Sound Group

SOGP

Software - Application · Technology

Price

$10.09

-0.17 (-1.65%)

Market Cap

$47.5M

Exchange

NASDAQ

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

−4.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 5.0M (2021) → 4.7M (2025)

Sound Group Inc. is a Chinese technology company that runs online audio platforms. Its main products include audiobook and podcast-style apps where users can listen to stories, educational content, and entertainment. The company serves everyday consumers in China who want spoken-word content on their phones.

Sound Group makes money by charging users subscription fees for premium content and by selling virtual gifts and other digital items inside its apps. It operates almost entirely in China, making it a small player in a market dominated by larger Chinese tech companies like Tencent and ByteDance. The company's relatively high return on invested capital suggests it runs a lean operation, but its tiny size and heavy dependence on the Chinese market expose it to regulatory risk from Beijing, which has a history of tightening rules around online content platforms.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-28.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-409.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$234M/ year

→ Flat (+0% vs prior year)

7.7% of revenue

Below sector average (15%)

Steady R&D investment year-over-year

Insider Activity

42.8%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Revenue declining

Sound Group's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

25.2%

Modest — 25.2% gross margin

Operating Margin

-32.6%

Losing money on operations — -32.6%

ROCE

-46.4%

Weak — -46.4% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-5.2%

Shrinking sales (-5.2% YoY)

EPS YoY

-198.0%

Earnings shrinking (-198.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

—

Data not available

FCF Margin

0.0%

—

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

1.9x

Attractive valuation — P/E 1.9

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

30.56%

Healthy income — 30.56% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

N/A

no trend

Data not available

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