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 6 out of 10. We evaluated SOP against 70 industry peers in the IT Services industry. SOP scores excellent on profitability, but there are some minor concerns on its financial health. SOP is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make SOP a good candidate for value investing.
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.
SOP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOP has a Return On Assets (4.45%) which is comparable to the rest of the industry.
SOP's Return On Equity of 13.02% is in line compared to the rest of the industry. SOP outperforms 60.00% of its industry peers.
The Return On Invested Capital of SOP (11.47%) is better than 77.33% 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 11.01%.
The last Return On Invested Capital (11.47%) for SOP is above the 3 year average (10.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 13.02% | ||
| ROIC | 11.47% |
ROA(3y)4.16%
ROA(5y)3.75%
ROE(3y)12.07%
ROE(5y)11.05%
ROIC(3y)10.63%
ROIC(5y)9.56%
1.3 Margins
Looking at the Profit Margin, with a value of 4.34%, SOP is in line with its industry, outperforming 58.67% of the companies in the same industry.
In the last couple of years the Profit Margin of SOP has grown nicely.
The Operating Margin of SOP (8.89%) is better than 70.67% 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 75.98%, SOP is doing good in the industry, outperforming 69.33% 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 | 8.89% | ||
| PM (TTM) | 4.34% | ||
| GM | 75.99% |
OM growth 3Y5.17%
OM growth 5Y5.08%
PM growth 3Y2.72%
PM growth 5Y3.75%
GM growth 3Y-2.08%
GM growth 5Y-0.59%
2. Health
2.1 Basic Checks
SOP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SOP has less shares outstanding than it did 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 2.18. 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 has a Altman-Z score (2.18) which is in line with its industry peers.
The Debt to FCF ratio of SOP is 2.12, which is a good value as it means it would take SOP, 2.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.12, SOP is doing good in the industry, outperforming 76.00% of the companies in the same industry.
SOP has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
SOP has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.85
WACC6.19%
2.3 Liquidity
A Current Ratio of 0.90 indicates that SOP may have some problems paying its short term obligations.
SOP has a Current ratio of 0.90. This is in the lower half of the industry: SOP underperforms 74.67% of its industry peers.
A Quick Ratio of 0.90 indicates that SOP may have some problems paying its short term obligations.
SOP has a Quick ratio of 0.90. This is in the lower half of the industry: SOP underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
SOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.88%, which is quite impressive.
The Earnings Per Share has been growing by 9.39% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.56% in the past year.
The Revenue has been growing slightly by 5.43% on average over the past years.
EPS 1Y (TTM)37.88%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%84.55%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%1.26%
3.2 Future
The Earnings Per Share is expected to grow by 7.05% on average over the next years.
SOP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.33% yearly.
EPS Next Y7.04%
EPS Next 2Y8.11%
EPS Next 3Y10.81%
EPS Next 5Y7.05%
Revenue Next Year0.53%
Revenue Next 2Y2.25%
Revenue Next 3Y1.44%
Revenue Next 5Y2.33%
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
Based on the Price/Earnings ratio of 13.81, the valuation of SOP can be described as correct.
SOP's Price/Earnings ratio is rather cheap when compared to the industry. SOP is cheaper than 81.33% of the companies in the same industry.
SOP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 8.78, the valuation of SOP can be described as very reasonable.
SOP's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOP is cheaper than 88.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than the industry average as 78.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOP indicates a rather cheap valuation: SOP is cheaper than 84.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SOP does not grow enough to justify the current Price/Earnings ratio.
SOP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)1.47
EPS Next 2Y8.11%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.29, SOP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, SOP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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 Years2
5.3 Sustainability
37.41% 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.
DP37.41%
EPS Next 2Y8.11%
EPS Next 3Y10.81%
EPA:SOP (3/7/2025, 7:00:00 PM)
170.4
-1.8 (-1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners46.04%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap3.50B
Analysts82.86
Price Target226.03 (32.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend4.72
Dividend Growth(5Y)20.5%
DP37.41%
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)-3.69%
PT rev (3m)-8.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-2.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.61 | ||
| P/FCF | 6.02 | ||
| P/OCF | 5.33 | ||
| P/B | 1.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.64 |
EPS(TTM)12.34
EY7.24%
EPS(NY)19.41
Fwd EY11.39%
FCF(TTM)28.3
FCFY16.61%
OCF(TTM)31.94
OCFY18.75%
SpS281.11
BVpS93.8
TBVpS-32.08
PEG (NY)1.96
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 13.02% | ||
| ROCE | 15.69% | ||
| ROIC | 11.47% | ||
| ROICexc | 13.18% | ||
| ROICexgc | 142.94% | ||
| OM | 8.89% | ||
| PM (TTM) | 4.34% | ||
| GM | 75.99% | ||
| FCFM | 10.07% |
ROA(3y)4.16%
ROA(5y)3.75%
ROE(3y)12.07%
ROE(5y)11.05%
ROIC(3y)10.63%
ROIC(5y)9.56%
ROICexc(3y)11.92%
ROICexc(5y)10.61%
ROICexgc(3y)121.22%
ROICexgc(5y)90.43%
ROCE(3y)14.54%
ROCE(5y)13.07%
ROICexcg growth 3Y39.33%
ROICexcg growth 5Y23%
ROICexc growth 3Y10.19%
ROICexc growth 5Y8.19%
OM growth 3Y5.17%
OM growth 5Y5.08%
PM growth 3Y2.72%
PM growth 5Y3.75%
GM growth 3Y-2.08%
GM growth 5Y-0.59%
F-Score8
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 29.78% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | 13.3 | ||
| Cash Conversion | 85.84% | ||
| Profit Quality | 231.71% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.18 |
F-Score8
WACC6.19%
ROIC/WACC1.85
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)37.88%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%84.55%
EPS Next Y7.04%
EPS Next 2Y8.11%
EPS Next 3Y10.81%
EPS Next 5Y7.05%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%1.26%
Revenue Next Year0.53%
Revenue Next 2Y2.25%
Revenue Next 3Y1.44%
Revenue Next 5Y2.33%
EBIT growth 1Y16.02%
EBIT growth 3Y12.8%
EBIT growth 5Y10.79%
EBIT Next Year43.06%
EBIT Next 3YN/A
EBIT Next 5Y13.8%
FCF growth 1Y11.42%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y5.43%
OCF growth 3Y12.31%
OCF growth 5Y9.2%