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Sopra Steria Group SA (FR:SOP)
:SOP
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Sopra Steria (SOP) AI Stock Analysis

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FR:SOP

Sopra Steria

(LSE:SOP)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
€201.00
▲(24.30% Upside)
Sopra Steria's robust financial performance is the most significant factor influencing the score, supported by steady revenue growth and sound cash flow management. However, the bearish technical indicators and the need for careful debt management pose risks. The stock is reasonably valued, which helps mitigate some concerns.

Sopra Steria (SOP) vs. iShares MSCI France ETF (EWQ)

Sopra Steria Business Overview & Revenue Model

Company DescriptionSopra Steria (SOP) is a European leader in digital transformation, providing a comprehensive range of services including consulting, systems integration, software development, and IT infrastructure management. The company operates across various sectors such as public services, financial services, transportation, and telecommunications, offering innovative solutions to enhance business performance and efficiency. With a strong focus on technology and sustainability, Sopra Steria delivers tailored services that help organizations navigate the complexities of digital change.
How the Company Makes MoneySopra Steria generates revenue primarily through its consulting, systems integration, and IT services. The company operates on a project-based revenue model, where it charges clients for specific projects or ongoing service contracts. Key revenue streams include consulting services that help organizations strategize digital transformation, software development tailored to client needs, and managed services that provide ongoing IT support and infrastructure management. Significant partnerships with technology leaders such as Microsoft, Oracle, and SAP enhance its service offerings and contribute to its earnings by integrating advanced technologies into client projects. Additionally, Sopra Steria benefits from long-term contracts with government and public sector clients, providing a stable revenue base.

Sopra Steria Financial Statement Overview

Summary
Sopra Steria displays a robust financial performance characterized by steady revenue growth, improved profitability, and sound cash flow management. While the company has maintained a stable balance sheet, careful management of debt levels and maintaining revenue momentum are crucial to sustaining long-term growth.
Income Statement
85
Very Positive
The company has demonstrated strong revenue growth from 2020 to 2024, with a notable increase in gross profit margin and net profit margin over the years. The EBIT and EBITDA margins are healthy, indicating efficient cost management and operational performance. However, the slight revenue decline from 2023 to 2024 suggests a need for caution in sustaining growth momentum.
Balance Sheet
75
Positive
The balance sheet shows a stable debt-to-equity ratio, which is indicative of a balanced capital structure. The company has improved its equity ratio over the years, which enhances financial stability. However, the increase in total debt from 2022 to 2023 suggests a potential risk if not managed properly.
Cash Flow
80
Positive
The company has shown consistent growth in free cash flow, which is a positive indicator of financial health. The operating cash flow to net income ratio suggests strong cash generation capability. However, the high level of capital expenditures in certain years may impact future cash reserves if not managed well.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.67B5.78B5.81B5.10B4.68B4.26B
Gross Profit620.30M1.67B851.70M779.40M666.00M581.50M
EBITDA674.60M736.80M553.80M539.10M509.80M420.00M
Net Income269.70M250.90M183.70M247.80M187.70M106.80M
Balance Sheet
Total Assets5.62B5.64B6.07B4.95B4.77B4.54B
Cash, Cash Equivalents and Short-Term Investments146.70M423.40M191.70M355.90M217.20M245.50M
Total Debt1.30B1.23B1.64B898.30M909.00M988.60M
Total Liabilities3.59B3.66B4.15B3.05B3.08B3.09B
Stockholders Equity1.97B1.93B1.88B1.85B1.65B1.40B
Cash Flow
Free Cash Flow407.50M581.60M522.00M401.00M403.50M338.70M
Operating Cash Flow443.30M656.40M622.60M495.20M458.10M392.30M
Investing Cash Flow127.90M128.00M-1.01B-115.80M-145.10M-131.40M
Financing Cash Flow-555.90M-550.40M228.40M-235.50M-342.00M-203.70M

Sopra Steria Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price161.70
Price Trends
50DMA
177.48
Negative
100DMA
186.09
Negative
200DMA
176.68
Negative
Market Momentum
MACD
-4.95
Negative
RSI
43.49
Neutral
STOCH
62.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SOP, the sentiment is Neutral. The current price of 161.7 is above the 20-day moving average (MA) of 160.12, below the 50-day MA of 177.48, and below the 200-day MA of 176.68, indicating a neutral trend. The MACD of -4.95 indicates Negative momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 62.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:SOP.

Sopra Steria Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
2.28B12.198.44%2.29%1.83%-21.09%
70
Outperform
€3.28B11.5914.39%2.81%-4.12%43.37%
67
Neutral
577.67M15.1513.85%2.89%1.16%15.37%
65
Neutral
1.17B15.2911.96%0.97%34.61%13.69%
62
Neutral
21.05B13.4114.19%2.76%-0.76%-6.99%
48
Neutral
919.01M0.5631.04%-14.60%0.00%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:SOP
Sopra Steria
165.60
-16.26
-8.94%
GB:0O1S
ALTEN SA
65.50
-30.75
-31.95%
GB:0DNH
Atos SE
48.00
-6.97
-12.68%
GB:0IPY
Aubay Société Anonyme
48.85
8.23
20.26%
GB:0HAZ
Capgemini SE
127.05
-58.75
-31.62%
GB:0G1T
Wavestone
47.30
-6.18
-11.56%
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.Date of analysis: Aug 02, 2025