SodexoCHIX:SWP +1.35%70 Return-on-Tangible-Asset is 4.26% as of Feb. 2026, which is 32% below its 10-year median of 6.22. GuruFocus rates CHIX:SWP with a GF Score™ of 70/100 and a GF Value™ of €75.99 (Significantly Undervalued). The stock has 9 warning signs investors should review. Among 1,096 Business Services companies, Sodexo ranks better than 56.66% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Sodexo's annualizedNet Income for the quarter that ended in Feb. 2026 was €376 Mil. Sodexo's average total tangible assets for the quarter that ended in Feb. 2026 was €8,825 Mil. Therefore, Sodexo's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2026 was 4.26%.
The historical rank and industry rank for Sodexo's Return-on-Tangible-Asset or its related term are showing as below:
CHIX:SWp'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -2.94 Med: 6.22 Max: 8.3
Current: 5.05
During the past 13 years, Sodexo's highest Return-on-Tangible-Asset was 8.30%. The lowest was -2.94%. And the median was 6.22%.
CHIX:SWp's Return-on-Tangible-Asset is ranked better than 56.66% of 1096
companies
in the Business Services industry
Industry Median: 3.92
vs CHIX:SWp: 5.05
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Sodexo Return-on-Tangible-Asset Related Terms
Sodexo Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Sodexo's Return-on-Tangible-Asset 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, ULS: Return-on-Tangible-Asset Comparison
For the Specialty Business Services subindustry, Sodexo's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Business Services Industry
For the Business Services industry and Industrials sector, Sodexo's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Sodexo's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Feb. 2026) net income data.
What does a Return-on-Tangible-Asset of 4.26% mean?
Sodexo (CHIX:SWP) has a Return-on-Tangible-Asset of 4.26% as of Feb. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Sodexo and its competitors. This is 32% below median its historical median of 6.22. According to the industry distribution chart, Sodexo ranks #475 out of 1096 companies in the Business Services industry, placing it in the top 43.3%.
Is Sodexo's Return-on-Tangible-Asset too high?
Sodexo's current Return-on-Tangible-Asset of 4.26% is 32% below median its 10-year median of 6.22. The Business Services industry median Return-on-Tangible-Asset is 3.92. Sodexo's value of 4.26% is 8.7% above this industry median. Based on the distribution chart, Sodexo ranks #475 out of 1096 companies in the Business Services industry, which is above 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 Return-on-Tangible-Asset compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Sodexo ranks #475 out of 1096 companies for Return-on-Tangible-Asset. This puts Sodexo in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.92. Sodexo's value of 4.26% is 8.7% above this benchmark. While the company's 10-year median is 6.22 vs. the industry median of 3.92, Sodexo has consistently been above 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 Return-on-Tangible-Asset for a Business Services company?
The median Return-on-Tangible-Asset among Business Services companies is 3.92, based on 1,096 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sodexo's current Return-on-Tangible-Asset of 4.26% is 8.7% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Sodexo and its competitors. For the Business Services industry, the median Return-on-Tangible-Asset is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sodexo's current Return-on-Tangible-Asset is 4.26%, which is 32% below median its own 10-year median of 6.22. 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 €75.99, compared to a current price of €50.78 — trading 33.2% below its estimated fair value. The current Return-on-Tangible-Asset is 4.26%, which is 32% below median its 10-year median of 6.22 and 8.7% above the Business Services industry median of 3.92. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Sodexo (CHIX:SWP), the current Return-on-Tangible-Asset is 4.26% 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 €50.78 is trading 33.2% below its estimated GF Value™ of €75.99.
GuruFocus considers Sodexo to be Significantly Undervalued.
Key valuation signals for CHIX:SWP:
Return-on-Tangible-Asset: 4.26% (32% below median its 10-year median of 6.22)
GF Value™: €75.99 vs. price of €50.78 (33.2% below fair value)
Industry Position: 8.7% above the Business Services median (#475 of 1096)
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.
70GF Score
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