(SONO) Sonos - NASDAQ
Sector: Technology | Industry: Consumer Electronics | Exchange: NASDAQ (USA) | Market Cap: 1.775m USD | Total Return: 47.8% in 12m
Avg Turnover: 23.9M
EPS Trend: -5.4%
Qual. Beats: 0
Rev. Trend: -91.6%
Qual. Beats: 1
Warnings
P/E ratio 87.6
Choppy Below Avwap Earnings
Tailwinds
Confidence
Sonos, Inc. is a Santa Barbara-based consumer electronics company that specializes in the design and manufacture of multi-room wireless audio systems. Its product portfolio includes portable and plug-in speakers, soundbars, home theater components, and recently launched wireless headphones. The company utilizes a multi-channel distribution strategy encompassing direct-to-consumer e-commerce, third-party retailers, and professional custom installers.
Operating within the premium audio segment, Sonos employs a razor-and-blade business model where customers typically expand their initial hardware purchase into a larger ecosystem of interconnected devices. The consumer electronics sector is characterized by high R&D requirements and cyclical demand driven by product refresh cycles and seasonal spending. For deeper insights into these industry trends, consider reviewing the comprehensive data available on ValueRay.
Originally incorporated in 2002 as Rincon Audio, the firm rebranded in 2004 and has since expanded its market presence across the Americas, EMEA, and Asia Pacific regions. The business focuses on integrating proprietary software with hardware to ensure compatibility across various streaming platforms and voice assistants.
- Expansion into premium headphones market diversifies revenue beyond home audio
- High inventory levels and promotional discounting pressure gross profit margins
- New app performance issues threaten customer retention and hardware sales
- Weakness in residential real estate market reduces demand for home theater installations
- Ongoing patent litigation and licensing disputes impact operational expenses and royalty income
| Net Income: 23.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 5.85 > 1.0 |
| NWC/Revenue: 13.63% < 20% (prev 11.17%; Δ 2.46% < -1%) |
| CFO/TA 0.16 > 3% & CFO 138.3m > Net Income 23.7m |
| Net Debt (-190.4m) to EBITDA (94.3m): -2.02 < 3 |
| Current Ratio: 1.58 > 1.5 & < 3 |
| Outstanding Shares: last quarter (124.7m) vs 12m ago 3.96% < -2% |
| Gross Margin: 44.77% > 18% (prev 44.40%; Δ 0.37% > 0.5%) |
| Asset Turnover: 178.9% > 50% (prev 184.7%; Δ -5.76% > 0%) |
| Interest Coverage Ratio: 77.81 > 6 (EBIT TTM 36.3m / Interest Expense TTM 466k) |
| A: 0.24 (Total Current Assets 540.1m - Total Current Liabilities 341.1m) / Total Assets 839.5m |
| B: -0.06 (Retained Earnings -47.2m / Total Assets 839.5m) |
| C: 0.04 (EBIT TTM 36.3m / Avg Total Assets 815.8m) |
| D: 0.84 (Book Value of Equity 384.4m / Total Liabilities 455.1m) |
| Altman-Z'' = 2.56 = A |
| DSRI: 2.37 (Receivables 95.5m/40.4m, Revenue 1.46b/1.46b) |
| GMI: 0.99 (GM 44.40% / 44.77%) |
| AQI: 0.89 (AQ_t 0.23 / AQ_t-1 0.26) |
| SGI: 1.00 (Revenue 1.46b / 1.46b) |
| TATA: -0.14 (NI 23.7m - CFO 138.3m) / TA 839.5m) |
| Beneish M = -1.99 (Cap -4..+1) = B |
As of June 20, 2026, the stock is trading at USD 14.68 with a total of 4,290,844 shares traded.
Over the past week, the price has changed by -4.92%,
over one month by -0.54%,
over three months by +10.13% and
over the past year by +47.83%.
Sonos has received a consensus analysts rating of 3.40. Therefore, it is recommended to hold SONO.
- StrongBuy: 2
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 19.1 | 30.3% |
P/E Trailing = 87.6471
P/E Forward = 37.3134
P/S = 1.2159
P/B = 4.6181
Revenue TTM = 1.46b USD
EBIT TTM = 36.3m USD
EBITDA TTM = 94.3m USD
Long Term Debt = 51.8m USD (estimated: total debt 58.7m - short term 6.88m)
Short Term Debt = 6.88m USD (from shortTermDebt, last quarter)
Debt = 58.7m USD (from shortLongTermDebtTotal, last quarter) (leases 58.7m already included)
Net Debt = -190.4m USD (calculated: Debt 58.7m - CCE 249.1m)
Enterprise Value = 1.58b USD (1.78b + Debt 58.7m - CCE 249.1m)
Interest Coverage Ratio = 77.81 (Ebit TTM 36.3m / Interest Expense TTM 466k)
EV/FCF = 13.48x (Enterprise Value 1.58b / FCF TTM 117.5m)
FCF Yield = 7.42% (FCF TTM 117.5m / Enterprise Value 1.58b)
FCF Margin = 8.05% (FCF TTM 117.5m / Revenue TTM 1.46b)
Net Margin = 1.62% (Net Income TTM 23.7m / Revenue TTM 1.46b)
Gross Margin = 44.77% ((Revenue TTM 1.46b - Cost of Revenue TTM 806.2m) / Revenue TTM)
Gross Margin QoQ = 44.28% (prev 46.45%)
Tobins Q-Ratio = 1.89 (Enterprise Value 1.58b / Total Assets 839.5m)
Interest Expense / Debt = 0.79% (Interest Expense 466k / Debt 58.7m)
Taxrate = 33.86% (12.1m / 35.8m)
NOPAT = 24.0m (EBIT 36.3m * (1 - 33.86%))
Current Ratio = 1.58 (Total Current Assets 540.1m / Total Current Liabilities 341.1m)
Debt / Equity = 0.15 (Debt 58.7m / totalStockholderEquity, last quarter 384.4m)
Debt / EBITDA = -2.02 (Net Debt -190.4m / EBITDA 94.3m)
Debt / FCF = -1.62 (Net Debt -190.4m / FCF TTM 117.5m)
Total Stockholder Equity = 395.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.90% (Net Income 23.7m / Total Assets 839.5m)
RoE = 5.99% (Net Income TTM 23.7m / Total Stockholder Equity 395.6m)
RoCE = 8.11% (EBIT 36.3m / Capital Employed (Equity 395.6m + L.T.Debt 51.8m))
RoIC = 5.55% (NOPAT 24.0m / Invested Capital 432.3m)
WACC = 11.78% (E(1.78b)/V(1.83b) * Re(12.15%) + D(58.7m)/V(1.83b) * Rd(0.79%) * (1-Tc(0.34)))
Discount Rate = 12.15% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -22.47 | Cagr: -0.73%
[DCF] Terminal Value 67.71% ; FCFF base≈96.4m ; Y1≈110.5m ; Y5≈162.6m
[DCF] Fair Price = 14.36 (EV 1.52b - Net Debt -190.4m = Equity 1.71b / Shares 119.1m; r=11.78% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -5.39 | EPS CAGR: -1.95% | SUE: -0.19 | # QB: 0
Revenue Correlation: -91.59 | Revenue CAGR: -5.60% | SUE: 1.46 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.20 | Chg30d=+25.00% | Revisions=+20% | Analysts=1
EPS current Year (2026-09-30): EPS=1.13 | Chg30d=+1.80% | Revisions=+20% | GrowthEPS=+76.6% | GrowthRev=+3.9%
EPS next Year (2027-09-30): EPS=1.08 | Chg30d=+24.86% | Revisions=+33% | GrowthEPS=-4.4% | GrowthRev=+6.5%
[Analyst] Revisions Ratio: +33%