2.27 EUR (+10.4%)
7 analysts
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Sonae is a Portuguese conglomerate with businesses ranging from retail distribution (Sonae MC, with brands like Continente) to shopping centers, telecommunications, and technology, with a diversified business model but a strong dependence on the domestic Portuguese market.
Listed on Euronext Lisboa · Symbol SON.LS · ELI: SON · Currency EUR
Key points
from its scores- ✓Good share-price trend9.1
- ✓Attractive valuation7.7
- ✓Favourable backdrop7.3
- ✕Fragile balance sheet2.4
- ✕Little competitive advantage4.4
AI analysis
bottom line, main risk, context and newsValuation is attractive and momentum is strong, but high debt and a rising rate environment in Europe warrant caution before adding to the position.
Sonae presents an attractive valuation (P/E 10.84, FCF yield 10.25%) and strong momentum (9.09), but its high leverage (Net Debt/EBITDA of 5.75) and exposure to Portuguese consumption make it vulnerable to the ECB's rate hike cycle, weighing on its financial health (score 3.04).
The main risk is the high financial leverage (Net Debt/EBITDA of 5.75) in a rising interest rate environment in the eurozone, which increases the cost of debt service and could pressure profitability and cash generation.
Context and risks
Sonae operates mainly in Portugal, a market with moderate governance and regulatory risk already reflected in a reference penalty. Its high leverage (Net Debt/EBITDA of 5.75) and large-format retail business expose it to a rising interest rate environment in the eurozone, increasing its debt service costs and pressuring discretionary consumption.
Is Sonae stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Consumer Defensive median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 10.8 | 19.8 | −45% |
| EV / EBITDA | 13.2 | 10.8 | +22% |
| Price / book | 1.2 | 2.7 | −54% |
| Price / sales | 0.3 | 1.2 | −73% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.7 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 2.27 EUR, +10.4% versus the price.
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- P/E
- 10.8
- Forward P/E
- 12.5
- EV / EBITDA
- 13.2
- Price / book
- 1.2
- Price / sales
- 0.3
- PEG
- 0.15
- Market cap
- 4.0B EUR
- Enterprise value
- 8.3B EUR
Profitability
- ROE
- 8.7%
- ROA
- 2.8%
- ROIC (approx.)
- 6.3%
- Gross margin
- 25.1%
- Operating margin
- 3.9%
- Net margin
- 1.9%
- Free cash flow
- 410.8M EUR
- FCF yield
- 10.3%
- Cash conversion
- 66%
Solvency
- Total debt
- 4.2B EUR
- Net debt
- 3.6B EUR
- Cash
- 574.2M EUR
- EBITDA
- 626.9M EUR
- Net debt / EBITDA
- 5.75
- Debt / equity
- 107.72
- Current ratio
- 0.81
- Quick ratio
- 0.38
Growth
- Revenue growth
- +6.2%
- Earnings growth
- +27.6%
- EPS (TTM)
- 0.19 EUR
- EPS (forward)
- 0.16 EUR
Dividend
- Dividend yield
- 2.9%
- Payout
- 32.4%
Risk and market
- Beta
- 0.51
- Analyst consensus
- Strong buy (7)
- Target price
- 2.27 EUR
- 52-week range
- 1.35 – 2.15
Recent news
All SON.LS news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about Sonae
Is Sonae stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Consumer Defensive median (within 15%). Valuation score: 7.7 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 2.27 EUR, +10.4% versus the price. This is not investment advice.
What score does Sonae get on MeridIAn Screener?
It scores 6.1 out of 10, rank 933 of 2,130 (better than 55% of the companies analysed). Its strongest category is Momentum (9.1) and its weakest, Financial health (2.4). Analysis of 08/10/2026.
What is Sonae's P/E ratio?
Its P/E is 10.8: the share price equals 10.8 times earnings per share over the last 12 months. The Consumer Defensive median is 19.8. Based on the earnings analysts expect, the forward P/E is 12.5.
How much is Sonae worth on the stock market?
Its market capitalisation is 4.0B EUR and its enterprise value, debt included, is 8.3B EUR.
How much debt does Sonae have?
Its net debt (debt minus cash) is 3.6B EUR. That is 5.75 times its EBITDA; the Consumer Defensive median is 2.38.
Does Sonae pay a dividend?
Yes: its dividend yield is 2.91% and it pays out 32% of its earnings.
How has Sonae stock performed over the last year?
It has risen 54.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 1.35 and 2.15 EUR. Past performance does not guarantee future results.
What do analysts think of Sonae?
7 analysts cover it; their average recommendation is “Strong buy” and their average target is 2.27 EUR (+10.4% versus the price). It is an estimate, not market data.