Sonos, Inc.
Sonos, Inc. Fundamental Analysis
Sonos, Inc. (SONO) shows weak financial fundamentals with a PE ratio of -92.44, profit margin of -1.22%, and ROE of -4.45%. The company generates $1.4B in annual revenue with weak year-over-year growth of -4.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SONO's fundamental strength across five key dimensions:
Efficiency Score
WeakSONO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSONO trades at attractive valuation levels.
Growth Score
WeakSONO faces weak or negative growth trends.
Financial Health Score
ExcellentSONO maintains a strong and stable balance sheet.
Profitability Score
WeakSONO struggles to sustain strong margins.
Key Financial Metrics
Is SONO Expensive or Cheap?
P/E Ratio
SONO trades at -92.44 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SONO's PEG of -1.27 indicates potential undervaluation.
Price to Book
The market values Sonos, Inc. at 3.67 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.08 times EBITDA. This signals the market has high growth expectations.
How Well Does SONO Make Money?
Net Profit Margin
For every $100 in sales, Sonos, Inc. keeps $-1.22 as profit after all expenses.
Operating Margin
Core operations generate 0.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-4.45 in profit for every $100 of shareholder equity.
ROA
Sonos, Inc. generates $-1.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sonos, Inc. produces operating cash flow of $144.47M, showing steady but balanced cash generation.
Free Cash Flow
Sonos, Inc. produces free cash flow of $122.87M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.02 in free cash annually.
FCF Yield
SONO converts 7.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-92.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How SONO Stacks Against Its Sector Peers
| Metric | SONO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -92.44 | 34.31 | Better (Cheaper) |
| ROE | -4.45% | 1119.00% | Weak |
| Net Margin | -1.22% | -87088.00% (disorted) | Weak |
| Debt/Equity | 0.13 | 7.94 | Strong (Low Leverage) |
| Current Ratio | 1.65 | 5.79 | Neutral |
| ROA | -1.85% | -309422.00% (disorted) | Weak |
SONO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sonos, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.05%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-176.42%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-23.16%
Industry Style: Growth, Innovation, High Beta
Declining