Sony: Is the Giant Tech Company Undervalued?

Sony (SNE) is a Japanese, multinational, electronic consumer company that develops, designs, manufactures, and sells a variety of devices, equipment, and services ranging from different markets such as game and network services, Televisions, music, financial services, electronic products, and solutions, and more. The company has a market cap of 125.01B and shares outstanding of 1.24B. Earnings per share (EPS) has exceeded. The share is currently training at $101.11 USD on the NYSE with a 52-week range of $50.94 as a low and $105.00 as a high. Since the start of the pandemic of March, the stock has grown by over 100%, doubling in price, showing a strong bounce back as many other tech companies have shown in the past year. Earnings per share (EPS) have exceeded estimates by 270% in the 3Q2020 with an estimate of 0.91 and an actual value of 3.37. EPS has grown from the previous quarter by about 96% showing a strong performance in the stock. Price to earnings (PE) is currently at 14.25 which falls in between the average of S&P 500 which has historically ranged from 13 to 15. Due to the pandemic and a decrease in the distribution of products, at the end of 3Q2020, Sony has shown a decrease in revenues and gross profit by 3.3% LTM and 5.1% LTM, respectively, although net income has still increased by 9.1% LTM. Sony is a top-performing company in sales with the highest total revenue amongst its peers in their respective industries. Sony also has strong profitability as return on equity beats the industry average of 4.84% at 11.28% at the end of 3Q2020 LTM. Sony’s strong performance despite a difficult year for business can be attributed to being well established in the gaming industry as they have just released their newest gaming console, the Play Station 5, in November of 2020. Their launch in November made more money in dollar sales than any other console in history. It has easily surpassed all other competitor launches as the company has sold more than 4.2 million consoles even with a low stock due to the global pandemic. In the current bullish market and the pandemic expected to allow normalcy in either Q3 or Q4 of 2021, Sony’s stock is expected to rise, even if it does not see the type of growth it has seen in the past year. This stock is a buy and hold as it is currently undervalued with its reliable and high-quality products in several emerging and established markets in the communications, technology, and music industries.

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wlu2022ec

Jan 25, 2021

4.90%

Change % Since Posting

101.11

Price When Posted

4.95

Change Since Posting

SNE

Sony Corporation. - ADR

106.06

0.05
0.05%
Current Price

Sony: Is the Giant Tech Company Undervalued?

bullish

Sony (SNE) is a Japanese, multinational, electronic consumer company that develops, designs, manufactures, and sells a variety of devices, equipment, and services ranging from different markets such as game and network services, Televisions, music, financial services, electronic products, and solutions, and more. The company has a market cap of 125.01B and shares outstanding of 1.24B. Earnings per share (EPS) has exceeded.

The share is currently training at $101.11 USD on the NYSE with a 52-week range of $50.94 as a low and $105.00 as a high. Since the start of the pandemic of March, the stock has grown by over 100%, doubling in price, showing a strong bounce back as many other tech companies have shown in the past year. Earnings per share (EPS) have exceeded estimates by 270% in the 3Q2020 with an estimate of 0.91 and an actual value of 3.37. EPS has grown from the previous quarter by about 96% showing a strong performance in the stock. Price to earnings (PE) is currently at 14.25 which falls in between the average of S&P 500 which has historically ranged from 13 to 15. Due to the pandemic and a decrease in the distribution of products, at the end of 3Q2020, Sony has shown a decrease in revenues and gross profit by 3.3% LTM and 5.1% LTM, respectively, although net income has still increased by 9.1% LTM. Sony is a top-performing company in sales with the highest total revenue amongst its peers in their respective industries. Sony also has strong profitability as return on equity beats the industry average of 4.84% at 11.28% at the end of 3Q2020 LTM.

Sony’s strong performance despite a difficult year for business can be attributed to being well established in the gaming industry as they have just released their newest gaming console, the Play Station 5, in November of 2020. Their launch in November made more money in dollar sales than any other console in history. It has easily surpassed all other competitor launches as the company has sold more than 4.2 million consoles even with a low stock due to the global pandemic.

In the current bullish market and the pandemic expected to allow normalcy in either Q3 or Q4 of 2021, Sony’s stock is expected to rise, even if it does not see the type of growth it has seen in the past year. This stock is a buy and hold as it is currently undervalued with its reliable and high-quality products in several emerging and established markets in the communications, technology, and music industries.

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read-time
2 min

111.22

Target Price

8/ 10

Confidence

6-12 Months

Timeframe
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Earnings Release
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News
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SEC Filing
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Sentiment
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Other Catalyst

SNE Channel

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