Sodexo SA stock analysis
Sodexo SA (SJ70) Stock Price & Analysis
SJ70 Stock Chart & Stats
- Day’s Range
- EUR 11.90 - EUR 12.10
- 52-Week Range
- EUR 7.45 - EUR 12.10
- Previous Close
- EUR 11.80
- Volume
- N/A
- Average Volume (3M)
- 0
- Market Cap
- EUR 9.02B
- Enterprise Value
- EUR 14.02B
- Total Cash (Recent Filing)
- EUR 1.13B
- Total Debt (Recent Filing)
- EUR 4.66B
- Price to Earnings (P/E)
- 29.6
- Beta
- 0.40
- Next Earnings
- Apr 02, 2027 (Est.)
- EPS Estimate
- 0.35
- Next Dividend Ex-Date
- N/A
- Dividend Yield
- 4.31%
Bulls Say, Bears Say
Bulls Say
Recurring Contract Model
Sodexo’s multi-year contracts create recurring revenue across food services and facilities management, supporting visibility beyond individual transactions. Client-site operations, service-level agreements, procurement scale, and renewal relationships can provide a durable base for cash generation and cross-selling.
Consistent Cash Generation
Consistently positive operating and free cash flow indicates that the business generally converts operations into funding for investment, debt service, and shareholder distributions. Although recent free-cash-flow growth cooled, the underlying cash-generative model remains an important financial strength.
Diversified Growth Platforms
Growth across Europe, the rest of the world, and facility management shows that Sodexo is not dependent on one geography or service line. This breadth can support resilience, provide opportunities to allocate capital toward stronger markets, and broaden the pipeline for future contract wins.
Bears Say
Below-peer Client Retention
Retention below competitors creates a durable commercial challenge because lost contracts reduce recurring revenue and require replacement sales effort. Improving retention may also require service changes, leadership attention, and investment, potentially limiting growth and margins while the issue persists.
Higher Leverage And Finance Costs
Expected leverage of 2.6x-2.8x and higher financial expense will reduce financial flexibility during the transformation. Greater debt-service costs can absorb cash that might otherwise support growth or shareholder returns, while elevated leverage increases sensitivity to execution shortfalls.
Margin Pressure From Restructuring
The 130-basis-point margin decline demonstrates that operational underperformance and higher commercial, technology, and supply expenses are weighing on profitability. Restructuring and transformation costs may continue to constrain earnings before efficiency benefits become large enough to offset them.
Sodexo SA News
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Sodexo SA Stock Smart Score
Company Description
Sodexo SA
Sodexo S.A. operates as a global service provider, delivering a comprehensive range of on-site management, employee benefits and rewards, and personal and home care solutions around the world. The company's on-site operations cater to diverse client segments. These include business and administrative environments for corporate entities, energy and resource sectors, government bodies, sports and leisure venues, and other commercial clients. Sodexo also extends its expertise to healthcare facilities, senior living communities, and educational institutions like schools and universities, where it often provides food services. Beyond on-site provisions, Sodexo manages various benefits and rewards programs. These encompass employee perks, incentive and recognition schemes, support for employee mobility, expense administration, and public welfare benefits. Furthermore, the company offers personal and home services, covering areas such as childcare, concierge assistance, and in-home care for individuals. A significant portion of its portfolio involves integrated facility management services. This extensive offering includes tasks like cleaning, reception duties, security, landscaping, mailroom operations, document handling, waste disposal, laundry, transportation, general repairs, specialized technical maintenance, energy management, asset oversight, and project coordination. Established in 1966, Sodexo S.A. maintains its headquarters in Issy-les-Moulineaux, France. The company adopted its current name in 2008, having previously traded as Sodexho Alliance.
- Sector
- Industrials
- Industry
- Specialty Business Services
- CEO
- Thierry Delaporte
- Employees
- 443,000
- Website
- www.sodexo.com
- Address
- 255 Quai de la Bataille de Stalingrad, Issy-les-Moulineaux, IF, 92130, FR
Sodexo SA (SJ70) Earnings & Revenues
SJ70 Company Deck
SJ70 Earnings Call
Earnings Call SentimentPositive
The call had a cautiously positive tone. Fiscal 2026 finished above expectations on organic growth, cash flow, leverage, and fourth-quarter execution, while management reported tangible progress on the Shift & Grow transformation, pipeline development, and strategic initiatives such as Entegra, Meta, and data centers. However, the company continues to face below-competitor retention, negative North American growth, a 130-basis-point margin decline, restructuring and investment costs, higher financial expense, and a soft start expected for fiscal 2027. Highlights outweighed the lowlights, but management emphasized that the transformation remains demanding and that execution must improve quarter after quarter.
View all DE:SJ70 earnings summariesTechnical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 14 | 5 | 3 |
| Technical Analysis | 2 | 5 | 3 |
| Moving Averages | 12 | 0 | 0 |
