com

Number of Employees


Location

  • Sogou Inc.
  • Sohu.com Internet Plaza
  • Level 15
  • Beijing
  • 100084
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOGONYSE (New York Stock Exchange)YesADR REPSTG AUSUSDNov 2017

Biography

Sogou Inc. provides search and search-related services in the People’s Republic of China. The company provides Sogou Search, a search engine; and Sogou Input Method, a Chinese language input software for P ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:48
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.