SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
EPA:SOP - Euronext Paris - Matif - FR0000050809 - Common Stock - Currency: EUR
Taking everything into account, SOP scores 5 out of 10 in our fundamental rating. SOP was compared to 71 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.
SOP had a positive operating cash flow in the past year.
Each year in the past 5 years SOP has been profitable.
SOP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.45%, SOP is in line with its industry, outperforming 53.52% of the companies in the same industry.
The Return On Equity of SOP (13.02%) is comparable to the rest of the industry.
The Return On Invested Capital of SOP (11.47%) is better than 78.87% 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 10.64%.
The 3 year average ROIC (10.67%) for SOP is below the current ROIC(11.47%), indicating increased profibility in the last year.
| 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's Profit Margin of 4.34% is in line compared to the rest of the industry. SOP outperforms 56.34% of its industry peers.
In the last couple of years the Profit Margin of SOP has grown nicely.
The Operating Margin of SOP (8.89%) is better than 70.42% of its industry peers.
SOP's Operating Margin has improved in the last couple of years.
SOP has a Gross Margin of 75.98%. This is in the better half of the industry: SOP outperforms 67.61% of its industry peers.
In the last couple of years the Gross Margin of SOP has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOP is destroying 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
SOP has an Altman-Z score of 2.35. 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.
SOP has a Altman-Z score of 2.35. This is comparable to the rest of the industry: SOP outperforms 46.48% 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's Debt to FCF ratio of 2.12 is fine compared to the rest of the industry. SOP outperforms 66.20% 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.
With a Debt to Equity ratio value of 0.49, SOP perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.99
WACC11.6%
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.
Looking at the Current ratio, with a value of 0.90, SOP is doing worse than 83.10% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that SOP may have some problems paying its short term obligations.
The Quick ratio of SOP (0.90) is worse than 80.28% 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.
Looking at the last year, SOP shows a small growth in Revenue. The Revenue has grown by 2.56% in the last 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 4.66% on average per year.
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-0.19%
Revenue Next 2Y1.51%
Revenue Next 3Y1.24%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.48, which indicates a correct valuation of SOP.
Based on the Price/Earnings ratio, SOP is valued a bit cheaper than 67.61% of the companies in the same industry.
SOP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.36, which indicates a very decent valuation of SOP.
78.87% of the companies in the same industry are more expensive than SOP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SOP to the average of the S&P500 Index (21.70), we can say SOP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
SOP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SOP is cheaper than 63.38% of the companies in the same industry.
SOP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOP is cheaper than 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
SOP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.76
EPS Next 2Y4.3%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 2.27%. Purely for dividend investing, there may be better candidates out there.
SOP's Dividend Yield is a higher than the industry average which is at 6.93.
SOP's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
5.2 History
The dividend of SOP is nicely growing with an annual growth rate of 20.50%!
Dividend Growth(5Y)20.5%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
SOP pays out 37.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of SOP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.41%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPA:SOP (7/1/2025, 7:00:00 PM)
203.4
-3.4 (-1.64%)
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 Cap4.18B
Analysts84.29
Price Target230.83 (13.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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)1.71%
PT rev (3m)2.12%
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 | 16.48 | ||
| Fwd PE | 11.36 | ||
| P/S | 0.72 | ||
| P/FCF | 7.19 | ||
| P/OCF | 6.37 | ||
| P/B | 2.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.62 |
EPS(TTM)12.34
EY6.07%
EPS(NY)17.91
Fwd EY8.81%
FCF(TTM)28.3
FCFY13.91%
OCF(TTM)31.94
OCFY15.7%
SpS281.11
BVpS93.79
TBVpS-32.08
PEG (NY)N/A
PEG (5Y)1.76
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 | 2.35 |
F-Score8
WACC11.6%
ROIC/WACC0.99
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 5Y4.66%
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 5Y1.04%
EBIT growth 1Y16.02%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year35.02%
EBIT Next 3Y13.72%
EBIT Next 5Y10.93%
FCF growth 1Y11.42%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y5.43%
OCF growth 3Y12.31%
OCF growth 5Y9.2%