SODEXO SA (SW.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:SW • FR0000121220
43.14 EUR
+0.22 (+0.51%)
Last: Jan 30, 2026, 07:00 PM
SW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 59 industry peers in the Hotels, Restaurants & Leisure industry. SW has only an average score on both its financial health and profitability. SW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SW was profitable.
- In the past year SW had a positive cash flow from operations.
- SW had positive earnings in each of the past 5 years.
- In the past 5 years SW always reported a positive cash flow from operatings.
1.2 Ratios
- SW has a Return On Assets (4.68%) which is comparable to the rest of the industry.
- SW's Return On Equity of 18.36% is fine compared to the rest of the industry. SW outperforms 74.60% of its industry peers.
- SW has a Return On Invested Capital of 9.32%. This is in the better half of the industry: SW outperforms 61.90% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SW is significantly below the industry average of 13.35%.
- The 3 year average ROIC (8.25%) for SW is below the current ROIC(9.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 18.36% | ||
| ROIC | 9.32% |
ROA(3y)3.21%
ROA(5y)2.73%
ROE(3y)13.43%
ROE(5y)12.08%
ROIC(3y)8.25%
ROIC(5y)6.78%
1.3 Margins
- SW has a Profit Margin of 2.89%. This is comparable to the rest of the industry: SW outperforms 41.27% of its industry peers.
- In the last couple of years the Profit Margin of SW has declined.
- SW has a worse Operating Margin (4.56%) than 61.90% of its industry peers.
- In the last couple of years the Operating Margin of SW has grown nicely.
- SW has a Gross Margin of 11.77%. This is in the lower half of the industry: SW underperforms 74.60% of its industry peers.
- SW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | 2.89% | ||
| GM | 11.77% |
OM growth 3Y6.24%
OM growth 5Y11.11%
PM growth 3Y-5.58%
PM growth 5YN/A
GM growth 3Y-0.98%
GM growth 5Y-1.71%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SW is creating some value.
- The number of shares outstanding for SW has been reduced compared to 1 year ago.
- Compared to 5 years ago, SW has about the same amount of shares outstanding.
- SW has a worse debt/assets ratio than last year.
2.2 Solvency
- SW has an Altman-Z score of 2.59. This is not the best score and indicates that SW is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of SW (2.59) is better than 65.08% of its industry peers.
- SW has a debt to FCF ratio of 8.63. This is a slightly negative value and a sign of low solvency as SW would need 8.63 years to pay back of all of its debts.
- SW's Debt to FCF ratio of 8.63 is on the low side compared to the rest of the industry. SW is outperformed by 61.90% of its industry peers.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that SW has dependencies on debt financing.
- The Debt to Equity ratio of SW (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.72
WACC5.43%
2.3 Liquidity
- A Current Ratio of 1.08 indicates that SW should not have too much problems paying its short term obligations.
- The Current ratio of SW (1.08) is better than 61.90% of its industry peers.
- A Quick Ratio of 1.03 indicates that SW should not have too much problems paying its short term obligations.
- The Quick ratio of SW (1.03) is better than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- SW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.51%.
- Measured over the past years, SW shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.66% on average per year.
- SW shows a small growth in Revenue. In the last year, the Revenue has grown by 1.16%.
- SW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.50% yearly.
EPS 1Y (TTM)1.51%
EPS 3Y3.96%
EPS 5Y20.66%
EPS Q2Q%-3.78%
Revenue 1Y (TTM)1.16%
Revenue growth 3Y5.91%
Revenue growth 5Y4.5%
Sales Q2Q%-0.84%
3.2 Future
- The Earnings Per Share is expected to grow by 1.93% on average over the next years.
- Based on estimates for the next years, SW will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
EPS Next Y-11.72%
EPS Next 2Y-3.04%
EPS Next 3Y0.61%
EPS Next 5Y1.93%
Revenue Next Year-0.61%
Revenue Next 2Y1.37%
Revenue Next 3Y2.15%
Revenue Next 5Y3.18%
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
- With a Price/Earnings ratio of 8.03, the valuation of SW can be described as very reasonable.
- SW's Price/Earnings ratio is rather cheap when compared to the industry. SW is cheaper than 95.24% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, SW is valued rather cheaply.
- SW is valuated reasonably with a Price/Forward Earnings ratio of 9.10.
- Based on the Price/Forward Earnings ratio, SW is valued cheaply inside the industry as 92.06% of the companies are valued more expensively.
- SW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 9.1 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SW indicates a rather cheap valuation: SW is cheaper than 92.06% of the companies listed in the same industry.
- SW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SW is cheaper than 79.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-3.04%
EPS Next 3Y0.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.29%, SW is a good candidate for dividend investing.
- SW's Dividend Yield is rather good when compared to the industry average which is at 1.34. SW pays more dividend than 98.41% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
5.2 History
- The dividend of SW decreases each year by -1.83%.
Dividend Growth(5Y)-1.83%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 55.83% of the earnings are spent on dividend by SW. This is a bit on the high side, but may be sustainable.
DP55.83%
EPS Next 2Y-3.04%
EPS Next 3Y0.61%
SODEXO SA / SW.PA FAQ
Can you provide the ChartMill fundamental rating for SODEXO SA?
ChartMill assigns a fundamental rating of 5 / 10 to SW.PA.
What is the valuation status for SW stock?
ChartMill assigns a valuation rating of 6 / 10 to SODEXO SA (SW.PA). This can be considered as Fairly Valued.
How profitable is SODEXO SA (SW.PA) stock?
SODEXO SA (SW.PA) has a profitability rating of 5 / 10.
What is the valuation of SODEXO SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SODEXO SA (SW.PA) is 8.03 and the Price/Book (PB) ratio is 1.68.
How sustainable is the dividend of SODEXO SA (SW.PA) stock?
The dividend rating of SODEXO SA (SW.PA) is 6 / 10 and the dividend payout ratio is 55.83%.