SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SOP - FR0000050809 - Common Stock
154.6 EUR
-1.1 (-0.71%)
We assign a fundamental rating of 5 out of 10 to SOP. SOP was compared to 68 industry peers in the IT Services industry. While SOP has a great profitability rating, there are some minor concerns on its financial health. SOP has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years SOP has been profitable.
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 comparable to the rest of the industry.
SOP has a Return On Equity of 13.71%. This is in the better half of the industry: SOP outperforms 64.71% of its industry peers.
The Return On Invested Capital of SOP (11.01%) is better than 76.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOP is in line with the industry average of 11.04%.
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
With a Profit Margin value of 4.76%, SOP perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
In the last couple of years the Profit Margin of SOP has grown nicely.
SOP's Operating Margin of 8.80% is fine compared to the rest of the industry. SOP outperforms 63.24% of its industry peers.
In the last couple of years the Operating Margin of SOP has grown nicely.
SOP's Gross Margin of 76.49% is fine compared to the rest of the industry. SOP outperforms 66.18% of its industry peers.
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.
Compared to 1 year ago, SOP has less shares outstanding
Compared to 5 years ago, SOP has less shares outstanding
The debt/assets ratio for SOP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.18 indicates that SOP is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOP has a worse Altman-Z score (2.18) than 60.29% of its industry peers.
The Debt to FCF ratio of SOP is 3.23, which is a good value as it means it would take SOP, 3.23 years of fcf income to pay off all of its debts.
SOP's Debt to FCF ratio of 3.23 is in line compared to the rest of the industry. SOP outperforms 54.41% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that SOP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, SOP is in line with its industry, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.7
WACC6.47%
2.3 Liquidity
A Current Ratio of 0.89 indicates that SOP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.89, SOP is doing worse than 79.41% of the companies in the same industry.
SOP has a Quick 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.
SOP has a worse Quick ratio (0.89) than 72.06% 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.
Measured over the past years, SOP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.39% on average per year.
SOP shows a decrease in Revenue. In the last year, the revenue decreased by -1.23%.
Measured over the past years, SOP shows a small growth in Revenue. The Revenue has been growing by 5.43% on average per year.
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.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 11.42 indicates a reasonable valuation of SOP.
Based on the Price/Earnings ratio, SOP is valued cheaper than 89.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. SOP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.81, the valuation of SOP can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOP indicates a rather cheap valuation: SOP is cheaper than 89.71% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SOP to the average of the S&P500 Index (23.13), we can say SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 8.81 |
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 69.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SOP is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.92 | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
The decent profitability rating of SOP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.22
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.
Compared to an average industry Dividend Yield of 2.41, SOP pays a bit more dividend than its industry peers.
SOP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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.
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 (12/31/2025, 7:00:00 PM)
154.6
-1.1 (-0.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners44.57%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap3.18B
Revenue(TTM)5.67B
Net Income(TTM)269.80M
Analysts82.86
Price Target203.9 (31.89%)
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)-1.12%
EPS NY rev (3m)-2.29%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 8.81 | ||
| P/S | 0.56 | ||
| P/FCF | 7.92 | ||
| P/OCF | 6.78 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.22 |
EPS(TTM)13.54
EY8.76%
EPS(NY)17.56
Fwd EY11.36%
FCF(TTM)19.52
FCFY12.62%
OCF(TTM)22.79
OCFY14.74%
SpS275.97
BVpS95.8
TBVpS-30.03
PEG (NY)N/A
PEG (5Y)1.22
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 | 2.18 |
F-Score8
WACC6.47%
ROIC/WACC1.7
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 6 / 10 to SOPRA STERIA GROUP (SOP.PA). This can be considered as Fairly Valued.
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%.