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 55 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
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
With a Return On Assets value of 1.12%, SW perfoms like the industry average, outperforming 43.64% of the companies in the same industry.
SW has a Return On Equity (4.44%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 8.47%, SW is doing good in the industry, outperforming 69.09% of the companies in the same industry.
SW had an Average Return On Invested Capital over the past 3 years of 6.73%. This is below the industry average of 11.55%.
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 in line compared to the rest of the industry. SW outperforms 41.82% of its industry peers.
In the last couple of years the Profit Margin of SW has declined.
With a Operating Margin value of 4.30%, SW is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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: 70.91% 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.
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
SW has an Altman-Z score of 2.76. 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 (2.76) than 78.18% of its industry peers.
The Debt to FCF ratio of SW is 5.68, which is a neutral value as it means it would take SW, 5.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SW (5.68) is better than 65.45% of its industry peers.
SW has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
SW has a Debt to Equity ratio (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.6
WACC5.3%
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.
Looking at the Quick ratio, with a value of 1.03, SW is in line with its industry, outperforming 52.73% of the companies in the same industry.
| 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.
SW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.15% yearly.
SW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.13%.
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 Y10.21%
EPS Next 2Y10.44%
EPS Next 3Y9.85%
EPS Next 5Y5.73%
Revenue Next Year5.36%
Revenue Next 2Y5.42%
Revenue Next 3Y5.25%
Revenue Next 5Y4.63%
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.
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
A Price/Earnings ratio of 14.34 indicates a correct valuation of SW.
Compared to the rest of the industry, the Price/Earnings ratio of SW indicates a rather cheap valuation: SW is cheaper than 83.64% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SW to the average of the S&P500 Index (29.35), we can say SW is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.01, SW is valued correctly.
81.82% of the companies in the same industry are more expensive than SW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, SW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
65.45% 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 69.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.63 | ||
| EV/EBITDA | 9.72 |
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)1.4
PEG (5Y)94.38
EPS Next 2Y10.44%
EPS Next 3Y9.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.55%, 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 2.93. SW pays more dividend than 87.27% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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 2Y10.44%
EPS Next 3Y9.85%
EPA:SW (3/7/2025, 7:00:00 PM)
75.85
+1.25 (+1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners34.69%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap11.18B
Analysts78.52
Price Target93.17 (22.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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)0.62%
PT rev (3m)-0.65%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.24%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 13.01 | ||
| P/S | 0.47 | ||
| P/FCF | 11.63 | ||
| P/OCF | 8.47 | ||
| P/B | 2.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.72 |
EPS(TTM)5.29
EY6.97%
EPS(NY)5.83
Fwd EY7.69%
FCF(TTM)6.52
FCFY8.6%
OCF(TTM)8.95
OCFY11.8%
SpS161.4
BVpS25.65
TBVpS-15.04
PEG (NY)1.4
PEG (5Y)94.38
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 | 2.76 |
F-Score5
WACC5.3%
ROIC/WACC1.6
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 Y10.21%
EPS Next 2Y10.44%
EPS Next 3Y9.85%
EPS Next 5Y5.73%
Revenue 1Y (TTM)5.13%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%0.47%
Revenue Next Year5.36%
Revenue Next 2Y5.42%
Revenue Next 3Y5.25%
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%