NYSE:SOGO

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.1%

SOGO

2.6%

US Interactive Media and Services

7.2%

US Market


1 Year Return

-44.2%

SOGO

-9.0%

US Interactive Media and Services

-10.4%

US Market

Return vs Industry: SOGO underperformed the US Interactive Media and Services industry which returned -11% over the past year.

Return vs Market: SOGO underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

SOGOIndustryMarket
7 Day-2.1%2.6%7.2%
30 Day-22.8%-14.7%-12.6%
90 Day-27.9%-17.6%-19.4%
1 Year-44.2%-44.2%-8.9%-9.0%-8.5%-10.4%
3 Yearn/a21.2%21.1%15.8%8.3%
5 Yearn/a75.9%75.5%35.8%21.0%

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?

20.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOGO ($3.26) is trading below our estimate of fair value ($4.1)

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 (14.3x) compared to the Interactive Media and Services industry average (23.3x).

PE vs Market: SOGO is poor value based on its PE Ratio (14.3x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SOGO is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SOGO is good value based on its PB Ratio (1.2x) compared to the US Interactive Media and Services industry average (1.8x).


Next Steps

Future Growth

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

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOGO's forecast earnings growth (21.5% per year) is above the savings rate (1.7%).

Earnings vs Market: SOGO's earnings (21.5% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: SOGO's revenue (8.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SOGO's revenue (8.7% 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 (10.6%).


Next Steps

Past Performance

How has Sogou performed over the past 5 years?

51.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOGO has high quality earnings.

Growing Profit Margin: SOGO's current net profit margins (7.6%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: SOGO has become profitable over the past 5 years, growing earnings by 51.3% per year.

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 (-9.8%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (5.5%).


Return on Equity

High ROE: SOGO's Return on Equity (8.4%) is considered low.


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 ($453.2M).

Long Term Liabilities: SOGO's short term assets ($1.3B) exceed its long term liabilities ($5.7M).


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

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

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

4.2yrs

Average management tenure


CEO

Xiaochuan Wang (41yo)

10.17s

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 ($USD0.00) is below average for companies of similar size in the US market ($USD4.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xiaochuan Wang
CEO & Director10.17yrsno data5.42% $69.6m
Yi Zhou
Chief Financial Officer2.17yrsno datano data
Hongtao Yang
Chief Technology Officer4.17yrsno datano data
Tao Hong
Chief Marketing Officer4.17yrsno datano data
Jessie Zheng
Investor Relations Directorno datano datano data

4.2yrs

Average Tenure

41.5yo

Average Age

Experienced Management: SOGO's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xiaochuan Wang
CEO & Director10.17yrsno data5.42% $69.6m
Charles Zhang
Chairman of the Boardno datano datano data
Jinmei He
Independent Director1.42yrsno datano data
Janice Lee
Independent Directorno datano datano data
Bin Gao
Independent Directorno datano datano data
Yanfeng Lu
Director4.17yrsno datano data
Yu Yin
Director1.17yrsno datano data

2.8yrs

Average Tenure

49yo

Average Age

Experienced Board: SOGO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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$1.284b
  • 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 PC and mobile users. It also offers search and search-related advertising services; Internet value-added services related to the operation of Web games and mobile games developed by third parties; and online reading services, as well as other products and services, including smart hardware products. The company was incorporated in 2005 and is based in Beijing, the People’s Republic of China. Sogou Inc. is a subsidiary of Sohu.com Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 04:11
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.