SODEXO SA (SW.PA) Stock Fundamental Analysis
EPA:SW - Euronext Paris - Matif - FR0000121220 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to SW. SW was compared to 52 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of SW get a neutral evaluation. Nothing too spectacular is happening here. SW has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years SW 4 years were profitable.
SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.41%, SW is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
SW's Return On Equity of 16.90% is fine compared to the rest of the industry. SW outperforms 73.08% 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 67.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SW is below the industry average of 10.74%.
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 comparable to the rest of the industry.
SW's Profit Margin has declined in the last couple of years.
The Operating Margin of SW (4.44%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SW has declined.
The Gross Margin of SW (11.97%) is worse than 75.00% 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.
SW has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SW has been increased compared to 5 years ago.
SW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.58 indicates that SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.58, SW is doing good in the industry, outperforming 73.08% 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 50.00% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that SW has dependencies on debt financing.
With a Debt to Equity ratio value of 1.18, SW perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.75
WACC4.81%
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.
SW has a better Current ratio (1.08) than 61.54% 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 line with its industry, outperforming 57.69% 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%.
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
Based on estimates for the next years, SW will show a small growth in Earnings Per Share. The EPS will grow by 4.61% on average per year.
SW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.43% yearly.
EPS Next Y5.24%
EPS Next 2Y6.3%
EPS Next 3Y6.9%
EPS Next 5Y4.61%
Revenue Next Year2.71%
Revenue Next 2Y3.23%
Revenue Next 3Y3.63%
Revenue Next 5Y3.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 10.16, the valuation of SW can be described as very reasonable.
Based on the Price/Earnings ratio, SW is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SW to the average of the S&P500 Index (27.85), we can say SW is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.28, 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 88.46% of the companies listed in the same industry.
SW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SW is valued a bit cheaper than 67.31% of the companies in the same industry.
SW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SW is cheaper than 67.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.26 | ||
| EV/EBITDA | 7.99 |
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)1.94
PEG (5Y)66.88
EPS Next 2Y6.3%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.77%, SW is a good candidate for dividend investing.
The stock price of SW dropped by -21.49% 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 3.09, SW pays a better dividend. On top of this SW pays more dividend than 90.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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 2Y6.3%
EPS Next 3Y6.9%
EPA:SW (5/2/2025, 12:27:49 PM)
55.475
-0.42 (-0.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners34.69%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap8.18B
Analysts76.3
Price Target76.09 (37.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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)-18.33%
PT rev (3m)-19.7%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-4.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.52%
Revenue NY rev (3m)-2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.28 | ||
| P/S | 0.34 | ||
| P/FCF | 12.26 | ||
| P/OCF | 8.11 | ||
| P/B | 2.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.99 |
EPS(TTM)5.46
EY9.84%
EPS(NY)5.98
Fwd EY10.78%
FCF(TTM)4.52
FCFY8.15%
OCF(TTM)6.84
OCFY12.32%
SpS163.93
BVpS27.12
TBVpS-15.6
PEG (NY)1.94
PEG (5Y)66.88
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 | 2.58 |
F-Score8
WACC4.81%
ROIC/WACC1.75
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 5Y4.61%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%3.09%
Revenue Next Year2.71%
Revenue Next 2Y3.23%
Revenue Next 3Y3.63%
Revenue Next 5Y3.43%
EBIT growth 1Y35.48%
EBIT growth 3Y25.25%
EBIT growth 5Y-0.9%
EBIT Next Year47.19%
EBIT Next 3Y19.17%
EBIT Next 5Y11.92%
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%