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Sodexo

ENXTPA:SW
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SW
ENXTPA
€15B
Market Cap
  1. Home
  2. FR
  3. Consumer Services
Company description

Sodexo S.A. develops, manages, and delivers on-site, benefits and rewards, and personal and home services worldwide. The last earnings update was 96 days ago. More info.


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SW Share Price and Events
7 Day Returns
0.7%
ENXTPA:SW
2.9%
FR Hospitality
-0.2%
FR Market
1 Year Returns
12.2%
ENXTPA:SW
-0.6%
FR Hospitality
2.8%
FR Market
SW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sodexo (SW) 0.7% -1.7% 0.1% 12.2% 1.5% 34.5%
FR Hospitality 2.9% 4.3% 3.3% -0.6% -1.1% 11.3%
FR Market -0.2% 3.6% 0.7% 2.8% 34.3% 38.5%
1 Year Return vs Industry and Market
  • SW outperformed the Hospitality industry which returned -0.6% over the past year.
  • SW outperformed the Market in France which returned 2.8% over the past year.
Price Volatility
SW
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Sodexo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sodexo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sodexo.

ENXTPA:SW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year FR Government Bond Rate 0.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ENXTPA:SW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year FR Govt Bond Rate 0.7%
Equity Risk Premium S&P Global 6.7%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.926 (1 + (1- 33%) (32.36%))
1.085
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.73% + (1.085 * 6.65%)
7.95%

Discounted Cash Flow Calculation for ENXTPA:SW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sodexo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ENXTPA:SW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.95%)
2020 760.74 Analyst x9 704.73
2021 854.97 Analyst x7 733.71
2022 1,009.50 Analyst x2 802.55
2023 1,089.50 Analyst x2 802.38
2024 1,150.07 Est @ 5.56% 784.63
2025 1,197.35 Est @ 4.11% 756.75
2026 1,234.45 Est @ 3.1% 722.76
2027 1,263.93 Est @ 2.39% 685.54
2028 1,287.84 Est @ 1.89% 647.08
2029 1,307.73 Est @ 1.54% 608.70
Present value of next 10 years cash flows €7,248.84
ENXTPA:SW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €1,307.73 × (1 + 0.73%) ÷ (7.95% – 0.73%)
€18,259.95
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €18,259.95 ÷ (1 + 7.95%)10
€8,499.34
ENXTPA:SW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €7,248.84 + €8,499.34
€15,748.18
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €15,748.18 / 145.72
€108.07
ENXTPA:SW Discount to Share Price
Calculation Result
Value per share (EUR) From above. €108.07
Current discount Discount to share price of €102.50
= -1 x (€102.50 - €108.07) / €108.07
5.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sodexo is available for.
Intrinsic value
5%
Share price is €102.5 vs Future cash flow value of €108.07
Current Discount Checks
For Sodexo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sodexo's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Sodexo's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sodexo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sodexo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ENXTPA:SW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-28) in EUR €4.39
ENXTPA:SW Share Price ** ENXTPA (2019-07-16) in EUR €102.5
France Hospitality Industry PE Ratio Median Figure of 11 Publicly-Listed Hospitality Companies 23.42x
France Market PE Ratio Median Figure of 415 Publicly-Listed Companies 17.42x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sodexo.

ENXTPA:SW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTPA:SW Share Price ÷ EPS (both in EUR)

= 102.5 ÷ 4.39

23.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sodexo is good value based on earnings compared to the FR Hospitality industry average.
  • Sodexo is overvalued based on earnings compared to the France market.
Price based on expected Growth
Does Sodexo's expected growth come at a high price?
Raw Data
ENXTPA:SW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
10.6%per year
Europe Hospitality Industry PEG Ratio Median Figure of 72 Publicly-Listed Hospitality Companies 1.47x
France Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

ENXTPA:SW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.37x ÷ 10.6%

2.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sodexo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sodexo's assets?
Raw Data
ENXTPA:SW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-28) in EUR €27.44
ENXTPA:SW Share Price * ENXTPA (2019-07-16) in EUR €102.5
France Hospitality Industry PB Ratio Median Figure of 17 Publicly-Listed Hospitality Companies 1.39x
France Market PB Ratio Median Figure of 613 Publicly-Listed Companies 1.48x
ENXTPA:SW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTPA:SW Share Price ÷ Book Value per Share (both in EUR)

= 102.5 ÷ 27.44

3.74x

* Primary Listing of Sodexo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sodexo is overvalued based on assets compared to the FR Hospitality industry average.
X
Value checks
We assess Sodexo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Sodexo has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Sodexo expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sodexo expected to grow at an attractive rate?
  • Sodexo's earnings growth is expected to exceed the low risk savings rate of 0.7%.
Growth vs Market Checks
  • Sodexo's earnings growth is positive but not above the France market average.
  • Sodexo's revenue growth is positive but not above the France market average.
Annual Growth Rates Comparison
Raw Data
ENXTPA:SW Future Growth Rates Data Sources
Data Point Source Value (per year)
ENXTPA:SW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 10.6%
ENXTPA:SW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 3.4%
France Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 20%
France Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
France Market Earnings Growth Rate Market Cap Weighted Average 12.6%
France Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ENXTPA:SW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ENXTPA:SW Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-08-31 24,991 988 3
2022-08-31 24,048 944 3
2021-08-31 23,049 1,429 858 14
2020-08-31 22,391 1,298 790 17
2019-08-31 21,668 1,066 671 17
ENXTPA:SW Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-02-28 21,159 1,233 643
2018-11-30 20,783 1,183 647
2018-08-31 20,407 1,133 651
2018-05-31 20,382 699
2018-02-28 20,357 1,140 747
2017-11-30 20,528 1,101 735
2017-08-31 20,698 1,062 723
2017-05-31 20,491 675
2017-02-28 20,283 769 626
2016-11-30 20,264 857 632
2016-08-31 20,245 945 637
2016-05-31 20,363 1,000 677

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sodexo's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
  • Sodexo's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ENXTPA:SW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Sodexo Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTPA:SW Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-08-31 6.70 6.70 6.70 1.00
2022-08-31 6.40 6.40 6.40 1.00
2021-08-31 5.75 5.89 5.57 9.00
2020-08-31 5.39 5.83 4.86 13.00
2019-08-31 4.67 5.43 4.24 12.00
ENXTPA:SW Past Financials Data
Date (Data in EUR Millions) EPS *
2019-02-28 4.39
2018-11-30 4.39
2018-08-31 4.40
2018-05-31 4.72
2018-02-28 5.04
2017-11-30 4.94
2017-08-31 4.85
2017-05-31 4.51
2017-02-28 4.17
2016-11-30 4.19
2016-08-31 4.21
2016-05-31 4.46

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sodexo is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Sodexo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the France market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the France market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sodexo has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Sodexo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sodexo's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sodexo's year on year earnings growth rate has been positive over the past 5 years.
  • Sodexo's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sodexo's 1-year earnings growth is negative, it can't be compared to the FR Hospitality industry average.
Earnings and Revenue History
Sodexo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sodexo Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTPA:SW Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-28 21,159.00 643.00 1,986.00
2018-11-30 20,783.00 647.00 1,978.00
2018-08-31 20,407.00 651.00 1,970.00
2018-05-31 20,382.00 699.00 1,944.50
2018-02-28 20,357.00 747.00 1,919.00
2017-11-30 20,527.50 735.00 1,919.50
2017-08-31 20,698.00 723.00 1,920.00
2017-05-31 20,490.50 674.50 1,944.00
2017-02-28 20,283.00 626.00 1,968.00
2016-11-30 20,264.00 631.50 1,987.00
2016-08-31 20,245.00 637.00 2,006.00
2016-05-31 20,362.50 676.50 2,025.00
2016-02-29 20,480.00 716.00 2,044.00
2015-11-30 20,147.50 708.00 2,015.50
2015-08-31 19,815.00 700.00 1,987.00
2015-05-31 19,239.50 627.50 1,916.50
2015-02-28 18,664.00 555.00 1,846.00
2014-11-30 18,340.00 522.50 1,834.50
2014-08-31 18,016.00 490.00 1,823.00
2014-05-31 18,118.00 485.50 1,867.50
2014-02-28 18,220.00 481.00 1,912.00
2013-11-30 18,308.50 460.00 1,914.50
2013-08-31 18,397.00 439.00 1,917.00
2013-05-31 18,512.00 451.50 1,927.50
2013-02-28 18,627.00 464.00 1,938.00
2012-11-30 18,431.50 494.50 1,906.00
2012-08-31 18,236.00 525.00 1,874.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sodexo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sodexo used its assets more efficiently than the FR Hospitality industry average last year based on Return on Assets.
  • Sodexo's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sodexo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sodexo has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sodexo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sodexo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sodexo's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Sodexo's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sodexo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sodexo Company Filings, last reported 4 months ago.

ENXTPA:SW Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-28 4,045.00 4,826.00 1,950.00
2018-11-30 4,045.00 4,826.00 1,950.00
2018-08-31 3,328.00 3,976.00 1,666.00
2018-05-31 3,328.00 3,976.00 1,666.00
2018-02-28 3,377.00 4,141.00 1,519.00
2017-11-30 3,377.00 4,141.00 1,519.00
2017-08-31 3,570.00 3,536.00 2,018.00
2017-05-31 3,570.00 3,536.00 2,018.00
2017-02-28 3,613.00 3,785.00 1,698.00
2016-11-30 3,613.00 3,785.00 1,698.00
2016-08-31 3,702.00 2,575.00 1,375.00
2016-05-31 3,702.00 2,575.00 1,375.00
2016-02-29 3,607.00 2,826.00 1,224.00
2015-11-30 3,607.00 2,826.00 1,224.00
2015-08-31 3,744.00 3,106.00 2,008.00
2015-05-31 3,744.00 3,106.00 2,008.00
2015-02-28 3,554.00 3,126.00 1,573.00
2014-11-30 3,554.00 3,126.00 1,573.00
2014-08-31 3,221.00 3,899.00 2,748.00
2014-05-31 3,221.00 3,899.00 2,748.00
2014-02-28 2,975.00 2,689.00 1,186.00
2013-11-30 2,975.00 2,689.00 1,186.00
2013-08-31 2,987.00 2,606.00 1,347.00
2013-05-31 2,987.00 2,606.00 1,347.00
2013-02-28 2,937.00 2,856.00 1,266.00
2012-11-30 2,937.00 2,856.00 1,266.00
2012-08-31 3,069.00 2,649.00 1,451.00
  • Sodexo's level of debt (119.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (91.2% vs 119.5% today).
  • Debt is well covered by operating cash flow (25.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.3x coverage).
X
Financial health checks
We assess Sodexo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sodexo has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.95%
Current annual income from Sodexo dividends. Estimated to be 2.91% next year.
If you bought €2,000 of Sodexo shares you are expected to receive €59 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sodexo's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.51%).
  • Sodexo's dividend is below the markets top 25% of dividend payers in France (4.39%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ENXTPA:SW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
France Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.8%
France Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3%
France Minimum Threshold Dividend Yield 10th Percentile 0.9%
France Bottom 25% Dividend Yield 25th Percentile 1.5%
France Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ENXTPA:SW Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-08-31 3.53 2.00
2022-08-31 3.35 2.00
2021-08-31 3.13 14.00
2020-08-31 2.94 17.00
2019-08-31 2.80 16.00
ENXTPA:SW Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-01-17 3.025 3.042
2017-11-16 2.750 2.974
2016-11-22 2.640 2.474
2016-11-17 2.640 2.645
2015-11-19 2.200 2.304
2014-11-13 1.800 2.135
2013-11-20 1.620 2.135
2013-11-14 1.620 2.197
2013-01-21 1.590 2.328
2012-01-31 1.460 2.407
2011-01-07 1.350 2.600
2009-11-16 1.270 2.815
2009-11-10 1.270 3.230
2008-11-12 1.270 3.373
2008-11-07 1.270 3.425

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Sodexo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Sodexo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sodexo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sodexo has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Sodexo's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Denis Machuel
COMPENSATION €2,751,898
AGE 55
TENURE AS CEO 1.5 years
CEO Bio

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 as its Group Chief Digital Officer from January 2015 to January 23, 2018. Mr. Machuel served as the Chief Executive Officer of Benefits & Rewards Services worldwide at Sodexo S.A. from January 2012 to September 1, 2017 and as its Chief Executive Officer of Personal & Home Services from September 2016 to September 1, 2017. Throughout his career, he has had an international focus and has sought out entrepreneurial opportunities working in large multinational firms. He began his professional life at Schneider Electric in Egypt, before moving to become a consultant with innovation and technology consultancy Altran, with Dassault Electronique as client. He stayed 16 years with Altran, holding a range of senior positions, including Chief Executive Officer of Altran Technologies UK, when he created the subsidiary and built this UK business from scratch. He also served as Chief Executive Officer of Altran Technologies France, developing the global client portfolio and as Director Offshore Strategy and Operations where he started to build the company’s global offshore business. Mr. Machuel joined Sodexo in 2007, as Chief Executive Officer of Benefits & Rewards Services for Central & Eastern Europe, where he reinforced Sodexo’s position as regional leader in this activity. In 2010, he moved to lead Sodexo’s Benefits & Rewards Services in Europe and Asia. Over the same 5 year period, activities were opened up in 6 new countries and 15 acquisitions were made in Europe, the US and Latin America. He joined the Sodexo Group Executive Committee in January 2014. He gained additional exposure to Sodexo’s On-Site Services business and particularly to the Group’s transformation, from a country-based structure to one based on global client segments. Mr. Machuel is a strong advocate of diversity and inclusion in all its aspects. He is an executive sponsor of the Sodexo Diverse! network, which promotes gender diversity initiatives, particularly around work-life balance, personal development and cross-companies best practices sharing. As Sponsor of the Sodexo Disability Voice task force, he has strengthened Sodexo’s commitment to the inclusion of people with disabilities within the organization. He has been a Director of Motivcom Plc since November 2014. In 2016, he signed the International Labor Organization’s Global Business Disability Network Charter on behalf of Sodexo – the first global charter on disability inclusion in the workplace. He also volunteers outside of Sodexo for causes that are important to him personally. In addition, he led the initiative to offer Mindfulness and meditation practices for Benefits & Rewards teams, in line with his conviction that promoting work-life balance contributes to quality of life. He is an active meditator himself. Mr. Machuel is a graduate of the ENSIMAG College of Engineering in Grenoble, France and holds a Master of Science from Texas A&M University.

CEO Compensation
  • Insufficient data for Denis to compare compensation growth.
  • Denis's remuneration is about average for companies of similar size in France.
Management Team Tenure

Average tenure and age of the Sodexo management team in years:

2.3
Average Tenure
60
Average Age
  • The tenure for the Sodexo management team is about average.
Management Team

Denis Machuel

TITLE
Chief Executive Officer
COMPENSATION
€3M
AGE
55
TENURE
1.5 yrs

Nathalie Bellon-Szabo

TITLE
CEO Sports & Leisure Worldwide and Director
COMPENSATION
€63K
AGE
55
TENURE
3.8 yrs

Sylvia Metayer

TITLE
Chief Executive Officer of Corporate Services Worldwide
AGE
60

Philippe Besson

TITLE
Head of Projects for Sponsorship & Director
COMPENSATION
€63K
AGE
63

Pierre Bellon

TITLE
Founder & Chairman Emeritus
COMPENSATION
€19K
AGE
89
TENURE
53.5 yrs

Marc Rolland

TITLE
Group Chief Financial Officer
TENURE
3.6 yrs

Virginia Jeanson

TITLE
Head of Investor Relations

Angelo Piccirillo

TITLE
Group General Counsel
TENURE
0.8 yrs

Dianne Salt

TITLE
Chief Communications Officer
TENURE
2.3 yrs

Bruno Vanhaelst

TITLE
Chief Sales & Marketing Officer
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Sodexo board of directors in years:

6.3
Average Tenure
55.5
Average Age
  • The tenure for the Sodexo board of directors is about average.
Board of Directors

Sophie Bellon

TITLE
Chairwoman
COMPENSATION
€627K
AGE
58
TENURE
3.5 yrs

Nathalie Bellon-Szabo

TITLE
CEO Sports & Leisure Worldwide and Director
COMPENSATION
€63K
AGE
55
TENURE
30 yrs

Philippe Besson

TITLE
Head of Projects for Sponsorship & Director
COMPENSATION
€63K
AGE
63
TENURE
5.1 yrs

Pierre Bellon

TITLE
Founder & Chairman Emeritus
COMPENSATION
€19K
AGE
89
TENURE
3.5 yrs

Cécile de Marsac

TITLE
Director
COMPENSATION
€98K
AGE
56
TENURE
2.5 yrs

Sophie Stabile

TITLE
Director
COMPENSATION
€4K
AGE
49
TENURE
1 yrs

Astrid Bellon

TITLE
Director
COMPENSATION
€44K
AGE
50
TENURE
30 yrs

François-Xavier Bellon

TITLE
Director
COMPENSATION
€66K
AGE
54
TENURE
30 yrs

Robert Baconnier

TITLE
Independent Director
COMPENSATION
€66K
AGE
79
TENURE
14.5 yrs

Françoise Brougher

TITLE
Independent Director
COMPENSATION
€107K
AGE
54
TENURE
7.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Sodexo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sodexo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Calculating The Intrinsic Value Of Sodexo S.A. (EPA:SW)

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (€, Millions) €693.00 €763.75 €820.11 €856.00 €945.00 €992.42 €1.03k €1.06k €1.08k €1.10k Growth Rate Estimate Source Analyst x8 Analyst x10 Analyst x7 Analyst x1 Analyst x1 Est @ 5.02% Est @ 3.73% Est @ 2.83% Est @ 2.2% Est @ 1.76% Present Value (€, Millions) Discounted @ 8.06% €641.31 €654.05 €649.94 €627.78 €641.35 €623.29 €598.33 €569.38 €538.52 €507.13 Present Value of 10-year Cash Flow (PVCF)= €6.05b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = €1.1b × (1 + 0.7%) ÷ (8.1% – 0.7%) = €15b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = €€15b ÷ ( 1 + 8.1%)10 = €6.97b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €13.02b. … ENXTPA:SW Intrinsic value, May 14th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

What Kind Of Shareholder Appears On The Sodexo S.A.'s (EPA:SW) Shareholder Register?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Companies that used to be publicly owned tend to have lower insider ownership. … We'd expect to see both institutions and retail investors owning a portion of the company.

Simply Wall St -

What Investors Should Know About Sodexo S.A.'s (EPA:SW) Financial Strength

Risk-averse investors who are attracted to diversified streams of revenue and strong capital returns tend to seek out these large companies. … This article will examine Sodexo’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Sodexo S.A. (EPA:SW): Does The Earnings Decline Make It An Underperformer?

(EPA:SW) announced its most recent earnings (31 August 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … SW's trailing twelve-month earnings (from 31 August 2018) of €651m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.8%, indicating the rate at which SW is growing has slowed down

Simply Wall St -

Sodexo S.A. (EPA:SW): Exploring Free Cash Flows

I will take you through Sodexo’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Sodexo generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … There are two methods I will use to evaluate the quality of Sodexo’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Sodexo S.A. (EPA:SW)

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … That is equivalent to an earnings yield of about 4.4%. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Sodexo S.A. (EPA:SW): Is It A Smart Long Term Opportunity?

(EPA:SW) released its earnings in August 2018,. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of 8.8%

Simply Wall St -

Introducing Sodexo, A Stock That Climbed 23% In The Last Five Years

By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, Sodexo achieved compound earnings per share (EPS) growth of 8.6% per year. … The EPS growth is more impressive than the yearly share price gain of 4.3% over the same period.

Simply Wall St -

A Closer Look At Sodexo S.A.'s (EPA:SW) Impressive ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Sodexo has a return on equity of 20% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Calculating The Fair Value Of Sodexo S.A. (EPA:SW)

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Company Info

Description

Sodexo S.A. develops, manages, and delivers on-site, benefits and rewards, and personal and home services worldwide. It offers various on-site services, including construction, reception, medical equipment sterilization, cleaning, food, event management, and prisoner rehabilitation services to corporate, government, healthcare, senior, university, school, energy and resources, and sports and leisure customers. The company also provides benefits and rewards services, such as employee benefits, incentive and recognition programs, expense management, public benefits, and gift cards and boxes. In addition, it offers concierge services; in-home care services comprising assistance with eating, bathing, walking, and housecleaning, as well as helps in maintaining social contact and relationships; and grocery shopping, going to work, and a doctor’s appointment services, as well as operates child day-care centers. 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.

Details
Name: Sodexo S.A.
SW
Exchange: ENXTPA
Founded: 1966
€14,936,697,187
145,723,875
Website: http://www.sodexo.com
Address: Sodexo S.A.
255 quai de la Bataille de Stalingrad,
Issy-les-Moulineaux,
Ile-de-France, 92866,
France
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTPA SW Common Shares Euronext Paris FR EUR 03. Aug 1983
OTCPK SDXO.F Common Shares Pink Sheets LLC US USD 03. Aug 1983
DB SJ7 Common Shares Deutsche Boerse AG DE EUR 03. Aug 1983
LSE 0J3F Common Shares London Stock Exchange GB EUR 03. Aug 1983
WBAG SW Common Shares Wiener Boerse AG AT EUR 03. Aug 1983
BATS-CHIXE SWP Common Shares BATS 'Chi-X Europe' GB EUR 03. Aug 1983
OTCPK SDXA.Y SPONSORED ADR Pink Sheets LLC US USD 03. Apr 2002
Number of employees
Current staff
Staff numbers
403,771
Sodexo employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 20:48
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/04/11
Last earnings reported: 2019/02/28
Last annual earnings reported: 2018/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.