SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
EPA:SOP - Euronext Paris - Matif - FR0000050809 - Common Stock - Currency: EUR
Overall SOP gets a fundamental rating of 6 out of 10. We evaluated SOP 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 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.
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
SOP's Return On Assets of 4.45% is in line compared to the rest of the industry. SOP outperforms 58.57% of its industry peers.
Looking at the Return On Equity, with a value of 13.02%, SOP is in line with its industry, outperforming 58.57% of the companies in the same industry.
The Return On Invested Capital of SOP (11.47%) is better than 77.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOP is in line with the industry average of 10.72%.
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
Looking at the Profit Margin, with a value of 4.34%, SOP is in line with its industry, outperforming 60.00% of the companies in the same industry.
SOP's Profit Margin has improved in the last couple of years.
SOP has a Operating Margin of 8.89%. This is in the better half of the industry: SOP outperforms 68.57% 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 67.14% of its industry peers.
SOP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.89% | ||
| 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) well above the Cost of Capital (WACC), SOP is creating value.
SOP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SOP has been reduced compared to 5 years ago.
The debt/assets ratio for SOP has been reduced compared to a year ago.
2.2 Solvency
SOP has an Altman-Z score of 2.27. 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.
With a Altman-Z score value of 2.27, SOP perfoms like the industry average, outperforming 45.71% of the companies in the same 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.
SOP has a better Debt to FCF ratio (2.12) than 72.86% 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 48.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.8
WACC6.36%
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 78.57% 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 75.71% 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.
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
The Earnings Per Share is expected to grow by 4.28% on average over the next years.
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-0.29%
Revenue Next 2Y1.61%
Revenue Next 3Y1.45%
Revenue Next 5Y0.69%
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
With a Price/Earnings ratio of 14.83, SOP is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SOP indicates a somewhat cheap valuation: SOP is cheaper than 77.14% of the companies listed in the same industry.
SOP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.85.
SOP is valuated reasonably with a Price/Forward Earnings ratio of 10.22.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOP indicates a rather cheap valuation: SOP is cheaper than 87.14% of the companies listed in the same industry.
SOP is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
SOP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SOP is cheaper than 78.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOP is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.47 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
The decent profitability rating of SOP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.58
EPS Next 2Y4.3%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.69%, SOP has a reasonable but not impressive dividend return.
SOP's Dividend Yield is a higher than the industry average which is at 7.37.
Compared to an average S&P500 Dividend Yield of 2.45, SOP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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 (5/2/2025, 9:44:57 AM)
183
+3 (+1.67%)
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 Cap3.76B
Analysts84
Price Target225.08 (22.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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)-0.42%
PT rev (3m)-6.22%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-9.73%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 10.22 | ||
| P/S | 0.65 | ||
| P/FCF | 6.47 | ||
| P/OCF | 5.73 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.9 |
EPS(TTM)12.34
EY6.74%
EPS(NY)17.91
Fwd EY9.79%
FCF(TTM)28.3
FCFY15.47%
OCF(TTM)31.94
OCFY17.45%
SpS281.11
BVpS93.79
TBVpS-32.08
PEG (NY)N/A
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
WACC6.36%
ROIC/WACC1.8
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-0.29%
Revenue Next 2Y1.61%
Revenue Next 3Y1.45%
Revenue Next 5Y0.69%
EBIT growth 1Y16.02%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year36.51%
EBIT Next 3Y14.28%
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%