NYSE:SOGO

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 31% below our estimate of its fair value

Earnings are forecast to grow 91.81% per year

Risk Analysis

No risks detected for SOGO from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: SOGO's weekly volatility has decreased from 10% to 1% over the past year.


Market Performance


7 Day Return

-0.2%

SOGO

-1.9%

US Interactive Media and Services

-0.5%

US Market


1 Year Return

76.0%

SOGO

35.3%

US Interactive Media and Services

18.3%

US Market

Return vs Industry: SOGO exceeded the US Interactive Media and Services industry which returned 36.4% over the past year.

Return vs Market: SOGO exceeded the US Market which returned 19.1% over the past year.


Shareholder returns

SOGOIndustryMarket
7 Day-0.2%-1.9%-0.5%
30 Day-0.1%1.7%3.6%
90 Day2.1%5.1%5.6%
1 Year76.0%76.0%35.3%35.3%21.0%18.3%
3 Year-32.0%-32.0%48.6%48.4%45.2%35.6%
5 Yearn/a121.4%120.9%89.8%68.8%

Long-Term 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?

31.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOGO ($8.89) is trading below our estimate of fair value ($12.89)

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


Price To Earnings Ratio

PE vs Industry: SOGO is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: SOGO 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 SOGO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOGO is overvalued based on its PB Ratio (3.5x) compared to the US Interactive Media and Services industry average (2.9x).


Next Steps

Future Growth

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

91.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SOGO's revenue (11% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: SOGO's revenue (11% 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 (10.7%).


Next Steps

Past Performance

How has Sogou performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOGO is currently unprofitable.

Growing Profit Margin: SOGO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOGO is unprofitable, but has reduced losses over the past 5 years at a rate of 8.7% per year.

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

Earnings vs Industry: SOGO is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (5%).


Return on Equity

High ROE: SOGO has a negative Return on Equity (-4.82%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sogou's financial position?


Financial Position Analysis

Short Term Liabilities: SOGO's short term assets ($1.2B) exceed its short term liabilities ($432.8M).

Long Term Liabilities: SOGO's short term assets ($1.2B) exceed its long term liabilities ($13.2M).


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


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SOGO'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 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

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

4.8yrs

Average management tenure


CEO

Xiaochuan Wang (42 yo)

10.83yrs

Tenure

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 ($USD0.00) is below average for companies of similar size in the US market ($USD5.22M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xiaochuan Wang
CEO & Director10.83yrsno data5.47%
$ 188.2m
Hongtao Yang
Chief Technology Officer4.83yrsno datano data
Tao Hong
Chief Marketing Officer4.83yrsno datano data
Fion Zhou
Chief Financial Officer0.33yrno datano data
Jessie Zheng
Investor Relations Directorno datano datano data

4.8yrs

Average Tenure

42yo

Average Age

Experienced Management: SOGO's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xiaochuan Wang
CEO & Director10.83yrsno data5.47%
$ 188.2m
Charles Zhang
Chairman of the Boardno datano data6.37%
$ 219.0m
Jinmei He
Independent Director2.08yrsno datano data
Janice Lee
Independent Directorno datano datano data
Bin Gao
Independent Directorno datano datano data
Yanfeng Lu
Director4.83yrsno datano data
Yu Yin
Director1.83yrsno datano data

3.5yrs

Average Tenure

50yo

Average Age

Experienced Board: SOGO's board of directors are considered experienced (3.5 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

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$3.438b
  • Shares outstanding: 387.59m
  • 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
780DB (Deutsche Boerse AG)YesADR REPSTG ADEEURNov 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 Analysis2020/11/23 23:45
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.