SNE

SONY CORP Shs Sponsored American Depositary Receipt Repr 1 Sh

TMT, Consumer


Presented:07/26/2018
Price:$53.66
Cap:$68.04B
Current Price:$18.66
Cap:$568.08B

Presented

Date07/26/2018
Price$53.66
Market Cap$68.04B
Ent Value$54.30B
P/E Ratio15.51x
Book Value$22.05
Div Yield0.25%
Shares O/S1,268.05M
Ave Daily Vol1,006,536
Short IntN/A

Current

Price$18.66
Market Cap$568.08B
Sony Corp. engages in the development, design, manufacture, and sale of electronic equipment, instruments, devices, game consoles, and software for consumers, professionals and industrial markets. Its operations are carried out through the following segments: Mobile Communications, Game & Network Services, Imaging Products & Solutions, Home Entertainment & Sound, Semiconductors, Components, Pictures, Music, Financial Services and Others. The Mobile Communications and Game & Network Services segment provides the production, acquisition and distribution of motion pictures and television programming, and the operation of television and digital networks. The Imaging Products & Solutions, Home Entertainment & Sound, Semiconductors, Components, Pictures and Music segment provides the development, production, manufacture and distribution of recorded music, and the management and licensing of the words and music of songs. The Financial Services and Others segment is engaged in the various financial services businesses which includes life and non-life insurance operations, through its Japanese insurance subsidiaries and banking operations through a Japanese Internet-based banking subsidiary. The company was founded by Akio Morita and Masaru Ibuka on May 7, 1946 and is headquartered in Tokyo, Japan.

Publicly traded companies mentioned herein: Sony Corp (SNE; 6758 JP), Vivendi SA (VIV FP)

Highlights

The presenter is long share of Sony (SNE) at $53 and sees upside to the mid-$60s over the next 12 - 24 months on a rerating of the multiple to earnings. Historically, Sony was a sub-par consumer electronics company. That changed ~4 years ago when Kenichiro Yoshida, Sony’s current President/CEO, joined the company in a Chief Strategy/CFO role. Today, SNE is a more focused business, with growth being driven by three of its segments: gaming, music, and semiconductors. The stock is trading at just 14x forward Street EPS estimates (13x the presenter’s forecast for FYE 3/31/2019), and it looks cheap on a sum-of-the-parts (SOTP) basis as well.

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Idea Discussion

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