# Sodexo (SW.PA)

Canonical: https://gigainvestors.com/s/SW.PA

Analysis as of: 2026-10-16T07:36:06.614Z. Financial observations: FY2001–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 55.90 per share; close as of 2026-10-15.

Estimated value: low EUR 57.60 per share, central EUR 64.89 per share, high EUR 74.58 per share. Buy at or below the central value EUR 64.89 per share. Valuation as of 2026-10-16T07:36:06.614Z; scenarios are not confidence intervals.

Expected annual return: 11.3% at the stated quote. About 11.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; FR 10-year bond 4.8% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.34×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.06×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.01×

- FY2021: 0.03×

- FY2022: 0.05×

- FY2023: 0.04×

- FY2024: 0.05×

- FY2025: 0.05×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.2%

- ROIC, second-lowest year: 8.7%

- Typical minus recent gross margin: 2.5 pp

- Typical gross margin (annual median): 14.1%

- Recent gross margin (lower of latest and 3-year median): 11.6%

- Years with nonpositive capital: 5

- Capital spending / revenue: 1.6%

- ROIC including acquisitions, ten-year median: 9.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 11.7%

- FY2017: 12.8%

- FY2018: 10.9%

- FY2019: 9.4%

- FY2020: 8.7%

- FY2021: 3.6%

- FY2022: 60.3%

- FY2023: 19.1%

- FY2024: 53.5%

- FY2025: 49.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 2.6B

- Net income, five-year total: EUR 2.5B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -3.6 pp

- Working capital / revenue, final three-year average: 5.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.97×

- FY2022: 0.89×

- FY2023: 0.94×

- FY2024: 0.80×

- FY2025: 1.23×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 11.7% vs 49.4%

- Per-share earnings: 4.54 to 4.71 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: 0.3%

- Market cap gain: EUR -3.1B

- Cumulative retained earnings: EUR 121M

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: 0.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.5%

- Per-share value change: EUR 0.17

- Per-share value, starting three-year median: EUR 4.54

- Per-share value, ending three-year median: EUR 4.71

- Buybacks concentrated in cheaper years (correlation): 0.23

- Average buyback yield: 1.1%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 13B

- Cumulative net income, 10 years: EUR 4.8B

- ROIC, first three-year median: 11.7%

- ROIC, last three-year median: 49.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 4.18

- FY2017: EUR 4.82

- FY2018: EUR 4.35

- FY2019: EUR 4.49

- FY2020: EUR -2.19

- FY2021: EUR 0.94

- FY2022: EUR 4.70

- FY2023: EUR 5.38

- FY2024: EUR 1.15

- FY2025: EUR 4.71

### accounting: pass

- Sloan accruals: -1.8%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.39×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.56×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.2%

- FY2017: -2.3%

- FY2018: -3.2%

- FY2019: -3.5%

- FY2020: -5.5%

- FY2021: -4.4%

- FY2022: -1.6%

- FY2023: -2.8%

- FY2024: -7.7%

- FY2025: -1.8%

## Holders

## Price story

Down 36% since Jul 2024 · "Sodexo cuts annual guidance amid operational setbacks" (finance.yahoo.com, Apr 2026) · sales +1.2%

Story as of 2026-10-16T10:00:06.828Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.1% a year for ten years

- 2025-09-17: Sodexo secures 5-year global energy contract renewal ([finance.yahoo.com](https://finance.yahoo.com/news/sodexo-secures-5-global-energy-060000620.html))

- 2026-04-13: Sodexo cuts annual guidance amid operational setbacks ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/sodexo-cuts-annual-guidance-amid-113847742.html))

- 2026-05-05: Sodexo awarded contract to manage Rio Tinto’s Pilbara facilities in Australia ([finance.yahoo.com](https://finance.yahoo.com/sectors/energy/articles/sodexo-awarded-contract-manage-rio-050000166.html))

- 2026-07-16: Sodexo secures a major food services contract with Meta ([finance.yahoo.com](https://finance.yahoo.com/small-business/articles/sodexo-secures-major-food-services-050100652.html))

### Sales · FY2024–2025

sales +1.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 20B 

- FY2017: EUR 21B 

- FY2018: EUR 20B 

- FY2019: EUR 22B 

- FY2020: EUR 19B 

- FY2021: EUR 17B 

- FY2022: EUR 21B 

- FY2023: EUR 23B 

- FY2024: EUR 24B 

- FY2025: EUR 24B 

### Gross margin · FY2025

gross margin 11.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 15.4% 

- FY2017: 15.7% 

- FY2018: 15.1% 

- FY2019: 14.3% 

- FY2020: 12.8% 

- FY2021: 13.9% 

- FY2022: 14.4% 

- FY2023: 12.0% 

- FY2024: 12.0% 

- FY2025: 11.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty business services; annual sales are EUR 24.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2025: revenue 24074000000; grossProfit 2798000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SW.PA: Sodexo S.A. provides food services and facilities management services in North America, Europe, and internationally. It offers food services, including retail services, food delivery, and meal and food vouchers, as well as digital food ordering services; and facility management services, such as technical service management, assets management, building maintenance, access control, deep cleaning, energy management, space planning, project management, front-of-house services, grounds maintenance, waste management, HVAC systems, mail management, commercial cleaning, workspace management, and pest control. The company also provides venue marketing and event ticketing services in airport lounges, stadia and arenas, conference centers, convention centers, cultural destinations, and global events; healthcare and seniors; and learning solutions to schools and universities. In addition, it offers savings and purchasing solutions, data and digital tools, and advisory services and client support; and work-life balance and employee experience solutions. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.

### Why customers stay

Margins ranged from 11.6% to 12% during 2023–25; it earns 12.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2023: grossProfit / revenue = 12%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2024: grossProfit / revenue = 12%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2025: grossProfit / revenue = 11.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); 10-year return on capital observations [[2016,0.11657088403885692],[2017,0.12838320419230803],[2018,0.10884731841373461],[2019,0.09388425320867265],[2020,0.08661741835147745],[2021,0.0361889825524407],[2022,0.6031042128603105],[2023,0.19071192310253735],[2024,0.535229476405947],[2025,0.493511654996016]]; median 0.12247704411558247. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 83 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2016: growth capex 13024405.880185366; upkeep 331975594.11981463; owner earnings 612024405.8801854. Growth capex / owner earnings = 0.02128086029748154.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2017: growth capex 13451884.708822787; upkeep 295548115.2911772; owner earnings 708451884.7088227. Growth capex / owner earnings = 0.018987718148779545.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2018: growth capex 0; upkeep 329000000; owner earnings 620000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2019: growth capex 46349904.95622498; upkeep 353650095.043775; owner earnings 652349904.9562249. Growth capex / owner earnings = 0.0710506809368436.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2021: growth capex 0; upkeep 296000000; owner earnings 274200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2022: growth capex 0; upkeep 345000000; owner earnings 618400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2023: growth capex 0; upkeep 338000000; owner earnings 747800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2024: growth capex 0; upkeep 358000000; owner earnings 134400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2025: growth capex 0; upkeep 333000000; owner earnings 853000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); Dividend observations: [[2016,335000000],[2017,359000000],[2018,411000000],[2019,403000000],[2020,425000000],[2021,294000000],[2022,294000000],[2023,352000000],[2024,1373000000],[2025,388000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); FY2025: cash repurchases 83000000 EUR.

### Are managers owners

Insiders own 45.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SW.PA SharesStats.PercentInsiders = 45.49 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.1% yearly over ten years; actual growth was 2.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.614Z); Ten-year compound average after fade. Initial solved rate -0.028739621466831566. Price 55.9; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.537931597812198 → FY2025 5.7814398835307586. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 76.97 per share

- 2016-11: EUR 75.08 per share

- 2016-12: EUR 79.45 per share

- 2017-01: EUR 74.46 per share

- 2017-02: EUR 75.34 per share

- 2017-03: EUR 80.21 per share

- 2017-04: EUR 84.90 per share

- 2017-05: EUR 88.36 per share

- 2017-06: EUR 82.36 per share

- 2017-07: EUR 72.63 per share

- 2017-08: EUR 71.32 per share

- 2017-09: EUR 76.75 per share

- 2017-10: EUR 79.48 per share

- 2017-11: EUR 79.85 per share

- 2017-12: EUR 81.52 per share

- 2018-01: EUR 75.19 per share

- 2018-02: EUR 73.55 per share

- 2018-03: EUR 59.59 per share

- 2018-04: EUR 59.73 per share

- 2018-05: EUR 60.40 per share

- 2018-06: EUR 62.29 per share

- 2018-07: EUR 68.88 per share

- 2018-08: EUR 65.27 per share

- 2018-09: EUR 66.45 per share

- 2018-10: EUR 65.57 per share

- 2018-11: EUR 66.53 per share

- 2018-12: EUR 65.11 per share

- 2019-01: EUR 66.21 per share

- 2019-02: EUR 70.27 per share

- 2019-03: EUR 71.41 per share

- 2019-04: EUR 74.39 per share

- 2019-05: EUR 74.94 per share

- 2019-06: EUR 74.79 per share

- 2019-07: EUR 75.41 per share

- 2019-08: EUR 75.01 per share

- 2019-09: EUR 74.94 per share

- 2019-10: EUR 71.73 per share

- 2019-11: EUR 76.97 per share

- 2019-12: EUR 76.86 per share

- 2020-01: EUR 68.82 per share

- 2020-02: EUR 63.11 per share

- 2020-03: EUR 44.85 per share

- 2020-04: EUR 52.75 per share

- 2020-05: EUR 44.04 per share

- 2020-06: EUR 43.80 per share

- 2020-07: EUR 42.40 per share

- 2020-08: EUR 43.62 per share

- 2020-09: EUR 44.39 per share

- 2020-10: EUR 40.09 per share

- 2020-11: EUR 50.46 per share

- 2020-12: EUR 50.36 per share

- 2021-01: EUR 53.44 per share

- 2021-02: EUR 57.64 per share

- 2021-03: EUR 59.50 per share

- 2021-04: EUR 60.46 per share

- 2021-05: EUR 57.62 per share

- 2021-06: EUR 57.26 per share

- 2021-07: EUR 52.31 per share

- 2021-08: EUR 50.94 per share

- 2021-09: EUR 55.13 per share

- 2021-10: EUR 61.11 per share

- 2021-11: EUR 53.87 per share

- 2021-12: EUR 56.06 per share

- 2022-01: EUR 59.69 per share

- 2022-02: EUR 54.64 per share

- 2022-03: EUR 53.69 per share

- 2022-04: EUR 52.47 per share

- 2022-05: EUR 50.52 per share

- 2022-06: EUR 48.79 per share

- 2022-07: EUR 57.65 per share

- 2022-08: EUR 55.61 per share

- 2022-09: EUR 56.14 per share

- 2022-10: EUR 65.29 per share

- 2022-11: EUR 66.71 per share

- 2022-12: EUR 65.10 per share

- 2023-01: EUR 66.22 per share

- 2023-02: EUR 63.83 per share

- 2023-03: EUR 65.52 per share

- 2023-04: EUR 70.72 per share

- 2023-05: EUR 73.52 per share

- 2023-06: EUR 73.37 per share

- 2023-07: EUR 67.91 per share

- 2023-08: EUR 72.04 per share

- 2023-09: EUR 70.95 per share

- 2023-10: EUR 72.67 per share

- 2023-11: EUR 71.59 per share

- 2023-12: EUR 72.48 per share

- 2024-01: EUR 76.10 per share

- 2024-02: EUR 73.70 per share

- 2024-03: EUR 79.48 per share

- 2024-04: EUR 81.75 per share

- 2024-05: EUR 85.70 per share

- 2024-06: EUR 84.00 per share

- 2024-07: EUR 87.55 per share

- 2024-08: EUR 80.50 per share

- 2024-09: EUR 73.65 per share

- 2024-10: EUR 79.80 per share

- 2024-11: EUR 78.60 per share

- 2024-12: EUR 79.55 per share

- 2025-01: EUR 71.20 per share

- 2025-02: EUR 74.05 per share

- 2025-03: EUR 59.40 per share

- 2025-04: EUR 55.90 per share

- 2025-05: EUR 60.85 per share

- 2025-06: EUR 52.20 per share

- 2025-07: EUR 52.30 per share

- 2025-08: EUR 51.30 per share

- 2025-09: EUR 53.55 per share

- 2025-10: EUR 48.04 per share

- 2025-11: EUR 45.54 per share

- 2025-12: EUR 43.70 per share

- 2026-01: EUR 43.14 per share

- 2026-02: EUR 46.40 per share

- 2026-03: EUR 44.10 per share

- 2026-04: EUR 43.32 per share

- 2026-05: EUR 47.20 per share

- 2026-06: EUR 50.65 per share

- 2026-07: EUR 57.10 per share

- 2026-08: EUR 57.90 per share

- 2026-09: EUR 55.35 per share

- 2026-10: EUR 55.15 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 52.19 per share, central EUR 60.98 per share, high EUR 69.95 per share

- FY2017: low EUR 58.59 per share, central EUR 68.06 per share, high EUR 77.50 per share

- FY2018: low EUR 55.14 per share, central EUR 63.39 per share, high EUR 72.38 per share

- FY2019: low EUR 65.78 per share, central EUR 72.56 per share, high EUR 81.58 per share

- FY2020: low EUR 55.36 per share, central EUR 61.40 per share, high EUR 69.44 per share

- FY2021: low EUR 66.78 per share, central EUR 72.04 per share, high EUR 79.04 per share

- FY2022: low EUR 64.73 per share, central EUR 71.04 per share, high EUR 79.44 per share

- FY2023: low EUR 59.70 per share, central EUR 66.46 per share, high EUR 75.46 per share

- FY2024: low EUR 39.29 per share, central EUR 43.14 per share, high EUR 48.27 per share

- FY2025: low EUR 63.12 per share, central EUR 70.32 per share, high EUR 79.90 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:50.994Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.