# Sonae SGPS (SON.LS)

Canonical: https://gigainvestors.com/s/SON.LS

Analysis as of: 2026-10-16T07:37:47.754Z. Financial observations: FY2015–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 2.10 per share; close as of 2026-10-15.

Estimated value: low EUR 0.68 per share, central EUR 0.76 per share, high EUR 0.87 per share. Buy at or below the central value EUR 0.76 per share. Valuation as of 2026-10-16T07:37:47.754Z; scenarios are not confidence intervals.

Expected annual return: 5.3% at the stated quote. About 5.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; PT 10-year bond 3.9% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 6.92×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.10×

- FY2017: -0.10×

- FY2018: 0.01×

- FY2019: 0.03×

- FY2020: 0.03×

- FY2021: 0.06×

- FY2022: 0.07×

- FY2023: 0.02×

- FY2024: 0.03×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 4.5%

- ROIC, second-lowest year: -19.6%

- Typical minus recent gross margin: -0.0 pp

- Typical gross margin (annual median): 31.8%

- Recent gross margin (lower of latest and 3-year median): 31.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.2%

- ROIC including acquisitions, ten-year median: 2.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -19.6%

- FY2017: -22.0%

- FY2018: 2.8%

- FY2019: 4.4%

- FY2020: 5.0%

- FY2021: 11.5%

- FY2022: 14.0%

- FY2023: 4.7%

- FY2024: 4.3%

- FY2025: 6.2%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.36×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 497M

- Net income, five-year total: EUR 1.4B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.0 pp

- Working capital / revenue, change between three-year averages: -0.1 pp

- Working capital / revenue, final three-year average: -4.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.56×

- FY2022: 0.54×

- FY2023: 0.21×

- FY2024: 0.05×

- FY2025: 0.38×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -19.6% vs 4.7%

- Per-share earnings: 0.09 to 0.11 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: EUR 883M

- Cumulative retained earnings: EUR -214M

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.7%

- Per-share value change: EUR 0.03

- Per-share value, starting three-year median: EUR 0.09

- Per-share value, ending three-year median: EUR 0.11

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 1.5%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 1.7B

- Cumulative net income, 10 years: EUR 2.2B

- ROIC, first three-year median: -19.6%

- ROIC, last three-year median: 4.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: EUR 0.08

- FY2018: EUR 0.11

- FY2019: EUR 0.09

- FY2020: EUR 0.04

- FY2021: EUR 0.14

- FY2022: EUR 0.18

- FY2023: EUR 0.19

- FY2024: EUR 0.11

- FY2025: EUR 0.10

### accounting: pass

- Sloan accruals: -7.9%

- Receivables to sales index (DSRI): 0.68×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.49×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.76×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.1%

- FY2017: -3.4%

- FY2018: -4.6%

- FY2019: -4.9%

- FY2020: -5.8%

- FY2021: -4.3%

- FY2022: -3.3%

- FY2024: -6.1%

- FY2025: -7.9%

## Holders

## Price story

Price needs cash profits to grow 14.8% a year for ten years · sales +14.2%

Story as of 2026-10-16T10:00:09.465Z; price observation 2026-10-15.

Price needs cash profits to grow 14.8% a year for ten years

### Sales · FY2024–2025

sales +14.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 5.4B 

- FY2017: EUR 5.7B 

- FY2018: EUR 6.0B 

- FY2019: EUR 6.4B 

- FY2020: EUR 6.8B 

- FY2021: EUR 7.0B 

- FY2022: EUR 7.7B 

- FY2023: EUR 8.4B 

- FY2024: EUR 9.9B 

- FY2025: EUR 11B 

### Gross margin · FY2025

gross margin 31.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 21.0% 

- FY2017: 20.0% 

- FY2018: 32.2% 

- FY2019: 32.8% 

- FY2020: 30.9% 

- FY2021: 32.0% 

- FY2022: 31.7% 

- FY2023: 31.1% 

- FY2024: 31.8% 

- FY2025: 31.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in grocery stores; annual sales are EUR 11.4 billion.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2025-12-31 (filed 2026-10-16T07:37:47.754Z); FY2025: revenue 11360072000; grossProfit 3626874000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SON.LS: Sonae, SGPS, S.A. operates a portfolio of businesses in retail, real estate, telecommunications, technology, and financial services in Portugal and internationally. The company operates through six segments: MC, Worten, Musti, Sierra, Bright Pixel, and NOS. It is involved in retailing in the food sector through a network of stores, such as Continente Modelo and Continente Bom Dia supermarkets, Continente hypermarkets, and Meu Super, a franchised supermarket; health and wellness markets under the Wells, Arenal, Druni, and other retail banners; bookshops and stationery under the Note! brand; and cafeterias and restaurants under the Bagga brand. The company also offers electronics and appliances through digital channels and physical stores; a range of services under the Worten Resolve and iServices brands; retail products and services for pets under the Musti ja Miri, Arken Zoo, Musti, Pet City, and ZU brands; telecommunication services, including Pay TV, broadband services, and cinema film exhibition and distribution; wellbeing solutions; financial solutions; and jeanswear, clothing, and accessories. In addition, it operates in the real estate sector; and invests in the retail technology, digital infrastructure, and cybersecurity. The company was founded in 1959 and is headquartered in Cidade da Maia, Portugal. Sonae, SGPS, S.A. operates as a subsidiary of Efanor Investimentos SGPS, SA.

### Why customers stay

Margins ranged from 31.1% to 31.9% during 2023–25; it earns 4.5% on its capital.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2023-12-31 (filed 2026-10-16T07:37:47.754Z); FY2023: grossProfit / revenue = 31.1%.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2024-12-31 (filed 2026-10-16T07:37:47.754Z); FY2024: grossProfit / revenue = 31.8%.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2025-12-31 (filed 2026-10-16T07:37:47.754Z); FY2025: grossProfit / revenue = 31.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:47.754Z); 10-year return on capital observations [[2016,-0.19563842504335033],[2017,-0.22015361152787127],[2018,0.028120966020517307],[2019,0.04353822424628351],[2020,0.050213036985744655],[2021,0.11480156010905133],[2022,0.13966931896010248],[2023,0.04658733892582858],[2024,0.04340326307061644],[2025,0.06194720487520638]]; median 0.04506278158605605. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 32% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:47.754Z); Gross margin observations: [[2021,0.32008911341854185],[2022,0.3171048249595231],[2023,0.31132662680722956]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2016-12-31 (filed 2026-10-16T07:37:47.754Z); FY2016: growth capex 0; upkeep 276705424; owner earnings 88131813. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2017-12-31 (filed 2026-10-16T07:37:47.754Z); FY2017: growth capex 0; upkeep 232180121; owner earnings 124951277. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2018-12-31 (filed 2026-10-16T07:37:47.754Z); FY2018: growth capex 0; upkeep 310558131; owner earnings 269340970. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2021-12-31 (filed 2026-10-16T07:37:47.754Z); FY2021: growth capex 0; upkeep 240975555; owner earnings 150616525.19294736. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2022-12-31 (filed 2026-10-16T07:37:47.754Z); FY2022: growth capex 0; upkeep 297538000; owner earnings 185370201.32249695. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2023-12-31 (filed 2026-10-16T07:37:47.754Z); FY2023: growth capex 10334000; upkeep 386186000; owner earnings 75790400. Growth capex / owner earnings = 0.13634972239228188.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2024-12-31 (filed 2026-10-16T07:37:47.754Z); FY2024: growth capex 0; upkeep 423971000; owner earnings 10539697.236255556. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SON.LS.json#2025-12-31 (filed 2026-10-16T07:37:47.754Z); FY2025: growth capex 0; upkeep 436458000; owner earnings 74904293.57931562. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:47.754Z); Dividend observations: [[2016,2687953],[2017,79736296],[2018,144744047],[2019,309067010],[2020,175471392],[2021,96098000],[2022,169592000],[2023,161702000],[2024,160685000],[2025,166121000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 58.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SON.LS SharesStats.PercentInsiders = 58.062999999999995 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 14.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:47.754Z); Ten-year compound average after fade. Initial solved rate 0.20149880733827252. Price 2.1; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 0.73 per share

- 2016-11: EUR 0.80 per share

- 2016-12: EUR 0.87 per share

- 2017-01: EUR 0.80 per share

- 2017-02: EUR 0.83 per share

- 2017-03: EUR 0.95 per share

- 2017-04: EUR 0.94 per share

- 2017-05: EUR 0.92 per share

- 2017-06: EUR 0.97 per share

- 2017-07: EUR 0.97 per share

- 2017-08: EUR 0.94 per share

- 2017-09: EUR 1.02 per share

- 2017-10: EUR 1.03 per share

- 2017-11: EUR 1.02 per share

- 2017-12: EUR 1.13 per share

- 2018-01: EUR 1.29 per share

- 2018-02: EUR 1.20 per share

- 2018-03: EUR 1.10 per share

- 2018-04: EUR 1.13 per share

- 2018-05: EUR 1.06 per share

- 2018-06: EUR 1.03 per share

- 2018-07: EUR 0.97 per share

- 2018-08: EUR 0.92 per share

- 2018-09: EUR 0.89 per share

- 2018-10: EUR 0.88 per share

- 2018-11: EUR 0.84 per share

- 2018-12: EUR 0.81 per share

- 2019-01: EUR 0.91 per share

- 2019-02: EUR 0.94 per share

- 2019-03: EUR 0.92 per share

- 2019-04: EUR 0.99 per share

- 2019-05: EUR 0.89 per share

- 2019-06: EUR 0.85 per share

- 2019-07: EUR 0.85 per share

- 2019-08: EUR 0.83 per share

- 2019-09: EUR 0.86 per share

- 2019-10: EUR 0.90 per share

- 2019-11: EUR 0.91 per share

- 2019-12: EUR 0.91 per share

- 2020-01: EUR 0.84 per share

- 2020-02: EUR 0.71 per share

- 2020-03: EUR 0.59 per share

- 2020-04: EUR 0.72 per share

- 2020-05: EUR 0.67 per share

- 2020-06: EUR 0.64 per share

- 2020-07: EUR 0.59 per share

- 2020-08: EUR 0.60 per share

- 2020-09: EUR 0.58 per share

- 2020-10: EUR 0.51 per share

- 2020-11: EUR 0.67 per share

- 2020-12: EUR 0.66 per share

- 2021-01: EUR 0.66 per share

- 2021-02: EUR 0.68 per share

- 2021-03: EUR 0.78 per share

- 2021-04: EUR 0.78 per share

- 2021-05: EUR 0.78 per share

- 2021-06: EUR 0.80 per share

- 2021-07: EUR 0.83 per share

- 2021-08: EUR 0.92 per share

- 2021-09: EUR 0.91 per share

- 2021-10: EUR 0.95 per share

- 2021-11: EUR 0.94 per share

- 2021-12: EUR 1.00 per share

- 2022-01: EUR 1.02 per share

- 2022-02: EUR 0.97 per share

- 2022-03: EUR 1.04 per share

- 2022-04: EUR 1.03 per share

- 2022-05: EUR 1.11 per share

- 2022-06: EUR 1.17 per share

- 2022-07: EUR 1.11 per share

- 2022-08: EUR 1.00 per share

- 2022-09: EUR 0.82 per share

- 2022-10: EUR 0.97 per share

- 2022-11: EUR 0.96 per share

- 2022-12: EUR 0.94 per share

- 2023-01: EUR 0.94 per share

- 2023-02: EUR 1.04 per share

- 2023-03: EUR 1.01 per share

- 2023-04: EUR 1.03 per share

- 2023-05: EUR 0.90 per share

- 2023-06: EUR 0.90 per share

- 2023-07: EUR 0.99 per share

- 2023-08: EUR 0.97 per share

- 2023-09: EUR 0.92 per share

- 2023-10: EUR 0.93 per share

- 2023-11: EUR 0.93 per share

- 2023-12: EUR 0.90 per share

- 2024-01: EUR 0.90 per share

- 2024-02: EUR 0.85 per share

- 2024-03: EUR 0.88 per share

- 2024-04: EUR 0.94 per share

- 2024-05: EUR 0.95 per share

- 2024-06: EUR 0.88 per share

- 2024-07: EUR 0.94 per share

- 2024-08: EUR 0.95 per share

- 2024-09: EUR 0.95 per share

- 2024-10: EUR 0.91 per share

- 2024-11: EUR 0.94 per share

- 2024-12: EUR 0.91 per share

- 2025-01: EUR 0.90 per share

- 2025-02: EUR 1.01 per share

- 2025-03: EUR 1.06 per share

- 2025-04: EUR 1.12 per share

- 2025-05: EUR 1.22 per share

- 2025-06: EUR 1.21 per share

- 2025-07: EUR 1.26 per share

- 2025-08: EUR 1.28 per share

- 2025-09: EUR 1.34 per share

- 2025-10: EUR 1.41 per share

- 2025-11: EUR 1.48 per share

- 2025-12: EUR 1.61 per share

- 2026-01: EUR 1.77 per share

- 2026-02: EUR 2.02 per share

- 2026-03: EUR 1.91 per share

- 2026-04: EUR 1.95 per share

- 2026-05: EUR 1.91 per share

- 2026-06: EUR 2.02 per share

- 2026-07: EUR 2.04 per share

- 2026-08: EUR 2.01 per share

- 2026-09: EUR 2.11 per share

- 2026-10: EUR 2.06 per share

## Annual estimated value (EUR per share)

- FY2019: low EUR 1.06 per share, central EUR 1.17 per share, high EUR 1.32 per share

- FY2025: low EUR 0.70 per share, central EUR 0.78 per share, high EUR 0.88 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:43:35.728Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations