Sodexo S.A. develops, manages, and delivers on-site, benefits and rewards, and personal and home services worldwide. More Details
Reasonable growth potential with worrying balance sheet.
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 not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: SW's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: SW underperformed the French Hospitality industry which returned 50.5% over the past year.
Return vs Market: SW underperformed the French Market which returned 48.5% over the past year.
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
5 days ago | Simply Wall StReturns On Capital Signal Tricky Times Ahead For Sodexo (EPA:SW)
1 month ago | Simply Wall StDid Sodexo's (EPA:SW) Share Price Deserve to Gain 34%?
2 months ago | Simply Wall StThese 4 Measures Indicate That Sodexo (EPA:SW) Is Using Debt Extensively
Is Sodexo undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: SW (€84.44) is trading above our estimate of fair value (€58.25)
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 European 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 (4.2x) compared to the FR Hospitality industry average (1.1x).
How is Sodexo forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
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 (0.4%).
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 (7.9% per year) is forecast to grow faster than the French market (6.8% per year).
High Growth Revenue: SW's revenue (7.9% 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 (19.7%).
How has Sodexo performed over the past 5 years?
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 29.5% 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 (1.6%).
Return on Equity
High ROE: SW has a negative Return on Equity (-23.16%), as it is currently unprofitable.
How is Sodexo's financial position?
Financial Position Analysis
Short Term Liabilities: SW's short term assets (€8.3B) do not cover its short term liabilities (€8.9B).
Long Term Liabilities: SW's short term assets (€8.3B) exceed its long term liabilities (€6.2B).
Debt to Equity History and Analysis
Debt Level: SW's debt to equity ratio (172.6%) is considered high.
Reducing Debt: SW's debt to equity ratio has increased from 78.2% to 172.6% over the past 5 years.
Debt Coverage: SW's debt is not well covered by operating cash flow (15.6%).
Interest Coverage: SW is unprofitable, therefore interest payments are not well covered by earnings.
What is Sodexo current dividend yield, its reliability and sustainability?
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Denis Machuel (56 yo)
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 ($USD835.61K) is below average for companies of similar size in the French market ($USD3.92M).
Compensation vs Earnings: Denis's compensation has been consistent with company performance over the past year.
Experienced Management: SW's management team is considered experienced (3.1 years average tenure).
Experienced Board: SW's board of directors are considered experienced (5.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Sodexo S.A.'s company bio, employee growth, exchange listings and data sources
- Name: Sodexo S.A.
- Ticker: SW
- Exchange: ENXTPA
- Founded: 1966
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: €12.322b
- Shares outstanding: 145.93m
- Website: https://www.sodexo.com
Number of Employees
- Sodexo S.A.
- 255 Quai de la Bataille de Stalingrad
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/16 17:43|
|End of Day Share Price||2021/05/14 00:00|
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.