SodexoCHIX:SWP -1.28%69 Gross Margin % is 10.75% as of Feb. 2026, which is 20% below its 10-year median of 13.37. GuruFocus rates CHIX:SWP with a GF Score™ of 69/100 and a GF Value™ of €75.96 (Significantly Undervalued). The stock has 9 warning signs investors should review. Among 1,007 Business Services companies, Sodexo ranks worse than 90.67% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Sodexo's Gross Profit for the
six
months ended in Feb. 2026 was €1,292 Mil. Sodexo's Revenue for the
six
months ended in Feb. 2026 was €12,017 Mil. Therefore, Sodexo's Gross Margin % for the quarter that ended in Feb. 2026 was 10.75%.
Warning Sign:
Sodexo gross margin has been in long-term decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for Sodexo's Gross Margin % or its related term are showing as below:
CHIX:SWp'
s Gross Margin % Range Over the Past 10 Years
Min: 11.02 Med: 13.37 Max: 15.69
Current: 11.02
During the past 13 years, the highestGross Margin % of Sodexo was 15.69%. The lowest was 11.02%. And the median was 13.37%.
CHIX:SWp's Gross Margin % is ranked worse than 90.67% of 1007
companies
in the Business Services industry
Industry Median: 34.46
vs CHIX:SWp: 11.02
Sodexo had a gross margin of 10.75% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sodexo was -2.50% per year.
Sodexo (CHIX:SWp) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sodexo had a gross margin of 10.75% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sodexo Gross Margin % Related Terms
Sodexo Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sodexo's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CHIX:SWP vs CTAS, CPRT, GPN: Gross Margin % Comparison
For the Specialty Business Services subindustry, Sodexo's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sodexo Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Sodexo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sodexo's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sodexo (CHIX:SWP) has a Gross Margin % of 10.75% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sodexo and its competitors. This is 20% below median its historical median of 13.37. Over the past decade, Sodexo's Gross Margin % has ranged from 11.02 to 15.69. According to the industry distribution chart, Sodexo ranks #913 out of 1007 companies in the Business Services industry, placing it in the top 90.7%.
Is Sodexo's Gross Margin % too high?
Sodexo's current Gross Margin % of 10.75% is 20% below median its 10-year median of 13.37. Over the past 10 years, this metric has ranged from a low of 11.02 to a high of 15.69. The Business Services industry median Gross Margin % is 34.46. Sodexo's value of 10.75% is 68.8% below this industry median. Based on the distribution chart, Sodexo ranks #913 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Sodexo has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sodexo's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Sodexo ranks #913 out of 1007 companies for Gross Margin %. This places Sodexo in the lower half of its industry. The industry median Gross Margin % is 34.46. Sodexo's value of 10.75% is 68.8% below this benchmark. Historically, Sodexo's own Gross Margin % has ranged from 11.02 to 15.69 over the past decade. While the company's 10-year median is 13.37 vs. the industry median of 34.46, Sodexo has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sodexo's current Gross Margin % of 10.75% is 68.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sodexo and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sodexo's current Gross Margin % is 10.75%, which is 20% below median its own 10-year median of 13.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sodexo stock overvalued right now?
Based on GuruFocus' analysis, Sodexo (CHIX:SWP) is currently considered Significantly Undervalued. The stock's GF Value™ is €75.96, compared to a current price of €50.10 — trading 34% below its estimated fair value. The current Gross Margin % is 10.75%, which is 20% below median its 10-year median of 13.37 and 68.8% below the Business Services industry median of 34.46. Sodexo's overall GF Score™ is 69/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sodexo (CHIX:SWP), the current Gross Margin % is 10.75% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sodexo (CHIX:SWP) Overvalued in 2026?
Based on GuruFocus' analysis, Sodexo stock appears to be undervalued.
The current stock price of €50.10 is trading 34% below its estimated GF Value™ of €75.96.
GuruFocus considers Sodexo to be Significantly Undervalued.
Key valuation signals for CHIX:SWP:
Gross Margin %: 10.75% (20% below median its 10-year median of 13.37)
GF Value™: €75.96 vs. price of €50.10 (34% below fair value)
Industry Position: 68.8% below the Business Services median (#913 of 1007)
No single metric tells the full story. See the CHIX:SWP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sodexo is one of the largest foodservice companies globally, operating in 45 countries with annual sales exceeding EUR 24 billion. Sodexo's model rests on operating on-premises catering facilities, rather than centralized industrial kitchens. Foodservice remains the largest business segment, contributing 66% of revenue in 2024. Sodexo has its own group purchasing organization, Entegra, with annual purchasing of over EUR 37 billion. The company spun off its benefits and services business, Pluxee, and now focuses on foodservice and its second business, facilities management.
69GF Score
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