SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
EPA:SOP - Euronext Paris - Matif - FR0000050809 - Common Stock - Currency: EUR
Overall SOP gets a fundamental rating of 4 out of 10. We evaluated SOP against 71 industry peers in the IT Services industry. While SOP is still in line with the averages on profitability rating, there are concerns on its financial health. SOP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SOP was profitable.
In the past year SOP had a positive cash flow from operations.
In the past 5 years SOP has always been profitable.
Each year in the past 5 years SOP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.14%, SOP is doing worse than 61.54% of the companies in the same industry.
SOP has a Return On Equity (9.97%) which is in line with its industry peers.
SOP has a better Return On Invested Capital (9.80%) than 63.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOP is in line with the industry average of 10.97%.
The 3 year average ROIC (9.35%) for SOP is below the current ROIC(9.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 9.97% | ||
| ROIC | 9.8% |
ROA(3y)3.99%
ROA(5y)3.57%
ROE(3y)11.53%
ROE(5y)10.78%
ROIC(3y)9.35%
ROIC(5y)8.45%
1.3 Margins
SOP has a Profit Margin (3.29%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SOP has remained more or less at the same level.
The Operating Margin of SOP (8.59%) is better than 64.62% of its industry peers.
SOP's Operating Margin has improved in the last couple of years.
SOP has a Gross Margin of 75.52%. This is in the better half of the industry: SOP outperforms 64.62% of its industry peers.
In the last couple of years the Gross Margin of SOP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.59% | ||
| PM (TTM) | 3.29% | ||
| GM | 75.52% |
OM growth 3Y8.55%
OM growth 5Y4.97%
PM growth 3Y8.1%
PM growth 5Y0.71%
GM growth 3Y-0.11%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOP is creating some value.
SOP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, SOP has about the same amount of shares outstanding.
The debt/assets ratio for SOP is higher compared to a year ago.
2.2 Solvency
SOP has an Altman-Z score of 1.97. This is not the best score and indicates that SOP is in the grey zone with still only limited risk for bankruptcy at the moment.
SOP's Altman-Z score of 1.97 is on the low side compared to the rest of the industry. SOP is outperformed by 61.54% of its industry peers.
SOP has a debt to FCF ratio of 3.71. This is a good value and a sign of high solvency as SOP would need 3.71 years to pay back of all of its debts.
The Debt to FCF ratio of SOP (3.71) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.53 indicates that SOP is somewhat dependend on debt financing.
SOP's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. SOP outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.71 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.63
WACC6%
2.3 Liquidity
SOP has a Current Ratio of 0.80. This is a bad value and indicates that SOP is not financially healthy enough and could expect problems in meeting its short term obligations.
SOP has a Current ratio of 0.80. This is amonst the worse of the industry: SOP underperforms 86.15% of its industry peers.
A Quick Ratio of 0.80 indicates that SOP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, SOP is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for SOP have decreased strongly by -21.91% in the last year.
Measured over the past 5 years, SOP shows a small growth in Earnings Per Share. The EPS has been growing by 7.70% on average per year.
The Revenue has grown by 9.58% in the past year. This is quite good.
Measured over the past years, SOP shows a small growth in Revenue. The Revenue has been growing by 7.23% on average per year.
EPS 1Y (TTM)-21.91%
EPS 3Y19.34%
EPS 5Y7.7%
EPS Q2Q%8.88%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y10.84%
Revenue growth 5Y7.23%
Sales Q2Q%3.85%
3.2 Future
SOP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.36% yearly.
Based on estimates for the next years, SOP will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y8.58%
EPS Next 2Y7.81%
EPS Next 3Y8.26%
EPS Next 5Y7.36%
Revenue Next Year1.44%
Revenue Next 2Y1.88%
Revenue Next 3Y2.63%
Revenue Next 5Y2.15%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.58, which indicates a rather expensive current valuation of SOP.
SOP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.47, SOP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 9.05, the valuation of SOP can be described as very reasonable.
84.62% of the companies in the same industry are more expensive than SOP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 92.74. SOP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
73.85% of the companies in the same industry are more expensive than SOP, based on the Enterprise Value to EBITDA ratio.
73.85% of the companies in the same industry are more expensive than SOP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.08 | ||
| EV/EBITDA | 6.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SOP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)2.41
EPS Next 2Y7.81%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
SOP's Dividend Yield is a higher than the industry average which is at 4.29.
Compared to an average S&P500 Dividend Yield of 2.28, SOP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
The dividend of SOP is nicely growing with an annual growth rate of 12.47%!
Dividend Growth(5Y)12.47%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
48.30% of the earnings are spent on dividend by SOP. This is a bit on the high side, but may be sustainable.
SOP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.3%
EPS Next 2Y7.81%
EPS Next 3Y8.26%
SOPRA STERIA GROUP
EPA:SOP (2/5/2025, 5:29:50 PM)
175.6
+0.5 (+0.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners36.99%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap3.61B
Analysts82.86
Price Target234.7 (33.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend4.34
Dividend Growth(5Y)12.47%
DP48.3%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.21%
PT rev (3m)-6.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.89%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 9.05 | ||
| P/S | 0.61 | ||
| P/FCF | 8.08 | ||
| P/OCF | 6.68 | ||
| P/B | 1.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.03 |
EPS(TTM)9.45
EY5.38%
EPS(NY)19.41
Fwd EY11.05%
FCF(TTM)21.73
FCFY12.37%
OCF(TTM)26.27
OCFY14.96%
SpS287.82
BVpS94.88
TBVpS-30.47
PEG (NY)2.17
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 9.97% | ||
| ROCE | 14.19% | ||
| ROIC | 9.8% | ||
| ROICexc | 10.27% | ||
| ROICexgc | 41.87% | ||
| OM | 8.59% | ||
| PM (TTM) | 3.29% | ||
| GM | 75.52% | ||
| FCFM | 7.55% |
ROA(3y)3.99%
ROA(5y)3.57%
ROE(3y)11.53%
ROE(5y)10.78%
ROIC(3y)9.35%
ROIC(5y)8.45%
ROICexc(3y)10.27%
ROICexc(5y)9.24%
ROICexgc(3y)85.84%
ROICexgc(5y)67.82%
ROCE(3y)13.55%
ROCE(5y)12.24%
ROICexcg growth 3Y58.8%
ROICexcg growth 5YN/A
ROICexc growth 3Y13.57%
ROICexc growth 5Y1.2%
OM growth 3Y8.55%
OM growth 5Y4.97%
PM growth 3Y8.1%
PM growth 5Y0.71%
GM growth 3Y-0.11%
GM growth 5Y0.91%
F-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.71 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 28.1% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 13.4 | ||
| Cash Conversion | 64.25% | ||
| Profit Quality | 229.68% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.97 |
F-Score7
WACC6%
ROIC/WACC1.63
Cap/Depr(3y)36.88%
Cap/Depr(5y)31.64%
Cap/Sales(3y)1.58%
Cap/Sales(5y)1.43%
Profit Quality(3y)222.37%
Profit Quality(5y)245.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.91%
EPS 3Y19.34%
EPS 5Y7.7%
EPS Q2Q%8.88%
EPS Next Y8.58%
EPS Next 2Y7.81%
EPS Next 3Y8.26%
EPS Next 5Y7.36%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y10.84%
Revenue growth 5Y7.23%
Sales Q2Q%3.85%
Revenue Next Year1.44%
Revenue Next 2Y1.88%
Revenue Next 3Y2.63%
Revenue Next 5Y2.15%
EBIT growth 1Y21.22%
EBIT growth 3Y20.32%
EBIT growth 5Y12.56%
EBIT Next Year46.41%
EBIT Next 3Y17.56%
EBIT Next 5Y12.73%
FCF growth 1Y11.07%
FCF growth 3Y14.47%
FCF growth 5Y25.56%
OCF growth 1Y13.88%
OCF growth 3Y15.74%
OCF growth 5Y22.12%