Sound Group Inc. Fundamental Analysis
Sound Group Inc. (SOGP) shows strong financial fundamentals with a PE ratio of 1.58, profit margin of 7.30%, and ROE of 69.21%. The company generates $3.0B in annual revenue with strong year-over-year growth of 48.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SOGP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSOGP demonstrates superior asset utilization.
Valuation Score
ExcellentSOGP trades at attractive valuation levels.
Growth Score
ModerateSOGP shows steady but slowing expansion.
Financial Health Score
ExcellentSOGP maintains a strong and stable balance sheet.
Profitability Score
ModerateSOGP maintains healthy but balanced margins.
Key Financial Metrics
Is SOGP Expensive or Cheap?
P/E Ratio
SOGP trades at 1.58 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SOGP's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Sound Group Inc. at 0.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.19 times EBITDA. This is generally considered low.
How Well Does SOGP Make Money?
Net Profit Margin
For every $100 in sales, Sound Group Inc. keeps $7.30 as profit after all expenses.
Operating Margin
Core operations generate 6.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $69.21 in profit for every $100 of shareholder equity.
ROA
Sound Group Inc. generates $29.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sound Group Inc. generates limited operating cash flow of $272.43M, signaling weaker underlying cash strength.
Free Cash Flow
Sound Group Inc. produces free cash flow of $269.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $57.20 in free cash annually.
FCF Yield
SOGP converts 81.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.69
vs 25 benchmark
ROA
Return on assets percentage
0.29
vs 25 benchmark
ROCE
Return on capital employed
0.55
vs 25 benchmark
How SOGP Stacks Against Its Sector Peers
| Metric | SOGP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.58 | 36.06 | Better (Cheaper) |
| ROE | 69.21% | 729.00% | Weak |
| Net Margin | 7.30% | -140961.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 1.94 | 3.39 | Neutral |
| ROA | 29.37% | 236.00% | Weak |
SOGP outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sound Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
88.56%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
351.70%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
539.48%
Industry Style: Growth, Innovation, High Beta
High Growth