SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
EPA:SOP - Euronext Paris - Matif - FR0000050809 - Common Stock - Currency: EUR
SOP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 industry peers in the IT Services industry. While SOP has a great profitability rating, 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.
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
SOP has a Return On Assets (4.80%) which is in line with its industry peers.
SOP has a Return On Equity of 13.71%. This is comparable to the rest of the industry: SOP outperforms 57.14% of its industry peers.
SOP has a better Return On Invested Capital (11.01%) than 75.71% 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 11.11%.
The last Return On Invested Capital (11.01%) for SOP is above the 3 year average (10.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 13.71% | ||
| ROIC | 11.01% |
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
The Profit Margin of SOP (4.76%) is better than 64.29% of its industry peers.
SOP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.80%, SOP is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
SOP's Operating Margin has improved in the last couple of years.
SOP's Gross Margin of 76.49% is fine compared to the rest of the industry. SOP outperforms 67.14% of its industry peers.
SOP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.8% | ||
| PM (TTM) | 4.76% | ||
| GM | 76.49% |
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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SOP has less shares outstanding
The number of shares outstanding for SOP has been reduced compared to 5 years ago.
Compared to 1 year ago, SOP has an improved debt to assets ratio.
2.2 Solvency
SOP has an Altman-Z score of 2.26. This is not the best score and indicates that SOP is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of SOP (2.26) is comparable to the rest of the industry.
SOP has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as SOP would need 3.23 years to pay back of all of its debts.
SOP has a Debt to FCF ratio (3.23) which is comparable to the rest of the industry.
SOP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SOP (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.98
WACC11.19%
2.3 Liquidity
SOP has a Current Ratio of 0.89. This is a bad value and indicates that SOP is not financially healthy enough and could expect problems in meeting its short term obligations.
SOP's Current ratio of 0.89 is on the low side compared to the rest of the industry. SOP is outperformed by 80.00% of its industry peers.
A Quick Ratio of 0.89 indicates that SOP may have some problems paying its short term obligations.
SOP has a Quick ratio of 0.89. This is in the lower half of the industry: SOP underperforms 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.42% over the past year.
The Earnings Per Share has been growing by 9.39% on average over the past years. This is quite good.
SOP shows a decrease in Revenue. In the last year, the revenue decreased by -1.23%.
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)43.42%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%19.95%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%-3.58%
3.2 Future
The Earnings Per Share is expected to grow by 4.66% 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 1.04% on average per year.
EPS Next Y-1.24%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPS Next 5Y4.66%
Revenue Next Year-0.88%
Revenue Next 2Y1.04%
Revenue Next 3Y1.22%
Revenue Next 5Y1.04%
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
The Price/Earnings ratio is 13.04, which indicates a correct valuation of SOP.
Based on the Price/Earnings ratio, SOP is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.11. SOP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.95, the valuation of SOP can be described as reasonable.
Based on the Price/Forward Earnings ratio, SOP is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SOP to the average of the S&P500 Index (35.78), we can say SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than the industry average as 61.43% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOP indicates a somewhat cheap valuation: SOP is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.05 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
The decent profitability rating of SOP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y4.3%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 2.54%. Purely for dividend investing, there may be better candidates out there.
SOP's Dividend Yield is comparable with the industry average which is at 7.37.
SOP's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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
33.43% 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.
DP33.43%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPA:SOP (8/14/2025, 5:36:15 PM)
176.6
-2 (-1.12%)
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 Cap3.63B
Analysts84.29
Price Target231.85 (31.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend4.72
Dividend Growth(5Y)20.5%
DP33.43%
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)0.44%
PT rev (3m)3.01%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 8.95 | ||
| P/S | 0.64 | ||
| P/FCF | 9.05 | ||
| P/OCF | 7.75 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)13.54
EY7.67%
EPS(NY)19.73
Fwd EY11.17%
FCF(TTM)19.52
FCFY11.05%
OCF(TTM)22.79
OCFY12.9%
SpS275.97
BVpS95.8
TBVpS-30.03
PEG (NY)N/A
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 13.71% | ||
| ROCE | 15.06% | ||
| ROIC | 11.01% | ||
| ROICexc | 11.52% | ||
| ROICexgc | 62.81% | ||
| OM | 8.8% | ||
| PM (TTM) | 4.76% | ||
| GM | 76.49% | ||
| FCFM | 7.07% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 34.15% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 15.45 | ||
| Cash Conversion | 67.3% | ||
| Profit Quality | 148.67% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 2.26 |
F-Score8
WACC11.19%
ROIC/WACC0.98
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)43.42%
EPS 3Y10.32%
EPS 5Y9.39%
EPS Q2Q%19.95%
EPS Next Y-1.24%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPS Next 5Y4.66%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%-3.58%
Revenue Next Year-0.88%
Revenue Next 2Y1.04%
Revenue Next 3Y1.22%
Revenue Next 5Y1.04%
EBIT growth 1Y1.09%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year35.02%
EBIT Next 3Y13.72%
EBIT Next 5Y10.93%
FCF growth 1Y-13.69%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y-16.54%
OCF growth 3Y12.31%
OCF growth 5Y9.2%