Prepared for Manish Chopra by Henry Obegi

Sodexo S.A. (SW.PA) — Deep Dive Analysis

Euronext Paris • Contract Catering & Facilities Management • February 2026

Peer Comparison — Financial Summary

MetricSodexoCompassAramarkEliorISS
Revenue (EUR bn)24.143.917.66.1511.4
Organic Growth3.3%8.7%6.4%3.1%4.3%
Operating Margin4.7%7.2%4.1%3.3%5.0%
EBITDA Margin7.1%8.4%6.4%5.6%6.7%
Net Margin3.3%4.9%1.8%1.4%3.2%
P/E Trailing10.1x22.2x28.0x8.1x12.9x
EV/EBITDA7.3x12.7x13.0x6.0x9.2x
Dividend Yield5.7%2.3%1.3%1.5%1.5%
Net Debt/EBITDA1.8x1.4x3.25x3.3x2.0x
Market Cap (EUR bn)7.047.59.80.75.4
Sodexo trades at a material discount to all peers on every valuation metric. Cheapest P/E (10.1x vs median 12.9x), highest dividend yield (5.7%), and strongest balance sheet after Compass. But also lowest organic growth (3.3%) — the market is punishing execution, not balance sheet quality.

Operating Margin

Trailing P/E

Organic Growth Comparison

The Compass Premium

Compass P/E Premium (current)~120%
Historical Average Premium~40%
If Sodexo re-rates to 40% discountEUR 71 (+48%)

Compass's premium is partly justified (superior growth, margins, retention). But at ~120%, it prices in permanent structural impairment at Sodexo. The historical average of ~40% suggests significant mean-reversion potential.

Henry Obegi • Sodexo Deep Dive • February 2026 • Prepared for Manish Chopra