SODEXO SA (SW.PA) Stock Fundamental Analysis
EPA:SW - FR0000121220 - Common Stock
51.3 EUR
-0.3 (-0.58%)
SW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 53 industry peers in the Hotels, Restaurants & Leisure industry. SW has only an average score on both its financial health and profitability. SW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SW was profitable.
SW had a positive operating cash flow in the past year.
Of the past 5 years SW 4 years were profitable.
Each year in the past 5 years SW had a positive operating cash flow.
1.2 Ratios
SW has a Return On Assets of 4.41%. This is in the better half of the industry: SW outperforms 62.26% of its industry peers.
SW's Return On Equity of 16.90% is fine compared to the rest of the industry. SW outperforms 75.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.44%, SW is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
SW had an Average Return On Invested Capital over the past 3 years of 6.73%. This is below the industry average of 11.11%.
The last Return On Invested Capital (8.44%) for SW is above the 3 year average (6.73%), which is a sign of increasing profitability.
| 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
SW has a Profit Margin (2.80%) which is in line with its industry peers.
SW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.44%, SW is in line with its industry, outperforming 47.17% of the companies in the same industry.
SW's Operating Margin has declined in the last couple of years.
The Gross Margin of SW (11.97%) is worse than 71.70% of its industry peers.
In the last couple of years the Gross Margin of SW has declined.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SW is creating value.
SW has about the same amout of shares outstanding than it did 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
An Altman-Z score of 2.55 indicates that SW 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 2.55, SW is in the better half of the industry, outperforming 73.58% of the companies in the same industry.
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.
SW's Debt to FCF ratio of 8.40 is in line compared to the rest of the industry. SW outperforms 43.40% of its industry peers.
SW has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
SW's Debt to Equity ratio of 1.18 is in line compared to the rest of the industry. SW outperforms 54.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.86
WACC4.54%
2.3 Liquidity
SW has a Current Ratio of 1.08. This is a normal value and indicates that SW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SW (1.08) is better than 60.38% of its industry peers.
A Quick Ratio of 1.02 indicates that SW should not have too much problems paying its short term obligations.
SW has a Quick ratio of 1.02. This is in the better half of the industry: SW outperforms 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for SW have decreased by -6.98% in the last year.
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.
SW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.71%.
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 3.90% on average per year.
Based on estimates for the next years, SW will show a small growth in Revenue. The Revenue will grow by 3.31% on average per year.
EPS Next Y1.73%
EPS Next 2Y2.01%
EPS Next 3Y4.13%
EPS Next 5Y3.9%
Revenue Next Year3.03%
Revenue Next 2Y2.27%
Revenue Next 3Y2.96%
Revenue Next 5Y3.31%
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
The Price/Earnings ratio is 9.40, which indicates a very decent valuation of SW.
SW's Price/Earnings ratio is rather cheap when compared to the industry. SW is cheaper than 92.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, SW is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.32, the valuation of SW can be described as very reasonable.
90.57% of the companies in the same industry are more expensive than SW, based on the Price/Forward Earnings ratio.
SW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
73.58% of the companies in the same industry are more expensive than SW, based on the Enterprise Value to EBITDA ratio.
77.36% of the companies in the same industry are more expensive than SW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 7.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.42
PEG (5Y)61.85
EPS Next 2Y2.01%
EPS Next 3Y4.13%
5. Dividend
5.1 Amount
SW has a Yearly Dividend Yield of 5.14%, which is a nice return.
Compared to an average industry Dividend Yield of 2.96, SW pays a better dividend. On top of this SW pays more dividend than 96.23% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
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
193.05% of the earnings are spent on dividend by SW. 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 2Y2.01%
EPS Next 3Y4.13%
EPA:SW (8/29/2025, 7:00:00 PM)
51.3
-0.3 (-0.58%)
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 Cap7.56B
Analysts77.69
Price Target70.26 (36.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
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)-0.63%
PT rev (3m)-7.66%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.33%
EPS NY rev (3m)-3.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 9.32 | ||
| P/S | 0.31 | ||
| P/FCF | 11.34 | ||
| P/OCF | 7.5 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.55 |
EPS(TTM)5.46
EY10.64%
EPS(NY)5.51
Fwd EY10.73%
FCF(TTM)4.52
FCFY8.82%
OCF(TTM)6.84
OCFY13.33%
SpS163.93
BVpS27.12
TBVpS-15.6
PEG (NY)5.42
PEG (5Y)61.85
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 | 2.55 |
F-Score8
WACC4.54%
ROIC/WACC1.86
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 Y1.73%
EPS Next 2Y2.01%
EPS Next 3Y4.13%
EPS Next 5Y3.9%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%3.09%
Revenue Next Year3.03%
Revenue Next 2Y2.27%
Revenue Next 3Y2.96%
Revenue Next 5Y3.31%
EBIT growth 1Y35.48%
EBIT growth 3Y25.25%
EBIT growth 5Y-0.9%
EBIT Next Year47.8%
EBIT Next 3Y19.01%
EBIT Next 5Y11.38%
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%