Sodexo SA (SW) AI Stock Analysis

• Market Cap: €7.78B
• Dividend Yield: 16.49%
• Average Volume (3M): 142.67K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.23
• Revenue Growth: 6.71%
• EPS Growth: 141.19%
• Country: FR
• Employees: 317,177
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 3.08
• Shares Outstanding: 147,454,880
• 10 Day Avg. Volume: 127,433
• 30 Day Avg. Volume: 142,673
• PEG Ratio: N/A
• 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: €63.03
• Price Target Upside: 16.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 66 Neutral
• Price Target: €56.00 ▲(3.90% Upside)

Sodexo SA's overall stock score is primarily driven by its stable financial performance and attractive valuation. The company's low P/E ratio and high dividend yield are significant positives. However, technical indicators suggest weak market momentum, which tempers the overall score.

Sodexo SA Business Overview & Revenue Model

Company Description

Sodexo SA is a global leader in quality of life services, providing a wide range of integrated services in the areas of food service, facilities management, and workplace experience. Operating across various sectors including corporate, education, healthcare, and remote sites, Sodexo focuses on enhancing the well-being of its clients and consumers through its diverse offerings, which include catering, cleaning, maintenance, and energy management solutions.

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 exhibits growth in revenue and operational efficiency, with moderate leverage and stable equity levels. However, profitability margins and cash flow generation present areas for improvement. The company's financial health is stable but would benefit from increased profitability and cash flow efficiency to further strengthen its financial position.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	23.80B	22.64B	21.13B	17.43B	19.32B
Gross Profit	2.85B	2.72B	3.04B	2.42B	2.48B
EBITDA	1.65B	1.38B	1.30B	966.00M	1.01B
Net Income	168.00M	794.00M	695.00M	139.00M	-319.00M
Balance Sheet
Total Assets	15.02B	20.79B	20.92B	18.99B	17.35B
Cash, Cash Equivalents and Short-Term Investments	2.14B	2.02B	3.23B	4.60B	2.07B
Total Debt	5.47B	6.38B	6.66B	7.03B	6.36B
Total Liabilities	11.23B	16.24B	16.50B	15.82B	14.58B
Stockholders Equity	3.78B	4.54B	4.42B	3.17B	2.76B
Cash Flow
Free Cash Flow	962.00M	1.04B	690.00M	686.00M	234.00M
Operating Cash Flow	1.32B	1.38B	1.03B	982.00M	632.00M
Investing Cash Flow	-1.05B	-526.00M	-386.00M	-317.00M	-430.00M
Financing Cash Flow	-1.35B	-646.00M	-1.11B	803.00M	198.00M

Sodexo SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 53.90
• 50DMA: Positive
• 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 Neutral. The current price of 53.9 is above the 20-day moving average (MA) of 52.44, above the 50-day MA of 52.37, and below the 200-day MA of 64.08, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 81.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:SW.

Sodexo SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELIS	79 Outperform	$5.98B	16.04	10.25%	1.76%	4.83%	52.47%
TEP	72 Outperform	€4.34B	8.92	11.73%	5.81%	9.08%	-22.55%
PLX	72 Outperform	€3.87B	16.46		1.90%	―	―
SW	66 Neutral	€7.78B	11.49	16.07%	16.49%	6.71%	141.19%
Sector *	65 Neutral	€3.82B	9.34	-1.57%	4.24%	2.93%	-20.55%
ALCIS	65 Neutral	€79.47M	16.23	7.59%	1.70%	29.64%	52.69%