SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SOP - FR0000050809 - Common Stock
148.05 EUR
-1.35 (-0.9%)
Taking everything into account, SOP scores 5 out of 10 in our fundamental rating. SOP was compared to 70 industry peers in the IT Services industry. While SOP has a great profitability rating, 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!
1. Profitability
1.1 Basic Checks
- In the past year SOP was profitable.
- SOP had a positive operating cash flow in the past year.
- Each year in the past 5 years SOP has been profitable.
- In the past 5 years SOP always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of SOP (4.81%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 13.72%, SOP is in the better half of the industry, outperforming 61.43% of the companies in the same industry.
- The Return On Invested Capital of SOP (11.03%) is better than 71.43% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SOP is significantly below the industry average of 26.75%.
- The last Return On Invested Capital (11.03%) for SOP is above the 3 year average (10.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 13.72% | ||
| ROIC | 11.03% |
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's Profit Margin of 4.76% is in line compared to the rest of the industry. SOP outperforms 55.71% of its industry peers.
- In the last couple of years the Profit Margin of SOP has grown nicely.
- SOP has a better Operating Margin (8.81%) than 62.86% of its industry peers.
- In the last couple of years the Operating Margin of SOP has grown nicely.
- SOP has a better Gross Margin (76.49%) than 65.71% of its industry peers.
- SOP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.81% | ||
| 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
- SOP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- SOP has less shares outstanding than it did 1 year ago.
- SOP has less shares outstanding than it did 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 2.17. 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.
- With a Altman-Z score value of 2.17, SOP is not doing good in the industry: 61.43% of the companies in the same industry are doing better.
- SOP has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as SOP would need 3.24 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 3.24, SOP perfoms like the industry average, outperforming 52.86% of the companies in the same industry.
- SOP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of SOP (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.78
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.
- SOP has a Current ratio of 0.89. This is in the lower half of the industry: SOP underperforms 77.14% of its industry peers.
- 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.
- With a Quick ratio value of 0.89, SOP is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| 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 44.17% 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.
- The Revenue has been growing slightly by 5.43% on average over the past years.
EPS 1Y (TTM)44.17%
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 1.77% 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 2.31% on average per year.
EPS Next Y-9.22%
EPS Next 2Y-1.48%
EPS Next 3Y1.4%
EPS Next 5Y1.77%
Revenue Next Year-3.42%
Revenue Next 2Y-1.01%
Revenue Next 3Y0.38%
Revenue Next 5Y2.31%
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 10.88, the valuation of SOP can be described as very reasonable.
- SOP's Price/Earnings ratio is rather cheap when compared to the industry. SOP is cheaper than 84.29% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SOP to the average of the S&P500 Index (28.60), we can say SOP is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.41, the valuation of SOP can be described as reasonable.
- Based on the Price/Forward Earnings ratio, SOP is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of SOP to the average of the S&P500 Index (25.83), we can say SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 8.41 |
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 74.29% 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 82.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| EV/EBITDA | 6.06 |
4.3 Compensation for Growth
- The decent profitability rating of SOP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y-1.48%
EPS Next 3Y1.4%
5. Dividend
5.1 Amount
- SOP has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.27, SOP pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, SOP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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
- 33.41% of the earnings are spent on dividend by SOP. This is a low number and sustainable payout ratio.
- The dividend of SOP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.41%
EPS Next 2Y-1.48%
EPS Next 3Y1.4%
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 33.41%.