SOPRA STERIA GROUP (SOP.PA) Stock Fundamental Analysis
Europe - EPA:SOP - FR0000050809 - Common Stock
126.4 EUR
-3.5 (-2.69%)
Taking everything into account, SOP scores 5 out of 10 in our fundamental rating. SOP was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
SOP had positive earnings in the past year.
In the past year SOP had a positive cash flow from operations.
In the past 5 years SOP has always been profitable.
SOP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOP has a Return On Assets (4.80%) which is in line with its industry peers.
With a decent Return On Equity value of 13.71%, SOP is doing good in the industry, outperforming 62.86% of the companies in the same industry.
The Return On Invested Capital of SOP (11.01%) is better than 77.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOP is significantly below the industry average of 21.24%.
The 3 year average ROIC (10.67%) for SOP is below the current ROIC(11.01%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 4.76%, SOP is in the better half of the industry, outperforming 61.43% of the companies in the same industry.
SOP's Profit Margin has improved in the last couple of years.
The Operating Margin of SOP (8.80%) is better than 65.71% of its industry peers.
In the last couple of years the Operating Margin of SOP has grown nicely.
The Gross Margin of SOP (76.49%) is better 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 | 8.8% | ||
| 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 well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SOP has been reduced compared to 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 2.10. 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 (2.10) which 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.
With a Debt to FCF ratio value of 3.23, SOP perfoms like the industry average, outperforming 58.57% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that SOP is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.48, SOP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.85
WACC5.95%
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.
With a Current ratio value of 0.89, SOP is not doing good in the industry: 77.14% of the companies in the same industry are doing better.
SOP has a Quick 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.
The Quick ratio of SOP (0.89) is worse than 70.00% 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.
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 decrease in Revenue. The Revenue has decreased by -1.23% 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)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
SOP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.31% yearly.
SOP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.75% yearly.
EPS Next Y-6.97%
EPS Next 2Y1.57%
EPS Next 3Y3.6%
EPS Next 5Y2.31%
Revenue Next Year-2.63%
Revenue Next 2Y-0.17%
Revenue Next 3Y0.98%
Revenue Next 5Y2.75%
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
SOP is valuated reasonably with a Price/Earnings ratio of 9.34.
Based on the Price/Earnings ratio, SOP is valued cheaper than 95.71% of the companies in the same industry.
SOP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.67.
The Price/Forward Earnings ratio is 6.76, which indicates a rather cheap valuation of SOP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOP indicates a rather cheap valuation: SOP is cheaper than 90.00% of the companies listed in the same industry.
SOP is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 6.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOP is valued a bit cheaper than 77.14% of the companies in the same industry.
84.29% 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 | 6.48 | ||
| EV/EBITDA | 5.49 |
4.3 Compensation for Growth
The decent profitability rating of SOP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y1.57%
EPS Next 3Y3.6%
5. Dividend
5.1 Amount
SOP has a Yearly Dividend Yield of 3.45%.
The stock price of SOP dropped by -31.15% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.86, SOP pays a bit more dividend than its industry peers.
SOP's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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.
The dividend of SOP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.43%
EPS Next 2Y1.57%
EPS Next 3Y3.6%
EPA:SOP (11/6/2025, 5:29:51 PM)
126.4
-3.5 (-2.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners43.75%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap2.60B
Revenue(TTM)5.67B
Net Income(TTM)269.80M
Analysts84.29
Price Target218.18 (72.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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)-6.06%
PT rev (3m)-6.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 6.76 | ||
| P/S | 0.46 | ||
| P/FCF | 6.48 | ||
| P/OCF | 5.55 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.49 |
EPS(TTM)13.54
EY10.71%
EPS(NY)18.71
Fwd EY14.8%
FCF(TTM)19.52
FCFY15.44%
OCF(TTM)22.79
OCFY18.03%
SpS275.97
BVpS95.8
TBVpS-30.03
PEG (NY)N/A
PEG (5Y)0.99
Graham Number170.83
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%
ROICexgc growth 3Y39.77%
ROICexgc 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 | 2.1 |
F-Score8
WACC5.95%
ROIC/WACC1.85
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-6.97%
EPS Next 2Y1.57%
EPS Next 3Y3.6%
EPS Next 5Y2.31%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y7.25%
Revenue growth 5Y5.43%
Sales Q2Q%-3.58%
Revenue Next Year-2.63%
Revenue Next 2Y-0.17%
Revenue Next 3Y0.98%
Revenue Next 5Y2.75%
EBIT growth 1Y1.09%
EBIT growth 3Y13.16%
EBIT growth 5Y11%
EBIT Next Year32.56%
EBIT Next 3Y13.38%
EBIT Next 5Y8.73%
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%
SOPRA STERIA GROUP / SOP.PA FAQ
What is the fundamental rating for SOP stock?
ChartMill assigns a fundamental rating of 5 / 10 to SOP.PA.
Can you provide the valuation status for SOPRA STERIA GROUP?
ChartMill assigns a valuation rating of 7 / 10 to SOPRA STERIA GROUP (SOP.PA). This can be considered as Undervalued.
Can you provide the profitability details for SOPRA STERIA GROUP?
SOPRA STERIA GROUP (SOP.PA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for SOP stock?
The Price/Earnings (PE) ratio for SOPRA STERIA GROUP (SOP.PA) is 9.34 and the Price/Book (PB) ratio is 1.32.
What is the earnings growth outlook for SOPRA STERIA GROUP?
The Earnings per Share (EPS) of SOPRA STERIA GROUP (SOP.PA) is expected to decline by -6.97% in the next year.