SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SOP - FR0000050809 - Common Stock
135.5 EUR
+0.8 (+0.59%)
Taking everything into account, SOP scores 5 out of 10 in our fundamental rating. SOP was compared to 77 industry peers in the IT Services industry. While SOP has a great profitability rating, there are some minor concerns on its financial health. SOP may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SOP had positive earnings in the past year.
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
SOP has a Return On Assets of 4.80%. This is comparable to the rest of the industry: SOP outperforms 56.16% of its industry peers.
SOP's Return On Equity of 13.71% is fine compared to the rest of the industry. SOP outperforms 63.01% of its industry peers.
SOP has a Return On Invested Capital of 11.01%. This is in the better half of the industry: SOP outperforms 71.23% 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 26.09%.
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
Looking at the Profit Margin, with a value of 4.76%, SOP is in line with its industry, outperforming 58.90% 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 8.80%, SOP is in the better half of the industry, outperforming 63.01% of the companies in the same industry.
SOP's Operating Margin has improved in the last couple of years.
SOP has a Gross Margin of 76.49%. This is in the better half of the industry: SOP outperforms 68.49% of its industry peers.
SOP's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOP is creating some value.
Compared to 1 year ago, SOP has less shares outstanding
SOP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SOP has an improved debt to assets ratio.
2.2 Solvency
SOP has an Altman-Z score of 2.12. 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 2.12, SOP is not doing good in the industry: 61.64% of the companies in the same industry are doing better.
SOP has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as SOP would need 3.23 years to pay back of 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 2.12 |
ROIC/WACC1.04
WACC10.59%
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 79.45% of its industry peers.
SOP has a Quick 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 Quick ratio of 0.89 is on the low side compared to the rest of the industry. SOP is outperformed by 71.23% 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 43.42%, which is quite impressive.
SOP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.39% yearly.
SOP shows a decrease in Revenue. In the last year, the revenue decreased by -1.23%.
SOP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.43% yearly.
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
Based on estimates for the next years, SOP will show a small growth in Earnings Per Share. The EPS will grow by 2.39% on average per year.
The Revenue is expected to grow by 2.83% on average over the next years.
EPS Next Y-8.42%
EPS Next 2Y-1.02%
EPS Next 3Y1.72%
EPS Next 5Y2.39%
Revenue Next Year-3.35%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.49%
Revenue Next 5Y2.83%
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
Based on the Price/Earnings ratio of 10.01, 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 94.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.49. SOP is valued rather cheaply when compared to this.
SOP is valuated cheaply with a Price/Forward Earnings ratio of 7.63.
87.67% of the companies in the same industry are more expensive than SOP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than 75.34% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOP indicates a rather cheap valuation: SOP is cheaper than 86.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.94 | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
The decent profitability rating of SOP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2Y-1.02%
EPS Next 3Y1.72%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 3.45%.
SOP's Dividend Yield is a higher than the industry average which is at 3.76.
SOP's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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 33.43% 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.
DP33.43%
EPS Next 2Y-1.02%
EPS Next 3Y1.72%
EPA:SOP (12/5/2025, 7:00:00 PM)
135.5
+0.8 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners44.57%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap2.78B
Revenue(TTM)5.67B
Net Income(TTM)269.80M
Analysts82.86
Price Target210.12 (55.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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)-3.69%
PT rev (3m)-9.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 7.63 | ||
| P/S | 0.49 | ||
| P/FCF | 6.94 | ||
| P/OCF | 5.95 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.65 |
EPS(TTM)13.54
EY9.99%
EPS(NY)17.77
Fwd EY13.11%
FCF(TTM)19.52
FCFY14.4%
OCF(TTM)22.79
OCFY16.82%
SpS275.97
BVpS95.8
TBVpS-30.03
PEG (NY)N/A
PEG (5Y)1.07
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 | 2.12 |
F-Score8
WACC10.59%
ROIC/WACC1.04
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-8.42%
EPS Next 2Y-1.02%
EPS Next 3Y1.72%
EPS Next 5Y2.39%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%-3.58%
Revenue Next Year-3.35%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.49%
Revenue Next 5Y2.83%
EBIT growth 1Y1.09%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year30.06%
EBIT Next 3Y11.73%
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 10.01 and the Price/Book (PB) ratio is 1.41.
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 -8.42% in the next year.