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Sodexo SA
(SW)
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Rating:66Neutral
Price Target:
€65.00
▲(14.04% Upside)
Action:Reiterated
Date:10/24/26
The score is driven primarily by mixed financial performance: improved balance-sheet leverage and consistently positive cash flow are positives, but profitability and free-cash-flow trends have been volatile and pressured recently. Technicals add support as the stock is trading above key moving averages with generally neutral-to-positive momentum. Valuation is a modest drag due to a higher P/E, partly offset by a solid dividend yield.
Positive Factors
Improved Balance Sheet
The sharp reduction in debt-to-equity materially lowers financial risk and improves Sodexo’s flexibility. A stronger balance sheet can support investment, protect the company through softer operating periods, and provide greater capacity to pursue contractual growth without relying as heavily on leverage.
Negative Factors
Slowing Revenue Growth
Revenue has expanded over the longer period but the recent slowdown and slight 2026 decline indicate weaker top-line momentum. Sustained low growth would limit operating leverage, reduce the benefits of scale, and make future earnings improvement more dependent on cost control rather than business expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Balance Sheet
The sharp reduction in debt-to-equity materially lowers financial risk and improves Sodexo’s flexibility. A stronger balance sheet can support investment, protect the company through softer operating periods, and provide greater capacity to pursue contractual growth without relying as heavily on leverage.
Read all positive factors
Sodexo SA (SW) vs. iShares MSCI France ETF (EWQ)
Market Cap
€8.70B
Dividend Yield4.54%
Average Volume (3M)306.01K
Price to Earnings (P/E)28.6
Beta (1Y)0.37
Revenue Growth-0.46%
EPS Growth-56.16%
CountryFR
Employees443,000
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.08
Shares Outstanding147,454,880
10 Day Avg. Volume387,982
30 Day Avg. Volume306,009
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)2.24
Price to Sales (P/S)0.35
P/FCF Ratio15.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€61.02Price Target Upside7.05% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)3.35
Revenue Forecast (FY)€25.10B
Sodexo SA Business Overview & Revenue Model
Company Description
Globally, Sodexo S.A. is a prominent developer, manager, and provider of integrated service solutions across three main segments: on-site services, benefits and rewards, and personal and home services. Its comprehensive on-site operations include ...
How the Company Makes Money
Sodexo makes money primarily by delivering contracted food and facilities services to organizations and institutions. Its core revenue model is service-contract based: clients (e.g., companies, schools/universities, hospitals, senior living operat...
Sodexo SA Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
60
Neutral
| Breakdown | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.96B | 24.07B | 23.80B | 22.64B | 21.13B |
| Gross Profit | 2.54B | 2.80B | 2.85B | 2.72B | 3.04B |
| EBITDA | 803.00M | 1.58B | 1.65B | 1.38B | 1.30B |
| Net Income | 304.00M | 695.00M | 168.00M | 794.00M | 695.00M |
Balance Sheet | |||||
| Total Assets | 14.50B | 14.85B | 15.02B | 20.79B | 20.92B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 2.09B | 2.14B | 2.02B | 3.23B |
| Total Debt | 4.65B | 5.45B | 5.47B | 6.38B | 6.66B |
| Total Liabilities | 10.72B | 11.05B | 11.23B | 16.24B | 16.50B |
| Stockholders Equity | 3.77B | 3.79B | 3.78B | 4.54B | 4.42B |
Cash Flow | |||||
| Free Cash Flow | 543.00M | 631.00M | 962.00M | 1.04B | 690.00M |
| Operating Cash Flow | 907.00M | 964.00M | 1.32B | 1.38B | 1.03B |
| Investing Cash Flow | -432.00M | -390.00M | -1.05B | -526.00M | -386.00M |
| Financing Cash Flow | -1.46B | -530.00M | -1.35B | -646.00M | -1.11B |
Sodexo SA Technical Analysis
Positive
57.00
Price Trends
56.67
Positive
55.20
Positive
49.90
Positive
Market Momentum
0.77
Negative
66.12
Neutral
85.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SW, the sentiment is Positive. The current price of 57 is above the 20-day moving average (MA) of 55.93, above the 50-day MA of 56.67, and above the 200-day MA of 49.90, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 66.12 is Neutral, neither overbought nor oversold. The STOCH value of 85.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SW.
Sodexo SA Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | €4.80B | 10.06 | 11.19% | 5.61% | -3.33% | -1.75% | |
67 Neutral | €152.28M | 13.51 | 15.92% | 1.54% | 14.77% | 57.92% | |
66 Neutral | €8.70B | 28.61 | 8.26% | 2.93% | -0.46% | -56.16% | |
64 Neutral | €5.28B | 13.44 | 10.37% | 3.34% | 5.15% | 4.24% | |
63 Neutral | €2.91B | 10.10 | ― | 2.66% | 4.39% | 26.03% | |
62 Neutral | €917.43M | 10.86 | 16.60% | 3.18% | 5.59% | -0.11% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
FR:SW
Sodexo SA
59.50
11.82
24.79%
FR:ELIS
Elis SA
22.18
-2.28
-9.33%
FR:GLO
GL EVENTS
31.45
4.29
15.77%
FR:TEP
Teleperformance
80.16
20.10
33.46%
FR:ALCIS
Catering International Services
19.45
5.91
43.64%
FR:PLX
PLUXEE N.V.
14.31
-2.24
-13.51%
Sodexo SA Corporate Events
Sodexo Resets Operations as Profit Declines but Organic Growth Holds
Oct 23, 2026
Sodexo reported fiscal 2026 organic revenue growth of 2.0% to nearly 24 billion euros, with stronger-than-expected fourth-quarter activity but a headline revenue decline of 0.5% driven by currency effects. Performance varied by region, with Rest o...
Sodexo Details Share Capital and Voting Rights for September 2026
Oct 7, 2026
Sodexo reported its latest monthly figures on share capital and voting rights as of September 30, 2026, in line with French market regulations. The group disclosed that it had 147,454,887 shares outstanding, with 216,684,309 actual voting rights a...
Sodexo Taps Nathalie Bellon-Szabo to Succeed Sophie Bellon as Chair
Sep 28, 2026
Sodexo’s board has proposed appointing long-time executive and director Nathalie Bellon-Szabo as non-executive chairwoman, succeeding Sophie Bellon after the renewal of her mandate at the December 2026 shareholders meeting. The move follows ...
Sodexo buys back 119,805 shares to fund employee equity awards
Sep 23, 2026
Sodexo SA has executed a series of treasury share purchases between September 14 and 17, 2026, under its existing share buyback program authorized by shareholders in December 2025. The company acquired a total of 119,805 shares at a weighted avera...
Sodexo executes targeted share buybacks to fund employee share plans
Sep 17, 2026
Sodexo SA has executed a series of share repurchases between September 7 and 11, 2026 under a previously authorized buyback program, acquiring 119,969 shares at a weighted average price of €56.96. The purchases were conducted outside its liq...
Sodexo Buys Treasury Shares to Fund Employee Equity Plans
Sep 10, 2026
Sodexo SA disclosed that it acquired a total of 30,226 treasury shares between September 2 and 4, 2026 under its shareholder-authorized buyback program, at a weighted average price of €58.1752 per share across several European trading venues...
Sodexo Publishes August 2026 Share Capital and Voting Rights Data
Sep 4, 2026
Sodexo has reported its monthly figures for share capital and voting rights as of August 31, 2026, disclosing a total of 147,454,887 shares in issue and 216,962,016 exercisable voting rights, alongside 218,548,891 theoretical voting rights. These ...
Sodexo Raises €1.1 Billion in Dual‑Tranche Bond to Refinance Debt and Extend Maturities
Aug 26, 2026
Sodexo SA has tapped the bond market with a €1.1 billion euro‑denominated issue split into two tranches, a €600 million bond maturing in 2032 with a 4.00% coupon and a €500 million bond maturing in 2036 carrying a 4.50% cou...
Sodexo Updates Market on Share Capital and Voting Rights Structure
Aug 6, 2026
Sodexo has reported that its share capital consisted of 147,454,887 shares as of July 31, 2026, corresponding to 216,593,858 exercisable voting rights and 218,113,229 theoretical voting rights. The difference between exercisable and theoretical vo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.