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SW

SodexoENXTPA:SW Stock Report

Last Price

€84.54

Market Cap

€12.4b

7D

3.5%

1Y

9.0%

Updated

20 Jan, 2022

Data

Company Financials +
SW fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance1/6
Financial Health3/6
Dividends2/6

SW Stock Overview

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

Sodexo Competitors

Elior Group

ENXTPA:ELIOR

€1.0b

Amazon.com

NasdaqGS:AMZN

US$1.5t

Walmart

NYSE:WMT

US$391.7b

McDonald's

NYSE:MCD

US$189.2b

Price History & Performance

Summary of all time highs, changes and price drops for Sodexo
Historical stock prices
Current Share Price€84.54
52 Week High€88.04
52 Week Low€68.16
Beta1.08
1 Month Change11.56%
3 Month Change11.97%
1 Year Change8.97%
3 Year Change-9.89%
5 Year Change-19.02%
Change since IPO1,163.23%

Recent News & Updates

Jan 11
Here's What's Concerning About Sodexo's (EPA:SW) Returns On Capital

Here's What's Concerning About Sodexo's (EPA:SW) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...

Dec 28
Is Sodexo S.A. (EPA:SW) Potentially Undervalued?

Is Sodexo S.A. (EPA:SW) Potentially Undervalued?

Let's talk about the popular Sodexo S.A. ( EPA:SW ). The company's shares saw significant share price movement during...

Shareholder Returns

SWFR HospitalityFR Market
7D3.5%1.2%-1.4%
1Y9.0%2.4%22.9%

Return vs Industry: SW exceeded the French Hospitality industry which returned 2.4% over the past year.

Return vs Market: SW underperformed the French Market which returned 22.9% over the past year.

Price Volatility

Is SW's price volatile compared to industry and market?
SW volatility
SW Average Weekly Movement4.1%
Hospitality Industry Average Movement5.0%
Market Average Movement4.5%
10% most volatile stocks in FR Market9.7%
10% least volatile stocks in FR Market2.5%

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.

About the Company

FoundedEmployeesCEOWebsite
1966356,662Sophie Bellonhttps://www.sodexo.com

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 covers corporate, energy and resources, government and agencies, sports and leisure, and other customers; healthcare and seniors; and education services comprising schools and universities. The company also provides food services; benefits and rewards services, such as employee benefits, incentive and recognition programs, employee mobility, expense management, and public benefits; and personal and home services, including childcare, concierge, and in-home care services.

Sodexo Fundamentals Summary

How do Sodexo's earnings and revenue compare to its market cap?
SW fundamental statistics
Market Cap€12.37b
Earnings (TTM)€139.00m
Revenue (TTM)€17.43b

89.0x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SW income statement (TTM)
Revenue€17.43b
Cost of Revenue€15.01b
Gross Profit€2.42b
Expenses€2.28b
Earnings€139.00m

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

Apr 01, 2022

Earnings per share (EPS)0.95
Gross Margin13.90%
Net Profit Margin0.80%
Debt/Equity Ratio192.0%

How did SW perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

126%

Payout Ratio

Valuation

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

88.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SW (€84.54) is trading above our estimate of fair value (€81.5)

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


Price To Earnings Ratio

PE vs Industry: SW is poor value based on its PE Ratio (89x) compared to the French Hospitality industry average (22.5x).

PE vs Market: SW is poor value based on its PE Ratio (89x) compared to the French market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: SW is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: SW is overvalued based on its PB Ratio (3.9x) compared to the FR Hospitality industry average (1.2x).


Future Growth

How is Sodexo forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SW's forecast earnings growth (27.6% per year) is above the savings rate (0.3%).

Earnings vs Market: SW's earnings (27.6% per year) are forecast to grow faster than the French market (11.6% per year).

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

Revenue vs Market: SW's revenue (6.4% per year) is forecast to grow faster than the French market (6.1% per year).

High Growth Revenue: SW's revenue (6.4% 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 high in 3 years time (20.8%)


Past Performance

How has Sodexo performed over the past 5 years?

-36.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SW has a large one-off loss of €206.0M impacting its August 31 2021 financial results.

Growing Profit Margin: SW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SW's earnings have declined by 36.7% per year over the past 5 years.

Accelerating Growth: SW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (97.6%).


Return on Equity

High ROE: SW's Return on Equity (4.3%) is considered low.


Financial Health

How is Sodexo's financial position?


Financial Position Analysis

Short Term Liabilities: SW's short term assets (€9.6B) exceed its short term liabilities (€8.9B).

Long Term Liabilities: SW's short term assets (€9.6B) exceed its long term liabilities (€7.0B).


Debt to Equity History and Analysis

Debt Level: SW's net debt to equity ratio (80.5%) is considered high.

Reducing Debt: SW's debt to equity ratio has increased from 69.9% to 192% over the past 5 years.

Debt Coverage: SW's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: SW's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Dividend

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

1.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SW's dividend (1.42%) is higher than the bottom 25% of dividend payers in the French market (1.32%).

High Dividend: SW's dividend (1.42%) is low compared to the top 25% of dividend payers in the French market (3.93%).


Stability and Growth of Payments

Stable Dividend: SW's dividend payments have been volatile in the past 10 years.

Growing Dividend: SW's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (126%), SW's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SW's dividends in 3 years are forecast to be covered by earnings (51.6% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Sophie Bellon (60 yo)

0.33

Tenure

€676,575

Compensation

Ms. Sophie Bellon serves as Interim Chief Executive Officer at Sodexo S.A. since September 30, 2021. She served as the Chairman of the Management Board at Bellon SA since July 26, 1989 and serves as its Me...


CEO Compensation Analysis

Compensation vs Market: Sophie's total compensation ($USD767.18K) is below average for companies of similar size in the French market ($USD3.17M).

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


Leadership Team

Experienced Management: SW's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: SW's board of directors are considered experienced (6.2 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 employee growth, exchange listings and data sources


Key Information

  • Name: Sodexo S.A.
  • Ticker: SW
  • Exchange: ENXTPA
  • Founded: 1966
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: €12.367b
  • Shares outstanding: 146.29m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 21:13
End of Day Share Price2022/01/20 00:00
Earnings2021/08/31
Annual Earnings2021/08/31


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.