SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SOP - FR0000050809 - Common Stock
131.9 EUR
+0.2 (+0.15%)
We assign a fundamental rating of 5 out of 10 to SOP. SOP was compared to 72 industry peers in the IT Services industry. While SOP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SOP may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SOP had positive earnings in the past year.
SOP had a positive operating cash flow in the past year.
SOP had positive earnings in each of the past 5 years.
Each year in the past 5 years SOP had a positive operating cash flow.
1.2 Ratios
SOP has a Return On Assets (4.80%) which is in line with its industry peers.
The Return On Equity of SOP (13.71%) is better than 62.50% of its industry peers.
The Return On Invested Capital of SOP (11.01%) is better than 72.22% of its industry peers.
SOP had an Average Return On Invested Capital over the past 3 years of 10.67%. This is significantly below the industry average of 27.45%.
The 3 year average ROIC (10.67%) for SOP is below the current ROIC(11.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 13.71% | ||
| ROIC | 11.01% |
ROA(3y)4.16%
ROA(5y)3.75%
ROE(3y)12.07%
ROE(5y)11.05%
ROIC(3y)10.67%
ROIC(5y)9.58%
1.3 Margins
SOP has a Profit Margin of 4.76%. This is comparable to the rest of the industry: SOP outperforms 58.33% of its industry peers.
In the last couple of years the Profit Margin of SOP has grown nicely.
The Operating Margin of SOP (8.80%) is better than 62.50% of its industry peers.
In the last couple of years the Operating Margin of SOP has grown nicely.
Looking at the Gross Margin, with a value of 76.49%, SOP is in the better half of the industry, outperforming 68.06% of the companies in the same industry.
SOP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.8% | ||
| PM (TTM) | 4.76% | ||
| GM | 76.49% |
OM growth 3Y5.51%
OM growth 5Y5.28%
PM growth 3Y2.72%
PM growth 5Y3.75%
GM growth 3Y0.74%
GM growth 5Y1.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SOP is still creating some value.
The number of shares outstanding for SOP has been reduced compared to 1 year ago.
The number of shares outstanding for SOP has been reduced compared to 5 years ago.
Compared to 1 year ago, SOP has an improved debt to assets ratio.
2.2 Solvency
SOP has an Altman-Z score of 2.11. 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.
Looking at the Altman-Z score, with a value of 2.11, SOP is doing worse than 62.50% of the companies in the same industry.
SOP has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as SOP would need 3.23 years to pay back of all of its debts.
SOP has a Debt to FCF ratio (3.23) which is in line with its industry peers.
A Debt/Equity ratio of 0.48 indicates that SOP is not too dependend on debt financing.
SOP's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. SOP outperforms 48.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.05
WACC10.51%
2.3 Liquidity
SOP has a Current Ratio of 0.89. This is a bad value and indicates that SOP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.89, SOP is doing worse than 80.56% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that SOP may have some problems paying its short term obligations.
SOP has a Quick ratio of 0.89. This is in the lower half of the industry: SOP underperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.42% over the past year.
The Earnings Per Share has been growing by 9.39% on average over the past years. This is quite good.
Looking at the last year, SOP shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
SOP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.43% yearly.
EPS 1Y (TTM)43.42%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%19.95%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%-3.58%
3.2 Future
The Earnings Per Share is expected to grow by 2.39% on average over the next years.
Based on estimates for the next years, SOP will show a small growth in Revenue. The Revenue will grow by 2.83% on average per year.
EPS Next Y-8.07%
EPS Next 2Y-0.86%
EPS Next 3Y1.83%
EPS Next 5Y2.39%
Revenue Next Year-3.25%
Revenue Next 2Y-0.88%
Revenue Next 3Y0.53%
Revenue Next 5Y2.83%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 9.74, the valuation of SOP can be described as reasonable.
95.83% of the companies in the same industry are more expensive than SOP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.11, SOP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.40, the valuation of SOP can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOP is valued cheaper than 90.28% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
SOP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SOP is cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOP is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
SOP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y-0.86%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 3.52%.
SOP's Dividend Yield is a higher than the industry average which is at 3.78.
SOP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
The dividend of SOP is nicely growing with an annual growth rate of 20.50%!
Dividend Growth(5Y)20.5%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
SOP pays out 33.43% of its income as dividend. This is a sustainable payout ratio.
The dividend of SOP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.43%
EPS Next 2Y-0.86%
EPS Next 3Y1.83%
EPA:SOP (12/1/2025, 5:29:40 PM)
131.9
+0.2 (+0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners43.75%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap2.71B
Revenue(TTM)5.67B
Net Income(TTM)269.80M
Analysts82.86
Price Target210.12 (59.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend4.72
Dividend Growth(5Y)20.5%
DP33.43%
Div Incr Years2
Div Non Decr Years3
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)-9.53%
PT rev (3m)-9.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 7.4 | ||
| P/S | 0.48 | ||
| P/FCF | 6.76 | ||
| P/OCF | 5.79 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.54 |
EPS(TTM)13.54
EY10.27%
EPS(NY)17.82
Fwd EY13.51%
FCF(TTM)19.52
FCFY14.8%
OCF(TTM)22.79
OCFY17.28%
SpS275.97
BVpS95.8
TBVpS-30.03
PEG (NY)N/A
PEG (5Y)1.04
Graham Number170.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 13.71% | ||
| ROCE | 15.06% | ||
| ROIC | 11.01% | ||
| ROICexc | 11.52% | ||
| ROICexgc | 62.81% | ||
| OM | 8.8% | ||
| PM (TTM) | 4.76% | ||
| GM | 76.49% | ||
| FCFM | 7.07% |
ROA(3y)4.16%
ROA(5y)3.75%
ROE(3y)12.07%
ROE(5y)11.05%
ROIC(3y)10.67%
ROIC(5y)9.58%
ROICexc(3y)11.97%
ROICexc(5y)10.63%
ROICexgc(3y)121.68%
ROICexgc(5y)90.7%
ROCE(3y)14.59%
ROCE(5y)13.1%
ROICexgc growth 3Y39.77%
ROICexgc growth 5Y23.23%
ROICexc growth 3Y10.54%
ROICexc growth 5Y8.39%
OM growth 3Y5.51%
OM growth 5Y5.28%
PM growth 3Y2.72%
PM growth 5Y3.75%
GM growth 3Y0.74%
GM growth 5Y1.12%
F-Score8
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 34.15% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 15.45 | ||
| Cash Conversion | 67.3% | ||
| Profit Quality | 148.67% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 2.11 |
F-Score8
WACC10.51%
ROIC/WACC1.05
Cap/Depr(3y)38%
Cap/Depr(5y)32.61%
Cap/Sales(3y)1.66%
Cap/Sales(5y)1.48%
Profit Quality(3y)227.03%
Profit Quality(5y)244.93%
High Growth Momentum
Growth
EPS 1Y (TTM)43.42%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%19.95%
EPS Next Y-8.07%
EPS Next 2Y-0.86%
EPS Next 3Y1.83%
EPS Next 5Y2.39%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%-3.58%
Revenue Next Year-3.25%
Revenue Next 2Y-0.88%
Revenue Next 3Y0.53%
Revenue Next 5Y2.83%
EBIT growth 1Y1.09%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year32.56%
EBIT Next 3Y13.38%
EBIT Next 5Y8.81%
FCF growth 1Y-13.69%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y-16.54%
OCF growth 3Y12.31%
OCF growth 5Y9.2%
SOPRA STERIA GROUP / SOP.PA FAQ
What is the fundamental rating for SOP stock?
ChartMill assigns a fundamental rating of 5 / 10 to SOP.PA.
Can you provide the valuation status for SOPRA STERIA GROUP?
ChartMill assigns a valuation rating of 7 / 10 to SOPRA STERIA GROUP (SOP.PA). This can be considered as Undervalued.
Can you provide the profitability details for SOPRA STERIA GROUP?
SOPRA STERIA GROUP (SOP.PA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for SOP stock?
The Price/Earnings (PE) ratio for SOPRA STERIA GROUP (SOP.PA) is 9.74 and the Price/Book (PB) ratio is 1.38.
What is the earnings growth outlook for SOPRA STERIA GROUP?
The Earnings per Share (EPS) of SOPRA STERIA GROUP (SOP.PA) is expected to decline by -8.07% in the next year.