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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 1.71
SNE's Cash to Debt is ranked higher than
54% of the 2189 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.41 vs. SNE: 1.71 )
Ranked among companies with meaningful Cash to Debt only.
SNE' s 10-Year Cash to Debt Range
Min: 0.21  Med: 0.51 Max: 1.71
Current: 1.71
0.21
1.71
Equity to Asset 0.15
SNE's Equity to Asset is ranked lower than
96% of the 2102 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.57 vs. SNE: 0.15 )
Ranked among companies with meaningful Equity to Asset only.
SNE' s 10-Year Equity to Asset Range
Min: 0.14  Med: 0.26 Max: 0.32
Current: 0.15
0.14
0.32
Interest Coverage 2.90
SNE's Interest Coverage is ranked lower than
91% of the 1293 Companies
in the Global Consumer Electronics industry.

( Industry Median: 339.33 vs. SNE: 2.90 )
Ranked among companies with meaningful Interest Coverage only.
SNE' s 10-Year Interest Coverage Range
Min: 0.29  Med: 4.46 Max: 8.5
Current: 2.9
0.29
8.5
F-Score: 6
Z-Score: 0.65
M-Score: -2.55
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 1.16
SNE's Operating margin (%) is ranked lower than
65% of the 2180 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.43 vs. SNE: 1.16 )
Ranked among companies with meaningful Operating margin (%) only.
SNE' s 10-Year Operating margin (%) Range
Min: -2.95  Med: 2.63 Max: 7.7
Current: 1.16
-2.95
7.7
Net-margin (%) -0.86
SNE's Net-margin (%) is ranked lower than
74% of the 2180 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.90 vs. SNE: -0.86 )
Ranked among companies with meaningful Net-margin (%) only.
SNE' s 10-Year Net-margin (%) Range
Min: -7.03  Med: 1.18 Max: 4.16
Current: -0.86
-7.03
4.16
ROE (%) -3.00
SNE's ROE (%) is ranked lower than
77% of the 2164 Companies
in the Global Consumer Electronics industry.

( Industry Median: 6.04 vs. SNE: -3.00 )
Ranked among companies with meaningful ROE (%) only.
SNE' s 10-Year ROE (%) Range
Min: -19.96  Med: 3.81 Max: 13.62
Current: -3
-19.96
13.62
ROA (%) -0.45
SNE's ROA (%) is ranked lower than
73% of the 2203 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.01 vs. SNE: -0.45 )
Ranked among companies with meaningful ROA (%) only.
SNE' s 10-Year ROA (%) Range
Min: -3.48  Med: 1.02 Max: 3.69
Current: -0.45
-3.48
3.69
ROC (Joel Greenblatt) (%) -38.55
SNE's ROC (Joel Greenblatt) (%) is ranked lower than
91% of the 2198 Companies
in the Global Consumer Electronics industry.

( Industry Median: 9.85 vs. SNE: -38.55 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
SNE' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 3.77  Med: 10.53 Max: 93.62
Current: -38.55
3.77
93.62
Revenue Growth (3Y)(%) 4.40
SNE's Revenue Growth (3Y)(%) is ranked higher than
61% of the 1551 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.90 vs. SNE: 4.40 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
SNE' s 10-Year Revenue Growth (3Y)(%) Range
Min: -16.7  Med: -2.30 Max: 30.6
Current: 4.4
-16.7
30.6
EBITDA Growth (3Y)(%) -27.70
SNE's EBITDA Growth (3Y)(%) is ranked lower than
89% of the 1223 Companies
in the Global Consumer Electronics industry.

( Industry Median: 4.60 vs. SNE: -27.70 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
SNE' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -30.3  Med: -0.60 Max: 43
Current: -27.7
-30.3
43
EPS Growth (3Y)(%) -37.10
SNE's EPS Growth (3Y)(%) is ranked lower than
90% of the 1092 Companies
in the Global Consumer Electronics industry.

( Industry Median: 4.00 vs. SNE: -37.10 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
SNE' s 10-Year EPS Growth (3Y)(%) Range
Min: -53  Med: -0.30 Max: 151.8
Current: -37.1
-53
151.8
» SNE's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

SNE Guru Trades in Q3 2014

Steven Cohen 359,200 sh (New)
Mario Gabelli 5,349,806 sh (+75.97%)
PRIMECAP Management 41,803,144 sh (+18.49%)
First Eagle Investment 800 sh (unchged)
Jim Simons 494,900 sh (-9.51%)
» More
Q4 2014

SNE Guru Trades in Q4 2014

Jim Simons 843,600 sh (+70.46%)
Mario Gabelli 5,877,906 sh (+9.87%)
PRIMECAP Management 45,241,435 sh (+8.22%)
First Eagle Investment 800 sh (unchged)
Steven Cohen Sold Out
» More
Q1 2015

SNE Guru Trades in Q1 2015

Jim Simons 2,625,200 sh (+211.19%)
Mario Gabelli 6,028,772 sh (+2.57%)
PRIMECAP Management 45,795,885 sh (+1.23%)
First Eagle Investment 800 sh (unchged)
» More
Q2 2015

SNE Guru Trades in Q2 2015

Julian Robertson 322,834 sh (New)
Jim Simons 3,030,100 sh (+15.42%)
Mario Gabelli 6,214,132 sh (+3.07%)
First Eagle Investment 800 sh (unchged)
PRIMECAP Management 45,766,250 sh (-0.06%)
» More
» Details

Insider Trades

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Guru Investment Theses on Sony Corp

Daniel Loeb Comments on Sony Corp - Oct 22, 2014

In May of 2013, Third Point announced a significant stake in Sony (SNE) and suggested to the company’s CEO, Kazuo Hirai, that he should seriously consider spinning out 15‐20% of the company’s undervalued, American-based Entertainment business. At the time, we explained that partially listing the Entertainment segment would have three positive effects: 1) highlighting its profitability; 2) increasing investor transparency, thereby allowing the market to properly benchmark the company against its global media peers; and 3) incentivizing Entertainment’s management to run the company more efficiently by engaging in cost cutting and laying out clear earnings targets.

While, regrettably, the Company rejected our partial spin-out suggestion, they made some changes that were consistent with our goals. In the Entertainment business in particular, Sony has cut costs, improved its dialogue with investors, and undertaken key management changes. In Electronics, Mr. Hirai’s team deserves credit for transitioning away from personal computers this year and improving television profitability in 2015. They have also improved investor transparency. Still, they have a long way to go and we continue to believe that more urgency will be necessary to definitively turn around the company’s fortunes.

A key tenet for us in making constructivist investments is our margin of safety. While we are most focused on the potential upside available to shareholders if management undertakes changes, we are unlikely to make a significant investment in a situation where constructivist-driven change is the chief catalyst unless we see minimal downside. Sony was exactly the type of investment where the risk/reward ratio was skewed in our favor. Thanks to this investment principle, despite enduring profit warnings nearly every quarter we were invested, incurring worse news about Electronics than we expected, and suffering from market disappointment at the pace of Japanese macroeconomic reforms, we still managed to generate nearly a 20% return on this investment before exiting.

From Daniel Loeb (Trades, Portfolio)’s Third Point Q3 2014 Investor Letter.

Check out Daniel Loeb latest stock trades

Daniel Loeb Comments on Sony - Jan 22, 2014

Sony (NYSE:SNE) – While the rejection of Third Point's proposal to partially list the Entertainment business proved costly for shareholders, we are hopeful that the Company's commitment to improve transparency, increase margins, better allocate capital among divisions, and hold division management accountable will lead to our goal: increasing shareholder value. Despite the rise in the Company share price earlier in the year, Sony shares still trade significantly below their sum of the parts valuation. 

Sony started 2014 strongly at the Consumer Electronics Show in Las Vegas, winning two best-of-show awards for PlayStation 4 and the Xperia phone. The show's highlight was news that Sony had sold 4.2 million Playstation 4's in 2013 versus 3.0 million Xbox One's. Sony appears set to sustain strong global momentum with the Japanese launch of the Playstation 4 in February. February is also rumore d to mark the launch of Sony's Xperia Z2 phone, with the potential for meaningful distribution expansion in North America and elsewhere.

Progress on Sony's growth vectors, while encouraging, needs to be matched by a serious effort to restructure the PC and TV businesses as well as more concerted efforts to realize Entertainment 's value.

Japanese investors reacted favorably to management teams who took bold restructuring action in 2013, and the market is looking for Sony to pursue a similar path. 

Meanwhile, we are focused on upcoming catalysts including the IPO of Japan Display indicated for 1Q ' 14, progress at VEVO, and increasing focus on Sony's considerable intellectual property portfolio. Sony, a perennial top 10 U.S. patent approval recipient (#4 in 2013) with over 50,000 patents and several distinct patent assets, including stakes in InterTrust, MobileMedia Ideas, and participation in the Rockstar Consortium, still exhibits a disconnect between the implied value of the Electronics business and the underlying value of its intellectual property. 

All eyes are focused on management to reach its margin targets both within the Electronics and Entertainment divisions over the course of the coming year. We have high hopes for CEO Hirai and his lieutenants to continue their path towards greater profitability and to make difficult decisions when necessary to reach those goals

 

 

From Daniel Loeb (Trades, Portfolio)'s Third Point fourth quarter 2013 commentary.

Check out Daniel Loeb latest stock trades

Top Ranked Articles about Sony Corp

Daniel Loeb Comments on Sony Corp
In May of 2013, Third Point announced a significant stake in Sony (SNE) and suggested to the company’s CEO, Kazuo Hirai, that he should seriously consider spinning out 15‐20% of the company’s undervalued, American-based Entertainment business. At the time, we explained that partially listing the Entertainment segment would have three positive effects: 1) highlighting its profitability; 2) increasing investor transparency, thereby allowing the market to properly benchmark the company against its global media peers; and 3) incentivizing Entertainment’s management to run the company more efficiently by engaging in cost cutting and laying out clear earnings targets. Read more...

Ratios

vs
industry
vs
history
Forward P/E 7.14
SNE's Forward P/E is ranked higher than
90% of the 697 Companies
in the Global Consumer Electronics industry.

( Industry Median: 15.48 vs. SNE: 7.14 )
Ranked among companies with meaningful Forward P/E only.
N/A
P/B 1.61
SNE's P/B is ranked lower than
54% of the 2137 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.36 vs. SNE: 1.61 )
Ranked among companies with meaningful P/B only.
SNE' s 10-Year P/B Range
Min: 0.41  Med: 1.02 Max: 2.04
Current: 1.61
0.41
2.04
P/S 0.43
SNE's P/S is ranked higher than
72% of the 2200 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.83 vs. SNE: 0.43 )
Ranked among companies with meaningful P/S only.
SNE' s 10-Year P/S Range
Min: 0.12  Med: 0.38 Max: 0.87
Current: 0.43
0.12
0.87
PFCF 13.03
SNE's PFCF is ranked higher than
60% of the 1113 Companies
in the Global Consumer Electronics industry.

( Industry Median: 16.22 vs. SNE: 13.03 )
Ranked among companies with meaningful PFCF only.
SNE' s 10-Year PFCF Range
Min: 2.99  Med: 11.38 Max: 237.21
Current: 13.03
2.99
237.21
POCF 7.09
SNE's POCF is ranked higher than
71% of the 1479 Companies
in the Global Consumer Electronics industry.

( Industry Median: 11.42 vs. SNE: 7.09 )
Ranked among companies with meaningful POCF only.
SNE' s 10-Year POCF Range
Min: 1.66  Med: 4.72 Max: 16.91
Current: 7.09
1.66
16.91
Current Ratio 0.87
SNE's Current Ratio is ranked lower than
93% of the 2126 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.93 vs. SNE: 0.87 )
Ranked among companies with meaningful Current Ratio only.
SNE' s 10-Year Current Ratio Range
Min: 0.8  Med: 1.24 Max: 1.6
Current: 0.87
0.8
1.6
Quick Ratio 0.71
SNE's Quick Ratio is ranked lower than
88% of the 2126 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.44 vs. SNE: 0.71 )
Ranked among companies with meaningful Quick Ratio only.
SNE' s 10-Year Quick Ratio Range
Min: 0.61  Med: 0.92 Max: 1.13
Current: 0.71
0.61
1.13
Days Inventory 50.69
SNE's Days Inventory is ranked higher than
68% of the 2142 Companies
in the Global Consumer Electronics industry.

( Industry Median: 71.67 vs. SNE: 50.69 )
Ranked among companies with meaningful Days Inventory only.
SNE' s 10-Year Days Inventory Range
Min: 43.43  Med: 54.41 Max: 76.19
Current: 50.69
43.43
76.19
Days Sales Outstanding 56.92
SNE's Days Sales Outstanding is ranked higher than
69% of the 1866 Companies
in the Global Consumer Electronics industry.

( Industry Median: 72.78 vs. SNE: 56.92 )
Ranked among companies with meaningful Days Sales Outstanding only.
SNE' s 10-Year Days Sales Outstanding Range
Min: 37.8  Med: 54.62 Max: 67.94
Current: 56.92
37.8
67.94

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.45
SNE's Dividend Yield is ranked lower than
76% of the 1948 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.12 vs. SNE: 0.45 )
Ranked among companies with meaningful Dividend Yield only.
SNE' s 10-Year Dividend Yield Range
Min: 0.36  Med: 0.92 Max: 3.12
Current: 0.45
0.36
3.12
Yield on cost (5-Year) 0.45
SNE's Yield on cost (5-Year) is ranked lower than
77% of the 1984 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.38 vs. SNE: 0.45 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
SNE' s 10-Year Yield on cost (5-Year) Range
Min: 0.36  Med: 0.92 Max: 3.12
Current: 0.45
0.36
3.12
Share Buyback Rate -3.60
SNE's Share Buyback Rate is ranked lower than
63% of the 1508 Companies
in the Global Consumer Electronics industry.

( Industry Median: -1.50 vs. SNE: -3.60 )
Ranked among companies with meaningful Share Buyback Rate only.
SNE' s 10-Year Share Buyback Rate Range
Min: 20.6  Med: -0.80 Max: -30.9
Current: -3.6

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.32
SNE's Price/Tangible Book is ranked lower than
73% of the 2058 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.44 vs. SNE: 3.32 )
Ranked among companies with meaningful Price/Tangible Book only.
SNE' s 10-Year Price/Tangible Book Range
Min: 0.84  Med: 1.95 Max: 8.12
Current: 3.32
0.84
8.12
Price/Projected FCF 0.62
SNE's Price/Projected FCF is ranked higher than
75% of the 935 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.23 vs. SNE: 0.62 )
Ranked among companies with meaningful Price/Projected FCF only.
SNE' s 10-Year Price/Projected FCF Range
Min: 0.23  Med: 0.93 Max: 18.7
Current: 0.62
0.23
18.7
Price/Median PS Value 1.08
SNE's Price/Median PS Value is ranked lower than
59% of the 2060 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.00 vs. SNE: 1.08 )
Ranked among companies with meaningful Price/Median PS Value only.
SNE' s 10-Year Price/Median PS Value Range
Min: 0.37  Med: 1.33 Max: 6.64
Current: 1.08
0.37
6.64
Earnings Yield (Greenblatt) (%) -7.18
SNE's Earnings Yield (Greenblatt) (%) is ranked lower than
83% of the 2194 Companies
in the Global Consumer Electronics industry.

( Industry Median: 4.20 vs. SNE: -7.18 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
SNE' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: -8.08  Med: 3.30 Max: 11.5
Current: -7.18
-8.08
11.5
Forward Rate of Return (Yacktman) (%) -0.42
SNE's Forward Rate of Return (Yacktman) (%) is ranked lower than
63% of the 1089 Companies
in the Global Consumer Electronics industry.

( Industry Median: 6.01 vs. SNE: -0.42 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
SNE' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -27.1  Med: 7.10 Max: 27.7
Current: -0.42
-27.1
27.7

Business Description

Industry: Computer Hardware » Consumer Electronics
Compare:TOSYY, PHG, LPL, HAR, WHR » details
Traded in other countries:6758.Japan, SON.UK, SNE.Argentina, SON1.Germany, SONC.Switzerland, SNEN.Mexico, 0Q0A.UK, SNEJF.USA, SONA.Germany,
Sony Corp was established in Japan in May 7, 1946 as Tokyo Tsushin Kogyo Kabushiki Kaisha, a joint stock company (Kabushiki Kaisha) under Japanese law. In January 1958, it changed its name to Sony Kabushiki Kaisha ("Sony Corporation" in English). The Company is engaged in the development, design, manufacture, and sale of various kinds of electronic equipment, instruments, and devices for consumer, professional and industrial markets as well as game consoles and software. The Company is also engaged in the development, production, manufacture, and distribution of recorded music and the management and licensing of the words and music of songs. It is also engaged in various financial services businesses, including life and non-life insurance operations through its Japanese insurance subsidiaries and banking operations through a Japanese Internet-based banking subsidiary. In addition, the Company is engaged in a network services business and an advertising agency business in Japan. Its products and services are divided into the following categories: Mobile Products & Communications, Game, Imaging Products & Solutions, Home Entertainment & Sound, Devices, Pictures, Music, Financial Services, and All Other. The Company provides repair and servicing functions in the areas where its electronics products are sold. It provides these services through its own call centers, service centers, factories, authorized independent service centers, authorized servicing dealers and subsidiaries. The Company has a number of Japanese and foreign patents relating to its products. In each of its principal product lines and services, the Company encounters intense competition throughout the world. The Company's business operations are subject to various governmental regulations in different countries in which it operates.
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