(SOP) Sopra Steria - Ratings and Ratios
Consulting, Digital, Software, Integration, Cyber
Description: SOP Sopra Steria
Sopra Steria Group SA is a global provider of consulting, digital, and software development services, offering a broad range of solutions including digital transformation, artificial intelligence, and technology services. The companys diverse portfolio caters to various industries such as aerospace, defense, energy, financial services, and government.
From a business perspective, Sopra Sterias services can be broken down into several key areas: consulting and systems integration, infrastructure management, cybersecurity, and business process services. The companys expertise in emerging technologies like blockchain, cloud, and IoT positions it well for growth in the digital transformation space. Additionally, its software solutions, including HR and property management, provide a recurring revenue stream.
To evaluate Sopra Sterias performance, we can look at key performance indicators (KPIs) such as revenue growth, operating margin, and return on equity (RoE). With a RoE of 23.03%, the company demonstrates a strong ability to generate profits from shareholder equity. Other relevant KPIs include the companys debt-to-equity ratio, which can indicate its financial leverage, and the revenue breakdown by geography and industry to understand its diversification.
From a valuation perspective, Sopra Sterias P/E ratio of 12.51 and forward P/E of 11.83 suggest that the stock may be undervalued relative to its earnings growth potential. Comparing these multiples to industry peers and the companys historical averages can provide further insights into its valuation.
Overall, Sopra Steria Group SAs diversified service portfolio, strong RoE, and reasonable valuation multiples make it an attractive option for investors looking for exposure to the IT consulting and services sector.
SOP Stock Overview
| Market Cap in USD | 3,713m |
| Sub-Industry | IT Consulting & Other Services |
| IPO / Inception |
SOP Stock Ratings
| Growth Rating | 32.0% |
| Fundamental | 82.2% |
| Dividend Rating | 61.0% |
| Return 12m vs S&P 500 | -24.3% |
| Analyst Rating | - |
SOP Dividends
| Dividend Yield 12m | 2.75% |
| Yield on Cost 5y | 3.70% |
| Annual Growth 5y | 23.48% |
| Payout Consistency | 74.5% |
| Payout Ratio | 32.8% |
SOP Growth Ratios
| Growth Correlation 3m | -96.9% |
| Growth Correlation 12m | 18.1% |
| Growth Correlation 5y | 76.7% |
| CAGR 5y | 11.45% |
| CAGR/Max DD 3y | 0.32 |
| CAGR/Mean DD 3y | 1.27 |
| Sharpe Ratio 12m | 0.29 |
| Alpha | -24.88 |
| Beta | 0.592 |
| Volatility | 27.73% |
| Current Volume | 37.8k |
| Average Volume 20d | 29.7k |
| Stop Loss | 158.1 (-3%) |
| Signal | 1.47 |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (464.1m TTM) > 0 and > 6% of Revenue (6% = 695.1m TTM) |
| FCFTA 0.15 (>2.0%) and ΔFCFTA 4.92pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -2.09% (prev -8.33%; Δ 6.24pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 948.3m > Net Income 464.1m (YES >=105%, WARN >=100%) |
| Net Debt (1.15b) to EBITDA (1.34b) ratio: 0.85 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.89 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (19.7m) change vs 12m ago -3.43% (target <= -2.0% for YES) |
| Gross Margin 10.79% (prev 8.35%; Δ 2.44pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 204.3% (prev 138.8%; Δ 65.53pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 9.54 (EBITDA TTM 1.34b / Interest Expense TTM 92.7m) >= 6 (WARN >= 3) |
Altman Z'' 2.20
| (A) -0.04 = (Total Current Assets 2.06b - Total Current Liabilities 2.31b) / Total Assets 5.62b |
| (B) 0.29 = Retained Earnings (Balance) 1.65b / Total Assets 5.62b |
| (C) 0.16 = EBIT TTM 884.6m / Avg Total Assets 5.67b |
| (D) 0.46 = Book Value of Equity 1.65b / Total Liabilities 3.59b |
| Total Rating: 2.20 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 82.21
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 18.20% = 5.0 |
| 3. FCF Margin 7.32% = 1.83 |
| 4. Debt/Equity 0.83 = 2.17 |
| 5. Debt/Ebitda 1.22 = 1.44 |
| 6. ROIC - WACC 17.22% = 12.50 |
| 7. RoE 24.04% = 2.00 |
| 8. Rev. Trend 90.60% = 4.53 |
| 9. Rev. CAGR 10.52% = 1.31 |
| 10. EPS Trend 17.09% = 0.43 |
| 11. EPS CAGR 0.0% = 0.0 |
What is the price of SOP shares?
Over the past week, the price has changed by +4.22%, over one month by -7.70%, over three months by -18.82% and over the past year by -10.47%.
Is Sopra Steria a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of SOP is around 150.95 EUR . This means that SOP is currently overvalued and has a potential downside of -7.39%.
Is SOP a buy, sell or hold?
What are the forecasts/targets for the SOP price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 222 | 36.2% |
| Analysts Target Price | - | - |
| ValueRay Target Price | 166 | 1.8% |
SOP Fundamental Data Overview
Market Cap EUR = 3.17b (3.17b EUR * 1.0 EUR.EUR)
CCE Cash And Equivalents = 146.7m EUR (Cash And Short Term Investments, last quarter)
P/E Trailing = 11.5113
P/E Forward = 9.4429
P/S = 0.5584
P/B = 1.6087
P/EG = 0.9938
Beta = 1.12
Revenue TTM = 11.59b EUR
EBIT TTM = 884.6m EUR
EBITDA TTM = 1.34b EUR
Long Term Debt = 1.28b EUR (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 353.1m EUR (from shortTermDebt, last quarter)
Debt = 1.64b EUR (Calculated: Short Term 353.1m + Long Term 1.28b)
Net Debt = 1.15b EUR (from netDebt column, last quarter)
Enterprise Value = 4.66b EUR (3.17b + Debt 1.64b - CCE 146.7m)
Interest Coverage Ratio = 9.54 (Ebit TTM 884.6m / Interest Expense TTM 92.7m)
FCF Yield = 18.20% (FCF TTM 847.7m / Enterprise Value 4.66b)
FCF Margin = 7.32% (FCF TTM 847.7m / Revenue TTM 11.59b)
Net Margin = 4.01% (Net Income TTM 464.1m / Revenue TTM 11.59b)
Gross Margin = 10.79% ((Revenue TTM 11.59b - Cost of Revenue TTM 10.34b) / Revenue TTM)
Tobins Q-Ratio = 2.82 (Enterprise Value 4.66b / Book Value Of Equity 1.65b)
Interest Expense / Debt = 1.37% (Interest Expense 22.5m / Debt 1.64b)
Taxrate = 22.97% (96.8m / 421.5m)
NOPAT = 681.4m (EBIT 884.6m * (1 - 22.97%))
Current Ratio = 0.89 (Total Current Assets 2.06b / Total Current Liabilities 2.31b)
Debt / Equity = 0.83 (Debt 1.64b / last Quarter total Stockholder Equity 1.97b)
Debt / EBITDA = 1.22 (Net Debt 1.15b / EBITDA 1.34b)
Debt / FCF = 1.93 (Debt 1.64b / FCF TTM 847.7m)
Total Stockholder Equity = 1.93b (last 4 quarters mean)
RoA = 8.26% (Net Income 464.1m, Total Assets 5.62b )
RoE = 24.04% (Net Income TTM 464.1m / Total Stockholder Equity 1.93b)
RoCE = 27.52% (Ebit 884.6m / (Equity 1.93b + L.T.Debt 1.28b))
RoIC = 22.99% (NOPAT 681.4m / Invested Capital 2.96b)
WACC = 5.77% (E(3.17b)/V(4.80b) * Re(8.20%)) + (D(1.64b)/V(4.80b) * Rd(1.37%) * (1-Tc(0.23)))
Shares Correlation 3-Years: -15.15 | Cagr: -0.32%
Discount Rate = 8.20% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 76.90% ; FCFE base≈741.3m ; Y1≈702.0m ; Y5≈668.1m
Fair Price DCF = 597.3 (DCF Value 11.60b / Shares Outstanding 19.4m; 5y FCF grow -6.87% → 3.0% )
Revenue Correlation: 90.60 | Revenue CAGR: 10.52%
Rev Growth-of-Growth: -6.27
EPS Correlation: 17.09 | EPS CAGR: 0.0%
EPS Growth-of-Growth: 118.0