74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:74SW - FR0011040500 - Common Stock
39.4 EUR
-0.2 (-0.51%)
We assign a fundamental rating of 5 out of 10 to 74SW. 74SW was compared to 115 industry peers in the Software industry. 74SW has a medium profitability rating, but doesn't score so well on its financial health evaluation. 74SW is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year 74SW was profitable.
74SW had a positive operating cash flow in the past year.
Of the past 5 years 74SW 4 years were profitable.
In the past 5 years 74SW always reported a positive cash flow from operatings.
1.2 Ratios
74SW's Return On Assets of 3.47% is in line compared to the rest of the industry. 74SW outperforms 48.70% of its industry peers.
74SW has a Return On Equity (8.15%) which is in line with its industry peers.
The Return On Invested Capital of 74SW (8.61%) is better than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 8.15% | ||
| ROIC | 8.61% |
ROA(3y)0.73%
ROA(5y)1.07%
ROE(3y)1.84%
ROE(5y)2.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of 74SW (6.36%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 74SW has grown nicely.
74SW has a Operating Margin of 13.57%. This is in the better half of the industry: 74SW outperforms 65.22% of its industry peers.
In the last couple of years the Operating Margin of 74SW has grown nicely.
Looking at the Gross Margin, with a value of 58.36%, 74SW is doing worse than 61.74% of the companies in the same industry.
In the last couple of years the Gross Margin of 74SW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.57% | ||
| PM (TTM) | 6.36% | ||
| GM | 58.36% |
OM growth 3Y35.39%
OM growth 5Y24.47%
PM growth 3Y35.92%
PM growth 5Y36.2%
GM growth 3Y-0.24%
GM growth 5Y0.75%
2. Health
2.1 Basic Checks
74SW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 74SW has more shares outstanding
The number of shares outstanding for 74SW has been increased compared to 5 years ago.
74SW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.42 indicates that 74SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.42, 74SW perfoms like the industry average, outperforming 49.57% of the companies in the same industry.
The Debt to FCF ratio of 74SW is 3.77, which is a good value as it means it would take 74SW, 3.77 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.77, 74SW perfoms like the industry average, outperforming 59.13% of the companies in the same industry.
74SW has a Debt/Equity ratio of 0.56. This is a neutral value indicating 74SW is somewhat dependend on debt financing.
74SW has a worse Debt to Equity ratio (0.56) than 66.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.01
WACC8.5%
2.3 Liquidity
74SW has a Current Ratio of 1.27. This is a normal value and indicates that 74SW is financially healthy and should not expect problems in meeting its short term obligations.
74SW has a Current ratio (1.27) which is comparable to the rest of the industry.
A Quick Ratio of 1.25 indicates that 74SW should not have too much problems paying its short term obligations.
The Quick ratio of 74SW (1.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
74SW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.45%, which is quite good.
The Earnings Per Share has been growing by 46.06% on average over the past years. This is a very strong growth
74SW shows a strong growth in Revenue. In the last year, the Revenue has grown by 103.99%.
74SW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.02% yearly.
EPS 1Y (TTM)11.45%
EPS 3Y62.16%
EPS 5Y46.06%
EPS Q2Q%66.81%
Revenue 1Y (TTM)103.99%
Revenue growth 3Y17.39%
Revenue growth 5Y9.02%
Sales Q2Q%131.39%
3.2 Future
74SW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.08% yearly.
The Revenue is expected to grow by 11.89% on average over the next years. This is quite good.
EPS Next Y45.29%
EPS Next 2Y42.38%
EPS Next 3Y35.23%
EPS Next 5Y40.08%
Revenue Next Year54.18%
Revenue Next 2Y26.33%
Revenue Next 3Y18.17%
Revenue Next 5Y11.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
74SW is valuated rather expensively with a Price/Earnings ratio of 23.31.
74SW's Price/Earnings ratio is a bit cheaper when compared to the industry. 74SW is cheaper than 72.17% of the companies in the same industry.
74SW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.33, the valuation of 74SW can be described as correct.
74SW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 74SW is cheaper than 78.26% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, 74SW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.31 | ||
| Fwd PE | 16.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 74SW is valued a bit cheaper than the industry average as 74.78% of the companies are valued more expensively.
86.09% of the companies in the same industry are more expensive than 74SW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.13 | ||
| EV/EBITDA | 11.83 |
4.3 Compensation for Growth
74SW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
74SW's earnings are expected to grow with 35.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)0.51
EPS Next 2Y42.38%
EPS Next 3Y35.23%
5. Dividend
5.1 Amount
No dividends for 74SW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EPA:74SW (12/22/2025, 3:36:48 PM)
39.4
-0.2 (-0.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners20.93%
Inst Owner ChangeN/A
Ins Owners1.79%
Ins Owner ChangeN/A
Market Cap1.17B
Revenue(TTM)657.21M
Net Income(TTM)41.80M
Analysts84
Price Target48.3 (22.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.31 | ||
| Fwd PE | 16.33 | ||
| P/S | 1.78 | ||
| P/FCF | 14.13 | ||
| P/OCF | 10.95 | ||
| P/B | 2.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.83 |
EPS(TTM)1.69
EY4.29%
EPS(NY)2.41
Fwd EY6.12%
FCF(TTM)2.79
FCFY7.08%
OCF(TTM)3.6
OCFY9.13%
SpS22.09
BVpS17.24
TBVpS-4.77
PEG (NY)0.51
PEG (5Y)0.51
Graham Number25.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 8.15% | ||
| ROCE | 10.28% | ||
| ROIC | 8.61% | ||
| ROICexc | 9.23% | ||
| ROICexgc | 47.76% | ||
| OM | 13.57% | ||
| PM (TTM) | 6.36% | ||
| GM | 58.36% | ||
| FCFM | 12.62% |
ROA(3y)0.73%
ROA(5y)1.07%
ROE(3y)1.84%
ROE(5y)2.1%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y19.99%
ROICexgc growth 5Y-4.09%
ROICexc growth 3Y26.63%
ROICexc growth 5Y16.8%
OM growth 3Y35.39%
OM growth 5Y24.47%
PM growth 3Y35.92%
PM growth 5Y36.2%
GM growth 3Y-0.24%
GM growth 5Y0.75%
F-Score4
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.77 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 75.91% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.49% | ||
| Profit Quality | 198.4% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.42 |
F-Score4
WACC8.5%
ROIC/WACC1.01
Cap/Depr(3y)31.16%
Cap/Depr(5y)29.26%
Cap/Sales(3y)1.37%
Cap/Sales(5y)1.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.45%
EPS 3Y62.16%
EPS 5Y46.06%
EPS Q2Q%66.81%
EPS Next Y45.29%
EPS Next 2Y42.38%
EPS Next 3Y35.23%
EPS Next 5Y40.08%
Revenue 1Y (TTM)103.99%
Revenue growth 3Y17.39%
Revenue growth 5Y9.02%
Sales Q2Q%131.39%
Revenue Next Year54.18%
Revenue Next 2Y26.33%
Revenue Next 3Y18.17%
Revenue Next 5Y11.89%
EBIT growth 1Y86.29%
EBIT growth 3Y58.93%
EBIT growth 5Y35.69%
EBIT Next Year104.18%
EBIT Next 3Y36.79%
EBIT Next 5Y28.83%
FCF growth 1Y319.01%
FCF growth 3Y25.5%
FCF growth 5Y17.17%
OCF growth 1Y367.86%
OCF growth 3Y35.22%
OCF growth 5Y18.66%
74SOFTWARE SA / 74SW.PA FAQ
Can you provide the ChartMill fundamental rating for 74SOFTWARE SA?
ChartMill assigns a fundamental rating of 5 / 10 to 74SW.PA.
What is the valuation status for 74SW stock?
ChartMill assigns a valuation rating of 6 / 10 to 74SOFTWARE SA (74SW.PA). This can be considered as Fairly Valued.
How profitable is 74SOFTWARE SA (74SW.PA) stock?
74SOFTWARE SA (74SW.PA) has a profitability rating of 5 / 10.
Can you provide the financial health for 74SW stock?
The financial health rating of 74SOFTWARE SA (74SW.PA) is 3 / 10.
What is the expected EPS growth for 74SOFTWARE SA (74SW.PA) stock?
The Earnings per Share (EPS) of 74SOFTWARE SA (74SW.PA) is expected to grow by 45.29% in the next year.