Now trading at a price of $29.29, Sony has moved 0.7% so far today.
Sony returned gains of 45.0% last year, with its stock price reaching a high of $30.34 and a low of $19.85. Over the same period, the stock outperformed the S&P 500 index by 32.1%. More recently, the company's 50-day average price was $28.91. 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 112,300 full time employees. Sony has offered a 77.4% dividend yield over the last 12 months.
Generally Positive Cash Flows but Not Enough Current Assets to Cover Current Liabilities:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $8,259,885 | $8,999,360 | $9,921,513 | $10,974,373 | $13,020,768 | $12,957,064 |
| Operating Margins | 10% | 11% | 12% | 12% | 9% | 11% |
| Net Margins | 7% | 13% | 9% | 9% | 8% | 9% |
| Net Income (M) | $582,191 | $1,171,776 | $888,406 | $1,011,773 | $980,494 | $1,159,887 |
| Diluted Shares (M) | 1,262 | 1,251 | 1,357 | 1,352 | 1,330 | 6,551 |
| Earnings Per Share | $461.23 | $936.9 | $705.16 | $161.97 | $157.14 | $187.92 |
| EPS Growth | n/a | 103.13% | -24.73% | -77.03% | -2.98% | 19.59% |
| Free Cash Flow (M) | $909,984 | $837,911 | $1,233,643 | $314,691 | $1,373,213 | $2,321,675 |
| Total Debt (M) | $634,966 | $773,294 | $1,203,646 | $1,767,696 | $2,058,117 | $2,066,842 |
| Net Debt / EBITDA | -0.7 | -0.74 | -0.4 | 0.12 | 0.06 | -0.36 |
| Current Ratio | 0.91 | 0.92 | 0.63 | 0.61 | 0.66 | 0.7 |
The Market May Be Undervaluing Sony's Assets and Equity:
Sony has a trailing twelve month P/E ratio of 22.6, 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 24.3. The -57.3% compound average growth rate of Sony's historical and projected earnings per share yields a PEG ratio of -0.39. 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 -98.8% above their Graham number.
Analysts Give Sony an Average Rating of Buy:
The 5 analysts following Sony have set target prices ranging from $32.5 to $40.51 per share, for an average of $34.67 with a buy rating. The company is trading -15.5% 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 0.1% of the company's shares are sold short. Institutions own 7.7% 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 Fisher Asset Management, LLC, whose 2% stake in the company is worth $3,065,038,262.
