Analysis of Sopra Steria share price

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If you want to start trading the Sopra Steria share price online, today we are offering you the opportunity to learn more about this stock through an article which is entirely dedicated to it. On this page, you will of course be able to follow the price of this value live on the charts in real time and also discover all the information you need to carry out a sound analysis of its trends. We'll be explaining what the detailed and complete activities of this group are, who its main partners and its main competitors are and what the strengths and weaknesses of this company are as well as the current elements to follow for your fundamental analyses.

Latest news

SOPRA-STERIA: annual outlook confirmed, despite a timid first quarter

30/04/2021 - 07h05

The French group Sopra-Steria has confirmed its annual targets for the 2021 financial year. This decision was taken following the publication of the company's first quarter results

Elements that can influence the price of this asset:

Analysis N°1

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.

Analysis N°2

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.

Analysis N°3

Obviously, you should also be monitoring the acquisition of contracts in the financial sector that will determine Sopra Steria's future results.

Analysis N°4

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.

Analysis N°5

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.

Analysis N°6

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.

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General presentation of Sopra Steria

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:

  • Consulting service activities particularly strategic consulting services, advice in the implementation of restructuring and development projects towards new technologies and other IT consulting services.
  • Solutions and systems integration activities including the design and deployment of Internet technology solutions such as portals, merchant sites, intranets, extranets and others, the integration of ERP solutions, the implementation of application solutions for customer relationship management and HR management. You should also bear in mind that the Sopra Steria group also offers subcontracting solutions in order to provide technical support to its users as well as maintenance services for its applications.
  • Finally, the activities of outsourcing services and operation of business processes with the supervision, administration and operation of IT infrastructures, the operation of finance, administration or human resources functions.

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.

Analysis of Sopra Steria share price
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The major competitors of Sopra Steria

As part of your analyses of this value, you must also be aware of the Sopra Steria competition. Since this group operates in France and Europe, you should study the most important companies in this sector of activity in these economic zones. Here's the list of competitors in this group whose results and news you should follow in order to determine the future trends of this stock more precisely.

The main competitors of Sopra Steria in France are the following:

Orange Business Services

with a turnover of 1,675 million euros.

GFI Informatique Group

with a turnover of 733 million euros.

The Econocom company

with a turnover of 622 million euros.

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The factors in favour of a rise in the Sopra Steria share price:

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.

The factors in favour of a drop in the Sopra Steria share price:

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.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

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