SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SOP - FR0000050809 - Common Stock
148 EUR
-1 (-0.67%)
SOP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 76 industry peers in the IT Services industry. While SOP has a great profitability rating, 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
- SOP had positive earnings in the past year.
- 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
- With a Return On Assets value of 4.81%, SOP perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
- With a decent Return On Equity value of 13.72%, SOP is doing good in the industry, outperforming 60.53% of the companies in the same industry.
- SOP has a better Return On Invested Capital (11.03%) than 68.42% 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 25.98%.
- The 3 year average ROIC (10.67%) for SOP is below the current ROIC(11.03%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 4.76%. This is comparable to the rest of the industry: SOP outperforms 59.21% of its industry peers.
- SOP's Profit Margin has improved in the last couple of years.
- 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.
- With a decent Gross Margin value of 76.49%, SOP is doing good in the industry, outperforming 67.11% 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
- SOP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, SOP has less shares outstanding
- 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 2.16 indicates that SOP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.16, SOP is not doing good in the industry: 60.53% 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.
- 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.
- SOP's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. SOP outperforms 44.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.01
WACC10.93%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that SOP may have some problems paying its short term obligations.
- SOP has a worse Current ratio (0.89) than 80.26% of its industry peers.
- A Quick Ratio of 0.89 indicates that SOP may have some problems paying its short term obligations.
- SOP has a Quick ratio of 0.89. This is in the lower half of the industry: SOP underperforms 72.37% 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.
- 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%.
- 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.
- SOP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.31% yearly.
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
- 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 10.87, the valuation of SOP can be described as reasonable.
- Based on the Price/Earnings ratio, SOP is valued cheaply inside the industry as 90.79% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of SOP to the average of the S&P500 Index (27.21), we can say SOP is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.43, which indicates a very decent valuation of SOP.
- Based on the Price/Forward Earnings ratio, SOP is valued cheaper than 86.84% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 8.43 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, SOP is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| EV/EBITDA | 6.05 |
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)1.16
EPS Next 2Y-1.61%
EPS Next 3Y1.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.12%, SOP has a reasonable but not impressive dividend return.
- SOP's Dividend Yield is a higher than the industry average which is at 2.11.
- SOP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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
- SOP pays out 33.41% 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.
DP33.41%
EPS Next 2Y-1.61%
EPS Next 3Y1.26%
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%.