SODEXO SA (SW.PA) Stock Fundamental Analysis
EPA:SW - Euronext Paris - Matif - FR0000121220 - Common Stock - Currency: EUR
SW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 58 industry peers in the Hotels, Restaurants & Leisure industry. SW has an average financial health and profitability rating. SW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SW was profitable.
SW had a positive operating cash flow in the past year.
SW had positive earnings in 4 of the past 5 years.
SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SW has a better Return On Assets (4.41%) than 63.79% of its industry peers.
With a decent Return On Equity value of 16.90%, SW is doing good in the industry, outperforming 79.31% of the companies in the same industry.
The Return On Invested Capital of SW (8.44%) is better than 70.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SW is below the industry average of 10.30%.
The 3 year average ROIC (6.73%) for SW is below the current ROIC(8.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 16.9% | ||
| ROIC | 8.44% |
ROA(3y)2.75%
ROA(5y)1.44%
ROE(3y)12.56%
ROE(5y)6.13%
ROIC(3y)6.73%
ROIC(5y)5.66%
1.3 Margins
The Profit Margin of SW (2.80%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SW has declined.
With a Operating Margin value of 4.44%, SW perfoms like the industry average, outperforming 46.55% of the companies in the same industry.
SW's Operating Margin has declined in the last couple of years.
SW's Gross Margin of 11.97% is on the low side compared to the rest of the industry. SW is outperformed by 72.41% of its industry peers.
SW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.8% | ||
| GM | 11.97% |
OM growth 3Y12.9%
OM growth 5Y-2.48%
PM growth 3Y-3.99%
PM growth 5Y-25.27%
GM growth 3Y-4.89%
GM growth 5Y-3.88%
2. Health
2.1 Basic Checks
SW 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 SW remains at a similar level compared to 1 year ago.
SW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SW is higher compared to a year ago.
2.2 Solvency
SW has an Altman-Z score of 2.56. This is not the best score and indicates that SW is in the grey zone with still only limited risk for bankruptcy at the moment.
SW's Altman-Z score of 2.56 is fine compared to the rest of the industry. SW outperforms 70.69% of its industry peers.
The Debt to FCF ratio of SW is 8.40, which is on the high side as it means it would take SW, 8.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.40, SW is in line with its industry, outperforming 53.45% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that SW has dependencies on debt financing.
SW has a Debt to Equity ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.83
WACC4.61%
2.3 Liquidity
A Current Ratio of 1.08 indicates that SW should not have too much problems paying its short term obligations.
SW's Current ratio of 1.08 is fine compared to the rest of the industry. SW outperforms 63.79% of its industry peers.
SW has a Quick Ratio of 1.02. This is a normal value and indicates that SW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.02, SW is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
SW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.98%.
Measured over the past 5 years, SW shows a small growth in Earnings Per Share. The EPS has been growing by 0.15% on average per year.
The Revenue has been growing slightly by 6.71% in the past year.
The Revenue has been growing slightly by 1.63% on average over the past years.
EPS 1Y (TTM)-6.98%
EPS 3Y30.69%
EPS 5Y0.15%
EPS Q2Q%5.84%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%3.09%
3.2 Future
Based on estimates for the next years, SW will show a small growth in Earnings Per Share. The EPS will grow by 3.64% on average per year.
The Revenue is expected to grow by 2.99% on average over the next years.
EPS Next Y5.24%
EPS Next 2Y6.3%
EPS Next 3Y6.9%
EPS Next 5Y3.64%
Revenue Next Year1.35%
Revenue Next 2Y1.51%
Revenue Next 3Y2.45%
Revenue Next 5Y2.99%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.73 indicates a reasonable valuation of SW.
91.38% of the companies in the same industry are more expensive than SW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.87. SW is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.89, the valuation of SW can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SW indicates a rather cheap valuation: SW is cheaper than 93.10% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.34. SW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SW is valued a bit cheaper than the industry average as 74.14% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SW indicates a somewhat cheap valuation: SW is cheaper than 79.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.74 | ||
| EV/EBITDA | 7.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SW does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.86
PEG (5Y)64.05
EPS Next 2Y6.3%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
SW has a Yearly Dividend Yield of 5.07%, which is a nice return.
Compared to an average industry Dividend Yield of 2.85, SW pays a better dividend. On top of this SW pays more dividend than 96.55% of the companies listed in the same industry.
SW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
5.2 History
The dividend of SW is nicely growing with an annual growth rate of 27.68%!
Dividend Growth(5Y)27.68%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SW pays out 193.05% of its income as dividend. This is not a sustainable payout ratio.
SW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP193.05%
EPS Next 2Y6.3%
EPS Next 3Y6.9%
EPA:SW (8/15/2025, 5:29:52 PM)
53.125
+0.83 (+1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners29.76%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap7.83B
Analysts77.69
Price Target69.88 (31.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
Yearly Dividend9.38
Dividend Growth(5Y)27.68%
DP193.05%
Div Incr Years3
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)-8.34%
PT rev (3m)-8.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.33%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 8.89 | ||
| P/S | 0.32 | ||
| P/FCF | 11.74 | ||
| P/OCF | 7.77 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.65 |
EPS(TTM)5.46
EY10.28%
EPS(NY)5.98
Fwd EY11.25%
FCF(TTM)4.52
FCFY8.51%
OCF(TTM)6.84
OCFY12.87%
SpS163.93
BVpS27.12
TBVpS-15.6
PEG (NY)1.86
PEG (5Y)64.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 16.9% | ||
| ROCE | 11.19% | ||
| ROIC | 8.44% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 44.68% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.8% | ||
| GM | 11.97% | ||
| FCFM | 2.76% |
ROA(3y)2.75%
ROA(5y)1.44%
ROE(3y)12.56%
ROE(5y)6.13%
ROIC(3y)6.73%
ROIC(5y)5.66%
ROICexc(3y)10.21%
ROICexc(5y)8.46%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)8.92%
ROCE(5y)7.5%
ROICexcg growth 3Y-36.69%
ROICexcg growth 5Y-39.36%
ROICexc growth 3Y22.8%
ROICexc growth 5Y-0.69%
OM growth 3Y12.9%
OM growth 5Y-2.48%
PM growth 3Y-3.99%
PM growth 5Y-25.27%
GM growth 3Y-4.89%
GM growth 5Y-3.88%
F-Score8
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 72.86% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 44.71 | ||
| Cash Conversion | 65.41% | ||
| Profit Quality | 98.67% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.56 |
F-Score8
WACC4.61%
ROIC/WACC1.83
Cap/Depr(3y)71.98%
Cap/Depr(5y)61.92%
Cap/Sales(3y)1.57%
Cap/Sales(5y)1.69%
Profit Quality(3y)267.54%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.98%
EPS 3Y30.69%
EPS 5Y0.15%
EPS Q2Q%5.84%
EPS Next Y5.24%
EPS Next 2Y6.3%
EPS Next 3Y6.9%
EPS Next 5Y3.64%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%3.09%
Revenue Next Year1.35%
Revenue Next 2Y1.51%
Revenue Next 3Y2.45%
Revenue Next 5Y2.99%
EBIT growth 1Y35.48%
EBIT growth 3Y25.25%
EBIT growth 5Y-0.9%
EBIT Next Year47.8%
EBIT Next 3Y19.01%
EBIT Next 5Y11.09%
FCF growth 1Y-0.6%
FCF growth 3Y11.99%
FCF growth 5Y2.08%
OCF growth 1Y-6.06%
OCF growth 3Y10.4%
OCF growth 5Y0.81%