SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SOP - FR0000050809 - Common Stock
150.6 EUR
-0.2 (-0.13%)
Taking everything into account, SOP scores 5 out of 10 in our fundamental rating. SOP was compared to 73 industry peers in the IT Services industry. While SOP has a great profitability rating, there are some minor concerns on its financial health. SOP scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 of 4.80%. This is comparable to the rest of the industry: SOP outperforms 57.53% of its industry peers.
Looking at the Return On Equity, with a value of 13.71%, SOP is in the better half of the industry, outperforming 67.12% of the companies in the same industry.
The Return On Invested Capital of SOP (11.01%) is better than 73.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOP is significantly below the industry average of 26.63%.
The last Return On Invested Capital (11.01%) for SOP is above the 3 year average (10.67%), which is a sign of increasing profitability.
| 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
The Profit Margin of SOP (4.76%) is better than 60.27% of its industry peers.
SOP's Profit Margin has improved in the last couple of years.
The Operating Margin of SOP (8.80%) is better than 64.38% of its industry peers.
In the last couple of years the Operating Margin of SOP has grown nicely.
With a decent Gross Margin value of 76.49%, SOP is doing good in the industry, outperforming 67.12% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOP is creating some value.
The number of shares outstanding for SOP has been reduced compared to 1 year ago.
Compared to 5 years ago, SOP has less shares outstanding
Compared to 1 year ago, SOP has an improved debt to assets ratio.
2.2 Solvency
SOP has an Altman-Z score of 2.17. 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 2.17, SOP is doing worse than 61.64% 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 comparable to the rest of the industry.
SOP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
SOP has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.77
WACC6.21%
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.
With a Current ratio value of 0.89, SOP is not doing good in the industry: 78.08% of the companies in the same industry are doing better.
A Quick Ratio of 0.89 indicates that SOP may have some problems paying its short term obligations.
SOP's Quick ratio of 0.89 is on the low side compared to the rest of the industry. SOP is outperformed by 72.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
SOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.42%, which is quite impressive.
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.
The Revenue has been growing slightly by 5.43% on average over the past years.
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
SOP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.39% yearly.
The Revenue is expected to grow by 2.83% on average over the next years.
EPS Next Y-9.1%
EPS Next 2Y-1.61%
EPS Next 3Y1.26%
EPS Next 5Y2.39%
Revenue Next Year-3.42%
Revenue Next 2Y-1.01%
Revenue Next 3Y0.38%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.12, the valuation of SOP can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SOP indicates a rather cheap valuation: SOP is cheaper than 90.41% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. SOP is valued rather cheaply when compared to this.
SOP is valuated reasonably with a Price/Forward Earnings ratio of 8.58.
Based on the Price/Forward Earnings ratio, SOP is valued cheaply inside the industry as 89.04% of the companies are valued more expensively.
SOP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOP indicates a somewhat cheap valuation: SOP is cheaper than 72.60% of the companies listed in the same industry.
SOP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SOP is cheaper than 83.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | 6.1 |
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)1.19
EPS Next 2Y-1.61%
EPS Next 3Y1.26%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 3.01%. 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 2.29.
SOP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
On average, the dividend of SOP grows each year by 20.50%, which is quite nice.
Dividend Growth(5Y)20.5%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
33.43% of the earnings are spent on dividend by SOP. This is a low number and sustainable payout ratio.
SOP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.43%
EPS Next 2Y-1.61%
EPS Next 3Y1.26%
EPA:SOP (1/5/2026, 10:35:35 AM)
150.6
-0.2 (-0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners43.93%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap3.09B
Revenue(TTM)5.67B
Net Income(TTM)269.80M
Analysts82.86
Price Target203.9 (35.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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)-2.96%
PT rev (3m)-12.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-2.29%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 8.58 | ||
| P/S | 0.55 | ||
| P/FCF | 7.72 | ||
| P/OCF | 6.61 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)13.54
EY8.99%
EPS(NY)17.56
Fwd EY11.66%
FCF(TTM)19.52
FCFY12.96%
OCF(TTM)22.79
OCFY15.13%
SpS275.97
BVpS95.8
TBVpS-30.03
PEG (NY)N/A
PEG (5Y)1.19
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 | 2.17 |
F-Score8
WACC6.21%
ROIC/WACC1.77
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-9.1%
EPS Next 2Y-1.61%
EPS Next 3Y1.26%
EPS Next 5Y2.39%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%-3.58%
Revenue Next Year-3.42%
Revenue Next 2Y-1.01%
Revenue Next 3Y0.38%
Revenue Next 5Y2.83%
EBIT growth 1Y1.09%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year30.16%
EBIT Next 3Y11.79%
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.
What is the valuation status for SOP stock?
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.
How financially healthy is SOPRA STERIA GROUP?
The financial health rating of SOPRA STERIA GROUP (SOP.PA) is 4 / 10.
How sustainable is the dividend of SOPRA STERIA GROUP (SOP.PA) stock?
The dividend rating of SOPRA STERIA GROUP (SOP.PA) is 6 / 10 and the dividend payout ratio is 33.43%.