Sopra Steria Group SA
Sopra Steria Group SA Fundamental Analysis
Sopra Steria Group SA (SPSAF) shows moderate financial fundamentals with a PE ratio of 8.34, profit margin of 5.25%, and ROE of 15.23%. The company generates $5.6B in annual revenue with weak year-over-year growth of -0.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SPSAF's fundamental strength across five key dimensions:
Efficiency Score
WeakSPSAF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSPSAF trades at attractive valuation levels.
Growth Score
ModerateSPSAF shows steady but slowing expansion.
Financial Health Score
ModerateSPSAF shows balanced financial health with some risks.
Profitability Score
ModerateSPSAF maintains healthy but balanced margins.
Key Financial Metrics
Is SPSAF Expensive or Cheap?
P/E Ratio
SPSAF trades at 8.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SPSAF's PEG of 0.93 indicates potential undervaluation.
Price to Book
The market values Sopra Steria Group SA at 1.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.99 times EBITDA. This is generally considered low.
How Well Does SPSAF Make Money?
Net Profit Margin
For every $100 in sales, Sopra Steria Group SA keeps $5.25 as profit after all expenses.
Operating Margin
Core operations generate 8.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.23 in profit for every $100 of shareholder equity.
ROA
Sopra Steria Group SA generates $5.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sopra Steria Group SA generates limited operating cash flow of $533.79M, signaling weaker underlying cash strength.
Free Cash Flow
Sopra Steria Group SA produces free cash flow of $499.54M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $25.74 in free cash annually.
FCF Yield
SPSAF converts 20.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How SPSAF Stacks Against Its Sector Peers
| Metric | SPSAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.34 | 34.43 | Better (Cheaper) |
| ROE | 14.63% | 1135.00% | Weak |
| Net Margin | 5.25% | -134808.00% (disorted) | Weak |
| Debt/Equity | 0.57 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 0.89 | 5.77 | Weak Liquidity |
| ROA | 5.28% | -310795.00% (disorted) | Weak |
SPSAF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sopra Steria Group SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.91%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
57.27%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
59.08%
Industry Style: Growth, Innovation, High Beta
High Growth