Sodexo

SW: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€98.00	Lqklmf	Bkmhvwxd

Sodexo Not Feeling the Heat After a Solid Performance in 2022

Michael Field

Oct 26, 2022

Narrow-moat Sodexo delivered one of the most positive updates since the beginning of the coronavirus pandemic, with full-year results confirming a full revenue recovery to prepandemic levels. Operating margins came in at 5.5%, ahead of earlier guidance, and investors will be optimistic about management’s new guidance for a full margin recovery in 2023. While we may tweak our numbers on the back of these results, we do not expect a material change to our EUR 100 fair value estimate. Even with the recent rally in the shares, we still see attractive upside from here.

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