SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SOP - FR0000050809 - Common Stock
132 EUR
+1.5 (+1.15%)
We assign a fundamental rating of 5 out of 10 to SOP. SOP was compared to 72 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.
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
Looking at the Return On Assets, with a value of 4.80%, SOP is in line with its industry, outperforming 56.94% of the companies in the same industry.
The Return On Equity of SOP (13.71%) is better than 62.50% of its industry peers.
With a decent Return On Invested Capital value of 11.01%, SOP is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SOP is in line with the industry average of 11.90%.
The last Return On Invested Capital (11.01%) for SOP is above the 3 year average (10.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 13.71% | ||
| ROIC | 11.01% |
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
The Profit Margin of SOP (4.76%) is better than 61.11% of its industry peers.
SOP's Profit Margin has improved in the last couple of years.
SOP has a better Operating Margin (8.80%) than 65.28% of its industry peers.
In the last couple of years the Operating Margin of SOP has grown nicely.
The Gross Margin of SOP (76.49%) is better than 69.44% 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 | 8.8% | ||
| 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 well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SOP has been reduced compared to 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
An Altman-Z score of 2.10 indicates that SOP is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SOP (2.10) is worse than 62.50% of its industry peers.
The Debt to FCF ratio of SOP is 3.23, which is a good value as it means it would take SOP, 3.23 years of fcf income to pay off all of its debts.
SOP has a Debt to FCF ratio (3.23) which 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 has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.81
WACC6.09%
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's Current ratio of 0.89 is on the low side compared to the rest of the industry. SOP is outperformed by 80.56% of its industry peers.
A Quick Ratio of 0.89 indicates that SOP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.89, SOP is doing worse than 72.22% of the companies in the same industry.
| 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 43.42%, 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.
Measured over the past years, SOP shows a small growth in Revenue. The Revenue has been growing by 5.43% on average per year.
EPS 1Y (TTM)43.42%
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
SOP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.38% yearly.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y-8.07%
EPS Next 2Y-0.86%
EPS Next 3Y1.83%
EPS Next 5Y2.38%
Revenue Next Year-3.25%
Revenue Next 2Y-0.88%
Revenue Next 3Y0.53%
Revenue Next 5Y2.82%
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.
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
Based on the Price/Earnings ratio of 9.75, the valuation of SOP can be described as reasonable.
SOP's Price/Earnings ratio is rather cheap when compared to the industry. SOP is cheaper than 95.83% 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 25.65.
A Price/Forward Earnings ratio of 7.41 indicates a rather cheap valuation of SOP.
Based on the Price/Forward Earnings ratio, SOP is valued cheaper than 90.28% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SOP to the average of the S&P500 Index (34.45), we can say SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 7.41 |
4.2 Price Multiples
77.78% of the companies in the same industry are more expensive than SOP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SOP is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 5.5 |
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)1.04
EPS Next 2Y-0.86%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 3.61%.
Compared to an average industry Dividend Yield of 3.92, SOP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, SOP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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
33.43% 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.
DP33.43%
EPS Next 2Y-0.86%
EPS Next 3Y1.83%
EPA:SOP (11/25/2025, 5:29:16 PM)
132
+1.5 (+1.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners43.75%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap2.71B
Revenue(TTM)5.67B
Net Income(TTM)269.80M
Analysts82.86
Price Target210.12 (59.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend4.72
Dividend Growth(5Y)20.5%
DP33.43%
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)-9.53%
PT rev (3m)-9.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 7.41 | ||
| P/S | 0.48 | ||
| P/FCF | 6.76 | ||
| P/OCF | 5.79 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.5 |
EPS(TTM)13.54
EY10.26%
EPS(NY)17.82
Fwd EY13.5%
FCF(TTM)19.52
FCFY14.79%
OCF(TTM)22.79
OCFY17.26%
SpS275.97
BVpS95.8
TBVpS-30.03
PEG (NY)N/A
PEG (5Y)1.04
Graham Number170.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 13.71% | ||
| ROCE | 15.06% | ||
| ROIC | 11.01% | ||
| ROICexc | 11.52% | ||
| ROICexgc | 62.81% | ||
| OM | 8.8% | ||
| PM (TTM) | 4.76% | ||
| GM | 76.49% | ||
| FCFM | 7.07% |
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 | 3.23 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 34.15% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 15.45 | ||
| Cash Conversion | 67.3% | ||
| Profit Quality | 148.67% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 2.1 |
F-Score8
WACC6.09%
ROIC/WACC1.81
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)43.42%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%19.95%
EPS Next Y-8.07%
EPS Next 2Y-0.86%
EPS Next 3Y1.83%
EPS Next 5Y2.38%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%-3.58%
Revenue Next Year-3.25%
Revenue Next 2Y-0.88%
Revenue Next 3Y0.53%
Revenue Next 5Y2.82%
EBIT growth 1Y1.09%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year32.56%
EBIT Next 3Y13.38%
EBIT Next 5Y8.81%
FCF growth 1Y-13.69%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y-16.54%
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.
Can you provide the valuation status for SOPRA STERIA GROUP?
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.
Can you provide the PE and PB ratios for SOP stock?
The Price/Earnings (PE) ratio for SOPRA STERIA GROUP (SOP.PA) is 9.75 and the Price/Book (PB) ratio is 1.38.
What is the earnings growth outlook for SOPRA STERIA GROUP?
The Earnings per Share (EPS) of SOPRA STERIA GROUP (SOP.PA) is expected to decline by -8.07% in the next year.