SODEXO SA (SW.PA) Stock Fundamental Analysis
Europe - EPA:SW - FR0000121220 - Common Stock
54.85 EUR
+1.25 (+2.33%)
SW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 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
SW had positive earnings in the past year.
In the past year SW had a positive cash flow from operations.
SW had positive earnings in 4 of the past 5 years.
In the past 5 years SW always reported a positive cash flow from operatings.
1.2 Ratios
SW has a Return On Assets of 4.41%. This is in the better half of the industry: SW outperforms 63.64% of its industry peers.
With a decent Return On Equity value of 16.90%, SW is doing good in the industry, outperforming 74.55% of the companies in the same industry.
SW has a Return On Invested Capital of 8.44%. This is in the better half of the industry: SW outperforms 69.09% of its industry peers.
SW had an Average Return On Invested Capital over the past 3 years of 6.73%. This is below the industry average of 11.28%.
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.
SW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.44%, SW perfoms like the industry average, outperforming 45.45% 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 74.55% 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
SW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SW has about the same amount of shares outstanding.
Compared to 5 years ago, SW has more shares outstanding
The debt/assets ratio for SW is higher compared to a year ago.
2.2 Solvency
SW has an Altman-Z score of 2.57. 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 2.57 is fine compared to the rest of the industry. SW outperforms 72.73% of its industry peers.
SW has a debt to FCF ratio of 8.40. This is a slightly negative value and a sign of low solvency as SW would need 8.40 years to pay back of 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 45.45% 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 of 1.18. This is comparable to the rest of the industry: SW outperforms 56.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.77
WACC4.78%
2.3 Liquidity
A Current Ratio of 1.08 indicates that SW should not have too much problems paying its short term obligations.
SW has a Current ratio of 1.08. This is in the better half of the industry: SW outperforms 61.82% of its industry peers.
A Quick Ratio of 1.02 indicates that SW should not have too much problems paying 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 61.82% of the companies in the same industry.
| 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.
SW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.15% yearly.
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
The Earnings Per Share is expected to grow by 3.57% on average over the next years.
SW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.83% yearly.
EPS Next Y4.39%
EPS Next 2Y2.26%
EPS Next 3Y3.54%
EPS Next 5Y3.57%
Revenue Next Year0.99%
Revenue Next 2Y1.17%
Revenue Next 3Y2.09%
Revenue Next 5Y2.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.05 indicates a reasonable valuation of SW.
SW's Price/Earnings ratio is rather cheap when compared to the industry. SW is cheaper than 92.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, SW is valued rather cheaply.
A Price/Forward Earnings ratio of 9.91 indicates a reasonable valuation of SW.
87.27% 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 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SW is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SW indicates a somewhat cheap valuation: SW is cheaper than 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.13 | ||
| EV/EBITDA | 7.77 |
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)2.29
PEG (5Y)66.13
EPS Next 2Y2.26%
EPS Next 3Y3.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, SW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.15, SW pays a better dividend. On top of this SW pays more dividend than 94.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
5.2 History
On average, the dividend of SW grows each year by 27.68%, which is quite nice.
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 2Y2.26%
EPS Next 3Y3.54%
EPA:SW (10/21/2025, 5:35:30 PM)
54.85
+1.25 (+2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners31.32%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap8.09B
Analysts77.69
Price Target67.74 (23.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)0.04%
PT rev (3m)-4.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.61%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.33 | ||
| P/FCF | 12.13 | ||
| P/OCF | 8.02 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.77 |
EPS(TTM)5.46
EY9.95%
EPS(NY)5.53
Fwd EY10.09%
FCF(TTM)4.52
FCFY8.25%
OCF(TTM)6.84
OCFY12.46%
SpS163.93
BVpS27.12
TBVpS-15.6
PEG (NY)2.29
PEG (5Y)66.13
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 | 2.57 |
F-Score8
WACC4.78%
ROIC/WACC1.77
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 Y4.39%
EPS Next 2Y2.26%
EPS Next 3Y3.54%
EPS Next 5Y3.57%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%3.09%
Revenue Next Year0.99%
Revenue Next 2Y1.17%
Revenue Next 3Y2.09%
Revenue Next 5Y2.83%
EBIT growth 1Y35.48%
EBIT growth 3Y25.25%
EBIT growth 5Y-0.9%
EBIT Next Year43.15%
EBIT Next 3Y16.86%
EBIT Next 5Y10.83%
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%