First of all, because of the large part of its activities in the United Kingdom, the Sopra Steria group is influenced by the pound / euro parity. So you need to follow this currency pair and its evolution in the Forex market.
The results of this company are also sensitive to the funding committed for the workforce and its development as well as the level of inter-contracts.
Obviously, you should also be monitoring the acquisition of contracts in the financial sector that will determine Sopra Steria's future results.
As explained above, the operations aimed at promoting the expansion of Sopra Steria outside France are important, as will the diversification of the activities and services offered.
Also keep an eye on the financial results and the objectives set by the company, particularly with regard to revenue growth and the efficiency of the operating margin.
Finally, a complete study of Sopra Steria's competition in the markets targeted by the group is essential for any fundamental analysis, in particular the evolution of the market shares of each of the competing companies and the new technological solutions developed.
First of all, check out more about the activities carried out by the Sopra Steria group. This French company is currently one of the largest companies in the country in the IT services business sector. To better understand the activities of the group, they can be divided into several different hubs:
From a geographical point of view, the Sopra Steria group does not focus solely on the national market, it carries out its activities elsewhere in the world. More precisely, it generates 41.5% of its turnover in France, 20.8% in the United Kingdom and the remaining 37.7% in the rest of Europe.
Now that you are more familiar with the activities of the Sopra Steria group and its main sources of revenue, we will take a closer look at its main competitors and adversaries in its sector of activity with a presentation of the major players and their activities.
First of all, the Capgemini group is one of Sopra Steria's main competitors and is a French digital services company that was created in 1967 in Gernoble under the name of Sogeti. Currently, the Capgemini Group is the country's largest consulting firm and one of the ten largest in the world. The Capgemini share is listed on the Paris stock exchange and is part of the CAC 40 index.
This company is also specialised in digital services and was founded in France in 1997. It is currently one of the ten largest companies in this sector in the world with a very high annual turnover and more than 110,000 employees in 73 countries. The group is also the European leader in cloud, cybersecurity and supercomputing. It is listed on the CAC 40 and has also been the global IT partner for the Olympic and Paralympic Games since 2001.
Another French multinational engineering and technology consulting company is this digital services company, which was founded in 1988. The group is present in more than 28 countries around the world and employs 33,800 people, most of whom are consultants. In particular, Alten offers to provide engineers to work on their technological projects on a contract basis.
This engineering and technology consulting group was created by Maurice Ricci and is positioned in all industrial and tertiary sectors, including aeronautics, automotive, energy, rail, defence, space, information systems and telecommunications. There are 50 group companies in France, Germany, Belgium, Spain, Italy, India, Romania, the United Kingdom, China, Switzerland and North America.
Finally, the French payment services group Worldline was founded in 1974 and offers a variety of activities including merchant services, financial services and mobility and transactional web services.
With regard to the strengths of this company, the fact that the Sopra Steria group has become over time one of the largest European companies in its sector of activity since it ranks fourth in this market both in Europe and in France. This beneficial positioning was made possible by the friendly takeover bid of Sopra and Steria, which were previously independent entities. The positioning of Sopra Steria in France is particularly interesting since it is the French leader in this market, the other companies which are represented and which generate more turnover are foreign. But Sopra Steria is also the leader in providing IT services in the United Kingdom, where it generates just under a third of its turnover. The group is also very well represented in Germany.
Among the other strengths of the company is the fact that it offers a diversified and complete portfolio of services which is intelligently broken down into three major growth activities with Sopra banking Software which generates 59% of the group's revenue, Sopra HR Software which generates 31% and property management solutions that generate 10% of revenue.
The division of the activities of this group into 4 large segments with integration services, maintenance, licenses and managed services is another advantage given that this allows it to market its services in all professional fields.
The possibilities offered by Sopra Steria's increasingly strong positioning in the software banking sector, which is currently booming, are also appreciated. The group aims to double its turnover in this segment before 2020, especially through positions reinforced by the takeover of the Cassiopée Company in 2017, which is one of the major French publishers and specializes in specialized financing in more than 40 countries.
Another very promising segment in which the Sopra Storia group is also well positioned is that of cloud computing and big data. There's also an interesting positioning in co-transformation projects such as Ecomouv or Transactifs as well as in the field of cybersecurity.
Finally, the last advantage of this company is its ability to quickly obtain cost synergies through the merger of Sopra and Steria which complete a business plan with training and shareholding plans for employees who started in 2018.
First of all, although the Sopra Steria group is doing everything it can to boost its international expansion, its activities remain mainly concentrated in Europe and in particular in France and the United Kingdom, which increases its risk of exposure to these two markets and more specifically the financial and public sectors of these countries.
In the United Kingdom, we know that the group is currently encountering some difficulties in obtaining contracts with the administrations, which gives rise to certain uncertainties among investors. In Germany, Sopra Steria's activities are not doing much better, with still insufficient profitability in the face of the necessary investments and a significant lack of visibility on future results.
Another weak point to underline for the Sopra Steria group is the current controversy which could put it at risk of fines from the Competition Authority. This type of event would of course have significant negative repercussions on its brand image.
Finally, the Sopra Steria share is considered relatively expensive by analysts. This share is therefore unlikely to experience a long and lasting uptrend since strategic profit-taking operations can take place.
Now you only need to compare these weaknesses with the strengths mentioned above to get a better idea of the future prospects of this group.
Currently, part of Sopra Steria Group's capital is owned by various major private shareholders, including Amundi Asset Management with 6.62%, DNCA Finance with 3.29%, Oddo BHF Asset Management with 3.15%, JPMorgan Asset Management with 2.92%, Norges Bank Investment Management with 2.41%, The Vanguard Group with 2.07%, Dimensional Fund Advisors with 1.35% and Lazard Frères Gestion with 1.32%. The holding company Sopra GMT holds 19.6%.
To perform a good technical analysis of the Sopra Steria share price, you need to connect to a customisable stock chart such as those offered by online brokers. It is then recommended that you use several technical indicators together, such as the MACD, RSI, moving averages, Bollinger Bands, pivot points and major technical support and resistance levels.
If you want to invest in the Sopra Steria share price, you have several options, including buying the stock in cash on the stock market with a securities account, but also the possibility of speculating directly on the price of this stock without holding it and using derivatives such as CFDs or contracts for difference, which are available online on brokers' trading platforms.
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