Sodexo SA (SDXAY)
OTHER OTC:SDXAY
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Sodexo SA
(OTC:SDXAY)
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Rating:67Neutral
Price Target:
$11.00
▲(0.18% Upside)
Action:ReiteratedDate:04/10/26
The score is primarily supported by solid financial performance (revenue growth and improved profitability) and attractive valuation (low P/E and strong dividend yield). Offsetting this, the latest earnings call was cautious with downgraded guidance, margin pressure, negative net new business and elevated leverage, while technical signals are neutral to mixed.
Positive Factors
Revenue growth and improving net margin
Sodexo's ~9.5% revenue gain and net margin rising to 2.89% reflect persistent demand for contracted on-site services and better profitability. Recurring multi-year contracts and scale in procurement support lasting revenue visibility and margin recovery versus one-off cyclic moves.
Negative Factors
Elevated leverage and net debt
High leverage (net debt/EBITDA ~2.7x and D/E ~1.44) constrains financial flexibility and makes the company more sensitive to operating setbacks or rising rates. Deleveraging to the 1–2x target will take sustained cash generation and may limit strategic optionality in the near term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and improving net margin
Sodexo's ~9.5% revenue gain and net margin rising to 2.89% reflect persistent demand for contracted on-site services and better profitability. Recurring multi-year contracts and scale in procurement support lasting revenue visibility and margin recovery versus one-off cyclic moves.
Read all positive factors
Sodexo SA (SDXAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.80B
Dividend Yield4.27%
Average Volume (3M)2.18K
Price to Earnings (P/E)9.8
Beta (1Y)0.35
Revenue Growth5.85%
EPS Growth136.72%
CountryUS
Employees317,177
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.46
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 Cap0.89
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit2.20
Enterprise Value/Ebitda4.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.05
Revenue Forecast (FY)$27.74B
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 primarily makes money by providing contracted on-site services to institutional and enterprise clients. Its core revenue stream comes from food services (including cafeteria and dining operations, patient meals, school/university dining, an...
Sodexo SA Earnings Call Summary
Earnings Call Date:Apr 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Negative
The call presented a mixed picture: management has enacted a decisive strategic and organizational reset with targeted investments and early signs of improved commercial intensity, but H1 financials reveal meaningful execution shortfalls (margin compression, negative net new business, North America weakness), sizeable one-off provisions/charges and a recalibration of FY26 guidance. Short-term financial headwinds and higher leverage outweigh the early operational positives, though the company emphasizes that actions underway are intended to restore sustainable performance.Positive Updates
Leadership Reset and Strategic Program
New CEO Thierry Delaporte initiated a rapid leadership reshuffle (about two-thirds of North America leadership changed), simplified global structure (removed zone layer), pushed decision-making closer to clients and launched the 'shift and grow' program to restore execution, commercial intensity and accountability.
Negative Updates
Underlying Operating Profit Margin Decline
H1 underlying operating profit margin was 3.7%, down ~140–150 basis points year-on-year; management attributes the decline to operations/mix/leverage (~-50 bps), accelerated investments (~-20 bps) and the contract/asset review (~-70 bps).
Read all updates
Q2-2026 Updates
Positive
Negative
Leadership Reset and Strategic Program
New CEO Thierry Delaporte initiated a rapid leadership reshuffle (about two-thirds of North America leadership changed), simplified global structure (removed zone layer), pushed decision-making closer to clients and launched the 'shift and grow' program to restore execution, commercial intensity and accountability.
Read all positive updates
Company Guidance
Sodexo recalibrated FY‑26 guidance to organic growth of +0.5%–+1.0% and an underlying operating profit margin of 3.2%–3.4%; H1 metrics were organic growth +1.7% (pricing ≈+2.4%, like‑for‑like volumes ≈+0.2%), net new business ≈‑0.6%, retention 93.4% and development 5.3%, with H1 underlying OPM at 3.7% (down ~140–150 bps YoY driven roughly by operations/mix/leverage ≈‑50 bps, accelerated investments ≈‑20 bps and the contract/asset review ≈‑70 bps). Management expects a full‑year FX headwind of ~‑3% on reported revenue (H1 FX was ‑5.3%), a ~+0.5% revenue lift from M&A (Mediterránea), an annualized contract reclassification impact of ~‑100 bps (weighing more in H2), other operating income/expenses around ‑€300m (≈half restructuring), net financial expense ~‑€140m, an effective tax rate ~26%, and continues to expect seasonally stronger cash generation in H2 after H1 free cash flow of ‑€243m, operating cash flow €616m and net debt €3.6bn (net debt/EBITDA 2.7x, likely to finish the year above the 1–2x target).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
10.48
Negative
10.30
Negative
10.95
Negative
Market Momentum
-0.06
Negative
35.27
Neutral
51.72
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 10.08, above the 50-day MA of 10.48, and above the 200-day MA of 10.95, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 35.27 is Neutral, neither overbought nor oversold. The STOCH value of 51.72 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $11.27B | 25.02 | 10.17% | 1.14% | 6.35% | 24.07% | |
67 Neutral | $6.80B | 9.82 | 17.85% | 4.27% | 5.85% | 136.72% | |
65 Neutral | $2.30B | 17.89 | 8.80% | 2.20% | 4.62% | 102.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.15B | 41.90 | -24.71% | ― | -68.48% | 2198.47% | |
60 Neutral | $1.49B | 27.64 | 6.21% | ― | 59.19% | -35.47% | |
60 Neutral | $16.76B | 31.61 | 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.