Market participant are once again showing interest in shares in Sodexo. The technical chart pattern now appears positive for the short term with new upside potential.
Summary
● The company's MSCI ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The stock, which is currently worth 2026 to 0.42 times its sales, is clearly overvalued in comparison with peers.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
Weaknesses
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company has insufficient levels of profitability.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● For the past year, analysts have significantly revised downwards their profit estimates.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● Over the past four months, analysts' average price target has been revised downwards significantly.
● Over the past twelve months, analysts' opinions have been revised negatively.
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Sodexo is a world leader in food and facilities management services. The group offers onsite services: meal preparation, management of restaurants, reception and conference centers, reception services, mail processing, transport, cleaning, gardening, technical maintenance, security, facility management, sanitation, etc.
Net sales break down by market between companies and government departments (47.4%), healthcare facilities and senior-citizen residences (24.3%), schools and universities (19.7%) and entertainment (9.6%; Sodexo Live!).
Net sales are distributed geographically as follows: Europe (35.7%), North America (46.4%), Asia/Pacific/Middle East/Africa/Latin America (17.9%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
