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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1973
Positioning
Market Dominance
Manufacturing
Recreation
$1.3B
Patrick Spence
Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products. The company provides wireless speakers, home theater speakers, components, and accessories. Sonos was formerly known as Rincon Audio, Inc. and changed its name to Sonos in May 2004.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = SONO ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$SONO Sonos Inc | 50 | 58 | 52 | 51 | 77.7x | 38.1x | 5.4% | 2.5% | 45.5% | -0.7% | -2.5% | 116.0% | 0.0% | 114.0x | $1.3B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Sonos Inc (SONO) receives a "Hold" rating with a composite score of 50.2/100. It ranks #1973 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for SONO.
View All RatingsROE proxy 5.4% (sector -1.9%)
GM 45% vs sector 44%, OM -1% vs sector 3%
Capital turnover N/A, R&D intensity 11.0%
Rev growth 116%, 9yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Sonos Inc (SONO) as a Hold with a composite score of 50.2/100 at a current price of $14.86. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
Sonos Inc holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 50.2/100 places it at rank #1973 in our full universe.
No Moat
High
Poor
Fair Value
Gross margins of 45% signal strong pricing power.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 77.7x leaves little room for execution misses.
Leverage of 114% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
Sonos Inc represents a hold based on multi-factor quantitative performance.
Our model assigns Sonos Inc a Hold rating, with a composite score of 50.2/100 and 3 out of 5 stars. Ranked #1973 of 7,333 stocks, SONO presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 58/100, SONO shows adequate but unremarkable business quality. The company reports a return on equity of 5.4% (sector avg: -1.9%), gross margins of 45.5% (sector avg: 44.1%), net margins of -2.5% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
SONO's value score of 52/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 77.66x, an EV/EBITDA of 38.13x, a P/B ratio of 4.20x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Sonos Inc's investment score of 38/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 116.0% vs. a sector average of 6.7% and a return on assets of 2.5% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
SONO demonstrates moderate momentum with a score of 51/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 116.0% year-over-year, while a beta of 1.50 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 58/100, SONO exhibits average financial resilience. Key stability metrics include a beta of 1.50 and a debt-to-equity ratio of 114.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
Sonos Inc's short interest score of 27/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include above-average market sensitivity (beta: 1.50), elevated leverage (D/E: 114.00x), small-cap liquidity risk. At $1.3B (small-cap), SONO carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Sonos Inc is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #1973 of 7,333 overall (73rd percentile). Key comparisons include ROE of 5.4% exceeding the -1.9% sector median and operating margins of -0.7% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While SONO currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Short Int. (27) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 233% ABOVE SECTOR MEDIAN
ROE 385% BELOW SECTOR MEDIAN
Gross Margin IN LINE WITH SECTOR BENCHMARKS
SANTA BARBARA, Calif., February 24, 2026--Sonos, Inc. (Nasdaq: SONO) today announced that Tom Conrad, Chief Executive Officer, and Saori Casey, Chief Financial Officer, will participate in a fireside chat with Morgan Stanley analyst Erik Woodring at the Morgan Stanley Technology, Media & Telecom Conference on Tuesday, Mar. 3rd. The fireside chat will begin at 1:05 pm Pacific. A live webcast and replay of the fireside chat will be accessible in the News & Events section of the Sonos investor rela
Embedding AI in Sonos workflows is creating a new benchmark for efficiency, operational intelligence and risk mitigationNEW YORK, Feb. 23, 2026 (GLOBE NEWSWIRE) -- EXL [Nasdaq: EXLS], a global data and AI company, today announced a critical transformation initiative with Sonos (Nasdaq: SONO), the world’s leading sound experience company, and Amazon Web Services (AWS). This unique collaboration deploys agentic AI within Sonos IT service management (ITSM) workflows, aiming to create a new benchmar
Sonos (SONO) is back in focus after a quarter where sales held around last year’s level, yet net income and earnings per share were much higher, helped by cost controls and product mix changes. See our latest analysis for Sonos. The earnings beat and recent buyback activity have coincided with a sharp shift in sentiment, with a 19.3% 7 day share price return and a 31.9% 1 year total shareholder return contrasting with weaker 3 and 5 year total shareholder returns. This suggests momentum has...
ExlService Holdings (NasdaqGS:EXLS) is working with Sonos and Amazon Web Services on deploying agentic AI in enterprise IT service management. The collaboration focuses on using AI agents to manage IT operations, automation, and risk monitoring within large organizations. The initiative highlights EXL's role as a technology partner helping to apply advanced AI to real world operational challenges. For investors tracking ExlService Holdings at a share price of $28.51, this new collaboration...
Sonos, the maker of audio equipment, reported better-than-expected Q1 results but also announced a 12% workforce reduction as part of a restructuring. The stock rose on the news, though sales are still declining.
Above 50MA
37.18%
Net New Highs
+51081