Sodexo S.A.
Sodexo S.A. Fundamental Analysis
Sodexo S.A. (SDXOF) shows moderate financial fundamentals with a PE ratio of 9.97, profit margin of 2.89%, and ROE of 17.86%. The company generates $24.0B in annual revenue with moderate year-over-year growth of 5.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SDXOF's fundamental strength across five key dimensions:
Efficiency Score
WeakSDXOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSDXOF shows balanced valuation metrics.
Growth Score
ModerateSDXOF shows steady but slowing expansion.
Financial Health Score
ModerateSDXOF shows balanced financial health with some risks.
Profitability Score
ModerateSDXOF maintains healthy but balanced margins.
Key Financial Metrics
Is SDXOF Expensive or Cheap?
P/E Ratio
SDXOF trades at 9.97 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SDXOF's PEG of 4.18 indicates potential overvaluation.
Price to Book
The market values Sodexo S.A. at 1.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.97 times EBITDA. This is generally considered low.
How Well Does SDXOF Make Money?
Net Profit Margin
For every $100 in sales, Sodexo S.A. keeps $2.89 as profit after all expenses.
Operating Margin
Core operations generate 4.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.86 in profit for every $100 of shareholder equity.
ROA
Sodexo S.A. generates $4.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sodexo S.A. generates limited operating cash flow of $958.29M, signaling weaker underlying cash strength.
Free Cash Flow
Sodexo S.A. generates weak or negative free cash flow of $707.83M, restricting financial flexibility.
FCF Per Share
Each share generates $4.85 in free cash annually.
FCF Yield
SDXOF converts 10.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How SDXOF Stacks Against Its Sector Peers
| Metric | SDXOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.97 | 26.89 | Better (Cheaper) |
| ROE | 17.86% | 1304.00% | Weak |
| Net Margin | 2.89% | -29196.00% (disorted) | Weak |
| Debt/Equity | 1.57 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.08 | 10.90 | Neutral |
| ROA | 4.69% | -1543746.00% (disorted) | Weak |
SDXOF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sodexo S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.86%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
-74.86%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
3.58%
Industry Style: Cyclical, Value, Infrastructure
Growing