SODEXO SA (SW.PA) Stock Fundamental Analysis
EPA:SW - Euronext Paris - Matif - FR0000121220 - Common Stock - Currency: EUR
SW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of SW get a neutral evaluation. Nothing too spectacular is happening here. SW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SW had positive earnings in the past year.
SW had a positive operating cash flow in the past year.
SW had positive earnings in 4 of the past 5 years.
SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SW's Return On Assets of 4.41% is fine compared to the rest of the industry. SW outperforms 67.27% of its industry peers.
With a decent Return On Equity value of 16.90%, SW is doing good in the industry, outperforming 78.18% of the companies in the same industry.
SW has a Return On Invested Capital of 8.44%. This is in the better half of the industry: SW outperforms 69.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SW is below the industry average of 11.33%.
The 3 year average ROIC (6.73%) for SW is below the current ROIC(8.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 16.9% | ||
| ROIC | 8.44% |
ROA(3y)2.75%
ROA(5y)1.44%
ROE(3y)12.56%
ROE(5y)6.13%
ROIC(3y)6.73%
ROIC(5y)5.66%
1.3 Margins
The Profit Margin of SW (2.80%) is comparable to the rest of the industry.
SW's Profit Margin has declined in the last couple of years.
SW has a Operating Margin (4.44%) which is comparable to the rest of the industry.
SW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 11.97%, SW is not doing good in the industry: 70.91% of the companies in the same industry are doing better.
SW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.8% | ||
| GM | 11.97% |
OM growth 3Y12.9%
OM growth 5Y-2.48%
PM growth 3Y-3.99%
PM growth 5Y-25.27%
GM growth 3Y-4.89%
GM growth 5Y-3.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SW is creating value.
SW has about the same amout of shares outstanding than it did 1 year ago.
SW has more shares outstanding than it did 5 years ago.
SW has a worse debt/assets ratio than last year.
2.2 Solvency
SW has an Altman-Z score of 2.56. 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.
SW has a better Altman-Z score (2.56) than 70.91% of its industry peers.
The Debt to FCF ratio of SW is 8.40, which is on the high side as it means it would take SW, 8.40 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.40, SW perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
SW has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
SW has a Debt to Equity ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.83
WACC4.61%
2.3 Liquidity
A Current Ratio of 1.08 indicates that SW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, SW is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that SW should not have too much problems paying its short term obligations.
SW's Quick ratio of 1.02 is fine compared to the rest of the industry. SW outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for SW have decreased by -6.98% in the last year.
Measured over the past 5 years, SW shows a small growth in Earnings Per Share. The EPS has been growing by 0.15% on average per year.
SW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.71%.
SW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.63% yearly.
EPS 1Y (TTM)-6.98%
EPS 3Y30.69%
EPS 5Y0.15%
EPS Q2Q%5.84%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%3.09%
3.2 Future
The Earnings Per Share is expected to grow by 3.64% on average over the next years.
The Revenue is expected to grow by 2.99% on average over the next years.
EPS Next Y5.24%
EPS Next 2Y6.3%
EPS Next 3Y6.9%
EPS Next 5Y3.64%
Revenue Next Year2.71%
Revenue Next 2Y3.23%
Revenue Next 3Y3.63%
Revenue Next 5Y2.99%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.56, the valuation of SW can be described as very reasonable.
Based on the Price/Earnings ratio, SW is valued cheaply inside the industry as 94.55% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.15. SW is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.73, the valuation of SW can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SW is valued cheaper than 89.09% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. SW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SW indicates a somewhat cheap valuation: SW is cheaper than 72.73% of the companies listed in the same industry.
76.36% of the companies in the same industry are more expensive than SW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 7.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.82
PEG (5Y)62.93
EPS Next 2Y6.3%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
SW has a Yearly Dividend Yield of 5.10%, which is a nice return.
Compared to an average industry Dividend Yield of 3.33, SW pays a better dividend. On top of this SW pays more dividend than 94.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
5.2 History
On average, the dividend of SW grows each year by 27.68%, which is quite nice.
Dividend Growth(5Y)27.68%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
193.05% of the earnings are spent on dividend by SW. This is not a sustainable payout ratio.
The dividend of SW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP193.05%
EPS Next 2Y6.3%
EPS Next 3Y6.9%
EPA:SW (6/30/2025, 7:00:00 PM)
52.2
-0.75 (-1.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners29.76%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap7.70B
Analysts76.15
Price Target76.24 (46.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
Yearly Dividend9.38
Dividend Growth(5Y)27.68%
DP193.05%
Div Incr Years3
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)0.2%
PT rev (3m)-18.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.32 | ||
| P/FCF | 11.54 | ||
| P/OCF | 7.64 | ||
| P/B | 1.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.71 |
EPS(TTM)5.46
EY10.46%
EPS(NY)5.98
Fwd EY11.45%
FCF(TTM)4.52
FCFY8.67%
OCF(TTM)6.84
OCFY13.1%
SpS163.93
BVpS27.12
TBVpS-15.6
PEG (NY)1.82
PEG (5Y)62.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 16.9% | ||
| ROCE | 11.19% | ||
| ROIC | 8.44% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 44.68% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.8% | ||
| GM | 11.97% | ||
| FCFM | 2.76% |
ROA(3y)2.75%
ROA(5y)1.44%
ROE(3y)12.56%
ROE(5y)6.13%
ROIC(3y)6.73%
ROIC(5y)5.66%
ROICexc(3y)10.21%
ROICexc(5y)8.46%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)8.92%
ROCE(5y)7.5%
ROICexcg growth 3Y-36.69%
ROICexcg growth 5Y-39.36%
ROICexc growth 3Y22.8%
ROICexc growth 5Y-0.69%
OM growth 3Y12.9%
OM growth 5Y-2.48%
PM growth 3Y-3.99%
PM growth 5Y-25.27%
GM growth 3Y-4.89%
GM growth 5Y-3.88%
F-Score8
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 72.86% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 44.71 | ||
| Cash Conversion | 65.41% | ||
| Profit Quality | 98.67% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.56 |
F-Score8
WACC4.61%
ROIC/WACC1.83
Cap/Depr(3y)71.98%
Cap/Depr(5y)61.92%
Cap/Sales(3y)1.57%
Cap/Sales(5y)1.69%
Profit Quality(3y)267.54%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.98%
EPS 3Y30.69%
EPS 5Y0.15%
EPS Q2Q%5.84%
EPS Next Y5.24%
EPS Next 2Y6.3%
EPS Next 3Y6.9%
EPS Next 5Y3.64%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%3.09%
Revenue Next Year2.71%
Revenue Next 2Y3.23%
Revenue Next 3Y3.63%
Revenue Next 5Y2.99%
EBIT growth 1Y35.48%
EBIT growth 3Y25.25%
EBIT growth 5Y-0.9%
EBIT Next Year47.8%
EBIT Next 3Y19.01%
EBIT Next 5Y11.09%
FCF growth 1Y-0.6%
FCF growth 3Y11.99%
FCF growth 5Y2.08%
OCF growth 1Y-6.06%
OCF growth 3Y10.4%
OCF growth 5Y0.81%