Sony Group Corp (SONY, Financial), a renowned name in the global hardware industry, has recently witnessed a notable uptick in its stock performance. Over the past week, the company's stock price has increased by 2.84%, and over the last three months, it has surged by an impressive 12.41%. Currently, Sony's market capitalization stands at $107.48 billion, with a stock price of $88.53. According to GuruFocus, the GF Value of Sony is $103.07, suggesting that the stock is modestly undervalued. This valuation marks a significant rise from the past GF Value of $94.62 three months ago, maintaining its status as modestly undervalued during this period.
Overview of Sony Group Corp
Sony Group Corp, a diversified conglomerate, has its roots deeply embedded in the electronics sector. The company excels in designing, developing, producing, and selling electronic equipment and devices. Moreover, Sony has made significant strides in content businesses, including console and mobile games, music, and movies. It holds a leading position globally in several categories such as CMOS image sensors, game consoles, professional broadcasting cameras, and music publishing. Sony's diversified business portfolio spans across six major segments, ensuring a robust presence in the digital cameras, wireless earphones, recorded music, and movie industries.
Assessing Sony's Profitability
Sony's financial health is reflected through its strong profitability metrics. The company's Profitability Rank is 7/10, indicating a robust position relative to industry peers. With an Operating Margin of 9.15%, Sony outperforms 74.92% of 2,472 companies in the hardware industry. Its Return on Equity (ROE) stands at 13.35%, surpassing 79.55% of its peers. Additionally, Sony's Return on Assets (ROA) and Return on Invested Capital (ROIC) are 2.93% and 2.62% respectively, further underscoring its efficient use of resources. Over the past decade, Sony has maintained profitability for nine years, better than 69.46% of 2,341 companies.
Growth Trajectory of Sony
Despite a Growth Rank of 3/10, Sony has demonstrated commendable growth in revenue per share over the past few years. The 3-Year Revenue Growth Rate per Share is 13.60%, better than 76.37% of 2,387 companies, while the 5-Year Rate is 9.80%, surpassing 75.01% of 2,217 companies. However, the 3-Year EPS without NRI Growth Rate shows a decline of 1.50%. Looking ahead, Sony's estimated EPS Growth Rate for the next 3 to 5 years is 8.66%, which, although modest, still outperforms 10.22% of 489 companies.
Notable Shareholders and Competitive Landscape
Among Sony's notable shareholders, PRIMECAP Management (Trades, Portfolio) holds 21,491,973 shares, representing 1.77% of the shares, followed by Ken Fisher (Trades, Portfolio) with 6,816,466 shares (0.56%), and Mario Gabelli (Trades, Portfolio) with 1,405,635 shares (0.12%). In comparison to its competitors, Sony's market cap of $107.48 billion dwarfs that of Panasonic Holdings Corp (TSE:6752, Financial) at $16.77 billion, Sharp Corp (TSE:6753, Financial) at $3.82 billion, and Casio Computer Co Ltd (TSE:6952, Financial) at $1.75 billion, highlighting its dominant market position.
Conclusion
In conclusion, Sony Group Corp's recent stock performance is a reflection of its robust market position, strong profitability, and steady growth prospects. Despite some challenges in EPS growth, the company's diversified business model and strategic market positioning continue to drive its success. As it remains modestly undervalued according to the GF Value, Sony presents a potentially attractive opportunity for investors looking for stability and growth in the hardware sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
