SODEXO SA (SW.PA)
FR0000121220 - Common Stock
Overall SW gets a fundamental rating of 5 out of 10. We evaluated SW against 52 industry peers in the Hotels, Restaurants & Leisure industry. SW has an average financial health and profitability rating. 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.
SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SW has a Return On Assets of 3.82%. This is comparable to the rest of the industry: SW outperforms 60.00% of its industry peers.
SW's Return On Equity of 17.48% is fine compared to the rest of the industry. SW outperforms 73.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.96%, SW is in line with its industry, outperforming 55.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SW is significantly below the industry average of 11.33%.
The 3 year average ROIC (5.01%) for SW is below the current ROIC(5.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 17.48% | ||
| ROIC | 5.96% |
ROA(3y)2.62%
ROA(5y)1.97%
ROE(3y)12.54%
ROE(5y)8.22%
ROIC(3y)5.01%
ROIC(5y)5.58%
1.3 Margins
SW has a Profit Margin (3.51%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SW has grown nicely.
SW has a Operating Margin of 3.92%. This is in the lower half of the industry: SW underperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of SW has declined.
With a Gross Margin value of 12.02%, SW is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
SW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.92% | ||
| PM (TTM) | 3.51% | ||
| GM | 12.02% |
OM growth 3Y15.1%
OM growth 5Y-4.84%
PM growth 3YN/A
PM growth 5Y1.92%
GM growth 3Y-2.16%
GM growth 5Y-4.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SW is still creating some 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.
Compared to 1 year ago, SW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.04 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 (2.04) than 62.22% of its industry peers.
The Debt to FCF ratio of SW is 6.19, which is on the high side as it means it would take SW, 6.19 years of fcf income to pay off all of its debts.
SW has a Debt to FCF ratio of 6.19. This is comparable to the rest of the industry: SW outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that SW has dependencies on debt financing.
SW has a Debt to Equity ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.19 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.25
WACC4.76%
2.3 Liquidity
A Current Ratio of 1.16 indicates that SW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, SW is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that SW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, SW perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.92% over the past year.
Measured over the past 5 years, SW shows a small growth in Earnings Per Share. The EPS has been growing by 5.55% on average per year.
The Revenue has grown by 11.72% in the past year. This is quite good.
SW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.10% yearly.
EPS 1Y (TTM)29.92%
EPS 3Y43.53%
EPS 5Y5.55%
EPS growth Q2Q20.33%
Revenue 1Y (TTM)11.72%
Revenue growth 3Y5.42%
Revenue growth 5Y2.1%
Revenue growth Q2Q5.51%
3.2 Future
SW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.08% yearly.
The Revenue is expected to grow by 4.58% on average over the next years.
EPS Next Y-14.72%
EPS Next 2Y-2.76%
EPS Next 3Y1.37%
EPS Next 5Y4.08%
Revenue Next Year0.02%
Revenue Next 2Y2.78%
Revenue Next 3Y3.51%
Revenue Next 5Y4.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 12.15, SW is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SW indicates a rather cheap valuation: SW is cheaper than 84.44% of the companies listed in the same industry.
SW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.83.
SW is valuated correctly with a Price/Forward Earnings ratio of 14.25.
SW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SW is cheaper than 71.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SW to the average of the S&P500 Index (21.32), we can say SW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SW is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SW is valued a bit cheaper than 75.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.64 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.19
EPS Next 2Y-2.76%
EPS Next 3Y1.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.05%, SW is a good candidate for dividend investing.
In the last 3 months the price of SW has falen by -26.92%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SW's Dividend Yield is rather good when compared to the industry average which is at 3.09. SW pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
The dividend of SW decreases each year by -2.97%.
Dividend Growth(5Y)-2.97%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
44.33% of the earnings are spent on dividend by SW. This is a bit on the high side, but may be sustainable.
DP44.33%
EPS Next 2Y-2.76%
EPS Next 3Y1.37%
SODEXO SA
EPA:SW (4/17/2024, 7:00:00 PM)
75.45
-0.4 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 14.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 17.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.92% | ||
| PM (TTM) | 3.51% | ||
| GM | 12.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)29.92%
EPS 3Y43.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.72%
Revenue growth 3Y5.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y