SODEXO SA (SW.PA) Stock Fundamental Analysis
Europe - EPA:SW - FR0000121220 - Common Stock
54.65 EUR
+0.5 (+0.92%)
We assign a fundamental rating of 4 out of 10 to SW. SW was compared to 62 industry peers in the Hotels, Restaurants & Leisure industry. SW has only an average score on both its financial health and profitability. SW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SW was profitable.
SW had a positive operating cash flow in the past year.
Of the past 5 years SW 4 years were profitable.
SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.41%, SW is doing good in the industry, outperforming 61.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.90%, SW is in the better half of the industry, outperforming 77.42% 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 67.74% of its industry peers.
SW had an Average Return On Invested Capital over the past 3 years of 6.73%. This is significantly below the industry average of 11.85%.
The last Return On Invested Capital (8.44%) for SW is above the 3 year average (6.73%), which is a sign of increasing profitability.
| 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
SW has a Profit Margin of 2.80%. This is comparable to the rest of the industry: SW outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of SW has declined.
SW has a Operating Margin (4.44%) which is in line with its industry peers.
SW's Operating Margin has declined in the last couple of years.
SW's Gross Margin of 11.97% is on the low side compared to the rest of the industry. SW is outperformed by 74.19% of its industry peers.
In the last couple of years the Gross Margin of SW has declined.
| 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
SW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SW has about the same amount of shares outstanding.
Compared to 5 years ago, SW has more shares outstanding
Compared to 1 year ago, SW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.57 indicates that SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SW (2.57) is better than 74.19% of its industry peers.
SW has a debt to FCF ratio of 8.40. This is a slightly negative value and a sign of low solvency as SW would need 8.40 years to pay back of all of its debts.
SW's Debt to FCF ratio of 8.40 is in line compared to the rest of the industry. SW outperforms 43.55% of its industry peers.
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 of 1.18. This is comparable to the rest of the industry: SW outperforms 59.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.77
WACC4.76%
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 decent Current ratio value of 1.08, SW is doing good in the industry, outperforming 61.29% 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 has a Quick ratio of 1.02. This is in the better half of the industry: SW outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
SW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.98%.
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 6.71% in the last year.
Measured over the past years, SW shows a small growth in Revenue. The Revenue has been growing by 1.63% on average per year.
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
Based on estimates for the next years, SW will show a small growth in Earnings Per Share. The EPS will grow by 3.57% on average per year.
SW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.83% yearly.
EPS Next Y4.39%
EPS Next 2Y2.26%
EPS Next 3Y3.54%
EPS Next 5Y3.57%
Revenue Next Year0.99%
Revenue Next 2Y1.17%
Revenue Next 3Y2.09%
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 accelerating.
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
A Price/Earnings ratio of 10.01 indicates a reasonable valuation of SW.
SW's Price/Earnings ratio is rather cheap when compared to the industry. SW is cheaper than 91.94% of the companies in the same industry.
SW is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.88, the valuation of SW can be described as reasonable.
Based on the Price/Forward Earnings ratio, SW is valued cheaper than 87.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, SW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
79.03% of the companies in the same industry are more expensive than SW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SW is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 7.87 |
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)2.28
PEG (5Y)65.88
EPS Next 2Y2.26%
EPS Next 3Y3.54%
5. Dividend
5.1 Amount
SW has a Yearly Dividend Yield of 4.89%, which is a nice return.
Compared to an average industry Dividend Yield of 3.12, SW pays a better dividend. On top of this SW pays more dividend than 95.16% of the companies listed in the same industry.
SW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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
193.05% 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.
DP193.05%
EPS Next 2Y2.26%
EPS Next 3Y3.54%
EPA:SW (10/17/2025, 7:00:00 PM)
54.65
+0.5 (+0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners31.32%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap8.06B
Analysts77.69
Price Target67.74 (23.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)0.04%
PT rev (3m)-4.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.61%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 9.88 | ||
| P/S | 0.33 | ||
| P/FCF | 12.08 | ||
| P/OCF | 7.99 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.87 |
EPS(TTM)5.46
EY9.99%
EPS(NY)5.53
Fwd EY10.12%
FCF(TTM)4.52
FCFY8.28%
OCF(TTM)6.84
OCFY12.51%
SpS163.93
BVpS27.12
TBVpS-15.6
PEG (NY)2.28
PEG (5Y)65.88
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 | 2.57 |
F-Score8
WACC4.76%
ROIC/WACC1.77
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 Y4.39%
EPS Next 2Y2.26%
EPS Next 3Y3.54%
EPS Next 5Y3.57%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%3.09%
Revenue Next Year0.99%
Revenue Next 2Y1.17%
Revenue Next 3Y2.09%
Revenue Next 5Y2.83%
EBIT growth 1Y35.48%
EBIT growth 3Y25.25%
EBIT growth 5Y-0.9%
EBIT Next Year43.15%
EBIT Next 3Y16.86%
EBIT Next 5Y10.83%
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%