SONYSony Group Corporation
Is the business good?
The checks split: earnings fully cash-backed (2.1×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 14% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SONY?
Sony Group Corporation earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.0 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Technology median 6.9% · fiscal year to FY2025
- Cash conversion
- 2.10×
Cash conversion · 1.47× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 11% |
| FY2022 | 12% |
| FY2023 | 12% |
| FY2024 | 9.3% |
| FY2025 | 11% |
Details›
- Gross marginfiscal year to FY2025
- 34%
- Operating marginfiscal year to FY2025
- 11%
- Net marginfiscal year to FY2025
- 8.8%
- Free cash flow margin
- 15%
- R&D as % of revenue
- 5.7%
- Revenue, trailing twelve months
- $12.96T
- Free cash flow, trailing twelve months
- $1.97T
- Net income, trailing twelve months
- $1.14T
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.