SodexoSDXAY +2.17%70 Net Margin % is 1.56% as of Feb. 2026, which is 50% below its 10-year median of 3.09. GuruFocus rates SDXAY with a GF Score™ of 70/100 and a GF Value™ of $18.71 (Significantly Undervalued). The stock has 9 warning signs investors should review. Among 1,074 Business Services companies, Sodexo ranks worse than 62.94% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Sodexo's Net Income for the
six
months ended in Feb. 2026 was $222 Mil. Sodexo's Revenue for the
six
months ended in Feb. 2026 was $14,204 Mil. Therefore, Sodexo's net margin for the quarter that ended in Feb. 2026 was 1.56%.
The historical rank and industry rank for Sodexo's Net Margin % or its related term are showing as below:
SDXAY'
s Net Margin % Range Over the Past 10 Years
Min: -1.63 Med: 3.09 Max: 3.51
Current: 1.9
SDXAY's Net Margin % is ranked worse than 62.94% of 1074
companies
in the Business Services industry
Industry Median: 3.83
vs SDXAY: 1.90
Sodexo (OTCPK:SDXAY) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Sodexo Net Margin % Related Terms
Sodexo Net Margin % Historical Data
* Premium members only.
The historical data trend for Sodexo's Net 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.
For the Specialty Business Services subindustry, Sodexo's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Sodexo's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sodexo's Net 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.
Sodexo (SDXAY) has a Net Margin % of 1.56% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Sodexo and its competitors. This is 50% below median its historical median of 3.09. According to the industry distribution chart, Sodexo ranks #676 out of 1074 companies in the Business Services industry, placing it in the top 62.9%.
Is Sodexo's Net Margin % too high?
Sodexo's current Net Margin % of 1.56% is 50% below median its 10-year median of 3.09. The Business Services industry median Net Margin % is 3.83. Sodexo's value of 1.56% is 59.3% below this industry median. Based on the distribution chart, Sodexo ranks #676 out of 1074 companies in the Business Services industry, which is below the industry midpoint. Overall, Sodexo has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sodexo's Net Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Sodexo ranks #676 out of 1074 companies for Net Margin %. This places Sodexo in the lower half of its industry. The industry median Net Margin % is 3.83. Sodexo's value of 1.56% is 59.3% below this benchmark. While the company's 10-year median is 3.09 vs. the industry median of 3.83, 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 Net Margin % for a Business Services company?
The median Net Margin % among Business Services companies is 3.83, based on 1,074 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sodexo's current Net Margin % of 1.56% is 59.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Sodexo and its competitors. For the Business Services industry, the median Net Margin % is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sodexo's current Net Margin % is 1.56%, which is 50% below median its own 10-year median of 3.09. 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 (SDXAY) is currently considered Significantly Undervalued. The stock's GF Value™ is $18.71, compared to a current price of $11.77 — trading 37.1% below its estimated fair value. The current Net Margin % is 1.56%, which is 50% below median its 10-year median of 3.09 and 59.3% below the Business Services industry median of 3.83. Sodexo's overall GF Score™ is 70/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Sodexo (SDXAY), the current Net Margin % is 1.56% 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 (SDXAY) Overvalued in 2026?
Based on GuruFocus' analysis, Sodexo stock appears to be undervalued.
The current stock price of $11.77 is trading 37.1% below its estimated GF Value™ of $18.71.
GuruFocus considers Sodexo to be Significantly Undervalued.
Key valuation signals for SDXAY:
Net Margin %: 1.56% (50% below median its 10-year median of 3.09)
GF Value™: $18.71 vs. price of $11.77 (37.1% below fair value)
Industry Position: 59.3% below the Business Services median (#676 of 1074)
No single metric tells the full story. See the SDXAY 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.
70GF Score
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