Sodexo SW

Morningstar Rating
€72.90 −0.45 (0.61%)
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Company Report

Sodexo Still Benefitting From 2024 Tailwinds

As one of only two global food service providers in a highly fragmented market, Sodexo is well positioned to benefit from the outsourcing trend that has pervaded developed markets in recent years. Sodexo has also been successful in taking market share from smaller, more local providers that cannot match the operational capabilities and proprietary knowledge that come from operating on a global basis.

Price vs Fair Value

SW is trading within a range we consider fairly valued.
Price
€72.90
Fair Value
€31.00
Uncertainty
Medium
1-Star Price
€815.90
5-Star Price
€79.90
Economic Moat
Qrjnsb
Capital Allocation
Bdtwcjvk

Bulls Say, Bears Say

Bulls

Sodexo estimates that the entire market for outsourced food services is only about 50% penetrated, which leaves ample room for the company to increase market share.

Bears

Cuts to investment in the commodity sector could pressure Sodexo’s remote site business.

News

Trading Information

Previous Close Price
€73.35
Day Range
€72.9073.55
52-Week Range
€68.1089.40
Bid/Ask
€72.80 / €74.00
Market Cap
€10.66 Bil
Volume/Avg
291,089 / 244,594

Key Statistics

Price/Earnings (Normalized)
15.16
Price/Sales
0.48
Dividend Yield (Trailing)
4.25%
Dividend Yield (Forward)
4.25%
Total Yield
4.45%

Company Profile

Sodexo is one of the largest food service companies globally, operating in more than 80 countries with annual sales of more than EUR 20 billion. Sodexo's model stems from operating on-premises catering facilities, rather than centralized industrial kitchens. While food services remains the largest business segment (58% of revenue in 2022), the company has actively pursued a strategy of diversifying its business activities into other areas, such as facilities-management services, which now represents more than a third of group revenue.
Sector
Industrials
Industry
Specialty Business Services
Stock Style Box
Mid Core
Total Number of Employees
430,000

Competitors

Valuation

Metric
SW
CPG
Price/Earnings (Normalized)
15.1634.36
Price/Book Value
2.427.95
Price/Sales
0.481.30
Price/Cash Flow
10.9918.35
Price/Earnings
SW
CPG

Financial Strength

Metric
SW
CPG
Quick Ratio
1.110.66
Current Ratio
1.220.78
Interest Coverage
5.659.87
Quick Ratio
SW
CPG

Profitability

Metric
SW
CPG
Return on Assets (Normalized)
5.08%8.97%
Return on Equity (Normalized)
22.19%30.10%
Return on Invested Capital (Normalized)
9.76%17.59%
Return on Assets
SW
CPG

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