Sodexo
Note: This is a daily stock update and the information stands true as of 04/04/25, 09:00 CET.
Company Update:
Expert Opinion:
Valuation is now becoming very attractive in our opinion but momentum is likely to remain adverse for a while assuming, growth worldwide is impacted by the trading war. This is one to keep on your radar. Catering is rather a defensive profile in recession time and Sodexo is trading at 12.3x for this year (August 25) 10.5x for 26 and below 10 for 27x. Renegotiation contracts will be key and there may be some more downside pressure for 26 and 27 but we expect these will be marginal and probably already priced in by consensus. We therefore believe that the risk reward profile now offers more upside potential.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
Retention rate was down from 95.5% to 93.9%.
Revenue rose by 3.1% (organic +3.5%) to €12.48bn.
Underlying operating profit stood at €651m (+6.4% yoy) underlying operating margin was 5.2% (+10bp yoy).
FY25 outlook was confirmed with organic revenue to grow by 3-4% and operating margin to grow by 10-20bp at constant FX.
Expert Opinion:
Valuation is now becoming very attractive in our opinion but momentum is likely to remain adverse for a while assuming, growth worldwide is impacted by the trading war. This is one to keep on your radar. Catering is rather a defensive profile in recession time and Sodexo is trading at 12.3x for this year (August 25) 10.5x for 26 and below 10 for 27x. Renegotiation contracts will be key and there may be some more downside pressure for 26 and 27 but we expect these will be marginal and probably already priced in by consensus. We therefore believe that the risk reward profile now offers more upside potential.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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