Sopra Steria Group SA SOP

Morningstar Rating
€165.80 +3.10 (1.91%)
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Company Report

Sopra Steria Should Benefit From the Resurgent European Defense Sector

Sopra Steria is an established French IT services firm focused on the fragmented European market. Systems integration is its core business, generating over half its revenue. Though smaller in global scale, Sopra Steria offers end-to-end digital transformation solutions. It also provides managed services, which include operating two of Europe’s largest shared service organizations: SSCL and NHS Shared Business Services. Under the Sopra Steria Next brand, it offers consulting services to large firms and public bodies. The hybrid cloud and technology services segment encompasses its IT infrastructure offerings for clients, specializing in enterprise cloud and cybersecurity systems. The solutions segment houses its proprietary software for human resources, real estate, and finance.

Price vs Fair Value

SOP is trading at a LOCK|#J>g<! premium.
Price
€165.80
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Sopra has a leading position in the European defense sector, which should generate strong growth in the coming years, given that European countries have committed to increasing their defense budgets.

Bears

Indian competitors are increasingly targeting Europe for growth.

News

Trading Information

Previous Close Price
€162.70
Day Range
€157.70–171.60
52-Week Range
€109.40–202.20
Bid/Ask
€161.00 / €172.00
Shares Outstanding
19.33M
Market Cap
€3.20B
Volume/Avg
69,064 / 49,161

Key Statistics

Price/Earnings (Normalized)
9.69
Price/Sales
0.56
Dividend Yield (Trailing)
3.20%
Dividend Yield (Forward)
3.20%
Dividend Payment Schedule
Jun
Total Yield
4.95%

Company Profile

Sopra Steria is a French IT services company operating across Europe. Just over a third of its employees are based in France, where around half of the group's revenue is generated. Sopra Steria's primary business is systems integration, which accounts for around 60% of the group's revenue. Other services offered include business process outsourcing, hybrid cloud, technology services, and consulting.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Mid Value
Total Number of Employees
51,929

Competitors

Valuation

Metric
SOP
ACN
CAP
Price/Earnings (Normalized)
9.6915.5011.95
Price/Book Value
1.534.421.60
Price/Sales
0.561.810.83
Price/Cash Flow
6.4810.425.02
Price/Earnings
SOP
ACN
CAP

Financial Strength

Metric
SOP
ACN
CAP
Quick Ratio
0.701.211.18
Current Ratio
0.881.341.28
Interest Coverage
9.4039.697.78
Quick Ratio
SOP
ACN
CAP

Profitability

Metric
SOP
ACN
CAP
Return on Assets (Normalized)
6.40%15.46%7.38%
Return on Equity (Normalized)
17.81%35.59%18.07%
Return on Invested Capital (Normalized)
11.57%24.86%10.73%
Return on Assets
SOP
ACN
CAP

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