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 76 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 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.
In the past 5 years SOP has always been profitable.
In the past 5 years SOP always reported a positive cash flow from operatings.
1.2 Ratios
SOP has a Return On Assets of 4.45%. This is comparable to the rest of the industry: SOP outperforms 56.94% of its industry peers.
With a Return On Equity value of 13.02%, SOP perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
SOP's Return On Invested Capital of 11.47% is fine compared to the rest of the industry. SOP outperforms 76.39% of its industry peers.
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 10.85%.
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
With a decent Profit Margin value of 4.34%, SOP is doing good in the industry, outperforming 61.11% of the companies in the same industry.
In the last couple of years the Profit Margin of SOP has grown nicely.
SOP has a Operating Margin of 8.89%. This is in the better half of the industry: SOP outperforms 69.44% of its industry peers.
SOP's Operating Margin has improved in the last couple of years.
SOP has a better Gross Margin (75.98%) than 69.44% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SOP is creating value.
SOP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SOP has less shares outstanding
SOP has a better debt/assets ratio than last year.
2.2 Solvency
SOP has an Altman-Z score of 2.30. 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 (2.30) 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.
Looking at the Debt to FCF ratio, with a value of 2.12, SOP is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that SOP is not too dependend on debt financing.
SOP has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.82
WACC6.32%
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.
With a Current ratio value of 0.90, SOP is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
A Quick Ratio of 0.90 indicates that SOP may have some problems paying its short term obligations.
SOP's Quick ratio of 0.90 is on the low side compared to the rest of the industry. SOP is outperformed by 76.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.88% over the past year.
SOP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.39% yearly.
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
Based on estimates for the next years, SOP will show a small growth in Earnings Per Share. The EPS will grow by 4.28% on average per year.
The Revenue is expected to grow by 0.69% on average over the next years.
EPS Next Y-1.24%
EPS Next 2Y4.3%
EPS Next 3Y5.97%
EPS Next 5Y4.28%
Revenue Next Year-0.19%
Revenue Next 2Y1.51%
Revenue Next 3Y1.24%
Revenue Next 5Y0.69%
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 decreasing.
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
A Price/Earnings ratio of 15.31 indicates a correct valuation of SOP.
SOP's Price/Earnings ratio is a bit cheaper when compared to the industry. SOP is cheaper than 76.39% of the companies in the same industry.
SOP is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.55, the valuation of SOP can be described as reasonable.
Based on the Price/Forward Earnings ratio, SOP is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SOP to the average of the S&P500 Index (21.77), we can say SOP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than 73.61% of the companies in the same industry.
80.56% 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 | 6.67 | ||
| EV/EBITDA | 6.13 |
4.3 Compensation for Growth
The decent profitability rating of SOP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.63
EPS Next 2Y4.3%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 2.40%.
Compared to an average industry Dividend Yield of 6.98, SOP pays a bit more dividend than its industry peers.
SOP's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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
37.41% of the earnings are spent on dividend by SOP. This is a low number and 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 (5/23/2025, 7:00:00 PM)
188.9
-3.6 (-1.87%)
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 Cap3.88B
Analysts84
Price Target226.95 (20.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)-0.04%
PT rev (3m)-3.3%
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)0.1%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 10.55 | ||
| P/S | 0.67 | ||
| P/FCF | 6.67 | ||
| P/OCF | 5.91 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.13 |
EPS(TTM)12.34
EY6.53%
EPS(NY)17.91
Fwd EY9.48%
FCF(TTM)28.3
FCFY14.98%
OCF(TTM)31.94
OCFY16.91%
SpS281.11
BVpS93.79
TBVpS-32.08
PEG (NY)N/A
PEG (5Y)1.63
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 | 2.3 |
F-Score8
WACC6.32%
ROIC/WACC1.82
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 5Y4.28%
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 5Y0.69%
EBIT growth 1Y16.02%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year35.02%
EBIT Next 3Y13.72%
EBIT Next 5Y11.1%
FCF growth 1Y11.42%
FCF growth 3Y12.48%
FCF growth 5Y9.29%
OCF growth 1Y5.43%
OCF growth 3Y12.31%
OCF growth 5Y9.2%