Stock analysis · Bull Rankings model

SONO analysis

Sonos, Inc.Consumer Electronics. Scored on the same transparent model behind the daily rankings.

SONO
Sonos, Inc. · Consumer Electronics
FCF$97mC-
Rev+5.6%C+
D/E0.14B+
P/E35.4xB
PEG
52.2Score
$15.92$1.9B
1Y Target$18.88Analyst consensus · 4 analysts
5Y Target$27.63Compound horizon
10Y Target$40.99Long-dated conviction
FCF$97mTTM
C-
FCF $97m — barely positive; fragile cash position
Rev+5.6%TTM YoY
C+
Revenue +5.6% — steady but below market-beating range
D/E0.14
B+
D/E 0.14 — below the Technology debt median (≈40th pctile)
P/E35.4x
B
P/E 35.4 — near the Technology median (≈60th pctile)
PEG
PEG not meaningful — earnings growth negative or data unavailable

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 52.2
Quality0.63
Growth0.42
Value0.53
Why this score
  • Buying back stock
Entry · Margin of safety
52-week rangeMid-range
20% off the 12-month high
vs DCF fair value171% aboveest. fair value ~$6
What the price assumes: free cash flow compounding at ~26% a year for the next decade — vs the ~-5% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability79% · Agross profit ÷ total assets (Novy-Marx)
ROIC12.9% · B+return on invested capital — not score-weighted
Why now
Consumer Electronics · market cap $1.9b. 20% off the 52-week high of $19.82. 4 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $18.88 (implying +19% upside).
Moat
ROE 14% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 170% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Beta 1.93 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 35x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. Net margin 3.8% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $18.88 (4-analyst consensus) — fundamentals + valuation re-rating. 5 yr $27.63 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $40.99 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

SONO vs the Top Picks average

PillarSONOBook avgDiff
Quality0.630.84-0.21
Growth0.420.92-0.49
Value0.530.75-0.22

Averaged across the 30 names in today's Top Picks (mean score 82.6). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+23.1 over 36 daily scores
From 29.1 (Jun 22) → 52.2 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
125
Position size
$1,990
4.0% of portfolio
Stop price
$11.94
25% below $15.92
$ at risk if stopped
$497.50
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Sonos, Inc. (SONO): score, valuation & FAQ

Sonos, Inc. (SONO) is a Consumer Electronics company that scores 52.2 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (B+), while FCF (C-) rate weaker. On valuation, SONO sits about 171% above our discounted-cash-flow fair value — the current price implies roughly 26% annual free-cash-flow growth over the next decade.

Is SONO a good stock to buy?

Bull Rankings scores SONO 52.2 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (B+). A score is a quantitative screen of Sonos, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does SONO score 52.2 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). SONO earns its highest marks on D/E (B+), and is held back by FCF (C-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is SONO overvalued or undervalued?

Based on $15.92, SONO sits about 171% above our discounted-cash-flow fair value — the current price implies roughly 26% annual free-cash-flow growth over the next decade. It trades at a 35.4x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in SONO?

Beta 1.93 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 35x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. Net margin 3.8% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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