Skip to Content

Sodexo SW

Morningstar Rating
€85.55 −0.90 (1.04%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Sodexo Parts Ways With Pluxee

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 at a 437% premium.
Price
€85.55
Fair Value
€42.00
Uncertainty
Medium
1-Star Price
€522.20
5-Star Price
€54.30
Economic Moat
Cqjww
Capital Allocation
Pltfsvb

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
€86.45
Day Range
€85.5586.55
52-Week Range
€68.6789.40
Bid/Ask
€84.90 / €87.00
Market Cap
€12.52 Bil
Volume/Avg
505,546 / 190,590

Key Statistics

Price/Earnings (Normalized)
17.79
Price/Sales
0.56
Dividend Yield (Trailing)
3.62%
Dividend Yield (Forward)
3.62%
Total Yield
3.79%

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)
17.7932.33
Price/Book Value
2.847.48
Price/Sales
0.561.22
Price/Cash Flow
12.9017.27
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

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
RELX PLC
RLXXF
Bljj$84.9 Bil
RELX PLC ADR
RELX
YgslgrcvbDcv$84.9 Bil
Thomson Reuters Corp
TRI
WhstvmzhbDbdfjnq$74.3 Bil
Cintas Corp
CTAS
XbnqjbttPxgpq$71.9 Bil
Copart Inc
CPRT
RkcwkpxYycmp$52.2 Bil
Wolters Kluwer NV ADR
WTKWY
ZcbntmgrMfdr$38.8 Bil
Wolters Kluwer NV
WOLTF
Xmqn$38.8 Bil
Global Payments Inc
GPN
MsmcgwvvKfsnw$24.3 Bil
Rentokil Initial PLC ADR
RTO
XnqtwfknLjnq$14.4 Bil
RB Global Inc
RBA
PsvqldkjDfcvtr$14.2 Bil

Sponsor Center