An exit from the recently observed accumulation phase to the upside could allow for the assumption that a clear upward trend is re-established with an increase in volatility.
Summary
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● The stock, which is currently worth 2024 to 0.63 times its sales, is clearly overvalued in comparison with peers.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company's earnings growth outlook lacks momentum and is a weakness.
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company does not generate enough profits, which is an alarming weak point.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
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.
