SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SOP - FR0000050809 - Common Stock
156 EUR
-0.4 (-0.26%)
We assign a fundamental rating of 5 out of 10 to SOP. SOP was compared to 76 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 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.
In the past year SOP had a positive cash flow from operations.
In the past 5 years SOP has always been profitable.
SOP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.81%, SOP is in line with its industry, outperforming 56.58% of the companies in the same industry.
The Return On Equity of SOP (13.72%) is better than 63.16% of its industry peers.
SOP has a Return On Invested Capital of 11.03%. This is in the better half of the industry: SOP outperforms 73.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOP is significantly below the industry average of 25.87%.
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
Looking at the Profit Margin, with a value of 4.76%, SOP is in line with its industry, outperforming 59.21% of the companies in the same industry.
In the last couple of years the Profit Margin of SOP has grown nicely.
SOP has a better Operating Margin (8.81%) than 65.79% of its industry peers.
SOP's Operating Margin has improved in the last couple of years.
SOP's Gross Margin of 76.49% is fine compared to the rest of the industry. SOP outperforms 68.42% of its industry peers.
In the last couple of years the Gross Margin of SOP has remained more or less at the same level.
| 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
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.
The number of shares outstanding for SOP has been reduced compared to 5 years ago.
SOP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.19 indicates that SOP is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.19, SOP is in line with its industry, outperforming 40.79% of the companies in the same industry.
The Debt to FCF ratio of SOP is 3.24, which is a good value as it means it would take SOP, 3.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SOP (3.24) 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.
With a Debt to Equity ratio value of 0.48, SOP perfoms like the industry average, outperforming 48.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.74
WACC6.34%
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.
The Current ratio of SOP (0.89) is worse than 78.95% of its industry peers.
A Quick Ratio of 0.89 indicates that SOP may have some problems paying its short term obligations.
The Quick ratio of SOP (0.89) is worse than 71.05% 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 44.17%, which is quite impressive.
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.
The Revenue has decreased by -1.23% in the past 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.
The Revenue is expected to grow by 2.31% on average over the next years.
EPS Next Y-9.1%
EPS Next 2Y-1.61%
EPS Next 3Y1.26%
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
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 11.46 indicates a reasonable valuation of SOP.
Based on the Price/Earnings ratio, SOP is valued cheaper than 89.47% 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 27.25.
With a Price/Forward Earnings ratio of 8.89, the valuation of SOP can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOP indicates a rather cheap valuation: SOP is cheaper than 86.84% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. SOP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than SOP, based on the Enterprise Value to EBITDA ratio.
SOP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SOP is cheaper than 82.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.01 | ||
| EV/EBITDA | 6.25 |
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)1.22
EPS Next 2Y-1.61%
EPS Next 3Y1.26%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 3.06%.
SOP's Dividend Yield is a higher than the industry average which is at 2.26.
SOP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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
SOP pays out 33.41% 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.
DP33.41%
EPS Next 2Y-1.61%
EPS Next 3Y1.26%
EPA:SOP (1/12/2026, 7:00:00 PM)
156
-0.4 (-0.26%)
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 Cap3.21B
Revenue(TTM)5.67B
Net Income(TTM)270.00M
Analysts82.86
Price Target203.9 (30.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend4.72
Dividend Growth(5Y)20.5%
DP33.41%
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 | 11.46 | ||
| Fwd PE | 8.89 | ||
| P/S | 0.57 | ||
| P/FCF | 8.01 | ||
| P/OCF | 6.85 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.25 |
EPS(TTM)13.61
EY8.72%
EPS(NY)17.56
Fwd EY11.25%
FCF(TTM)19.47
FCFY12.48%
OCF(TTM)22.76
OCFY14.59%
SpS275.97
BVpS95.8
TBVpS-30.03
PEG (NY)N/A
PEG (5Y)1.22
Graham Number171.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 13.72% | ||
| ROCE | 15.08% | ||
| ROIC | 11.03% | ||
| ROICexc | 11.54% | ||
| ROICexgc | 62.89% | ||
| OM | 8.81% | ||
| PM (TTM) | 4.76% | ||
| GM | 76.49% | ||
| FCFM | 7.06% |
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 | 3.24 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 34.3% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 15.33 | ||
| Cash Conversion | 67.15% | ||
| Profit Quality | 148.22% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 2.19 |
F-Score8
WACC6.34%
ROIC/WACC1.74
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)44.17%
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 5Y1.77%
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 5Y2.31%
EBIT growth 1Y1.24%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year30.16%
EBIT Next 3Y11.79%
EBIT Next 5Y9.62%
FCF growth 1Y-13.88%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y-16.65%
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 33.41%.