Sopra Steria Group SA (FR:SOP)
:SOP
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Sopra Steria
(SOP)
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Rating:67Neutral
Price Target:
€123.00
▼(-9.09% Downside)
Action:ReiteratedDate:03/14/26
The score is driven primarily by solid underlying financial quality—especially strong free cash flow and improving leverage—supported by attractive valuation (low P/E and a healthy dividend). Offsetting these positives, technicals remain weak with price below key moving averages and negative MACD, and the sharp 2025 revenue decline adds meaningful near-term uncertainty.
Positive Factors
Free Cash Flow Strength
Consistently high operating and free cash flow (FCF ~€491M in 2025 and FCF-to-net-income ~0.81–0.93) provides durable internal funding. Strong cash conversion supports debt service, dividends and reinvestment in digital capabilities, cushioning the business through cyclical revenue swings.
Negative Factors
Sharp 2025 Revenue Decline
A ~-40.7% reported revenue change in 2025 indicates a material structural event or contract/recognition shift. Such a large topline drop impairs utilization and scale economics in services, threatens margin sustainability, and could force reliance on cost measures or asset actions to preserve cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistently high operating and free cash flow (FCF ~€491M in 2025 and FCF-to-net-income ~0.81–0.93) provides durable internal funding. Strong cash conversion supports debt service, dividends and reinvestment in digital capabilities, cushioning the business through cyclical revenue swings.
Read all positive factors
Sopra Steria (SOP) vs. iShares MSCI France ETF (EWQ)
Market Cap
€2.28B
Dividend Yield3.03%
Average Volume (3M)44.78K
Price to Earnings (P/E)10.2
Beta (1Y)0.90
Revenue Growth-4.12%
EPS Growth43.37%
CountryFR
Employees50,988
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)7.97
Shares Outstanding20,547,700
10 Day Avg. Volume65,607
30 Day Avg. Volume44,783
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)1.44
Price to Sales (P/S)0.53
P/FCF Ratio6.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€200.33Price Target Upside48.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)17.43
Revenue Forecast (FY)€5.73B
Sopra Steria Business Overview & Revenue Model
Company Description
Sopra Steria Group SA provides consulting, digital, and software development services in France and internationally. The company operates through five segments: France, United Kingdom, Other Europe, Sopra Banking Software, and Other Solutions. It ...
How the Company Makes Money
Sopra Steria primarily makes money by selling IT and business transformation services under multi-month to multi-year contracts, with revenue recognized as services are delivered (typically based on time-and-materials, fixed-price/project mileston...
Sopra Steria Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.65B | 5.78B | 5.81B | 5.10B | 4.68B |
| Gross Profit | 491.00M | 1.67B | 851.70M | 779.40M | 666.00M |
| EBITDA | 683.70M | 736.80M | 553.80M | 539.10M | 509.80M |
| Net Income | 296.80M | 250.90M | 183.70M | 247.80M | 187.70M |
Balance Sheet | |||||
| Total Assets | 5.67B | 5.64B | 6.07B | 4.95B | 4.77B |
| Cash, Cash Equivalents and Short-Term Investments | 511.80M | 423.40M | 191.70M | 355.90M | 217.20M |
| Total Debt | 1.19B | 1.23B | 1.64B | 898.30M | 909.00M |
| Total Liabilities | 3.53B | 3.66B | 4.15B | 3.05B | 3.08B |
| Stockholders Equity | 2.09B | 1.93B | 1.88B | 1.85B | 1.65B |
Cash Flow | |||||
| Free Cash Flow | 491.30M | 581.60M | 522.00M | 401.00M | 403.50M |
| Operating Cash Flow | 525.70M | 656.40M | 622.60M | 495.20M | 458.10M |
| Investing Cash Flow | -85.20M | 128.00M | -1.01B | -115.80M | -145.10M |
| Financing Cash Flow | -343.30M | -550.40M | 228.40M | -235.50M | -342.00M |
Sopra Steria Technical Analysis
Negative
135.30
Price Trends
132.51
Negative
136.83
Negative
154.69
Negative
Market Momentum
-4.60
Positive
34.04
Neutral
6.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SOP, the sentiment is Negative. The current price of 135.3 is above the 20-day moving average (MA) of 125.37, above the 50-day MA of 132.51, and below the 200-day MA of 154.69, indicating a bearish trend. The MACD of -4.60 indicates Positive momentum. The RSI at 34.04 is Neutral, neither overbought nor oversold. The STOCH value of 6.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SOP.
Sopra Steria Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €1.11B | 9.75 | 12.87% | 0.84% | 7.00% | 20.56% | |
72 Outperform | €520.52M | 19.04 | 12.71% | 2.54% | 1.02% | 6.31% | |
67 Neutral | €2.28B | 10.15 | 14.39% | 3.03% | -4.12% | 43.37% | |
64 Neutral | €16.31B | 15.05 | 10.95% | 2.35% | -0.76% | -6.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | €1.82B | 23.95 | 6.98% | 2.08% | -0.23% | -37.70% | |
41 Neutral | €729.76M | -0.69 | 319.82% | ― | -14.60% | ― |
* Technology Sector Average
FR:SOP
Sopra Steria
112.50
-65.75
-36.89%
FR:ATE
ALTEN SA
52.15
-40.42
-43.66%
FR:ATO
Atos SE
36.95
2.35
6.79%
FR:AUB
Aubay Société Anonyme
40.90
-7.33
-15.20%
FR:CAP
Capgemini SE
96.20
-47.59
-33.10%
FR:WAVE
Wavestone
44.75
-3.85
-7.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.