Shares of Sonos, Inc. (NASDAQ:SONO) recorded 3.20% gain during trading session on June 11th, 2019. The script traded as low as $10.98 and last traded at $11.28. 1.22 million shares changed exchanged hands during trading, a drop of -123018.1% from the 30-day average session volume of 989.93K shares. The firm had previously closed at $10.93. The company has $102.85M outstanding shares, a price-to-earnings ratio of 313.33, price-to-earnings-growth ratio of 0.98 . The company has a RSI of 60.61, ATR of 0.40 and a volatility of 3.20% this week. SONO has a 52 week low price of $9.23 and a 52 week high price of $23.60.
Investors have identified the tech company Sonos, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 1.16B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Sonos, Inc. (SONO) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For SONO, the company has in raw cash 295.46 million on their books with 12.91 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 0 total, with 106000 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
SONO were able to record 57.02 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 74.34 million. In cash movements, the company had a total of 65.11 million as operating cash flow.
Potential earnings growth for Sonos, Inc. (SONO)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Sonos, Inc. recorded a total of 210.17 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.11% coming in sequential stages and their sales for the third quarter reducing by -1.36%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 119.76 million trying to sell their products during the last quarter, with the result yielding a gross income of 90.41 million. This allows shareholders to hold on to 102.85M with the revenue now reading -220 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.14 cents a share).
Is the stock of SONO attractive?
Having a look at the company’s valuation, the company is expected to record 0.27 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SONO sounds very interesting.
1 out of 6 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Sonos, Inc. stock. 0 analysts has assigned a Sell rating on the SONO stock. The 12-month mean consensus price target for the company’s shares has been set at $16.17.