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Sony Group Corp ADR SONY

Morningstar Rating
$88.02 +2.21 (2.58%)
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Company Report

Sony Earnings: Uncertainty Over PlayStation Business Weighs on Stock Price

Sony Group’s December quarter operating income of JPY 463 billion exceeded our expectation of JPY 430 billion, mainly due to the improvement in net gains from market fluctuations in the financial services segment, which are difficult to predict. Aside from this one-time factor, we believe Sony’s operating profit was largely in line with our expectations, with the lower-than-expected profitability in the game & network services segment largely offset by margin recovery in the imaging & sensing solutions segment.

Price vs Fair Value

SONY is trading at a 9% discount.
Price
$88.02
Fair Value
$13.00
Uncertainty
Medium
1-Star Price
$571.68
5-Star Price
$38.60
Economic Moat
Lhbk
Capital Allocation
Ytwbzmhsf

Bulls Say, Bears Say

Bulls

PlayStation VR 2 will not only be used for games, but will also be a breakthrough mode of entertainment for media such as movies, music, and sports, and will deliver new demand to the PlayStation ecosystem.

Bears

Digital appliance businesses, especially handset businesses, are extremely competitive, and so Sony will be unable to achieve excess returns from them in the long run.

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News

Trading Information

Previous Close Price
$85.81
Day Range
$87.2788.45
52-Week Range
$79.62100.94
Bid/Ask
$86.88 / $87.13
Market Cap
$108.32 Bil
Volume/Avg
737 / 941,398

Key Statistics

Price/Earnings (Normalized)
17.53
Price/Sales
1.21
Dividend Yield (Trailing)
0.63%
Dividend Yield (Forward)
0.62%
Total Yield
1.18%

Company Profile

Sony Group is a conglomerate with consumer electronics roots, which not only designs, develops, produces, and sells electronic equipment and devices, but also is engaged in content businesses, such as console and mobile games, music, and movies. Sony is a global top company of CMOS image sensors, game consoles, professional broadcasting cameras, and music publishing, and is one of the top players on digital cameras, wireless earphones, recorded music, movies, and so on. Sony’s business portfolio is well diversified with six major business segments. The company fully consolidated Sony Financial in September 2020, which provides life and non-life insurance, banking, and other financial services.
Sector
Technology
Industry
Consumer Electronics
Stock Style Box
Large Core
Total Number of Employees
113,000

Competitors

Valuation

Metric
SONY
005930
7974
Price/Earnings (Normalized)
17.5334.6520.93
Price/Book Value
2.091.413.99
Price/Sales
1.211.695.81
Price/Cash Flow
7.268.8322.09
Price/Earnings
SONY
005930
7974

Financial Strength

Metric
SONY
005930
7974
Quick Ratio
0.471.794.19
Current Ratio
0.692.594.76
Interest Coverage
65.258.155,916.81
Quick Ratio
SONY
005930
7974

Profitability

Metric
SONY
005930
7974
Return on Assets (Normalized)
2.50%4.31%23.04%
Return on Equity (Normalized)
11.52%5.57%29.20%
Return on Invested Capital (Normalized)
6.73%4.52%27.76%
Return on Assets
SONY
005930
7974
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