Fact based stock research
Sonae (ENXTLS:SON)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Sonae stock research in summary

sonae.pt

ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), Sonae (Food Retail, Portugal) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Sonae are a good value (attractively priced) with a consolidated Value Rank of 88 (better than 88% of alternatives) but show below-average growth (Growth Rank of 42), and are riskily financed (Safety Rank of 16), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on Sonae's financial characteristics. As the company Sonae's key financial metrics exhibit good value (Obermatt Value Rank of 88) but low growth (Obermatt Growth Rank of 42) and risky financing practices (Obermatt Safety Rank of 16), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 88% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	88
Growth Rank	42
Safety Rank	16
Combined Rank	42

Country	Portugal
Industry	Food Retail
Index	Dividends Europe, Low Waste, Recycling, PSI General, PSI 20
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Sonae

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	91	98	88
GROWTH
GROWTH	44	91	71	42
SAFETY
SAFETY	14	8	14	16
SENTIMENT
SENTIMENT	n/a	23	44	^new
360° VIEW
360° VIEW	n/a	53	73	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Sonae is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	91	98	88
GROWTH
GROWTH	44	91	71	42
SAFETY
SAFETY	14	8	14	16
COMBINED
COMBINED	39	76	79	42

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Sonae the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 88 (better than 88% compared with alternatives) for 2024, Sonae shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Sonae. Price-to-Sales is 68 which means that the stock price compared with what market professionals expect for future sales is lower than for 68% of comparable companies, indicating a good value for Sonae's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 83% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 75. Compared with other companies in the same industry, dividend yields of Sonae are expected to be higher than for 81% of all competitors (a Dividend Yield rank of 81). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 88, is a buy recommendation based on Sonae's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Sonae based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	83	78	63	68
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	80	62	94	83
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	88	76	69	75
DIVIDEND YIELD
DIVIDEND YIELD	84	90	98	81
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	93	91	98	88

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Sonae; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 42 (better than 42% compared with alternatives), Sonae shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Sonae. While Sales Growth ranks at 70, professionals currently expect the company to grow more than 70% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 13, which means that, currently, professionals expect the company to grow its profits less than 87% of its competitors, and Capital Growth has a low rank of 40. Historic stock returns were also below average with a current Stock Returns rank of 44 which means that the stock returns have recently been below 56% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 42, is a hold recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	22	27	92	70
PROFIT GROWTH
PROFIT GROWTH	14	84	80	13
CAPITAL GROWTH
CAPITAL GROWTH	n/a	81	4	40
STOCK RETURNS
STOCK RETURNS	94	89	54	44
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	44	91	71	42

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Sonae.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 16 (better than 16% compared with alternatives), the company Sonae has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Sonae is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Sonae and the other two below average. Leverage is at a rank of 58 meaning the company has a below-average debt-to-equity ratio. It has less debt than 58% of its competitors.Refinancing is at a rank of 12, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 88% of its competitors. Liquidity is at a rank of 25, meaning that the company generates less profit to service its debt than 75% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 16 (worse than 84% compared with alternatives), Sonae has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Sonae are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Sonae and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	8	32	59	58
REFINANCING
REFINANCING	52	11	14	12
LIQUIDITY
LIQUIDITY	31	26	23	25
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	14	8	14	16

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sonae and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	73	89	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	21	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	16	43	^new
MARKET PULSE
MARKET PULSE	n/a	22	33	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	23	44	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Sonae.
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