SODEXO SA (SW.PA)
FR0000121220 - Common Stock
Taking everything into account, SW scores 4 out of 10 in our fundamental rating. SW was compared to 51 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SW had positive earnings in the past year.
In the past year SW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SW reported negative net income in multiple years.
Of the past 5 years SW 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SW (1.80%) is worse than 60.87% of its industry peers.
The Return On Equity of SW (6.34%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.51%, SW is in line with its industry, outperforming 52.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SW is significantly below the industry average of 10.94%.
The last Return On Invested Capital (5.51%) for SW is above the 3 year average (5.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 6.34% | ||
| ROIC | 5.51% |
ROA(3y)2.62%
ROA(5y)1.97%
ROE(3y)12.54%
ROE(5y)8.22%
ROIC(3y)5.01%
ROIC(5y)5.58%
1.3 Margins
SW has a Profit Margin of 1.24%. This is in the lower half of the industry: SW underperforms 63.04% of its industry peers.
SW's Profit Margin has improved in the last couple of years.
SW's Operating Margin of 3.50% is on the low side compared to the rest of the industry. SW is outperformed by 69.57% of its industry peers.
In the last couple of years the Operating Margin of SW has declined.
The Gross Margin of SW (10.75%) is worse than 82.61% of its industry peers.
In the last couple of years the Gross Margin of SW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.5% | ||
| PM (TTM) | 1.24% | ||
| GM | 10.75% |
OM growth 3Y15.1%
OM growth 5Y-4.84%
PM growth 3YN/A
PM growth 5Y1.92%
GM growth 3Y-2.16%
GM growth 5Y-4.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SW is still creating some value.
SW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.68 indicates that SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SW (2.68) is better than 76.09% of its industry peers.
The Debt to FCF ratio of SW is 5.11, which is a neutral value as it means it would take SW, 5.11 years of fcf income to pay off all of its debts.
SW's Debt to FCF ratio of 5.11 is fine compared to the rest of the industry. SW outperforms 63.04% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that SW has dependencies on debt financing.
The Debt to Equity ratio of SW (1.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.12
WACC4.91%
2.3 Liquidity
A Current Ratio of 1.22 indicates that SW should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.22, SW is doing good in the industry, outperforming 71.74% of the companies in the same industry.
SW has a Quick Ratio of 1.16. This is a normal value and indicates that SW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.16, SW is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for SW have decreased strongly by -14.81% in the last year.
The Earnings Per Share has been growing slightly by 0.15% on average over the past years.
EPS 1Y (TTM)-14.81%
EPS 3Y30.69%
EPS 5Y0.15%
EPS Q2Q%-19.59%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.47%
3.2 Future
Based on estimates for the next years, SW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.42% on average per year.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y13.36%
EPS Next 2Y11.89%
EPS Next 3Y9.04%
EPS Next 5Y9.42%
Revenue Next Year5.4%
Revenue Next 2Y5.23%
Revenue Next 3Y5.68%
Revenue Next 5Y4.44%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.12, the valuation of SW can be described as correct.
SW's Price/Earnings ratio is a bit cheaper when compared to the industry. SW is cheaper than 76.09% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.69, SW is valued rather cheaply.
A Price/Forward Earnings ratio of 13.34 indicates a correct valuation of SW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SW indicates a somewhat cheap valuation: SW is cheaper than 76.09% of the companies listed in the same industry.
SW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 13.34 |
4.2 Price Multiples
SW's Enterprise Value to EBITDA ratio is in line with 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 71.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.75 | ||
| EV/EBITDA | 12.81 |
4.3 Compensation for Growth
SW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.13
PEG (5Y)99.55
EPS Next 2Y11.89%
EPS Next 3Y9.04%
5. Dividend
5.1 Amount
SW has a Yearly Dividend Yield of 3.82%. Purely for dividend investing, there may be better candidates out there.
SW's Dividend Yield is rather good when compared to the industry average which is at 3.00. SW pays more dividend than 89.13% of the companies in the same industry.
SW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
The dividend of SW decreases each year by -2.97%.
Dividend Growth(5Y)-2.97%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
162.86% of the earnings are spent on dividend by SW. This is not a sustainable payout ratio.
DP162.86%
EPS Next 2Y11.89%
EPS Next 3Y9.04%
SODEXO SA
EPA:SW (10/30/2024, 7:00:00 PM)
80
+0.25 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 13.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.13
PEG (5Y)99.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 6.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.5% | ||
| PM (TTM) | 1.24% | ||
| GM | 10.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-14.81%
EPS 3Y30.69%
EPS 5Y
EPS Q2Q%
EPS Next Y13.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y