Sonos, Inc. (SONO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vertiv Holdings Co.

Advanced Energy Industries, Inc.

Littelfuse, Inc.

Plexus Corp.

Flex Ltd.

Sonos, Inc.

Teradyne, Inc.

Universal Display Corp.

Plug Power, Inc.

Veeco Instruments, Inc.

Vishay Intertechnology, Inc.

Why is Sonos, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 1.95% and Operating profit at 5.28% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At USD 2.47 MM has Fallen at -83.51%
NET PROFIT(Q) At USD -0.09 MM has Fallen at -102.09%
ROCE(HY) Lowest at -17.69%

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 32.00%, its profits have fallen by -269.8%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 32.00% in the last 1 year, much higher than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sonos, Inc. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sonos, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sonos, Inc.

32.21%

0.40

49.36%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.95%

EBIT Growth (5y)

5.28%

EBIT to Interest (avg)

51.70

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.57

Sales to Capital Employed (avg)

3.15

Tax Ratio

6.62%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

56.88%

ROE (avg)

9.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.20

EV to EBIT

-31.36

EV to EBITDA

33.69

EV to Capital Employed

6.07

EV to Sales

0.69

PEG Ratio

Dividend Yield

ROCE (Latest)

-19.36%

ROE (Latest)

-8.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

NET PROFIT(HY)

Higher at USD -45.11 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.92 times

-15What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 2.47 MM has Fallen at -83.51%

NET PROFIT(Q)

At USD -0.09 MM has Fallen at -102.09%

ROCE(HY)

Lowest at -17.69%

RAW MATERIAL COST(Y)

Grown by 10.52% (YoY

CASH AND EQV(HY)

Lowest at USD 477.46 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.5 times

Here's what is working for Sonos, Inc.

Inventory Turnover Ratio

Highest at 5.92 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Sonos, Inc.

Pre-Tax Profit

At USD 2.47 MM has Fallen at -83.51%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -0.09 MM has Fallen at -102.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 477.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 12.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.52% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales