Sodexo SW.PA
Sodexo is a French multinational providing food services and facilities management, operating catering and facilities management contracts for companies, institutions, and public bodies worldwide. Sodexo shows fragile financial health with a Net Debt/EBITDA of 3.71 and earnings growth of -56.50%, although its valuation (P/E 18.82, FCF yield 7.12) and dividend (4.70% net) offer some appeal; the Meta contract adds visibility but does not reverse the deterioration trend.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Sodexo is a French multinational providing food services and facilities management, operating catering and facilities management contracts for companies, institutions, and public bodies worldwide. Sodexo shows fragile financial health with a Net Debt/EBITDA of 3.71 and earnings growth of -56.50%, although its valuation (P/E 18.82, FCF yield 7.12) and dividend (4.70% net) offer some appeal; the Meta contract adds visibility but does not reverse the deterioration trend.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.2 |
| Quality / Moat | 4.2 |
| Valuation | 6.7 |
| Growth | 1.2 |
| Dividend | 6.4 |
| Momentum | 6.8 |
| Risk & Context | 8.0 |
OVERALL SCORE: 5.2/10
Context and risks
Elevated governance risk in France and exposure to a rising rate environment in Europe (ECB hiking) with a Net Debt/EBITDA of 3.71, which makes its debt service more expensive and pressures its financial health.
News considered in the analysis
- Sodexo secures Meta food services contract — Contrato global con Meta, refuerza la cartera de clientes tecnológicos de alto perfil y da visibilidad de ingresos.
- Sodexo (ENXTPA:SW) Stock Gets Fair Value Bump After Analyst Target Increases — Subida de precio objetivo de un analista; señal moderadamente positiva pero ya parcialmente reflejada.
- Should Value Investors Buy Sodexo (SDXAY) Stock? — Artículo de opinión genérico sin información nueva.
- European Equities Mostly Lower in Thursday Trading; Sodexo Picked by Meta for Global Food Services — Confirmación del contrato con Meta en un contexto de mercado negativo; refuerza la noticia principal.
- Sodexo (ENXTPA:SW) Stock Looks Overvalued On Cash Flow Yet Undervalued On Earnings — Análisis de valoración sin catalizador concreto; no aporta información nueva.
Verdict: Hold; wait for signs of improvement in revenue and earnings growth before increasing the position.
Main risk: High leverage (Net Debt/EBITDA of 3.71) combined with a rising rate environment in Europe and negative earnings growth (-56.50%) could continue to pressure its financial health and its ability to maintain the dividend.
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