1.40%
-7.38%
-10.37%
-15.85%
-6.81%
18.26%
-0.55%

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, government and agencies, sports and leisure, and other customers; healthcare and seniors; and education services comprising schools and universities.The company also provides food services; benefits and rewards services, such as employee benefits, incentive and recognition programs, employee mobility, expense management, and public benefits; and personal and home services, including childcare, concierge, and in-home care services.


In addition, it offers facility management services, including cleaning, front of house, security, ground maintenance, mailroom, document management, waste management, laundry, transportation, general repairs, technical maintenance, energy management, asset management, and project management services.The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008.Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.

Market Data

Last Price 72.2
Change Percentage 1.40%
Open 70.45
Previous Close 71.2
Market Cap ( Millions) 10569
Volume 329595
Year High 89.4
Year Low 67.35
M A 50 76.07
M A 200 80.43

Financial Ratios

FCF Yield 9.10%
Dividend Yield 12.31%
ROE 4.10%
Debt / Equity 144.59%
Net Debt / EBIDTA 222.30%
Price To Book 2.8
Price Earnings Ratio 62.94
Price To FCF 10.99
Price To sales 0.44
EV / EBITDA 9.28

News

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Business & Administrations

Expected Growth : 3.5 %

What the company do ?

Business & Administrations from Sodexo S.A. provides facilities management and food services to businesses, schools, and governments, enhancing quality of life.

Why we expect these perspectives ?

Sodexo's Business & Administrations segment growth of 3.5% is driven by increasing demand for facilities management services, expansion in emerging markets, and a growing need for energy and resource management solutions. Additionally, the segment benefits from the company's expertise in providing integrated services to clients, leading to long-term contracts and steady revenue growth.

Segment n°2 -> Healthcare & Seniors

Expected Growth : 4.5 %

What the company do ?

Healthcare & Seniors from Sodexo S.A. provides food and facilities management services to hospitals, clinics, and senior living communities, enhancing patient and resident experiences.

Why we expect these perspectives ?

Sodexo's Healthcare & Seniors segment growth of 4.5% is driven by increasing demand for elderly care, rising healthcare expenditures, and growing need for nutrition and wellness services. Additionally, the segment benefits from Sodexo's expertise in patient experience, clinical technology, and facility management, as well as its ability to provide integrated services to healthcare providers.

Segment n°3 -> Education

Expected Growth : 3.8 %

What the company do ?

Sodexo S.A. offers education and training programs for its employees, focusing on leadership development, language skills, and industry-specific knowledge.

Why we expect these perspectives ?

Sodexo's Education segment growth of 3.8% is driven by increasing demand for outsourced food and facilities management services in schools and universities, fueled by government initiatives to improve educational infrastructure and rising student enrollment rates. Additionally, the company's focus on digital innovation, sustainability, and customer experience has enhanced its competitive edge, contributing to the segment's growth.

Sodexo S.A. Products

Product Range What is it ?
Corporate Services Sodexo's Corporate Services provide a range of solutions to improve the quality of life of employees in the workplace, including food services, facilities management, and benefits and rewards services.
Healthcare Services Sodexo's Healthcare Services provide a range of solutions to improve the quality of life of patients and residents in healthcare facilities, including food services, facilities management, and patient satisfaction services.
Education Services Sodexo's Education Services provide a range of solutions to improve the quality of life of students and staff in educational institutions, including food services, facilities management, and student life services.
Government Services Sodexo's Government Services provide a range of solutions to improve the quality of life of military personnel and government employees, including food services, facilities management, and base operations services.
Remote Sites Services Sodexo's Remote Sites Services provide a range of solutions to improve the quality of life of workers in remote locations, including food services, facilities management, and camp management services.
Benefits and Rewards Services Sodexo's Benefits and Rewards Services provide a range of solutions to improve employee engagement and motivation, including employee benefits, rewards, and recognition programs.

Sodexo S.A.'s Porter Forces

Sodexo S.A. operates in a highly competitive market, but the threat of substitutes is medium due to the company's diversified portfolio of services and its ability to adapt to changing customer needs.

Sodexo S.A. has a large and diverse customer base, but the bargaining power of customers is high due to the company's dependence on a few large clients and the competitive nature of the industry.

Sodexo S.A. has a diversified supply chain and is not heavily dependent on a few suppliers, reducing the bargaining power of suppliers.

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for significant capital investment and the complexity of providing integrated facilities management services.

The intensity of rivalry is high due to the competitive nature of the industry, with many established players competing for market share.

Capital Structure

Value
Debt Weight 58.43%
Debt Cost 3.95%
Equity Weight 41.57%
Equity Cost 7.69%
WACC 5.50%
Leverage 140.56%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
ITRK.L Intertek Group plc provides quality assurance solutions to various industries in the United Kingdom, the United States, and internationally. It operates in three segments: Products, Trade, and Resources. The Products …
IDL.PA ID Logistics Group SA provides contract logistics services in France and internationally. It provides warehousing and value-added, transport and flow organization, and supply chain optimization services. The company also offers …
INPST.AS InPost S.A., together with its subsidiaries, operates as an out-of-home e-commerce enablement platform providing parcel locker services in Europe. It operates through four segments: APM (automated parcel machines), To-Door, Mondial …
ISS.CO ISS A/S provides workplace management and facility services. It offers office, hospital, laboratory, food hygiene, hospitality and events cleaning services; and hospitality, catering, fine dining and event catering, and micro-kitchens …
ELIS.PA Elis SA provides linen and work wear textile, hygiene, and well-being services in France, the United Kingdom, Ireland, Central Europe, Scandinavia, Eastern Europe, Southern Europe, Latin America, and internationally. The …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
72.2$
Current Price
72.2$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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