Skip to Content

Sodexo SW

Morningstar Rating
€86.15 +0.80 (0.94%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Sodexo Earnings: Still Benefiting From Tailwinds in 2024

Narrow-moat Sodexo posted a strong first-half update with organic revenue growth of 8.5%, rising into the second quarter. Operating margins also increased by 40 basis points year over year to 5.1%. Management tightened full-year guidance with organic revenue growth now expected to be at the top end of the previously guided 6%-8%. We reiterate our EUR 92 fair value estimate and see decent upside from the prevailing share price.

Price vs Fair Value

SW is trading at a 317% premium.
Price
€85.35
Fair Value
€37.00
Uncertainty
Medium
1-Star Price
€841.20
5-Star Price
€27.80
Economic Moat
Zhdgx
Capital Allocation
Fqwztff

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if SW is a good fit for your portfolio.

News

Trading Information

Previous Close Price
€85.35
Day Range
€85.4586.55
52-Week Range
€68.6786.75
Bid/Ask
€86.10 / €86.20
Market Cap
€12.62 Bil
Volume/Avg
12,388 / 205,665

Key Statistics

Price/Earnings (Normalized)
17.90
Price/Sales
0.56
Dividend Yield (Trailing)
3.63%
Dividend Yield (Forward)
3.63%
Total Yield
3.77%

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)
17.9031.78
Price/Book Value
2.867.39
Price/Sales
0.561.21
Price/Cash Flow
12.9817.05
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
See how this stock stacks up to its competitors with Morningstar Investor

Specialty Business Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
RLXXF
RELX PLCVqqw$83.4 Bil
RELX
RELX PLC ADRFczwrjjrtHksg$82.9 Bil
TRI
Thomson Reuters CorpMgvnykbqLttspm$78.1 Bil
CTAS
Cintas CorpXlzjntbnKpzd$70.6 Bil
CPRT
Copart IncKmyvwlgwKxhq$52.0 Bil
WTKWY
Wolters Kluwer NV ADRTfwbqwjhPlpt$38.8 Bil
WOLTF
Wolters Kluwer NVXbtgc$38.8 Bil
GPN
Global Payments IncXngdggklkNpkwy$27.1 Bil
RBA
RB Global IncWwqhqxkdSmwgn$13.9 Bil
RTO
Rentokil Initial PLC ADRSxwbqqjpDplj$13.2 Bil

Sponsor Center