ENXTPA:SW

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. More Details


Snowflake Analysis

Moderate growth potential with worrying balance sheet.


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: SW is more volatile than 75% of French stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: SW's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of French stocks.


Market Performance


7 Day Return

1.3%

SW

1.8%

FR Hospitality

0.4%

FR Market


1 Year Return

-32.2%

SW

-17.3%

FR Hospitality

-3.0%

FR Market

Return vs Industry: SW underperformed the French Hospitality industry which returned -16% over the past year.

Return vs Market: SW underperformed the French Market which returned -2.7% over the past year.


Shareholder returns

SWIndustryMarket
7 Day1.3%1.8%0.4%
30 Day20.0%19.6%13.2%
90 Day14.3%14.1%11.0%
1 Year-30.2%-32.2%-15.8%-17.3%-1.0%-3.0%
3 Year-28.6%-34.5%-26.8%-31.8%16.6%6.9%
5 Year-13.6%-24.5%-15.1%-24.4%44.5%24.8%

Long-Term 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

Valuation

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

3.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SW (€71.8) is trading above our estimate of fair value (€48.02)

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


Price To Earnings Ratio

PE vs Industry: SW is unprofitable, so we can't compare its PE Ratio to the FR Hospitality industry average.

PE vs Market: SW is unprofitable, so we can't compare its PE Ratio to the French market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SW is overvalued based on its PB Ratio (3.8x) compared to the FR Hospitality industry average (1x).


Next Steps

Future Growth

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

51.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.6%).

Earnings vs Market: SW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SW's is expected to become profitable in the next 3 years.

Revenue vs Market: SW's revenue (3.9% per year) is forecast to grow slower than the French market (7.2% per year).

High Growth Revenue: SW's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SW's Return on Equity is forecast to be low in 3 years time (20%).


Next Steps

Past Performance

How has Sodexo performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SW is currently unprofitable.

Growing Profit Margin: SW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SW is unprofitable, and losses have increased over the past 5 years at a rate of 12.3% per year.

Accelerating Growth: Unable to compare SW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SW is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-10.5%).


Return on Equity

High ROE: SW has a negative Return on Equity (-11.5%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sodexo's financial position?


Financial Position Analysis

Short Term Liabilities: SW's short term assets (€7.6B) do not cover its short term liabilities (€7.7B).

Long Term Liabilities: SW's short term assets (€7.6B) exceed its long term liabilities (€6.8B).


Debt to Equity History and Analysis

Debt Level: SW's debt to equity ratio (181.1%) is considered high.

Reducing Debt: SW's debt to equity ratio has increased from 82.9% to 181.1% over the past 5 years.

Debt Coverage: SW's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: SW is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.94%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SW is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SW's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Denis Machuel (56 yo)

2.83yrs

Tenure

€688,463

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 ($USD819.89K) is below average for companies of similar size in the French market ($USD4.01M).

Compensation vs Earnings: Denis's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Denis Machuel
Chief Executive Officer2.83yrs€688.46k0.016%
€ 1.6m
Nathalie Bellon-Szabo
CEO Sports & Leisure Worldwide and Director31.33yrs€553.86k0.00079%
€ 81.6k
Philippe Besson
Head of Projects for Sponsorship & Director6.42yrs€65.50kno data
Pierre Bellon
Founder & Chairman Emeritus4.83yrs€18.50k0.0089%
€ 915.1k
Marc Rolland
Group Chief Financial Officer4.92yrsno datano data
Virginia Jeanson
Head of Investor Relationsno datano datano data
Angelo Piccirillo
Group General Counsel2.17yrsno datano data
Dianne Salt
Chief Communications Officer3.58yrsno datano data
Bruno Vanhaelst
Chief Sales & Marketing Officer2.33yrsno datano data
Cathy Desquesses
Chief People Officer2.33yrsno datano data
Damien Verdier
Chief Corporate Responsibility Officer & CEO of Entegra Worldwideno datano datano data
Sylvia Metayer
Chief Growth Officerno datano datano data

3.2yrs

Average Tenure

62yo

Average Age

Experienced Management: SW's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nathalie Bellon-Szabo
CEO Sports & Leisure Worldwide and Director31.33yrs€553.86k0.00079%
€ 81.6k
Philippe Besson
Head of Projects for Sponsorship & Director6.42yrs€65.50kno data
Pierre Bellon
Founder & Chairman Emeritus4.83yrs€18.50k0.0089%
€ 915.1k
François-Xavier Bellon
Director31.33yrs€455.50k0.025%
€ 2.6m
Emmanuel Babeau
Independent Director4.83yrs€65.50k0.00027%
€ 27.9k
Soumitra Dutta
Independent Director5.83yrs€71.75k0.00027%
€ 27.9k
Françoise Brougher
Independent Director8.83yrs€71.55k0.00027%
€ 27.9k
Véronique Laury-Deroubaix
Independent Director0.83yr€22.00kno data
Cécile de Marsac
Independent Director3.83yrs€120.60k0.00027%
€ 27.9k
Sophie Bellon
Chairwoman of the Board4.83yrs€508.02k0.0055%
€ 565.0k
Cathy Martin
Director5.17yrs€57.50kno data
Sophie Stabile
Independent Director2.33yrs€103.00k0.000070%
€ 7.2k

5.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: SW's board of directors are considered experienced (5 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: SW
  • Exchange: ENXTPA
  • Founded: 1966
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: €10.328b
  • 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 provides various on-site services, including business and administration, which cover...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 20:35
End of Day Share Price2020/11/24 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


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.