Sony Group (SONY) AI Stock Analysis

• Market Cap: $149.53B
• Dividend Yield: 0.52%
• Average Volume (3M): 4.69M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.18
• Revenue Growth: -5.46%
• EPS Growth: 14.01%
• Country: US
• Employees: 113,000
• Sector: Technology
• Sector Strength: 91
• Industry: Consumer Electronics
• EPS (TTM): 0.23
• Shares Outstanding: 6,149,810,500
• 10 Day Avg. Volume: 4,234,325
• 30 Day Avg. Volume: 4,694,898
• PEG Ratio: 12.07
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $29.00
• Price Target Upside: 18.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $28.00 ▲(14.61%Upside)

Sony's strong financial performance is the primary driver of the overall score, reflecting sound revenue and profit growth and solid cash flow generation. The technical analysis suggests a mixed outlook, with short-term weakness but potential for long-term gains. Valuation appears fair, with a P/E ratio indicating reasonable pricing relative to earnings, though the dividend yield is modest.

Positive Factors

Earnings

Sony reported results that beat both analyst and consensus estimates on top and bottom lines.

Financial Guidance

The company issued initial FY25 operating income guidance that was better than the pre-print estimate when adjusting for tariffs and FX impacts.

Gaming and Music Performance

Gaming and Music segments significantly outperformed, with Gaming & Network Services revenue up 16% and Music up 14% year-over-year.

Negative Factors

Revenue Performance

Sony Q4:F24 revenue of ¥2.63 trillion missed estimates largely due to accounting-driven downside at Financial Services.

Segment Declines

Excluding Financial Services, revenue was down 4% year-over-year, led by declines in Games & Network Services, Pictures, and Music segments.

Sony Group Business Overview & Revenue Model

Company Description

Sony Group Corporation is a Japanese multinational conglomerate headquartered in Tokyo, Japan. It operates in diverse sectors, including electronics, gaming, entertainment, and financial services. Sony is renowned for its consumer electronics products such as televisions, audio equipment, and cameras. In the gaming sector, it is a leading player with its PlayStation gaming consoles and related software. The company's entertainment division includes Sony Pictures, a major film and television production company, and Sony Music, one of the largest music companies globally. Furthermore, Sony provides financial services through Sony Financial Holdings, offering insurance and banking services, primarily in Japan.

How the Company Makes Money

Sony Group Corporation generates revenue through multiple streams across its diverse business operations. The primary revenue sources include the sale of consumer electronics such as televisions, audio systems, and imaging products. The gaming segment, dominated by the PlayStation platform, contributes significantly through console sales, game software, and subscription services like PlayStation Plus. The entertainment division earns from film and television production, distribution, and licensing, as well as music recording and publishing. In financial services, Sony earns from life insurance premiums, banking services, and investment income. The company's earnings are further supported by strategic partnerships and collaborations across its various sectors, enhancing its market presence and product offerings.

Sony Group Financial Statement Overview

Summary

Sony Group's financial health is strong, with robust revenue growth and profitability. Efficient cost management and operational efficiency are reflected in healthy margins and a solid balance sheet. Positive cash flow trends indicate potential for reinvestment and returns to shareholders. Careful management of debt levels is recommended to maintain stability.

Income Statement

Sony Group has demonstrated solid revenue growth, with a significant increase from the previous year. The gross profit margin remains robust, reflecting efficient cost management. Net profit margins have improved, indicating strong profitability. EBIT and EBITDA margins are healthy, showcasing operational efficiency.

Balance Sheet

Sony Group's balance sheet is strong, with a manageable debt-to-equity ratio and a healthy return on equity. The equity ratio indicates a solid capital structure, with a good proportion of assets financed by shareholder equity. The company's leverage is under control, reducing financial risk.

Cash Flow

Sony Group exhibits positive cash flow trends, with substantial free cash flow growth. Operating cash flow to net income ratio is strong, highlighting effective cash conversion from earnings. Free cash flow to net income ratio is healthy, indicating potential for reinvestment and returns to shareholders.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	13.81T	13.02T	11.54T	9.92T	9.00T	8.26T
Gross Profit	3.67T	3.33T	3.14T	2.70T	2.44T	2.33T
EBITDA	2.68T	2.45T	2.31T	2.06T	1.64T	1.56T
Net Income	1.13T	970.57B	1.01T	882.18B	1.03T	582.19B
Balance Sheet
Total Assets	35.99T	34.11T	31.15T	29.65T	27.51T	24.97T
Cash, Cash Equivalents and Short-Term Investments	3.08T	2.33T	1.83T	2.47T	2.22T	1.92T
Total Debt	4.38T	4.09T	4.06T	3.57T	2.65T	2.05T
Total Liabilities	27.47T	26.35T	24.50T	23.95T	20.78T	18.97T
Stockholders Equity	8.19T	7.59T	6.60T	5.65T	6.68T	4.87T
Cash Flow
Free Cash Flow	3.18T	749.27B	-298.94B	792.55B	837.91B	909.98B
Operating Cash Flow	3.89T	1.37T	314.69B	1.23T	1.35T	1.35T
Investing Cash Flow	-977.10B	-818.89B	-1.05T	-728.78B	-1.78T	-1.35T
Financing Cash Flow	-722.49B	-210.71B	84.30B	-336.58B	666.97B	65.66B

Sony Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONY, the sentiment is Negative. The current price of 24.43 is below the 20-day moving average (MA) of 25.42, below the 50-day MA of 25.56, and above the 200-day MA of 22.51, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 7.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONY.

Sony Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAPL	76 Outperform	$3.15T	32.95	138.02%	0.49%	4.91%	-0.36%
SONY	74 Outperform	$149.53B	19.74	14.32%	0.52%	-5.46%	14.01%
TBCH	68 Neutral	$278.42M	19.06	12.49%	―	44.41%	―
Sector *	63 Neutral	$33.91B	5.95	-11.88%	1.83%	5.33%	-18.39%
SONO	63 Neutral	$1.26B	―	-15.80%	―	-5.24%	-67.92%
LPL	55 Neutral	$3.35B	―	-28.93%	―	17.34%	34.72%
GPRO	52 Neutral	$126.55M	―	-83.57%	―	-20.88%	62.21%