Now trading at a price of $25.56, Sony has moved 1.1% so far today.
Sony returned gains of 53.1% last year, with its stock price reaching a high of $25.78 and a low of $15.02. Over the same period, the stock outperformed the S&P 500 index by 43.3%. More recently, the company's 50-day average price was $24.26. 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 75.2% 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 suffers from weak operating margins with a stable trend and not enough current assets to cover current liabilities because its current ratio is 0.66.
The Market May Be Undervaluing Sony's Assets and Equity:
Sony has a trailing twelve month P/E ratio of 18.8, compared to an average of 25.91 for the Consumer Staples sector. Based on its EPS guidance of $1.19, the company has a forward P/E ratio of 20.4. The -59.9% compound average growth rate of Sony's historical and projected earnings per share yields a PEG ratio of -0.31. 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 0.02 while the sector average is 3.03. The company's shares are currently trading -99.7% above their Graham number.
Analysts Give Sony an Average Rating of Buy:
The 7 analysts following Sony have set target prices ranging from $24.19 to $34.06 per share, for an average of $28.76 with a buy rating. The company is trading -11.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Sony has a very low short interest because 0.2% of the company's shares are sold short. Institutions own 7.8% 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 $2,607,044,736.
