Fact based stock research
Sodexo (ENXTPA:SW)

FR0000121220

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Sodexo stock research in summary

sodexo.com

ANALYSIS: With an Obermatt Combined Rank of 73 (better than 73% compared with investment alternatives), Sodexo (Restaurants, France) shares have above-average financial characteristics compared with similar stocks. Shares of Sodexo are a good value (attractively priced) with a consolidated Value Rank of 69 (better than 69% of alternatives), are safely financed (Safety Rank of 64, which means low debt burdens), but show below-average growth (Growth Rank of 47). ...read more

RECOMMENDATION: A Combined Rank of 73, is a buy recommendation based on Sodexo's financial characteristics. As the company Sodexo's key financial metrics exhibit good value (Obermatt Value Rank of 69) but low growth (Obermatt Growth Rank of 47) while being safely financed (Obermatt Safety Rank of 64), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 69% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	69
Growth Rank	47
Safety Rank	64
Combined Rank	73

Country	France
Industry	Restaurants
Index	CAC All, SBF 120, Dividends Europe, Employee Focus EU, Diversity Europe, Sound Pay Europe
Size class	XX-Large

This stock has achievements: Insight 2022-12-08.

6-Mar-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Sodexo

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	96	82	74	69
GROWTH
GROWTH	25	23	44	47
SAFETY
SAFETY	72	73	61	64
SENTIMENT
SENTIMENT	97	40	26	^new
360° VIEW
360° VIEW	92	56	51	^new

Most recent update of the stock research: 6-Mar-2025. Financial reporting date used for calculating ranks: 31-Aug-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Sodexo is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	96	82	74	69
GROWTH
GROWTH	25	23	44	47
SAFETY
SAFETY	72	73	61	64
COMBINED
COMBINED	84	72	74	73

Last update of combined financial performance: 6-Mar-2025. Stock analysis on combined financial performance: The higher the rank of Sodexo the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 69 (better than 69% compared with alternatives), Sodexo shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Sodexo. Price-to-Sales (P/S) is 64, which means that the stock price compared with what market professionals expect for future sales is lower than for 64% of comparable companies, indicating a good value concerning Sodexo's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 67% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 80 (dividends are expected to be higher than 80% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 57% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Sodexo to 43. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 69, is a buy recommendation based on Sodexo's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	92	82	67	64
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	81	59	69	67
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	52	43	49	43
DIVIDEND YIELD
DIVIDEND YIELD	84	81	80	80
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	96	82	74	69

Last update of Value Rank: 6-Mar-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Sodexo; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 47 (better than 47% compared with alternatives), Sodexo shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Sodexo. Sales Growth has a rank of 51 which means that currently, professionals expect the company to grow more than 51% of its competitors. Capital Growth is also above 36% of competitors with a rank of 71, and Stock Returns with the rank of 51 is also an outperformance. Only Profit Growth is low with a rank of 36 which means that currently, professionals expect the company to grow its profits less than 64% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 47, is a hold recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Sodexo is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	17	44	49	51
PROFIT GROWTH
PROFIT GROWTH	48	18	39	36
CAPITAL GROWTH
CAPITAL GROWTH	59	72	62	71
STOCK RETURNS
STOCK RETURNS	49	37	46	51
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	25	23	44	47

Last update of Growth Rank: 6-Mar-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Sodexo.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 64 (better than 64% compared with alternatives), the company Sodexo has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Sodexo is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Sodexo. Refinancing is at 57, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 57% of its competitors. Liquidity is also good at 71, meaning the company generates more profit to service its debt than 71% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 33, which means the company has an above-average debt-to-equity ratio. It has more debt than 67% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 64 (better than 64% compared with alternatives), Sodexo has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Sodexo could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Sodexo and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	37	40	32	33
REFINANCING
REFINANCING	71	78	57	57
LIQUIDITY
LIQUIDITY	78	70	69	71
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	72	73	61	64

Last update of Safety Rank: 6-Mar-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sodexo and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	37	36	^new
OPINIONS CHANGE
OPINIONS CHANGE	90	50	59	^new
PRO HOLDINGS
PRO HOLDINGS	94	46	52	^new
MARKET PULSE
MARKET PULSE	58	46	25	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	97	40	26	^new

Last update of Sentiment Rank: 6-Mar-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Sodexo.
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