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Sodexo SA
(SW)
Select Model
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Rating:67Neutral
Price Target:
€56.00
▲(41.27% Upside)
Action:Reiterated
Date:06/19/26
The score is driven primarily by moderate financial performance: solid cash generation and profitability are offset by a sharp recent revenue decline and elevated leverage. Technicals are supportive with price above key moving averages and positive MACD, but overbought signals limit upside in the near term. Valuation is a secondary positive, supported by a moderate P/E and strong dividend yield.
Positive Factors
Recurring multi-year contracts
Sodexo's business model is built on multi‑year outsourcing contracts across food and facilities services, which create recurring, predictable revenue streams and longer client lifecycles. This structural contract base supports steady backlog, aids cash flow planning, and increases switching costs for customers over the medium term.
Negative Factors
Elevated leverage
A consistently debt‑heavy capital structure reduces financial flexibility and increases sensitivity to interest and cash flow shocks. With equity thinner and leverage meaningful, the company faces constrained capacity for large discretionary investments, potential covenant pressure, and reduced maneuverability during slower revenue periods over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring multi-year contracts
Sodexo's business model is built on multi‑year outsourcing contracts across food and facilities services, which create recurring, predictable revenue streams and longer client lifecycles. This structural contract base supports steady backlog, aids cash flow planning, and increases switching costs for customers over the medium term.
Read all positive factors
Sodexo SA (SW) vs. iShares MSCI France ETF (EWQ)
Market Cap
€7.58B
Dividend Yield6.2%
Average Volume (3M)301.50K
Price to Earnings (P/E)17.1
Beta (1Y)0.34
Revenue Growth-2.30%
EPS Growth-33.43%
CountryFR
Employees426,464
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)3.08
Shares Outstanding147,454,880
10 Day Avg. Volume367,998
30 Day Avg. Volume301,501
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)2.00
Price to Sales (P/S)0.31
P/FCF Ratio11.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€50.89Price Target Upside28.37% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)3.23
Revenue Forecast (FY)€23.79B
Sodexo SA Business Overview & Revenue Model
Company Description
Globally, Sodexo S.A. is a prominent developer, manager, and provider of integrated service solutions across three main segments: on-site services, benefits and rewards, and personal and home services. Its comprehensive on-site operations include ...
How the Company Makes Money
Sodexo primarily makes money through multi-year business-to-business and public-sector service contracts under which it operates and manages client on-site services. The core revenue stream is contracted service revenue from (1) Food Services: Sod...
Sodexo SA Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.62B | 24.07B | 23.80B | 22.64B | 21.13B | 17.43B |
| Gross Profit | 2.57B | 2.80B | 2.85B | 2.72B | 3.04B | 2.42B |
| EBITDA | 1.35B | 1.58B | 1.65B | 1.38B | 1.30B | 966.00M |
| Net Income | 449.00M | 695.00M | 168.00M | 794.00M | 695.00M | 139.00M |
Balance Sheet | ||||||
| Total Assets | 14.80B | 14.85B | 15.02B | 20.79B | 20.92B | 18.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.18B | 2.09B | 2.14B | 2.02B | 3.23B | 4.60B |
| Total Debt | 5.41B | 5.45B | 5.47B | 6.38B | 6.66B | 7.03B |
| Total Liabilities | 11.19B | 11.05B | 11.23B | 16.24B | 16.50B | 15.82B |
| Stockholders Equity | 3.60B | 3.79B | 3.78B | 4.54B | 4.42B | 3.17B |
Cash Flow | ||||||
| Free Cash Flow | 625.00M | 631.00M | 962.00M | 1.04B | 690.00M | 686.00M |
| Operating Cash Flow | 968.00M | 964.00M | 1.32B | 1.38B | 1.03B | 982.00M |
| Investing Cash Flow | -592.00M | -390.00M | -1.05B | -526.00M | -386.00M | -317.00M |
| Financing Cash Flow | -481.00M | -530.00M | -1.35B | -646.00M | -1.11B | 803.00M |
Sodexo SA Technical Analysis
Positive
39.64
Price Trends
49.12
Positive
46.39
Positive
45.75
Positive
Market Momentum
1.06
Positive
58.01
Neutral
40.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SW, the sentiment is Positive. The current price of 39.64 is below the 20-day moving average (MA) of 51.84, below the 50-day MA of 49.12, and below the 200-day MA of 45.75, indicating a bullish trend. The MACD of 1.06 indicates Positive momentum. The RSI at 58.01 is Neutral, neither overbought nor oversold. The STOCH value of 40.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SW.
Sodexo SA Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | €156.58M | 17.61 | 11.16% | 1.30% | 15.69% | 86.10% | |
68 Neutral | €2.69B | 9.43 | ― | 2.91% | 4.39% | 26.03% | |
67 Neutral | €7.58B | 17.11 | 18.37% | 6.20% | -2.30% | -33.43% | |
66 Neutral | €3.20B | 6.52 | 11.73% | 6.86% | -0.69% | -3.19% | |
63 Neutral | €5.97B | 16.04 | 10.25% | 1.88% | 4.88% | 9.43% | |
63 Neutral | €907.22M | 10.87 | 17.70% | 3.03% | 5.07% | 9.96% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
FR:SW
Sodexo SA
52.70
4.83
10.09%
FR:ELIS
Elis SA
25.18
1.38
5.82%
FR:GLO
GL EVENTS
31.40
4.19
15.39%
FR:TEP
Teleperformance
55.20
-25.88
-31.92%
FR:ALCIS
Catering International Services
19.90
11.10
126.03%
FR:PLX
PLUXEE N.V.
13.39
-3.92
-22.66%
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.