SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:SOP • FR0000050809
154.2 EUR
+7.6 (+5.18%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to SOP. SOP was compared to 74 industry peers in the IT Services industry. SOP scores excellent on profitability, but 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
- 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
- With a Return On Assets value of 4.81%, SOP perfoms like the industry average, outperforming 52.86% of the companies in the same 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.
- SOP's Return On Invested Capital of 11.03% is fine compared to the rest of the industry. SOP outperforms 71.43% of its industry peers.
- SOP had an Average Return On Invested Capital over the past 3 years of 10.67%. This is significantly below the industry average of 26.58%.
- 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's Operating Margin of 8.81% is fine compared to the rest of the industry. SOP outperforms 62.86% of its industry peers.
- SOP's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 76.49%, SOP is doing good in the industry, outperforming 65.71% 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 | 8.81% | ||
| 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.
- SOP has less shares outstanding than it did 1 year ago.
- SOP has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for SOP has been reduced compared to a year ago.
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 of 2.18. This is in the lower half of the industry: SOP underperforms 61.43% of its industry peers.
- 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.
- SOP's Debt to FCF ratio of 3.24 is in line compared to the rest of the industry. SOP outperforms 52.86% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that SOP is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.48, SOP perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.72
WACC6.41%
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: 77.14% 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.
- The Quick ratio of SOP (0.89) is worse than 72.86% 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 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.
- 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
- Based on estimates for the next years, SOP will show a small growth in Earnings Per Share. The EPS will grow by 1.77% on average per year.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.33 indicates a reasonable valuation of SOP.
- 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.
- SOP is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 8.76, the valuation of SOP can be described as very 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than the industry average as 75.71% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, SOP is valued cheaper than 82.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.92 | ||
| EV/EBITDA | 6.2 |
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)1.21
EPS Next 2Y-1.48%
EPS Next 3Y1.4%
5. Dividend
5.1 Amount
- SOP has a Yearly Dividend Yield of 3.17%. 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 2.36.
- SOP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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
- 33.41% 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.
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%.