(SW) Sodexo - Ratings and Ratios
Food, Catering, Facility Management, Meal Cards, Energy
Description: SW Sodexo
Sodexo SA is a global provider of food services and facilities management, offering a diverse range of solutions across various sectors, including cultural destinations, healthcare, education, and corporate environments. The companys comprehensive services encompass food and venue management, event ticketing, digital ordering, and employee experience solutions, as well as technical services, asset management, and maintenance.
From a business perspective, Sodexos diversified portfolio and global reach are key strengths, allowing the company to capitalize on growth opportunities across different markets and industries. The companys focus on delivering tailored solutions to its clients is also a significant advantage, enabling it to build strong relationships and drive customer loyalty. Key performance indicators (KPIs) to monitor Sodexos performance include revenue growth, operating margin, and client retention rates. Additionally, metrics such as employee engagement and diversity, equity, and inclusion (DEI) initiatives can provide insights into the companys overall health and culture.
To further analyze Sodexos financial performance, we can examine key metrics such as revenue per segment, geographic revenue breakdown, and cash flow generation. The companys return on equity (RoE) of 22.85% indicates a relatively strong ability to generate profits from shareholder equity. Furthermore, Sodexos forward P/E ratio of 9.44 suggests that the company may be undervalued relative to its expected earnings growth. Other relevant KPIs include the companys debt-to-equity ratio, interest coverage ratio, and dividend yield, which can provide a more comprehensive understanding of Sodexos financial position and attractiveness to investors.
SW Stock Overview
| Market Cap in USD | 9,192m |
| Sub-Industry | Diversified Support Services |
| IPO / Inception |
SW Stock Ratings
| Growth Rating | -18.2% |
| Fundamental | 77.2% |
| Dividend Rating | 78.5% |
| Return 12m vs S&P 500 | -35.8% |
| Analyst Rating | - |
SW Dividends
| Dividend Yield 12m | 4.85% |
| Yield on Cost 5y | 7.16% |
| Annual Growth 5y | 43.27% |
| Payout Consistency | 98.4% |
| Payout Ratio | 58.0% |
SW Growth Ratios
| Growth Correlation 3m | 50% |
| Growth Correlation 12m | -89.5% |
| Growth Correlation 5y | 74.9% |
| CAGR 5y | 0.63% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.02 |
| CAGR/Mean DD 3y (Pain Ratio) | 0.06 |
| Sharpe Ratio 12m | -0.15 |
| Alpha | -34.16 |
| Beta | 0.464 |
| Volatility | 19.34% |
| Current Volume | 174.3k |
| Average Volume 20d | 224.2k |
| Stop Loss | 53 (-3%) |
| Signal | 0.61 |
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (956.0m TTM) > 0 and > 6% of Revenue (6% = 2.81b TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA 8.38pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 0.93% (prev 4.78%; Δ -3.85pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.16 (>3.0%) and CFO 2.40b > Net Income 956.0m (YES >=105%, WARN >=100%) |
| Net Debt (4.18b) to EBITDA (2.71b) ratio: 1.55 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.08 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (147.7m) change vs 12m ago NaN% (target <= -2.0% for YES) |
| Gross Margin 11.31% (prev 14.38%; Δ -3.06pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 259.2% (prev 159.7%; Δ 99.49pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.34 (EBITDA TTM 2.71b / Interest Expense TTM 355.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.26
| (A) 0.03 = (Total Current Assets 6.19b - Total Current Liabilities 5.75b) / Total Assets 15.34b |
| (B) 0.22 = Retained Earnings (Balance) 3.35b / Total Assets 15.34b |
| (C) 0.10 = EBIT TTM 1.90b / Avg Total Assets 18.07b |
| (D) 0.63 = Book Value of Equity 7.10b / Total Liabilities 11.32b |
| Total Rating: 2.26 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 77.24
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 13.82% = 5.0 |
| 3. FCF Margin 3.96% = 0.99 |
| 4. Debt/Equity 1.40 = 1.59 |
| 5. Debt/Ebitda 1.55 = 0.87 |
| 6. ROIC - WACC (= 11.67)% = 12.50 |
| 7. RoE 22.85% = 1.90 |
| 8. Rev. Trend 69.74% = 5.23 |
| 9. EPS Trend -26.91% = -1.35 |
What is the price of SW shares?
Over the past week, the price has changed by +5.10%, over one month by +4.19%, over three months by +7.58% and over the past year by -25.88%.
Is Sodexo a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of SW is around 51.99 EUR . This means that SW is currently overvalued and has a potential downside of -4.87%.
Is SW a buy, sell or hold?
What are the forecasts/targets for the SW price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 64.1 | 17.3% |
| Analysts Target Price | - | - |
| ValueRay Target Price | 56.1 | 2.7% |
SW Fundamental Data Overview
Market Cap EUR = 7.88b (7.88b EUR * 1.0 EUR.EUR)
P/E Trailing = 11.8162
P/E Forward = 10.0301
P/S = 0.326
P/B = 1.9985
P/EG = 1.9662
Beta = 0.464
Revenue TTM = 46.83b EUR
EBIT TTM = 1.90b EUR
EBITDA TTM = 2.71b EUR
Long Term Debt = 4.09b EUR (from longTermDebt, last quarter)
Short Term Debt = 906.0m EUR (from shortTermDebt, last quarter)
Debt = 5.61b EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.18b EUR (from netDebt column, last quarter)
Enterprise Value = 13.43b EUR (7.88b + Debt 5.61b - CCE 59.0m)
Interest Coverage Ratio = 5.34 (Ebit TTM 1.90b / Interest Expense TTM 355.0m)
FCF Yield = 13.82% (FCF TTM 1.85b / Enterprise Value 13.43b)
FCF Margin = 3.96% (FCF TTM 1.85b / Revenue TTM 46.83b)
Net Margin = 2.04% (Net Income TTM 956.0m / Revenue TTM 46.83b)
Gross Margin = 11.31% ((Revenue TTM 46.83b - Cost of Revenue TTM 41.53b) / Revenue TTM)
Gross Margin QoQ = 12.06% (prev 11.71%)
Tobins Q-Ratio = 0.88 (Enterprise Value 13.43b / Total Assets 15.34b)
Interest Expense / Debt = 1.32% (Interest Expense 74.0m / Debt 5.61b)
Taxrate = 19.55% (105.0m / 537.0m)
NOPAT = 1.52b (EBIT 1.90b * (1 - 19.55%))
Current Ratio = 1.08 (Total Current Assets 6.19b / Total Current Liabilities 5.75b)
Debt / Equity = 1.40 (Debt 5.61b / totalStockholderEquity, last quarter 4.00b)
Debt / EBITDA = 1.55 (Net Debt 4.18b / EBITDA 2.71b)
Debt / FCF = 2.25 (Net Debt 4.18b / FCF TTM 1.85b)
Total Stockholder Equity = 4.18b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.23% (Net Income 956.0m / Total Assets 15.34b)
RoE = 22.85% (Net Income TTM 956.0m / Total Stockholder Equity 4.18b)
RoCE = 22.90% (EBIT 1.90b / Capital Employed (Equity 4.18b + L.T.Debt 4.09b))
RoIC = 16.63% (NOPAT 1.52b / Invested Capital 9.17b)
WACC = 4.95% (E(7.88b)/V(13.49b) * Re(7.72%) + D(5.61b)/V(13.49b) * Rd(1.32%) * (1-Tc(0.20)))
Discount Rate = 7.72% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 33.33 | Cagr: 0.01%
[DCF Debug] Terminal Value 79.12% ; FCFE base≈1.42b ; Y1≈1.51b ; Y5≈1.80b
Fair Price DCF = 215.8 (DCF Value 31.49b / Shares Outstanding 145.9m; 5y FCF grow 6.66% → 3.0% )
EPS Correlation: -26.91 | EPS CAGR: -56.89% | SUE: -0.57 | # QB: 0
Revenue Correlation: 69.74 | Revenue CAGR: 16.07% | SUE: 1.52 | # QB: 1