SODEXO SA (SW.PA) Stock Fundamental Analysis
EPA:SW - Euronext Paris - Matif - FR0000121220 - Common Stock - Currency: EUR
Taking everything into account, SW scores 4 out of 10 in our fundamental rating. SW was compared to 53 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of SW is average, but there are quite some concerns on its profitability. SW is not valued too expensively and it also shows a decent 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.
Of the past 5 years SW 4 years were profitable.
In the past 5 years SW always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.12%, SW is not doing good in the industry: 71.11% of the companies in the same industry are doing better.
SW has a Return On Equity (4.44%) which is in line with its industry peers.
The Return On Invested Capital of SW (8.47%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SW is below the industry average of 11.62%.
The 3 year average ROIC (6.73%) for SW is below the current ROIC(8.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 4.44% | ||
| ROIC | 8.47% |
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
SW's Profit Margin of 0.71% is on the low side compared to the rest of the industry. SW is outperformed by 73.33% of its industry peers.
SW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.30%, SW is doing worse than 75.56% of the companies in the same industry.
SW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 11.95%, SW is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.3% | ||
| PM (TTM) | 0.71% | ||
| GM | 11.95% |
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) just above the Cost of Capital (WACC), SW is creating some value.
The number of shares outstanding for SW remains at a similar level compared to 1 year ago.
The number of shares outstanding for SW has been increased compared to 5 years ago.
The debt/assets ratio for SW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.72 indicates that SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.72, SW is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
SW has a debt to FCF ratio of 5.68. This is a neutral value as SW would need 5.68 years to pay back of all of its debts.
SW has a Debt to FCF ratio of 5.68. This is comparable to the rest of the industry: SW outperforms 55.56% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that SW has dependencies on debt financing.
SW has a Debt to Equity ratio of 1.21. This is comparable to the rest of the industry: SW outperforms 42.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.69
WACC5%
2.3 Liquidity
SW has a Current Ratio of 1.08. This is a normal value and indicates that SW is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.08, SW perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that SW should not have too much problems paying its short term obligations.
SW has a Quick ratio of 1.03. This is comparable to the rest of the industry: SW outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for SW have decreased strongly by -14.81% 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.
Looking at the last year, SW shows a small growth in Revenue. The Revenue has grown by 5.13% in the last year.
SW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.63% yearly.
EPS 1Y (TTM)-14.81%
EPS 3Y30.69%
EPS 5Y0.15%
EPS Q2Q%-19.59%
Revenue 1Y (TTM)5.13%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%0.47%
3.2 Future
Based on estimates for the next years, SW will show a small growth in Earnings Per Share. The EPS will grow by 5.73% on average per year.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y9.95%
EPS Next 2Y10.34%
EPS Next 3Y9.58%
EPS Next 5Y5.73%
Revenue Next Year5.32%
Revenue Next 2Y5.37%
Revenue Next 3Y5.2%
Revenue Next 5Y4.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.65, SW is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SW indicates a rather cheap valuation: SW is cheaper than 86.67% of the companies listed in the same industry.
SW is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.41, the valuation of SW can be described as correct.
Based on the Price/Forward Earnings ratio, SW is valued cheaply inside the industry as 84.44% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 92.74. SW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
SW's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SW indicates a somewhat cheap valuation: SW is cheaper than 71.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.07 | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.37
PEG (5Y)89.84
EPS Next 2Y10.34%
EPS Next 3Y9.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.72%, SW has a reasonable but not impressive dividend return.
SW's Dividend Yield is rather good when compared to the industry average which is at 2.78. SW pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
5.2 History
The dividend of SW is nicely growing with an annual growth rate of 27.68%!
Dividend Growth(5Y)27.68%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
817.26% of the earnings are spent on dividend by SW. This is not a sustainable payout ratio.
SW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP817.26%
EPS Next 2Y10.34%
EPS Next 3Y9.58%
SODEXO SA
EPA:SW (2/5/2025, 1:30:06 PM)
72.2
+0.8 (+1.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners36.74%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap10.65B
Analysts78.52
Price Target92.6 (28.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Yearly Dividend9.38
Dividend Growth(5Y)27.68%
DP817.26%
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)-2.29%
PT rev (3m)-0.05%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 12.41 | ||
| P/S | 0.45 | ||
| P/FCF | 11.07 | ||
| P/OCF | 8.07 | ||
| P/B | 2.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.28 |
EPS(TTM)5.29
EY7.33%
EPS(NY)5.82
Fwd EY8.06%
FCF(TTM)6.52
FCFY9.04%
OCF(TTM)8.95
OCFY12.4%
SpS161.4
BVpS25.65
TBVpS-15.04
PEG (NY)1.37
PEG (5Y)89.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 4.44% | ||
| ROCE | 11.24% | ||
| ROIC | 8.47% | ||
| ROICexc | 11.07% | ||
| ROICexgc | 79.78% | ||
| OM | 4.3% | ||
| PM (TTM) | 0.71% | ||
| GM | 11.95% | ||
| FCFM | 4.04% |
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-Score5
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 5.68 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 76.17% | ||
| Cap/Sales | 1.5% | ||
| Interest Coverage | 44.48 | ||
| Cash Conversion | 88.41% | ||
| Profit Quality | 572.62% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.72 |
F-Score5
WACC5%
ROIC/WACC1.69
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)-14.81%
EPS 3Y30.69%
EPS 5Y0.15%
EPS Q2Q%-19.59%
EPS Next Y9.95%
EPS Next 2Y10.34%
EPS Next 3Y9.58%
EPS Next 5Y5.73%
Revenue 1Y (TTM)5.13%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%0.47%
Revenue Next Year5.32%
Revenue Next 2Y5.37%
Revenue Next 3Y5.2%
Revenue Next 5Y4.63%
EBIT growth 1Y15.2%
EBIT growth 3Y25.25%
EBIT growth 5Y-0.9%
EBIT Next Year55.71%
EBIT Next 3Y22.21%
EBIT Next 5Y14.19%
FCF growth 1Y-7.32%
FCF growth 3Y11.99%
FCF growth 5Y2.08%
OCF growth 1Y-4.07%
OCF growth 3Y10.4%
OCF growth 5Y0.81%