Sodexo SA (SW) AI Stock Analysis

• Market Cap: €6.80B
• Dividend Yield: 5.75%
• Average Volume (3M): 268.11K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.33
• Revenue Growth: 1.16%
• EPS Growth: 314.94%
• Country: FR
• Employees: 317,177
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 2.30
• Shares Outstanding: 147,454,880
• 10 Day Avg. Volume: 316,327
• 30 Day Avg. Volume: 268,107
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €52.96
• Price Target Upside: -1.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 4.71
• Revenue Forecast (FY): €23.90B

• Rating: 75 Outperform
• Price Target: €59.00 ▲(10.07% Upside)

Sodexo SA's strong valuation, with a low P/E ratio and high dividend yield, is the most significant factor driving the score. Technical indicators support a stable outlook, while financial performance highlights areas for improvement in profitability and cash flow.

Sodexo SA Business Overview & Revenue Model

Company Description

Sodexo S.A. develops, manages, and delivers on-site, benefits and rewards, and personal and home services worldwide. It provides various on-site services, including business and administration, which covers corporate, energy and resources, government and agencies, sports and leisure, and other customers; healthcare and seniors; and education services comprising schools and universities. The company also provides food services; benefits and rewards services, such as employee benefits, incentive and recognition programs, employee mobility, expense management, and public benefits; and personal and home services, including childcare, concierge, and in-home care services. In addition, it offers facility management services, including cleaning, front of house, security, ground maintenance, mailroom, document management, waste management, laundry, transportation, general repairs, technical maintenance, energy management, asset management, and project management services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.

How the Company Makes Money

Sodexo generates revenue primarily through contracts with clients in multiple sectors, where it provides tailored services based on their specific needs. The company's revenue model is largely based on long-term service agreements, which can include fixed fees for managing food services and facilities. Key revenue streams include on-site food services, facilities management, and specialized services in areas such as healthcare and education. Additionally, Sodexo benefits from economies of scale due to its global presence, allowing it to negotiate better terms with suppliers and optimize operational efficiencies. The company also engages in strategic partnerships with various organizations to expand its service offerings and enhance client relationships, contributing to its overall earnings stability and growth.

Sodexo SA Financial Statement Overview

Summary

Sodexo SA shows revenue growth and operational efficiency, with moderate leverage and stable equity levels. However, low profitability margins and declining cash flow generation are areas for improvement.

Income Statement

Sodexo SA has shown positive revenue growth from 2023 to 2024, with a rate of approximately 5.1%. The gross profit margin stands at approximately 11.95%, indicating moderate profitability. However, the net profit margin is low at about 0.71%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are 4.64% and 6.93%, respectively, suggesting operational efficiency but constrained profitability.

Balance Sheet

The company's debt-to-equity ratio is 1.45, which reflects a moderate level of leverage. The return on equity (ROE) is approximately 4.44%, indicating limited return for shareholders. The equity ratio is 25.16%, suggesting a stable equity base relative to total assets, though improvement is needed to enhance financial stability.

Cash Flow

Sodexo's free cash flow declined by about 7.27% from 2023 to 2024, indicating challenges in cash generation. The operating cash flow to net income ratio is 7.86, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 5.73, highlighting robust free cash flow but also a need for improved efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.07B	24.07B	23.80B	22.64B	21.13B	17.43B
Gross Profit	2.80B	2.80B	2.85B	2.72B	3.04B	2.42B
EBITDA	1.55B	1.55B	1.65B	1.38B	1.30B	966.00M
Net Income	695.00M	695.00M	168.00M	794.00M	695.00M	139.00M
Balance Sheet
Total Assets	14.85B	14.85B	15.02B	20.79B	20.92B	18.99B
Cash, Cash Equivalents and Short-Term Investments	2.09B	2.09B	2.14B	2.02B	3.23B	4.60B
Total Debt	5.45B	5.45B	5.47B	6.38B	6.66B	7.03B
Total Liabilities	11.05B	11.05B	11.23B	16.24B	16.50B	15.82B
Stockholders Equity	3.79B	3.79B	3.78B	4.54B	4.42B	3.17B
Cash Flow
Free Cash Flow	631.00M	631.00M	962.00M	1.04B	690.00M	686.00M
Operating Cash Flow	964.00M	964.00M	1.32B	1.38B	1.03B	982.00M
Investing Cash Flow	-390.00M	-390.00M	-1.05B	-526.00M	-386.00M	-317.00M
Financing Cash Flow	-530.00M	-530.00M	-1.35B	-646.00M	-1.11B	803.00M

Sodexo SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SW, the sentiment is Negative. The current price of 53.6 is above the 20-day moving average (MA) of 45.61, above the 50-day MA of 48.05, and below the 200-day MA of 53.62, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 84.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SW.

Sodexo SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELIS	76 Outperform	€5.57B	14.88	10.25%	1.88%	4.83%	52.47%
SW	75 Outperform	€6.80B	9.76	18.37%	5.75%	1.16%	314.94%
TEP	72 Outperform	€3.62B	7.45	11.73%	6.91%	9.08%	-22.55%
PLX	71 Outperform	€2.79B	9.85	―	2.95%	6.36%	48.97%
ALCIS	69 Neutral	€106.48M	14.57	11.36%	1.33%	23.95%	173.40%
IDL	56 Neutral	€2.60B	44.84	11.18%	―	18.03%	3.43%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%