SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
EPA:SOP - Euronext Paris - Matif - FR0000050809 - Common Stock - Currency: EUR
SOP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the IT Services industry. SOP has an excellent profitability rating, but there are some minor concerns on its financial health. SOP has a correct valuation and a medium growth rate.
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.
SOP had positive earnings in each of the past 5 years.
Each year in the past 5 years SOP had a positive operating cash flow.
1.2 Ratios
SOP has a Return On Assets (4.45%) which is comparable to the rest of the industry.
SOP has a Return On Equity of 13.02%. This is comparable to the rest of the industry: SOP outperforms 54.93% of its industry peers.
SOP's Return On Invested Capital of 11.47% is fine compared to the rest of the industry. SOP outperforms 78.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOP is in line with the industry average of 10.64%.
The 3 year average ROIC (10.67%) for SOP is below the current ROIC(11.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 13.02% | ||
| ROIC | 11.47% |
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
With a Profit Margin value of 4.34%, SOP perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
SOP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.89%, SOP is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
SOP's Operating Margin has improved in the last couple of years.
The Gross Margin of SOP (75.98%) is better than 67.61% of its industry peers.
SOP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.89% | ||
| PM (TTM) | 4.34% | ||
| GM | 75.99% |
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) below the Cost of Capital (WACC), SOP is destroying 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
SOP has an Altman-Z score of 2.35. 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 2.35, SOP perfoms like the industry average, outperforming 46.48% of the companies in the same industry.
The Debt to FCF ratio of SOP is 2.12, which is a good value as it means it would take SOP, 2.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.12, SOP is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that SOP is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.49, SOP perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.99
WACC11.55%
2.3 Liquidity
A Current Ratio of 0.90 indicates that SOP may have some problems paying its short term obligations.
The Current ratio of SOP (0.90) is worse than 83.10% of its industry peers.
SOP has a Quick Ratio of 0.90. 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 Quick ratio of 0.90 is on the low side compared to the rest of the industry. SOP is outperformed by 80.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
SOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.88%, which is quite impressive.
The Earnings Per Share has been growing by 9.39% on average over the past years. This is quite good.
SOP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.56%.
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)37.88%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%84.55%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%1.26%
3.2 Future
The Earnings Per Share is expected to grow by 4.66% 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 1.04% yearly.
EPS Next Y-1.24%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPS Next 5Y4.66%
Revenue Next Year-0.19%
Revenue Next 2Y1.51%
Revenue Next 3Y1.24%
Revenue Next 5Y1.04%
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
The Price/Earnings ratio is 16.40, which indicates a correct valuation of SOP.
67.61% of the companies in the same industry are more expensive than SOP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SOP to the average of the S&P500 Index (27.45), we can say SOP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.30, the valuation of SOP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SOP is valued a bit cheaper than the industry average as 78.87% of the companies are valued more expensively.
SOP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 11.3 |
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 63.38% of the companies listed in the same industry.
77.46% of the companies in the same industry are more expensive than SOP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.15 | ||
| EV/EBITDA | 6.56 |
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)1.75
EPS Next 2Y4.3%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, SOP has a reasonable but not impressive dividend return.
SOP's Dividend Yield is a higher than the industry average which is at 6.93.
SOP's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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
37.41% 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.
DP37.41%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPA:SOP (7/4/2025, 7:00:00 PM)
202.4
-2.4 (-1.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners41.66%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap4.16B
Analysts84.29
Price Target230.83 (14.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend4.72
Dividend Growth(5Y)20.5%
DP37.41%
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)1.71%
PT rev (3m)2.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-7.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 11.3 | ||
| P/S | 0.72 | ||
| P/FCF | 7.15 | ||
| P/OCF | 6.34 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.56 |
EPS(TTM)12.34
EY6.1%
EPS(NY)17.91
Fwd EY8.85%
FCF(TTM)28.3
FCFY13.98%
OCF(TTM)31.94
OCFY15.78%
SpS281.11
BVpS93.79
TBVpS-32.08
PEG (NY)N/A
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 13.02% | ||
| ROCE | 15.69% | ||
| ROIC | 11.47% | ||
| ROICexc | 13.18% | ||
| ROICexgc | 142.94% | ||
| OM | 8.89% | ||
| PM (TTM) | 4.34% | ||
| GM | 75.99% | ||
| FCFM | 10.07% |
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%
ROICexcg growth 3Y39.77%
ROICexcg 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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 29.78% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | 13.3 | ||
| Cash Conversion | 85.84% | ||
| Profit Quality | 231.71% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.35 |
F-Score8
WACC11.55%
ROIC/WACC0.99
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)37.88%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%84.55%
EPS Next Y-1.24%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPS Next 5Y4.66%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%1.26%
Revenue Next Year-0.19%
Revenue Next 2Y1.51%
Revenue Next 3Y1.24%
Revenue Next 5Y1.04%
EBIT growth 1Y16.02%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year35.02%
EBIT Next 3Y13.72%
EBIT Next 5Y10.93%
FCF growth 1Y11.42%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y5.43%
OCF growth 3Y12.31%
OCF growth 5Y9.2%