Sonata Software Limited Fundamental Analysis (NSE: SONATSOFTW.NS)
Sonata Software Limited Fundamental Analysis (NSE: SONATSOFTW.NS)
Sonata Software Limited (NSE: SONATSOFTW.NS) shows moderate financial fundamentals with a PE ratio of 18.19, profit margin of 4.20%, and ROE of 25.19%. The company generates $110.2B in annual revenue with strong year-over-year growth of 17.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SONATSOFTW.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSONATSOFTW.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSONATSOFTW.NS shows balanced valuation metrics.
Growth Score
ExcellentSONATSOFTW.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateSONATSOFTW.NS shows balanced financial health with some risks.
Profitability Score
WeakSONATSOFTW.NS struggles to sustain strong margins.
Key Financial Metrics
Is SONATSOFTW.NS Expensive or Cheap?
P/E Ratio
SONATSOFTW.NS trades at 18.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SONATSOFTW.NS's PEG of 2.19 indicates potential overvaluation.
Price to Book
The market values Sonata Software Limited at 4.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.49 times EBITDA. This signals the market has high growth expectations.
How Well Does SONATSOFTW.NS Make Money?
Net Profit Margin
For every $100 in sales, Sonata Software Limited keeps $4.20 as profit after all expenses.
Operating Margin
Core operations generate 4.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.19 in profit for every $100 of shareholder equity.
ROA
Sonata Software Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sonata Software Limited generates limited operating cash flow of $366.30M, signaling weaker underlying cash strength.
Free Cash Flow
Sonata Software Limited generates weak or negative free cash flow of $-222.40M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.80 in free cash annually.
FCF Yield
SONATSOFTW.NS converts -0.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How SONATSOFTW.NS Stacks Against Its Sector Peers
| Metric | SONATSOFTW.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.19 | 34.40 | Better (Cheaper) |
| ROE | 25.19% | 730.00% | Weak |
| Net Margin | 4.20% | -3110.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.22 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 6.05 | Weak Liquidity |
| ROA | 0.00% | 254.00% | Weak |
SONATSOFTW.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sonata Software Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
170.49%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
52.86%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
74.27%
Industry Style: Growth, Innovation, High Beta
High Growth