OTCPK:SPSA.F

Stock Analysis Report

Executive Summary

Sopra Steria Group SA provides consulting, systems integration, software, and other solutions in France and internationally.

Rewards

Trading at 16.9% below its fair value

Earnings are forecast to grow 18.41% per year

Earnings grew by 28.1% over the past year

Risk Analysis

No risks detected for SPSA.F from our risk checks.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Sopra Steria Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

7.7%

SPSA.F

-4.6%

US IT

-4.2%

US Market


1 Year Return

n/a

SPSA.F

29.5%

US IT

14.0%

US Market

Return vs Industry: Insufficient data to determine how SPSA.F performed against the US IT industry.

Return vs Market: Insufficient data to determine how SPSA.F performed against the US Market.


Shareholder returns

SPSA.FIndustryMarket
7 Day7.7%-4.6%-4.2%
30 Day11.6%-0.4%-1.8%
90 Dayn/a7.4%2.6%
1 Yearn/a30.9%29.5%16.3%14.0%
3 Yearn/a101.3%92.6%43.2%34.0%
5 Yearn/a137.9%116.7%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sopra Steria Group undervalued compared to its fair value and its price relative to the market?

37.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPSA.F ($173.69) is trading below our estimate of fair value ($208.94)

Significantly Below Fair Value: SPSA.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SPSA.F is good value based on its PE Ratio (20.4x) compared to the IT industry average (31.4x).

PE vs Market: SPSA.F is poor value based on its PE Ratio (20.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SPSA.F is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SPSA.F is good value based on its PB Ratio (2.3x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is Sopra Steria Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPSA.F's forecast earnings growth (18.4% per year) is above the savings rate (1.7%).

Earnings vs Market: SPSA.F's earnings (18.4% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: SPSA.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: SPSA.F's revenue (4.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SPSA.F's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPSA.F's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Sopra Steria Group performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPSA.F has high quality earnings.

Growing Profit Margin: SPSA.F's current net profit margins (3.6%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: SPSA.F's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: SPSA.F's earnings growth over the past year (28.1%) exceeds its 5-year average (9.6% per year).

Earnings vs Industry: SPSA.F earnings growth over the past year (28.1%) exceeded the IT industry 12%.


Return on Equity

High ROE: SPSA.F's Return on Equity (12.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sopra Steria Group's financial position?


Financial Position Analysis

Short Term Liabilities: SPSA.F's short term assets (€1.1B) do not cover its short term liabilities (€2.1B).

Long Term Liabilities: SPSA.F's short term assets (€1.1B) exceed its long term liabilities (€414.4M).


Debt to Equity History and Analysis

Debt Level: SPSA.F's debt to equity ratio (30%) is considered satisfactory.

Reducing Debt: SPSA.F's debt to equity ratio has reduced from 60.4% to 30% over the past 5 years.

Debt Coverage: SPSA.F's debt is well covered by operating cash flow (86.6%).

Interest Coverage: SPSA.F's interest payments on its debt are well covered by EBIT (28.6x coverage).


Balance Sheet

Inventory Level: SPSA.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: SPSA.F's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is Sopra Steria Group's current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: SPSA.F's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SPSA.F's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), SPSA.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPSA.F's dividends in 3 years are forecast to be well covered by earnings (25.4% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Vincent Paris (54yo)

4.9yrs

Tenure

€942,488

Compensation

Mr. Vincent Paris has been the Chief Executive Officer of Sopra Steria Group since March 17, 2015. Mr. Paris served as Deputy Chief Executive Officer of Sopra Group. Mr. Paris served as the Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Vincent's total compensation ($USD1.02M) is below average for companies of similar size in the US market ($USD4.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Vincent Paris
Chief Executive Officer4.9yrs€942.49kno data
Kathleen Clark Bracco
Director of Corporate Development & Director7.7yrs€34.53kno data
Étienne du Vignaux
Chief Financial Officer3.7yrsno datano data
Jean-Claude Debray
Director of Communication0yrsno datano data
Sandrine Salaun
Head of Human Resources Business0yrsno datano data
Richard Wolff
Head of Systems0yrsno datano data
John Torrie
Deputy Chief Executive Officer4.9yrsno datano data
Laurent Giovachini
Deputy Chief Executive Officer4.7yrsno datano data

4.8yrs

Average Tenure

54yo

Average Age

Experienced Management: SPSA.F's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kathleen Clark Bracco
Director of Corporate Development & Director7.7yrs€34.53kno data
Jean-François Sammarcelli
Independent Director9.8yrs€33.98k0.0024% 84.4k
Eric Hayat
Vice-Chairman0yrs€30.96k0.18% 6.3m
Pierre Pasquier
Chairman13.8yrs€531.82k0.52% 18.3m
Sylvie Remond
Independent Director4.9yrs€17.73k0.000010% 353.0
Jean-Luc Placet
Independent Director7.7yrs€32.24k0.00048% 16.9k
Marie-Hélène Rigal-Drogerys
Independent Director5.7yrs€55.23k0.00048% 16.9k
Astrid Anciaux
Director5.4yrs€19.70k0.0040% 142.6k
Eric Pasquier
Deputy Chairman1.6yrs€32.20k0.0024% 85.1k
Jean-Bernard Rampini
Non-Voting Director1.7yrs€19.70k0.0087% 306.4k

5.7yrs

Average Tenure

59yo

Average Age

Experienced Board: SPSA.F's board of directors are considered experienced (5.7 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

Sopra Steria Group SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sopra Steria Group SA
  • Ticker: SPSA.F
  • Exchange: OTCPK
  • Founded: 1968
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €3.252b
  • Listing Market Cap: €3.530b
  • Shares outstanding: 20.90m
  • Website: https://www.soprasteria.com

Number of Employees


Location

  • Sopra Steria Group SA
  • 6 avenue Kleber
  • Paris
  • Ile-de-France
  • 75116
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOPENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
0NJQLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
SPSA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
OR8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SOPPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

Sopra Steria Group SA provides consulting, systems integration, software, and other solutions in France and internationally. The company operates in fives segments: France, United Kingdom, Other Europe, Sopra Banking Software, and Other Solutions. It offers consulting services, including customer excellence, human resource, and information technology consulting services for large companies and public institutions; systems integration services from the consultancy stage through to designing and deploying solutions; and cybersecurity services, such as end-to-end security for the transformation ranging from business processes to infrastructures by constantly anticipating emerging threats and risks. The company also provides software for banks and financial institutions, human resources, and property management; business process services; and infrastructure management services. It serves aerospace, insurance and social welfare, banking, defense, retail, energy utilities, homeland security, and transport industries, as well as telecommunications, media, and entertainment industries; and the public sector. Sopra Steria Group SA was founded in 1968 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:15
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.