SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
EPA:SOP - Euronext Paris - Matif - FR0000050809 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to SOP. SOP was compared to 74 industry peers in the IT Services industry. While SOP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SOP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SOP was profitable.
SOP had a positive operating cash flow in the past year.
SOP had positive earnings in each of the past 5 years.
Each year in the past 5 years SOP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.45%, SOP is in line with its industry, outperforming 55.41% of the companies in the same industry.
The Return On Equity of SOP (13.02%) is comparable to the rest of the industry.
SOP has a better Return On Invested Capital (11.47%) than 75.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOP is in line with the industry average of 11.05%.
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.
SOP's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.89%, SOP is doing good in the industry, outperforming 71.62% of the companies in the same industry.
SOP's Operating Margin has improved in the last couple of years.
The Gross Margin of SOP (75.98%) is better than 70.27% 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
SOP 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, 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 2.37 indicates that SOP is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOP has a Altman-Z score (2.37) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of SOP (2.12) is better than 70.27% 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 | 2.37 |
ROIC/WACC1.79
WACC6.42%
2.3 Liquidity
A Current Ratio of 0.90 indicates that SOP may have some problems paying its short term obligations.
With a Current ratio value of 0.90, SOP is not doing good in the industry: 79.73% of the companies in the same industry are doing better.
SOP has a Quick 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.
With a Quick ratio value of 0.90, SOP is not doing good in the industry: 75.68% of the companies in the same industry are doing better.
| 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.
Looking at the last year, SOP shows a small growth in Revenue. The Revenue has grown by 2.56% in the last year.
Measured over the past years, SOP shows a small growth in Revenue. The Revenue has been growing by 5.43% on average per year.
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
The Earnings Per Share is expected to grow by 5.13% on average over the next years.
Based on estimates for the next years, SOP will show a small growth in Revenue. The Revenue will grow by 1.50% on average per year.
EPS Next Y-1.24%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPS Next 5Y5.13%
Revenue Next Year-0.19%
Revenue Next 2Y1.51%
Revenue Next 3Y1.24%
Revenue Next 5Y1.5%
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
A Price/Earnings ratio of 16.68 indicates a correct valuation of SOP.
Based on the Price/Earnings ratio, SOP is valued a bit cheaper than the industry average as 66.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. SOP is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.49, the valuation of SOP can be described as reasonable.
SOP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SOP is cheaper than 75.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, SOP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than 66.22% of the companies in the same industry.
78.38% of the companies in the same industry are more expensive than SOP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
The decent profitability rating of SOP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.78
EPS Next 2Y4.3%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 2.31%.
SOP's Dividend Yield is a higher than the industry average which is at 6.79.
SOP's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 Years3
5.3 Sustainability
37.41% of the earnings are spent on dividend by SOP. This is a low number and sustainable payout ratio.
SOP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.41%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPA:SOP (6/19/2025, 7:00:00 PM)
205.8
-4.8 (-2.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners41.66%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap4.23B
Analysts84.29
Price Target227.87 (10.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend4.72
Dividend Growth(5Y)20.5%
DP37.41%
Div Incr Years2
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)0.4%
PT rev (3m)0.81%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-7.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 11.49 | ||
| P/S | 0.73 | ||
| P/FCF | 7.27 | ||
| P/OCF | 6.44 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.72 |
EPS(TTM)12.34
EY6%
EPS(NY)17.91
Fwd EY8.7%
FCF(TTM)28.3
FCFY13.75%
OCF(TTM)31.94
OCFY15.52%
SpS281.11
BVpS93.79
TBVpS-32.08
PEG (NY)N/A
PEG (5Y)1.78
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 | 2.37 |
F-Score8
WACC6.42%
ROIC/WACC1.79
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 Y-1.24%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPS Next 5Y5.13%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%1.26%
Revenue Next Year-0.19%
Revenue Next 2Y1.51%
Revenue Next 3Y1.24%
Revenue Next 5Y1.5%
EBIT growth 1Y16.02%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year35.02%
EBIT Next 3Y13.72%
EBIT Next 5Y11.43%
FCF growth 1Y11.42%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y5.43%
OCF growth 3Y12.31%
OCF growth 5Y9.2%