SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
EPA:SOP - Euronext Paris - Matif - FR0000050809 - Common Stock - Currency: EUR
Taking everything into account, SOP scores 6 out of 10 in our fundamental rating. SOP was compared to 72 industry peers in the IT Services industry. SOP scores excellent on profitability, but there are some minor concerns on its financial health. SOP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SOP was profitable.
In the past year SOP had a positive cash flow from operations.
Each year in the past 5 years SOP has been profitable.
Each year in the past 5 years SOP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.45%, SOP perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
The Return On Equity of SOP (13.02%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 11.47%, SOP is in the better half of the industry, outperforming 76.39% of the companies in the same industry.
SOP had an Average Return On Invested Capital over the past 3 years of 10.67%. This is in line with the industry average of 11.13%.
The last Return On Invested Capital (11.47%) for SOP is above the 3 year average (10.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 13.02% | ||
| ROIC | 11.47% |
ROA(3y)4.16%
ROA(5y)3.75%
ROE(3y)12.07%
ROE(5y)11.05%
ROIC(3y)10.67%
ROIC(5y)9.58%
1.3 Margins
SOP has a Profit Margin (4.34%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SOP has grown nicely.
SOP's Operating Margin of 8.89% is fine compared to the rest of the industry. SOP outperforms 72.22% of its industry peers.
SOP's Operating Margin has improved in the last couple of years.
The Gross Margin of SOP (75.98%) is better than 69.44% of its industry peers.
SOP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.89% | ||
| PM (TTM) | 4.34% | ||
| GM | 75.99% |
OM growth 3Y5.51%
OM growth 5Y5.28%
PM growth 3Y2.72%
PM growth 5Y3.75%
GM growth 3Y0.74%
GM growth 5Y1.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SOP is creating value.
Compared to 1 year ago, SOP has less shares outstanding
SOP has less shares outstanding than it did 5 years ago.
SOP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.27 indicates that SOP is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOP has a Altman-Z score of 2.27. This is comparable to the rest of the industry: SOP outperforms 50.00% of its industry peers.
The Debt to FCF ratio of SOP is 2.12, which is a good value as it means it would take SOP, 2.12 years of fcf income to pay off all of its debts.
SOP has a Debt to FCF ratio of 2.12. This is in the better half of the industry: SOP outperforms 73.61% of its industry peers.
SOP has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
SOP has a Debt to Equity ratio (0.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.86
WACC6.18%
2.3 Liquidity
SOP has a Current Ratio of 0.90. This is a bad value and indicates that SOP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SOP (0.90) is worse than 75.00% of its industry peers.
A Quick Ratio of 0.90 indicates that SOP may have some problems paying its short term obligations.
SOP has a worse Quick ratio (0.90) than 73.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
SOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.88%, which is quite impressive.
The Earnings Per Share has been growing by 9.39% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.56% in the past year.
SOP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.43% yearly.
EPS 1Y (TTM)37.88%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%84.55%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%1.26%
3.2 Future
Based on estimates for the next years, SOP will show a small growth in Earnings Per Share. The EPS will grow by 5.32% on average per year.
The Revenue is expected to grow by 1.70% on average over the next years.
EPS Next Y7.04%
EPS Next 2Y8.11%
EPS Next 3Y10.81%
EPS Next 5Y5.32%
Revenue Next Year0.53%
Revenue Next 2Y2.25%
Revenue Next 3Y1.44%
Revenue Next 5Y1.7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.81, the valuation of SOP can be described as correct.
SOP's Price/Earnings ratio is a bit cheaper when compared to the industry. SOP is cheaper than 73.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of SOP to the average of the S&P500 Index (28.81), we can say SOP is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.41 indicates a reasonable valuation of SOP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOP indicates a rather cheap valuation: SOP is cheaper than 84.72% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.91, SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOP is valued cheaper than 81.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.46 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SOP does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SOP may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)1.58
EPS Next 2Y8.11%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 2.85%.
SOP's Dividend Yield is a higher than the industry average which is at 4.21.
SOP's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
On average, the dividend of SOP grows each year by 20.50%, which is quite nice.
Dividend Growth(5Y)20.5%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SOP pays out 37.41% of its income as dividend. This is a sustainable payout ratio.
SOP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.41%
EPS Next 2Y8.11%
EPS Next 3Y10.81%
EPA:SOP (3/27/2025, 7:00:00 PM)
182.7
+1.6 (+0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners46.04%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap3.75B
Analysts82.86
Price Target226.03 (23.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend4.72
Dividend Growth(5Y)20.5%
DP37.41%
Div Incr Years2
Div Non Decr Years2
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)-3.69%
PT rev (3m)-8.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.67%
Revenue NY rev (3m)-3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.65 | ||
| P/FCF | 6.46 | ||
| P/OCF | 5.72 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.93 |
EPS(TTM)12.34
EY6.75%
EPS(NY)19.41
Fwd EY10.62%
FCF(TTM)28.3
FCFY15.49%
OCF(TTM)31.94
OCFY17.48%
SpS281.11
BVpS93.79
TBVpS-32.08
PEG (NY)2.1
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 13.02% | ||
| ROCE | 15.69% | ||
| ROIC | 11.47% | ||
| ROICexc | 13.18% | ||
| ROICexgc | 142.94% | ||
| OM | 8.89% | ||
| PM (TTM) | 4.34% | ||
| GM | 75.99% | ||
| FCFM | 10.07% |
ROA(3y)4.16%
ROA(5y)3.75%
ROE(3y)12.07%
ROE(5y)11.05%
ROIC(3y)10.67%
ROIC(5y)9.58%
ROICexc(3y)11.97%
ROICexc(5y)10.63%
ROICexgc(3y)121.68%
ROICexgc(5y)90.7%
ROCE(3y)14.59%
ROCE(5y)13.1%
ROICexcg growth 3Y39.77%
ROICexcg growth 5Y23.23%
ROICexc growth 3Y10.54%
ROICexc growth 5Y8.39%
OM growth 3Y5.51%
OM growth 5Y5.28%
PM growth 3Y2.72%
PM growth 5Y3.75%
GM growth 3Y0.74%
GM growth 5Y1.12%
F-Score8
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 29.78% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | 13.3 | ||
| Cash Conversion | 85.84% | ||
| Profit Quality | 231.71% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.27 |
F-Score8
WACC6.18%
ROIC/WACC1.86
Cap/Depr(3y)38%
Cap/Depr(5y)32.61%
Cap/Sales(3y)1.66%
Cap/Sales(5y)1.48%
Profit Quality(3y)227.03%
Profit Quality(5y)244.93%
High Growth Momentum
Growth
EPS 1Y (TTM)37.88%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%84.55%
EPS Next Y7.04%
EPS Next 2Y8.11%
EPS Next 3Y10.81%
EPS Next 5Y5.32%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%1.26%
Revenue Next Year0.53%
Revenue Next 2Y2.25%
Revenue Next 3Y1.44%
Revenue Next 5Y1.7%
EBIT growth 1Y16.02%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year43.06%
EBIT Next 3YN/A
EBIT Next 5Y11.08%
FCF growth 1Y11.42%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y5.43%
OCF growth 3Y12.31%
OCF growth 5Y9.2%