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Sonos

Nasdaq:SONO
Snowflake Description

High growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SONO
Nasdaq
$878M
Market Cap
  1. Home
  2. US
  3. Consumer Durables
Company description

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The last earnings update was 57 days ago. More info.


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  • Sonos has significant price volatility in the past 3 months.
SONO Share Price and Events
7 Day Returns
-7.1%
NasdaqGS:SONO
-13.1%
US Consumer Durables
-4.1%
US Market
1 Year Returns
-28%
NasdaqGS:SONO
-31.2%
US Consumer Durables
-14.9%
US Market
SONO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sonos (SONO) -7.1% -29.6% -49.5% -28% - -
US Consumer Durables -13.1% -41.1% -41.3% -31.2% -32.9% -30.8%
US Market -4.1% -19.1% -23.4% -14.9% 3.5% 14.5%
1 Year Return vs Industry and Market
  • SONO outperformed the Consumer Durables industry which returned -31.2% over the past year.
  • SONO underperformed the Market in United States of America which returned -14.9% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

SONO Value

 Is Sonos undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sonos to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sonos.

NasdaqGS:SONO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SONO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.721 (1 + (1- 21%) (11.62%))
0.857
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.857 * 5.44%)
6.4%

Discounted Cash Flow Calculation for NasdaqGS:SONO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sonos is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:SONO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.4%)
2020 67.24 Analyst x2 63.19
2021 91.31 Analyst x2 80.65
2022 99.11 Analyst x1 82.28
2023 120.37 Analyst x1 93.91
2024 144.31 Analyst x1 105.81
2025 161.07 Est @ 11.61% 110.99
2026 175.00 Est @ 8.65% 113.34
2027 186.51 Est @ 6.58% 113.52
2028 196.07 Est @ 5.13% 112.16
2029 204.13 Est @ 4.11% 109.74
Present value of next 10 years cash flows $985.00
NasdaqGS:SONO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $204.13 × (1 + 1.74%) ÷ (6.4% – 1.74%)
$4,454.13
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,454.13 ÷ (1 + 6.4%)10
$2,394.62
NasdaqGS:SONO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $985.00 + $2,394.62
$3,379.62
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,379.62 / 110.00
$30.72
NasdaqGS:SONO Discount to Share Price
Calculation Result
Value per share (USD) From above. $30.72
Current discount Discount to share price of $7.98
= -1 x ($7.98 - $30.72) / $30.72
74%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sonos is available for.
Intrinsic value
>50%
Share price is $7.98 vs Future cash flow value of $30.72
Current Discount Checks
For Sonos to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sonos's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sonos's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sonos's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sonos's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SONO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-28) in USD $0.04
NasdaqGS:SONO Share Price ** NasdaqGS (2020-04-02) in USD $7.98
United States of America Consumer Durables Industry PE Ratio Median Figure of 44 Publicly-Listed Consumer Durables Companies 6.73x
United States of America Market PE Ratio Median Figure of 2,944 Publicly-Listed Companies 12.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sonos.

NasdaqGS:SONO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SONO Share Price ÷ EPS (both in USD)

= 7.98 ÷ 0.04

194.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sonos is overvalued based on earnings compared to the US Consumer Durables industry average.
  • Sonos is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Sonos's expected growth come at a high price?
Raw Data
NasdaqGS:SONO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 194.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
56.8%per year
United States of America Consumer Durables Industry PEG Ratio Median Figure of 35 Publicly-Listed Consumer Durables Companies 0.63x
United States of America Market PEG Ratio Median Figure of 2,008 Publicly-Listed Companies 0.91x

*Line of best fit is calculated by linear regression .

NasdaqGS:SONO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 194.8x ÷ 56.8%

3.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sonos is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sonos's assets?
Raw Data
NasdaqGS:SONO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-28) in USD $3.35
NasdaqGS:SONO Share Price * NasdaqGS (2020-04-02) in USD $7.98
United States of America Consumer Durables Industry PB Ratio Median Figure of 69 Publicly-Listed Consumer Durables Companies 0.7x
United States of America Market PB Ratio Median Figure of 5,142 Publicly-Listed Companies 1.22x
NasdaqGS:SONO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SONO Share Price ÷ Book Value per Share (both in USD)

= 7.98 ÷ 3.35

2.39x

* Primary Listing of Sonos.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sonos is overvalued based on assets compared to the US Consumer Durables industry average.
X
Value checks
We assess Sonos's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. Sonos has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SONO Future Performance

 How is Sonos expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
56.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sonos expected to grow at an attractive rate?
  • Sonos's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Sonos's earnings growth is expected to exceed the United States of America market average.
  • Sonos's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SONO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SONO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 56.8%
NasdaqGS:SONO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 7.8%
United States of America Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
United States of America Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SONO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SONO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-09-30 1,813 191 93 1
2023-09-30 1,727 165 68 1
2022-09-30 1,655 141 45 3
2021-09-30 1,513 124 27 8
2020-09-30 1,358 102 -9 8
2020-04-03
NasdaqGS:SONO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-28 1,327 147 4
2019-09-28 1,261 121 -5
2019-06-29 1,240 126 23
2019-03-30 1,188 91 19
2018-12-29 1,164 55 10
2018-09-29 1,137 31 -16
2018-06-30 1,078 34 -28
2018-03-31 1,093 8 -16
2017-12-30 1,089 55 -3
2017-09-30 993 64 -14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sonos's earnings are expected to grow significantly at over 20% yearly.
  • Sonos's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SONO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Sonos Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SONO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-09-30 0.79 0.79 0.79 1.00
2023-09-30 0.59 0.59 0.59 1.00
2022-09-30 0.48 0.57 0.38 2.00
2021-09-30 0.26 0.48 0.13 7.00
2020-09-30 -0.10 0.05 -0.32 7.00
2020-04-03
NasdaqGS:SONO Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-28 0.04
2019-09-28 -0.05
2019-06-29 0.24
2019-03-30 0.22
2018-12-29 0.13
2018-09-29 -0.24
2018-06-30 -0.48
2018-03-31 -0.27
2017-12-30 -0.05
2017-09-30 -0.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sonos is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Sonos's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sonos has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SONO Past Performance

  How has Sonos performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sonos's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sonos has delivered over 20% year on year earnings growth in the past 5 years.
  • Sonos's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sonos's 1-year earnings growth is negative, it can't be compared to the US Consumer Durables industry average.
Earnings and Revenue History
Sonos's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sonos Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SONO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-28 1,326.54 4.34 367.03 186.61
2019-09-28 1,260.82 -4.77 350.47 171.17
2019-06-29 1,239.60 23.11 329.19 159.43
2019-03-30 1,187.88 19.49 322.80 150.52
2018-12-29 1,164.43 9.72 329.35 145.68
2018-09-29 1,137.01 -15.60 356.07 142.11
2018-06-30 1,078.16 -28.10 362.92 137.68
2018-03-31 1,092.84 -15.65 371.32 135.59
2017-12-30 1,088.67 -2.67 368.33 129.50
2017-09-30 992.53 -14.22 347.28 124.39
2016-10-01 901.28 -38.21 326.54 107.73
2015-10-03 843.52 -68.78 337.23 100.65

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sonos has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sonos used its assets less efficiently than the US Consumer Durables industry average last year based on Return on Assets.
  • Sonos has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Sonos's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sonos has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SONO Health

 How is Sonos's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sonos's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sonos is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sonos's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sonos's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 21.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sonos Company Filings, last reported 3 months ago.

NasdaqGS:SONO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-28 367.28 32.63 408.42
2019-09-28 280.93 33.17 338.64
2019-06-29 288.43 39.82 338.29
2019-03-30 286.87 39.80 295.28
2018-12-29 280.03 39.78 307.37
2018-09-29 208.36 39.76 220.93
2018-06-30 111.24 39.69 124.43
2018-03-31 126.46 39.66 117.80
2017-12-30 147.61 39.63 188.43
2017-09-30 90.37 39.60 130.60
2016-10-01 61.55 24.50 74.91
2015-10-03
  • Sonos's level of debt (8.9%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Sonos's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (451.8%, greater than 20% of total debt).
  • Sonos earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Sonos's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sonos has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SONO Dividends

 What is Sonos's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sonos dividends. Estimated to be 0% next year.
If you bought $2,000 of Sonos shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sonos's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Sonos's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SONO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 3.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1941 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SONO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-09-30
2023-09-30
2022-09-30 0.00 2.00
2021-09-30 0.00 3.00
2020-09-30 0.00 3.00
2020-04-03

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Sonos has not reported any payouts.
  • Unable to verify if Sonos's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sonos's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sonos has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Sonos's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Sonos's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sonos afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sonos has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SONO Management

 What is the CEO of Sonos's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Patrick Spence
COMPENSATION $11,568,706
AGE 44
TENURE AS CEO 3.3 years
CEO Bio

Mr. Patrick Spence has been Chief Executive Officer and as a member of board of directors at Sonos, Inc. since January 2017, and has been its President since July 2016. He served as Managing Director of Global Sales & Regional Marketing at Research In Motion Limited (RIM) from July 2011 to May 2012. Mr. Spence works with Thorsten to tightly couple the execution of product development and regional business operations around the world, enable faster local execution tailored to local market needs and support the needs of RIM's valued operator and distribution partners. He has more than ten years of success overseeing sales and country operations for RIM in various regions including North America, Asia Pacific and EMEA. He was the Managing Director of Global Sales & Regional Marketing at BlackBerry Limited from July 2011 to May 2012. Mr. Spence was Executive produced the 2005 series of Waking The Dead. He served on the team that produced Silent Witness in 1996, then came back two years later as the show's Executive Producer and as Head of Development, Drama Series – commissioning Waking The Dead, Murder In Mind and Down To Earth, amongst others. Additional credits include Five's first and only BAFTA- nominated drama, Wing And A Prayer, which Mr. Spence commissioned at Thames; and stints at Scottish, Central, Pearson and Granada, where he script edited Cracker, written by Jimmy McGovern and Paul Abbott.

CEO Compensation
  • Patrick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Patrick's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Sonos management team in years:

3.2
Average Tenure
43
Average Age
  • The tenure for the Sonos management team is about average.
Management Team

Patrick Spence

TITLE
CEO, President & Director
COMPENSATION
$12M
AGE
44
TENURE
3.3 yrs

Brittany Bagley

TITLE
Chief Financial Officer
COMPENSATION
$8M
AGE
36
TENURE
1 yrs

Eddie Lazarus

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
$3M
AGE
60
TENURE
1.3 yrs

Matt Siegel

TITLE
Chief Commercial Officer
COMPENSATION
$3M
AGE
45
TENURE
2.6 yrs

Nicholas Millington

TITLE
Chief Product Officer
COMPENSATION
$4M
AGE
42
TENURE
3.2 yrs

Thomas Cullen

TITLE
Co-Founder and VP of Sales & Marketing

Michael Groeninger

TITLE
Vice President of Corporate Finance
TENURE
5.1 yrs

Anna Fraser

TITLE
Chief People Officer
AGE
37
TENURE
3.3 yrs

Ingvar Meijers

TITLE
Managing Director of Sales and Operations for EMEA

Bob Werner

TITLE
Managing Director of Sales for AMPAC
Board of Directors Tenure

Average tenure and age of the Sonos board of directors in years:

3.3
Average Tenure
52.5
Average Age
  • The tenure for the Sonos board of directors is about average.
Board of Directors

Mike Volpi

TITLE
Independent Chairperson
AGE
53
TENURE
9.4 yrs

Patrick Spence

TITLE
CEO, President & Director
COMPENSATION
$12M
AGE
44
TENURE
3.3 yrs

Julius Genachowski

TITLE
Independent Director
COMPENSATION
$317K
AGE
56
TENURE
6.6 yrs

Tom Conrad

TITLE
Independent Director
COMPENSATION
$272K
AGE
49
TENURE
3.1 yrs

Karen Boone

TITLE
Independent Director
COMPENSATION
$280K
AGE
45
TENURE
2.8 yrs

John Maeda

TITLE
Independent Director
COMPENSATION
$301K
AGE
52
TENURE
7.8 yrs

Robbie Bach

TITLE
Independent Director
COMPENSATION
$301K
AGE
57
TENURE
8.7 yrs

Deirdre Findlay

TITLE
Director
TENURE
0.2 yrs

Joanna Coles

TITLE
Director
AGE
56
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
26. Feb 20 Sell Index Ventures Company 24. Feb 20 25. Feb 20 -401,986 $12.17 $-4,886,188
21. Feb 20 Sell KKR & Co. Inc. Company 20. Feb 20 20. Feb 20 -8,000,000 $13.42 $-107,360,000
10. Feb 20 Sell Index Ventures Company 07. Feb 20 07. Feb 20 -7,744 $15.12 $-117,101
20. May 19 Sell Index Ventures Company 16. May 19 16. May 19 -517,992 $10.51 $-5,446,271
X
Management checks
We assess Sonos's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sonos has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SONO News

Simply Wall St News

How Do Sonos, Inc.’s (NASDAQ:SONO) Returns Compare To Its Industry?

What is Return On Capital Employed (ROCE)? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Sonos: 0.083 = US$31m ÷ (US$644m - US$276m) (Based on the trailing twelve months to June 2019.) Therefore, Sonos has an ROCE of 8.3%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Do Insiders Own Lots Of Shares In Sonos, Inc. (NASDAQ:SONO)?

Check out our latest analysis for Sonos NasdaqGS:SONO Ownership Summary, August 10th 2019 What Does The Institutional Ownership Tell Us About Sonos? … Insider Ownership Of Sonos While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … General Public Ownership The general public, with a 22% stake in the company, will not easily be ignored.

Simply Wall St -

Sonos (NASDAQ:SONO) Has A Rock Solid Balance Sheet

(NASDAQ:SONO) does have debt on its balance sheet. … Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … Sonos may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt.

Simply Wall St -

Is Sonos, Inc.'s (NASDAQ:SONO) 3.5% ROE Worse Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Sonos: 3.5% = US$19m ÷ US$287m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Sonos Have A Good Return On Equity? … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.

Simply Wall St -

Does The Hype Around Sonos, Inc.'s (NASDAQ:SONO) Growth Justify Its June Share Price?

Sonos is trading at price-to-earnings (PE) ratio of 43.75x, this tells us the stock is overvalued compared to the US market average ratio of 17.14x , and overvalued based on current earnings compared to the Consumer Durables industry average of 13.52x. … However, since Sonos is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 43.75x and expected year-on-year earnings growth of 45% give Sonos a low PEG ratio of 0.97x.

Simply Wall St -

What Kind Of Shareholder Appears On The Sonos, Inc.'s (NASDAQ:SONO) Shareholder Register?

So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … It has a market capitalization of US$1.1b, which means it would generally expect to see some institutions on the share registry. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Why We Think Sonos, Inc. (NASDAQ:SONO) Could Be Worth Looking At

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … financial health as well as

Simply Wall St -

What does Sonos, Inc.'s (NASDAQ:SONO) Balance Sheet Tell Us About Its Future?

(NASDAQ:SONO) is a small-cap stock with a market capitalization of US$1.2b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes

Simply Wall St -

Investors Are Undervaluing Sonos, Inc. (NASDAQ:SONO) By 43.97%

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Sonos Inc's (NASDAQ:SONO) Path To Profitability

Sonos, Inc., through its subsidiaries, designs, develops, manufactures, and sells multi-room audio products primarily for use in private residences in the United States and internationally. … On 29 September 2018, the US$1.2b market-cap posted a loss of -US$15.6m for its most recent financial year? … I’ve put together a brief outline of industry analyst expectations for SONO, its year of breakeven and its implied growth rate

Simply Wall St -

SONO Company Info

Description

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides wireless speakers, home theater speakers, components, and accessories. It offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its Website sonos.com. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was founded in 2002 and is headquartered in Santa Barbara, California.

Details
Name: Sonos, Inc.
SONO
Exchange: NasdaqGS
Founded: 2002
$877,814,922
110,001,870
Website: http://www.sonos.com
Address: Sonos, Inc.
614 Chapala Street,
Santa Barbara,
California, 93103,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SONO Common Stock Nasdaq Global Select US USD 02. Aug 2018
DB 8SO Common Stock Deutsche Boerse AG DE EUR 02. Aug 2018
LSE 0ZFN Common Stock London Stock Exchange GB USD 02. Aug 2018
WBAG SONO Common Stock Wiener Boerse AG AT EUR 02. Aug 2018
Number of employees
Current staff
Staff numbers
1,446
Sonos employees.
Industry
Consumer Electronics
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 05:44
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/24
Last earnings filing: 2020/02/06
Last earnings reported: 2019/12/28
Last annual earnings reported: 2019/09/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.