Sonos, Inc. [NASDAQ:SONO]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Sonos, Inc. [SONO], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in September. On average, stock market experts give SONO an Outperform rating. Its stock price has been found in the range of 0.56 to 3.59. This is compared to its latest closing price of $11.00.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Sonos, Inc. [SONO] is sitting at 2.40. This is compared to 1 month ago, when its average rating was 2.50.
For the quarter ending in Dec-18 Sonos, Inc. [SONO] generated $0.5 billion in sales. That’s 1.16% higher than the average estimate of $0.49 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Wed 1 May (In 78 Days).
Fundamental Analysis of Sonos, Inc. [SONO]
Now let’s turn to look at profitability: with a current Operating Margin for Sonos, Inc. [SONO] sitting at -0.78 and its Gross Margin at +43.03.
This company’s Return on Total Capital is -4.69, and its Return on Invested Capital has reached -4.00%. Its Return on Equity is -10.45, and its Return on Assets is -3.16. These metrics suggest that this Sonos, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Sonos, Inc. [SONO] has generated a Total Debt to Total Equity ratio of 19.08. Similarly, its Total Debt to Total Capital is 16.03, while its Total Debt to Total Assets stands at 6.77. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 15.88, and its Long-Term Debt to Total Capital is 13.34. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 29.45 and its Total Debt to EBITDA Value is 1.30. The Enterprise Value to Sales for this firm is now 0.77, and its Total Debt to Enterprise Value stands at 0.05. Sonos, Inc. [SONO] has a Price to Book Ratio of 7.70, a Price to Cash Flow Ratio of 34.48.
Shifting the focus to workforce efficiency, Sonos, Inc. [SONO] earns $840,982 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 18.86 and its Total Asset Turnover is 2.30. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.03 and its Current Ratio is 1.68. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Sonos, Inc. [SONO] has 102.54M shares outstanding, amounting to a total market cap of $1.13B. Its stock price has been found in the range of 9.23 to 23.60. At its current price, it has moved by -52.37% from its 52-week high, and it has moved 21.78% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 46.51. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Sonos, Inc. [SONO] a Reliable Buy?
Shares of Sonos, Inc. [SONO], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.