SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - EPA:SOP - FR0000050809 - Common Stock
160.1 EUR
-1.1 (-0.68%)
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. 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
SOP had positive earnings in the past year.
SOP had a positive operating cash flow in the past year.
Each year in the past 5 years SOP has been profitable.
In the past 5 years SOP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.80%, SOP perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
SOP has a Return On Equity (13.71%) which is in line with its industry peers.
The Return On Invested Capital of SOP (11.01%) is better than 73.24% 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 10.76%.
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
With a decent Profit Margin value of 4.76%, SOP is doing good in the industry, outperforming 60.56% of the companies in the same industry.
SOP's Profit Margin has improved in the last couple of years.
SOP's Operating Margin of 8.80% is fine compared to the rest of the industry. SOP outperforms 69.01% of its industry peers.
In the last couple of years the Operating Margin of SOP has grown nicely.
SOP has a better Gross Margin (76.49%) than 69.01% 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 | 8.8% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOP is creating some value.
SOP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SOP has less shares outstanding
Compared to 1 year ago, SOP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.21 indicates that SOP is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.21, SOP is in line with its industry, outperforming 42.25% of the companies in the same industry.
The Debt to FCF ratio of SOP is 3.23, which is a good value as it means it would take SOP, 3.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SOP (3.23) 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 | 2.21 |
ROIC/WACC1.77
WACC6.21%
2.3 Liquidity
A Current Ratio of 0.89 indicates that SOP may have some problems paying 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 83.10% 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 77.46% 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.
Measured over the past years, SOP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.39% on average per year.
The Revenue has decreased by -1.23% in the past 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)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
Based on estimates for the next years, SOP will show a small growth in Earnings Per Share. The EPS will grow by 2.40% on average per year.
Based on estimates for the next years, SOP will show a small growth in Revenue. The Revenue will grow by 2.84% on average per year.
EPS Next Y-6.16%
EPS Next 2Y1.57%
EPS Next 3Y3.78%
EPS Next 5Y2.4%
Revenue Next Year-2.58%
Revenue Next 2Y-0.09%
Revenue Next 3Y1.06%
Revenue Next 5Y2.84%
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 11.82 indicates a reasonable valuation of SOP.
85.92% of the companies in the same industry are more expensive than SOP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.32. SOP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.56, which indicates a very decent valuation of SOP.
Based on the Price/Forward Earnings ratio, SOP is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
SOP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 8.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
SOP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOP is cheaper than 77.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.2 | ||
| EV/EBITDA | 6.41 |
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)1.26
EPS Next 2Y1.57%
EPS Next 3Y3.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, SOP has a reasonable but not impressive dividend return.
In the last 3 months the price of SOP has falen by -22.46%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SOP's Dividend Yield is a higher than the industry average which is at 7.51.
Compared to an average S&P500 Dividend Yield of 2.38, SOP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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 33.43% of its income as dividend. This is a sustainable payout ratio.
SOP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.43%
EPS Next 2Y1.57%
EPS Next 3Y3.78%
EPA:SOP (9/26/2025, 7:00:00 PM)
160.1
-1.1 (-0.68%)
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 Cap3.29B
Analysts84.29
Price Target232.25 (45.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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)0.18%
PT rev (3m)1.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 8.56 | ||
| P/S | 0.58 | ||
| P/FCF | 8.2 | ||
| P/OCF | 7.03 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.41 |
EPS(TTM)13.54
EY8.46%
EPS(NY)18.71
Fwd EY11.69%
FCF(TTM)19.52
FCFY12.19%
OCF(TTM)22.79
OCFY14.23%
SpS275.97
BVpS95.8
TBVpS-30.03
PEG (NY)N/A
PEG (5Y)1.26
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 | 2.21 |
F-Score8
WACC6.21%
ROIC/WACC1.77
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-6.16%
EPS Next 2Y1.57%
EPS Next 3Y3.78%
EPS Next 5Y2.4%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%-3.58%
Revenue Next Year-2.58%
Revenue Next 2Y-0.09%
Revenue Next 3Y1.06%
Revenue Next 5Y2.84%
EBIT growth 1Y1.09%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year35.02%
EBIT Next 3Y13.72%
EBIT Next 5Y8.82%
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%