Shares of Sony are down 0.4% to $17.23.
The Japanese electronics company launched the PlayStation 4 in North American on Nov. 15, and in Europe on Nov. 29. The last sales figures the company released pegged sales at 2.1 million consoles at the beginning of December 2013. By the end of the month the company was able to double sales of it's next-generation video game console.
Sony's sales figures come a day after Microsoft (MSFT) announced it sold 3 million Xbox One consoles in 2013. Microsoft said the Xbox One was the fastest-selling console in November, but it sold fewer consoles than Sony in the first few weeks after release.
TheStreet Ratings team rates Sony as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SONY CORP (SNE) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that SNE's debt-to-equity ratio is low, the quick ratio, which is currently 0.54, displays a potential problem in covering short-term cash needs.
- Net operating cash flow has increased to $1,223.24 million or 28.12% when compared to the same quarter last year. Despite an increase in cash flow, SONY CORP's cash flow growth rate is still lower than the industry average growth rate of 73.02%.
- SONY CORP has improved earnings per share by 5.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SONY CORP turned its bottom line around by earning $0.30 versus -$5.52 in the prior year. For the next year, the market is expecting a contraction of 35.0% in earnings ($0.20 versus $0.30).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Durables industry and the overall market, SONY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for SONY CORP is currently extremely low, coming in at 3.01%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.07% trails that of the industry average.
- You can view the full analysis from the report here: SNE Ratings Report