SODEXO SA (SW.PA) Stock Fundamental Analysis
EPA:SW - Euronext Paris - Matif - FR0000121220 - Common Stock - Currency: EUR
Overall SW gets a fundamental rating of 4 out of 10. We evaluated SW against 58 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
In the past year SW was profitable.
In the past year SW had a positive cash flow from operations.
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 62.07% 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 77.59% 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 68.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SW is below the industry average of 10.82%.
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
SW's Profit Margin of 2.80% is in line compared to the rest of the industry. SW outperforms 51.72% of its industry peers.
In the last couple of years the Profit Margin of SW has declined.
SW's Operating Margin of 4.44% is in line compared to the rest of the industry. SW outperforms 44.83% of 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 68.97% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SW is creating value.
The number of shares outstanding for SW remains at a similar level compared to 1 year ago.
The number of shares outstanding for SW has been increased compared to 5 years ago.
Compared to 1 year ago, SW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.55 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 72.41% of the companies in the same industry.
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.
SW has a Debt to FCF ratio (8.40) which is comparable to the rest of the 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 53.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.55 |
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 better than 63.79% 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 60.34% 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.
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%.
SW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.63% yearly.
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
SW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.64% yearly.
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 9.57 indicates a reasonable valuation of SW.
Based on the Price/Earnings ratio, SW is valued cheaper than 91.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. SW is valued rather cheaply when compared to this.
SW is valuated reasonably with a Price/Forward Earnings ratio of 8.74.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, SW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SW is valued a bit cheaper than 75.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SW is valued a bit cheaper than 77.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 7.61 |
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)1.83
PEG (5Y)62.99
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 2.94, SW pays a better dividend. On top of this SW pays more dividend than 96.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SW pays a better dividend.
| 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
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 (8/7/2025, 7:00:00 PM)
52.25
+0.35 (+0.67%)
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 Cap7.70B
Analysts76.15
Price Target70.71 (35.33%)
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)-7.26%
PT rev (3m)-7.08%
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 | 9.57 | ||
| Fwd PE | 8.74 | ||
| P/S | 0.32 | ||
| P/FCF | 11.55 | ||
| P/OCF | 7.64 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.61 |
EPS(TTM)5.46
EY10.45%
EPS(NY)5.98
Fwd EY11.44%
FCF(TTM)4.52
FCFY8.66%
OCF(TTM)6.84
OCFY13.08%
SpS163.93
BVpS27.12
TBVpS-15.6
PEG (NY)1.83
PEG (5Y)62.99
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
WACC4.58%
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 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%