Sony logged a -1.6% change during today's afternoon session, and is now trading at a price of $18.22 per share.
Sony returned gains of 11.4% last year, with its stock price reaching a high of $20.18 and a low of $15.02. Over the same period, the stock underperformed the S&P 500 index by -27.2%. The company's 50-day average price was $18.63. Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. Based in Tokyo, Japan, the Large-Cap Consumer Staples company has 113,000 full time employees. Sony has offered a 91.8% dividend yield over the last 12 months.
Generally Positive Cash Flows but Not Enough Current Assets to Cover Current Liabilities:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $8,665,687 | $8,259,885 | $8,999,360 | $9,921,513 | $10,974,373 | $13,020,768 |
| Operating Margins | 10% | 10% | 11% | 12% | 12% | 9% |
| Net Margins | 11% | 7% | 13% | 9% | 9% | 8% |
| Net Income (M) | $916,271 | $582,191 | $1,171,776 | $888,406 | $1,011,773 | $980,494 |
| Diluted Shares (M) | 1,295 | 1,262 | 1,251 | 1,357 | 1,352 | 1,330 |
| Earnings Per Share | $707.74 | $461.23 | $936.9 | $705.16 | $809.85 | $785.68 |
| EPS Growth | n/a | -34.83% | 103.13% | -24.73% | 14.85% | -2.98% |
| Free Cash Flow (M) | $946,094 | $909,984 | $837,911 | $1,233,643 | $314,691 | $1,373,213 |
| Total Debt (M) | $568,372 | $634,966 | $773,294 | $1,203,646 | $1,767,696 | $2,058,117 |
| Net Debt / EBITDA | -0.71 | -0.7 | -0.74 | -0.4 | 0.12 | 0.06 |
| Current Ratio | 0.86 | 0.91 | 0.92 | 0.63 | 0.61 | 0.66 |
Sony has generally positive cash flows, positive EPS growth, and healthy leverage levels. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.66. Finally, we note that Sony has decent operating margins with a stable trend.
Sony Has Attractive Multiples and Its Shares Are Discounted:
Sony has a trailing twelve month P/E ratio of 17.4, compared to an average of 23.09 for the Consumer Staples sector. Based on its EPS guidance of $1.24, the company has a forward P/E ratio of 15.0. The -59.6% compound average growth rate of Sony's historical and projected earnings per share yields a PEG ratio of -0.29. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Sony in terms of its equity because its P/B ratio is 0.01 while the sector average is 3.3. The company's shares are currently trading -99.8% above their Graham number.
Sony Has an Average Rating of Buy:
The 5 analysts following Sony have set target prices ranging from $21.6 to $27.54 per share, for an average of $23.82 with a buy rating. The company is trading -23.5% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Sony has a very low short interest because 0.2% of the company's shares are sold short. Institutions own 7.6% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Primecap Management Company, whose 2% stake in the company is worth $1,957,918,666.
