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Sodexo S.A (SDXAY) Fair Value & Analysis

Industrials · US · Market cap $8.4B

SS Sodexo S.A logo Sodexo S.A SDXAY · US
Price$13.16
Fair Value$17.51
Upside+33.1%
Quality56/100
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Mixed Growth
Thin margins · 1.9% net margin
Moderate debt · generates free cash flow
5.53% dividend yield
Mixed vs. peers (6/15)
Narrow moat 35/100
Evidence: High Range $10.72 – $26.40 Share as image

Fair value as of: Jul 18, 2026

From 24 valuation models · updated 23 days ago

Fair value updated Jul 18, 2026, revised from $17.39 to $17.51 (+0.7%) since Jun 24, 2026. Share price +6.5% over the past month.

A solid business, screening 33% undervalued on our models.

What matters now

  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range ($10.72 to $26.40) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$16.71 $7.99 Fair Value $17.51 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range $7.99 – $16.71 · fair‑value band $10.72 – $26.40 · the $13.16 price screens below the $17.51 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Sodexo S.A (SDXAY) currently trades at $13.16, while our model-based Fair Value estimate is $17.51, implying the stock looks roughly 33.1% undervalued today. The Quality Score stands at 56/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Sodexo S.A generated revenue of $23.6B at a net margin of 1.9%. Revenue declined 3.7% year over year. It earns a return on equity of 11.9%. Net debt stands at $3.9B. Fundamentals as of Jul 18, 2026

Our scenario range runs from $10.72 (bear case) to $26.40 (bull case); at $13.16, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 45% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at 33%, SDXAY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $6.18 $8.93 $12.84 80
Residual Income $6.59 $8.40 $21.51 76
Rev-Margin DCF $8.36 $14.03 $20.29 74
All 24 models by family
DCF Models
FCF DCF $5.93 $8.83 $13.16 38
Owner Earnings $10.23 $14.69 $21.37 31
5Y Revenue Exit $8.36 $13.94 $21.20 39
5Y EBITDA Exit $10.83 $18.23 $26.92 41
5Y P/E Exit $10.25 $17.22 $24.53 38
10Y Revenue Exit $6.99 $11.67 $17.28 36
10Y EBITDA Exit $8.83 $14.47 $21.17 37
10Y P/E Exit $8.48 $13.81 $19.54 35
Earnings-Based
Graham-Dodd $7.12 $13.93 $17.43 54
EPV $8.47 $10.14 $11.57 59
Dividend Discount
Gordon GGM $4.38 $6.06 $7.72 70
DDM Multi-Stage $4.38 $6.03 $7.89 61
Multiples
P/E Multiple $17.28 $23.04 $28.81 63
P/S Multiple $13.36 $17.81 $22.26 58
P/B Multiple $13.36 $17.81 $22.26 55
EV/EBIT $16.97 $23.30 $29.64 53
EV/EBITDA $16.32 $22.44 $28.56 54
EV/Revenue $10.77 $16.26 $21.76 43
Asset-Based
NCAV (Graham) $3.04 $4.07 $6.08 50
Growth DCF
Growth DCF $6.18 $8.93 $12.84 80
Rev-Margin DCF $8.36 $14.03 $20.29 74
Economic Profit
Residual Income $6.59 $8.40 $21.51 76
ROIC Compounder $8.67 $10.78 $12.96 72
Growth Earnings
Growth-Adj P/E $12.43 $17.75 $23.08 68

Widest divergence: Multiples ($17.81) versus Asset-Based ($4.07). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $23.6B
Revenue growth (YoY) -3.7%
Net margin 1.9%
Return on equity 11.9%
Free cash flow $592M FY2025
P/E ratio 16.4
More key figures
Operating margin 3.2%
EPS (TTM) $0.7000
Dividend yield 5.5%
EPS growth (YoY) -56.5%
Net debt $3.9B FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 54 · Market factors (momentum, volatility) 74

Profitability 51
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 37
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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 …

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sodexo S.A reported revenue of $22.6B in FY2025 versus $17.4B in FY2021, a compound +6.7%/yr. Reported net income was $764M in FY2025, compounding +53.1%/yr from FY2021.

Growth Quality 53/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$22.6B
Latest YoY
−5.0%
Avg. growth/yr (3Y)
+2.3%
Avg. growth/yr (5Y)
+3.2%
Avg. growth/yr (24Y)
+2.7%
Revenue +6.7%/yr
FY21 $17.4B
FY22 $21.1B
FY23 $22.6B
FY24 $23.8B
FY25 $22.6B
Net income +53.1%/yr
FY21 $139M
FY22 $695M
FY23 $794M
FY24 $168M
FY25 $764M

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Cite: Fair Value Calculator (2026). "Sodexo S.A Fair Value". https://www.fairvalue-calculator.com/stock/SDXAY

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Business Services · 255 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside +33% · Above median
Return on equity (TTM) 12% · Above median
Return on assets 3% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth -4% · Bottom 25%
Dividend yield (TTM) 5.5% · Top 25%
Debt / equity 0.89× · Higher than 75% of peers

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 16.4× · Cheaper than median
P/B 1.89× · Pricier than median
P/S (TTM) 0.36× · Cheaper than 75% of peers
P/FCF 14.1× · Pricier than 75% of peers
EV/EBITDA 8.7× · Pricier than median
PEG 3.39× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 77 · sector 24
FUTURE 0 · sector 25
PAST 48 · sector 33
HEALTH 56 · sector 92
DIVIDEND 100 · sector 54

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $206.25 $95.30 -54%
RELX PLC RELX $33.70 $32.49 -4%
Thomson Reuters Corporation TRI C$133.87 C$70.40 -47%
Copart, Inc CPRT $27.61 $28.59 +4%
Global Payments Inc GPN $80.49 $69.67 -13%
RB Global, Inc RBA C$156.43 C$49.14 -69%
Brambles Limited BXB A$18.79 A$12.28 -35%
UL Solutions Inc ULS $87.76 $33.62 -62%
Wolters Kluwer N.V WKL €62.56 €103.99 +66%
Aramark ARMK $56.74 $13.73 -76%

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Frequently asked questions

Is Sodexo S.A (SDXAY) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of $17.51 versus a price of $13.16, about +33% (undervalued).
What is the fair value of SDXAY?
Our model-based fair value for Sodexo S.A is $17.51 (as of Jul 18, 2026), built from audited fundamentals. The current price is $13.16.
What is the quality score of SDXAY?
Sodexo S.A has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Sodexo S.A (SDXAY)?
Sodexo S.A reported trailing-twelve-month revenue of about $23.6B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of SDXAY?
The net profit margin of Sodexo S.A is about 1.9%, meaning it keeps roughly 1.9% of revenue as net income. Based on the latest reported figures.
Does Sodexo S.A pay a dividend?
Sodexo S.A currently shows a dividend yield of about 5.53% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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