Value
6.5/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 0.5 |
| P/S | 9.5 |
| EV/EBITDA | 2.4 |
| Fwd P/E | 8.3 |
| PEG | 10.0 |
| Analyst target | 6.0 |
- ▸Forward P/E: 14.2x
- ▸PEG: 0.03
SONO · Why this verdict
Why Sonos (SONO) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score5.1/10
ConfidenceMEDIUM
MacroNEUTRAL
Per-dimension breakdown
Quality
4.8/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 2.1 |
| ROA | 2.7 |
| Gross margin | 5.0 |
| Op margin | 0.0 |
| Net margin | 0.8 |
| Current ratio | 5.7 |
| FCF quality | 10.0 |
| Moat | 6.5 |
| Piotroski F | 10.0 |
- ▸Excellent cash conversion: 505% FCF/NI
- ▸Strong Piotroski F-Score: 9/9
Growth
4.6/10data confidence 33%| Component | Sub-score |
|---|---|
| Rev growth | 4.6 |
Momentum
4.3/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 4.5 |
| MACD | 1.9 |
| OBV | 10.0 |
| MA position | 4.2 |
| Volume | 0.9 |
- ▸Volume accumulation (rising OBV)
- ▸Below 200-MA but MA still rising (+3.4%/30d) — pullback in uptrend, not confirmed weakness
Sentiment
6.9/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 7.1 |
| Price target | 8.1 |
| erm sentiment | 5.0 |
- ▸Light analyst coverage (4.0) — signal dampened
- ▸Analyst upside: 25%
Insider
7.0/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 8.0 |
| insider conviction | 8.0 |
| holder change | 5.1 |
- ▸Notable insider buying — $1,881,414 (0.103% of mkt cap)
Peer rank
3.1/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 1.3 |
| quality rank | 3.8 |
| growth rank | 2.5 |
Technical
5.7/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 5.4 |
| support resistance | 5.8 |
| 52w position | 5.5 |
| gap | 6.0 |
Risk (lower is worse)
3.5/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 4.6 |
| days to cover | 6.2 |
| volatility | 0.7 |
| put call | 0.0 |
| implied vol | 0.0 |
| beta | 3.5 |
| debt equity | 9.4 |
- ▸Elevated put/call: 4.80
- ▸High IV: 86%
Catalyst
3.3/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 3.3 |
| earnings timing | 5.0 |
| surprise avg | 0.0 |
- ▸Earnings concerns: 2B/2M
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (5)
- INSIDER:OK
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:52d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- MOMENTUM:4.3<4.5
- ASYMMETRY:0.6<1.5@spot
Warning (1)
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
0.62
Upside
+5.8%
Downside
9.4%
Sizing output
AVOID
SetupRANGE_BOUND — RSI 49 mid-range, Bollinger mid-band
EdgeNO_EDGE — No clear edge identified
SuitabilityAGGRESSIVE — Beta 1.94>1.3, MCap $1.8B<$5B
Investment implication
The F-path SELL output reflects an overall score of 5.1 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Insider at 7.0) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( MOMENTUM:4.3<4.5, ASYMMETRY:0.6<1.5@spot) reinforce the read. Current asymmetry R:R is 0.62 — supplementary context, not the trigger for this path.
The strongest dimensions are Insider at 7.0, Sentiment at 6.9, and Value at 6.5; the weakest are Peer rank at 3.1, Catalyst at 3.3, and Risk (lower is worse) at 3.5. The V9 engine flagged 2 failed gates with 1 warning, producing an asymmetric reward-to-risk of 0.62 and an engine sizing output of AVOID.