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 52 industry peers in the Hotels, Restaurants & Leisure industry. SW has only an average score on both its financial health and profitability. SW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SW was profitable.
In the past year SW had a positive cash flow from operations.
Of the past 5 years SW 4 years were profitable.
Each year in the past 5 years SW had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.41%, SW is doing good in the industry, outperforming 61.54% of the companies in the same industry.
The Return On Equity of SW (16.90%) is better than 73.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.44%, SW is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SW is below the industry average of 10.74%.
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
SW has a Profit Margin (2.80%) which is in line with its industry peers.
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.
In the last couple of years the Operating Margin of SW has declined.
The Gross Margin of SW (11.97%) is worse than 75.00% 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.
SW has about the same amout of shares outstanding than it did 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 2.58. 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.
The Altman-Z score of SW (2.58) is better than 71.15% 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 has a Debt to FCF ratio (8.40) which is in line with 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 (1.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.76
WACC4.8%
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.
SW's Current ratio of 1.08 is fine compared to the rest of the industry. SW outperforms 61.54% of its industry peers.
SW has a Quick Ratio of 1.02. This is a normal value and indicates that SW is financially healthy and should not expect problems in meeting its short term obligations.
SW has a Quick ratio (1.02) which is in line with 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%.
SW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.15% yearly.
The Revenue has been growing slightly by 6.71% in the past 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
SW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.61% yearly.
The Revenue is expected to grow by 3.43% on average over the next years.
EPS Next Y5.24%
EPS Next 2Y6.3%
EPS Next 3Y6.9%
EPS Next 5Y4.61%
Revenue Next Year2.71%
Revenue Next 2Y3.23%
Revenue Next 3Y3.63%
Revenue Next 5Y3.43%
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
SW is valuated reasonably with a Price/Earnings ratio of 10.13.
Compared to the rest of the industry, the Price/Earnings ratio of SW indicates a rather cheap valuation: SW is cheaper than 90.38% of the companies listed in the same industry.
SW is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.25, which indicates a very decent valuation of SW.
Based on the Price/Forward Earnings ratio, SW is valued cheaper than 88.46% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SW to the average of the S&P500 Index (21.38), we can say SW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
SW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SW is cheaper than 67.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SW is valued a bit cheaper than 67.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.22 | ||
| EV/EBITDA | 7.95 |
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)1.93
PEG (5Y)66.67
EPS Next 2Y6.3%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
SW has a Yearly Dividend Yield of 4.77%, which is a nice return.
In the last 3 months the price of SW has falen by -22.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SW's Dividend Yield is rather good when compared to the industry average which is at 3.09. SW pays more dividend than 90.38% of the companies in the same industry.
SW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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
SW pays out 193.05% of its income as dividend. 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 (4/29/2025, 5:35:30 PM)
55.3
-0.15 (-0.27%)
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 Cap8.15B
Analysts76.3
Price Target76.09 (37.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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)-18.33%
PT rev (3m)-19.7%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-4.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.52%
Revenue NY rev (3m)-2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 9.25 | ||
| P/S | 0.34 | ||
| P/FCF | 12.22 | ||
| P/OCF | 8.09 | ||
| P/B | 2.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)5.46
EY9.87%
EPS(NY)5.98
Fwd EY10.81%
FCF(TTM)4.52
FCFY8.18%
OCF(TTM)6.84
OCFY12.36%
SpS163.93
BVpS27.12
TBVpS-15.6
PEG (NY)1.93
PEG (5Y)66.67
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 | 2.58 |
F-Score8
WACC4.8%
ROIC/WACC1.76
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 5Y4.61%
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 5Y3.43%
EBIT growth 1Y35.48%
EBIT growth 3Y25.25%
EBIT growth 5Y-0.9%
EBIT Next Year47.19%
EBIT Next 3Y19.17%
EBIT Next 5Y11.92%
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%