DB:SJ7

Stock Analysis Report

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Executive Summary

Sodexo S.A. develops, manages, and delivers on-site, benefits and rewards, and personal and home services worldwide.


Snowflake Analysis

6 star dividend payer with proven track record.


Similar Companies

Share Price & News

How has Sodexo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SJ7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.7%

SJ7

6.9%

DE Hospitality

2.8%

DE Market


1 Year Return

-39.7%

SJ7

-36.2%

DE Hospitality

0.3%

DE Market

Return vs Industry: SJ7 underperformed the German Hospitality industry which returned -36.2% over the past year.

Return vs Market: SJ7 underperformed the German Market which returned 0.3% over the past year.


Shareholder returns

SJ7IndustryMarket
7 Day4.7%6.9%2.8%
30 Day-6.5%-10.3%0.5%
90 Day6.1%27.2%27.7%
1 Year-37.9%-39.7%-33.6%-36.2%2.3%0.3%
3 Year-34.3%-39.8%-47.9%-54.9%3.5%-4.9%
5 Year-16.7%-27.3%-47.1%-58.2%11.4%-3.4%

Price Volatility Vs. Market

How volatile is Sodexo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sodexo undervalued compared to its fair value and its price relative to the market?

13.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SJ7 (€62.62) is trading above our estimate of fair value (€49.89)

Significantly Below Fair Value: SJ7 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SJ7 is good value based on its PE Ratio (13.6x) compared to the Hospitality industry average (17.5x).

PE vs Market: SJ7 is good value based on its PE Ratio (13.6x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: SJ7 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SJ7 is overvalued based on its PB Ratio (2.2x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Sodexo forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJ7's forecast earnings growth (28.6% per year) is above the savings rate (0.2%).

Earnings vs Market: SJ7's earnings (28.6% per year) are forecast to grow faster than the German market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SJ7's revenue (4.7% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: SJ7's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SJ7's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Sodexo performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJ7 has high quality earnings.

Growing Profit Margin: SJ7's current net profit margins (3%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: SJ7's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: SJ7's earnings growth over the past year (5.6%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: SJ7 earnings growth over the past year (5.6%) exceeded the Hospitality industry -15.6%.


Return on Equity

High ROE: SJ7's Return on Equity (17%) is considered low.


Next Steps

Financial Health

How is Sodexo's financial position?


Financial Position Analysis

Short Term Liabilities: SJ7's short term assets (€8.6B) do not cover its short term liabilities (€9.3B).

Long Term Liabilities: SJ7's short term assets (€8.6B) exceed its long term liabilities (€6.1B).


Debt to Equity History and Analysis

Debt Level: SJ7's debt to equity ratio (115.1%) is considered high.

Reducing Debt: SJ7's debt to equity ratio has increased from 87.8% to 115.1% over the past 5 years.

Debt Coverage: SJ7's debt is well covered by operating cash flow (26%).

Interest Coverage: SJ7's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Sodexo current dividend yield, its reliability and sustainability?

5.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SJ7's dividend (5.04%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: SJ7's dividend (5.04%) is in the top 25% of dividend payers in the German market (3.83%)


Stability and Growth of Payments

Stable Dividend: SJ7's dividends per share have been stable in the past 10 years.

Growing Dividend: SJ7's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.3%), SJ7's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SJ7's dividends in 3 years are forecast to be covered by earnings (53.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Denis Machuel (56yo)

2.5yrs

Tenure

€3,643,982

Compensation

Mr. Denis Machuel has been Chief Executive Officer of Sodexo S.A. since January 23, 2018. Mr. Machuel served as Deputy Chief Executive Officer of Sodexo S.A. from September 1, 2017 to January 23, 2018 and  ...


CEO Compensation Analysis

Compensation vs Market: Denis's total compensation ($USD4.10M) is about average for companies of similar size in the German market ($USD5.36M).

Compensation vs Earnings: Denis's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Denis Machuel
Chief Executive Officer2.5yrs€3.64m0.016% 1.5m
Nathalie Bellon-Szabo
CEO Sports & Leisure Worldwide and Director31yrs€63.10k0.00079% 72.8k
Philippe Besson
Head of Projects for Sponsorship & Director6.08yrs€65.50kno data
Pierre Bellon
Founder & Chairman Emeritus4.5yrs€18.50k0.0089% 816.0k
Marc Rolland
Group Chief Financial Officer4.58yrsno datano data
Virginia Jeanson
Head of Investor Relationsno datano datano data
Angelo Piccirillo
Group General Counsel1.83yrsno datano data
Dianne Salt
Chief Communications Officer3.25yrsno datano data
Bruno Vanhaelst
Chief Sales & Marketing Officer1.5yrsno datano data
Cathy Desquesses
Chief People Officer2yrsno datano data

2.9yrs

Average Tenure

60yo

Average Age

Experienced Management: SJ7's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nathalie Bellon-Szabo
CEO Sports & Leisure Worldwide and Director31yrs€63.10k0.00079% 72.8k
Philippe Besson
Head of Projects for Sponsorship & Director6.08yrs€65.50kno data
Pierre Bellon
Founder & Chairman Emeritus4.5yrs€18.50k0.0089% 816.0k
François-Xavier Bellon
Director31yrs€63.50k0.025% 2.3m
Soumitra Dutta
Independent Director5.5yrs€67.75k0.00027% 24.9k
Françoise Brougher
Independent Director8.5yrs€98.60k0.00027% 24.9k
Cécile de Marsac
Independent Director3.5yrs€105.60k0.00027% 24.9k
Sophie Bellon
Chairwoman of the Board4.5yrs€676.74k0.0055% 503.8k
Cathy Martin
Director4.83yrs€61.50kno data
Sophie Stabile
Independent Director2yrs€80.50k0.000070% 6.4k

5.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: SJ7's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sodexo S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sodexo S.A.
  • Ticker: SJ7
  • Exchange: DB
  • Founded: 1966
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: €9.210b
  • Shares outstanding: 145.63m
  • Website: https://www.sodexo.com

Number of Employees


Location

  • Sodexo S.A.
  • 255 Quai de la Bataille de Stalingrad
  • Issy-les-Moulineaux
  • Ile-de-France
  • 92866
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDXO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1983
SWENXTPA (Euronext Paris)YesCommon SharesFREURAug 1983
0J3FLSE (London Stock Exchange)YesCommon SharesGBEURAug 1983
SJ7DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1983
SWPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURAug 1983
SWWBAG (Wiener Boerse AG)YesCommon SharesATEURAug 1983
SJ7ETLX (Eurotlx)YesCommon SharesITEURAug 1983
SDXA.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 2002

Biography

Sodexo S.A. develops, manages, and delivers on-site, benefits and rewards, and personal and home services worldwide. It offers food services; and various on-site services, including business and administration, healthcare and senior community support, and education services to corporate, energy and resources, government and agencies, sports and leisure, and other customers. The company also provides benefits and rewards services, such as employee benefits, incentive and recognition programs, employee mobility, and expense management public benefits; and personal and home services, including childcare, concierge, and in-home care services. In addition, it offers facilitates management services, including cleaning, front of office, security, ground maintenance, mailroom, document management, waste management, laundry, transportation, health and fitness, and conference center management services; and workplace and technical, property management, and project management services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 21:37
End of Day Share Price2020/07/03 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.