SODEXO SA (SW.PA) Stock Fundamental Analysis
Europe - EPA:SW - FR0000121220 - Common Stock
52.45 EUR
+0.1 (+0.19%)
We assign a fundamental rating of 4 out of 10 to SW. SW was compared to 53 industry peers in the Hotels, Restaurants & Leisure industry. SW has only an average score on both its financial health and profitability. SW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SW had positive earnings in the past year.
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 better Return On Assets (4.41%) than 62.26% of its industry peers.
Looking at the Return On Equity, with a value of 16.90%, SW is in the better half of the industry, outperforming 77.36% 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 69.81% of its industry peers.
SW had an Average Return On Invested Capital over the past 3 years of 6.73%. This is significantly below the industry average of 12.05%.
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
With a Profit Margin value of 2.80%, SW perfoms like the industry average, outperforming 50.94% of the companies in the same industry.
SW's Profit Margin has declined in the last couple of years.
SW has a Operating Margin (4.44%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SW has declined.
Looking at the Gross Margin, with a value of 11.97%, SW is doing worse than 73.58% of the companies in the same industry.
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 well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SW has about the same amount of shares outstanding.
SW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.56 indicates that SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
SW has a better Altman-Z score (2.56) than 73.58% 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.
With a Debt to FCF ratio value of 8.40, SW perfoms like the industry average, outperforming 45.28% of the companies in the same industry.
SW has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external 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/WACC1.84
WACC4.58%
2.3 Liquidity
A Current Ratio of 1.08 indicates that SW should not have too much problems paying its short term obligations.
The Current ratio of SW (1.08) is comparable to the rest of the industry.
A Quick Ratio of 1.02 indicates that SW should not have too much problems paying its short term obligations.
The Quick ratio of SW (1.02) is comparable to the rest of the 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.
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.
Measured over the past years, SW shows a small growth in Revenue. The Revenue has been growing by 1.63% on average per year.
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 3.88% 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 3.07% yearly.
EPS Next Y1.73%
EPS Next 2Y2.01%
EPS Next 3Y4.13%
EPS Next 5Y3.88%
Revenue Next Year1.01%
Revenue Next 2Y1.15%
Revenue Next 3Y2.15%
Revenue Next 5Y3.07%
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.
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
With a Price/Earnings ratio of 9.61, the valuation of SW can be described as very reasonable.
Based on the Price/Earnings ratio, SW is valued cheaply inside the industry as 94.34% of the companies are valued more expensively.
SW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
A Price/Forward Earnings ratio of 9.53 indicates a reasonable valuation of SW.
Based on the Price/Forward Earnings ratio, SW is valued cheaper than 92.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, SW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 9.53 |
4.2 Price Multiples
SW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SW is cheaper than 73.58% 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 75.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.59 | ||
| EV/EBITDA | 7.66 |
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)5.54
PEG (5Y)63.23
EPS Next 2Y2.01%
EPS Next 3Y4.13%
5. Dividend
5.1 Amount
SW has a Yearly Dividend Yield of 5.06%, which is a nice return.
SW's Dividend Yield is rather good when compared to the industry average which is at 2.91. SW pays more dividend than 96.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
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 2Y2.01%
EPS Next 3Y4.13%
EPA:SW (9/19/2025, 7:00:00 PM)
52.45
+0.1 (+0.19%)
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 Cap7.73B
Analysts76.15
Price Target67.72 (29.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
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)-3.1%
PT rev (3m)-11.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.96%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 9.53 | ||
| P/S | 0.32 | ||
| P/FCF | 11.59 | ||
| P/OCF | 7.67 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.66 |
EPS(TTM)5.46
EY10.41%
EPS(NY)5.51
Fwd EY10.5%
FCF(TTM)4.52
FCFY8.62%
OCF(TTM)6.84
OCFY13.03%
SpS163.93
BVpS27.12
TBVpS-15.6
PEG (NY)5.54
PEG (5Y)63.23
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
WACC4.58%
ROIC/WACC1.84
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 5Y3.88%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y10.94%
Revenue growth 5Y1.63%
Sales Q2Q%3.09%
Revenue Next Year1.01%
Revenue Next 2Y1.15%
Revenue Next 3Y2.15%
Revenue Next 5Y3.07%
EBIT growth 1Y35.48%
EBIT growth 3Y25.25%
EBIT growth 5Y-0.9%
EBIT Next Year47.8%
EBIT Next 3Y19.01%
EBIT Next 5Y11.14%
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%