Sodexo SA (SDXAY)
OTHER OTC:SDXAY
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Sodexo SA
(OTC:SDXAY)
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Rating:69Neutral
Price Target:
$12.00
▲(9.29% Upside)
Action:DowngradedDate:12/19/25
Sodexo SA's overall stock score reflects strong financial performance and attractive valuation, offset by technical challenges and transitional guidance. The high dividend yield and low P/E ratio are significant positives, while the bearish technical indicators and North American challenges present risks.
Positive Factors
Global diversified operations
Sodexo's presence across 70+ countries and multiple end markets (corporate, healthcare, education, remote sites) provides durable revenue diversification and scale. Long-term service contracts and cross-selling reduce exposure to single-market downturns and support steady organic growth.
Negative Factors
Elevated leverage
A debt-to-equity ratio around 1.44 remains relatively high for a services firm, constraining strategic flexibility. Elevated leverage increases interest and refinancing risk, reduces headroom for M&A or cyclical shocks, and makes sustained investment plans more sensitive to cash flow volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Global diversified operations
Sodexo's presence across 70+ countries and multiple end markets (corporate, healthcare, education, remote sites) provides durable revenue diversification and scale. Long-term service contracts and cross-selling reduce exposure to single-market downturns and support steady organic growth.
Read all positive factors
Sodexo SA (SDXAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.14B
Dividend Yield4.27%
Average Volume (3M)2.18K
Price to Earnings (P/E)9.8
Beta (1Y)0.42
Revenue Growth5.85%
EPS Growth136.72%
CountryUS
Employees317,177
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.53
Shares Outstanding737,274,960
10 Day Avg. Volume3,362
30 Day Avg. Volume2,179
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.69
Price to Sales (P/S)0.33
P/FCF Ratio12.67
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue0.41
Enterprise Value/Gross Profit3.51
Enterprise Value/Ebitda6.39
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.06
Revenue Forecast (FY)$27.81B
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, governm...
How the Company Makes Money
Sodexo generates revenue primarily through three key streams: On-Site Services, Benefits & Rewards Services, and Personal & Home Services. The On-Site Services sector is the largest, encompassing food services, cleaning, maintenance, and other fac...
Sodexo SA Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 10, 2026
Earnings Call Sentiment Neutral
Sodexo's fiscal year 2025 results call highlights significant progress in strategic refocusing and sustainability, but it also underscores notable challenges, especially in North America and Education. The company is focusing on addressing these issues with targeted plans and investments, viewing fiscal year 2026 as a transitional period.Positive Updates
Refocus on Core Activities
Sodexo has successfully refocused on core activities, with food now covering more than 2/3 of the portfolio, up from 62% in fiscal year '22. Modernization efforts have led to digital engagement surging to almost 6 million active consumers, up from just over 1 million.
Negative Updates
Commercial Challenges in North America
Fiscal year '25 presented commercial challenges, particularly in North America, with retention at 94% due to the loss of a global account and softer performance in Education.
Read all updates
Q4-2025 Updates
Positive
Negative
Refocus on Core Activities
Sodexo has successfully refocused on core activities, with food now covering more than 2/3 of the portfolio, up from 62% in fiscal year '22. Modernization efforts have led to digital engagement surging to almost 6 million active consumers, up from just over 1 million.
Read all positive updates
Company Guidance
During the Sodexo Fiscal Year 2025 Results Call, guidance was provided for the upcoming fiscal year 2026, marking it as a year of transition due to leadership changes and significant investments in foundational systems. Organic growth is projected between 1.5% and 2.5%, with a minimum 2% contribution from pricing, although the growth will be affected by the reclassification of a major contract in North America, reducing reported growth by 70 basis points. The underlying operating margin is expected to be slightly lower than the 4.7% achieved in fiscal year 2025, primarily due to investments and challenges in North America. The company plans to enhance its foundations by investing in HR, finance, supply systems, and digital platforms, impacting short-term margins but positioning for long-term efficiency. Despite facing commercial challenges, particularly in the U.S. Education sector, Sodexo has set focused priorities, including expanding its U.S. sales team by 50% and renegotiating meal plans, to restore growth momentum by fiscal year 2027.Sodexo SA Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
68
Positive
Cash Flow
70
Positive
| Breakdown | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.60B | 23.80B | 22.64B | 21.13B | 17.43B |
| Gross Profit | 2.63B | 2.85B | 2.72B | 3.04B | 2.42B |
| EBITDA | 1.55B | 1.65B | 1.38B | 1.30B | 966.00M |
| Net Income | 763.76M | 168.00M | 794.00M | 695.00M | 139.00M |
Balance Sheet | |||||
| Total Assets | 17.38B | 15.02B | 20.79B | 20.92B | 18.99B |
| Cash, Cash Equivalents and Short-Term Investments | 2.45B | 2.14B | 2.02B | 3.23B | 4.60B |
| Total Debt | 6.37B | 5.47B | 6.38B | 6.66B | 7.03B |
| Total Liabilities | 12.93B | 11.23B | 16.24B | 16.50B | 15.82B |
| Stockholders Equity | 4.43B | 3.78B | 4.54B | 4.42B | 3.17B |
Cash Flow | |||||
| Free Cash Flow | 592.32M | 962.00M | 1.04B | 690.00M | 686.00M |
| Operating Cash Flow | 904.90M | 1.32B | 1.38B | 1.03B | 982.00M |
| Investing Cash Flow | -366.00M | -1.05B | -526.00M | -386.00M | -317.00M |
| Financing Cash Flow | -498.00M | -1.35B | -646.00M | -1.11B | 803.00M |
Sodexo SA Technical Analysis
Negative
10.98
Price Trends
10.40
Negative
10.33
Negative
11.06
Negative
Market Momentum
-0.24
Positive
37.13
Neutral
21.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDXAY, the sentiment is Negative. The current price of 10.98 is above the 20-day moving average (MA) of 10.30, above the 50-day MA of 10.40, and below the 200-day MA of 11.06, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 21.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SDXAY.
Sodexo SA Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $7.14B | 9.82 | 17.85% | 4.27% | 5.85% | 136.72% | |
68 Neutral | $10.59B | 25.02 | 10.17% | 1.14% | 6.35% | 24.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $982.36M | 41.90 | -24.71% | ― | -68.48% | 2198.47% | |
60 Neutral | $2.24B | 17.89 | 8.80% | 2.20% | 4.62% | 102.72% | |
60 Neutral | $1.38B | 27.64 | 6.21% | ― | 59.19% | -35.47% | |
60 Neutral | $15.57B | 31.57 | 6.51% | 2.20% | 1.56% | -32.50% |
* Industrials Sector Average
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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.