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74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis

EPA:74SW - Euronext Paris - Matif - FR0011040500 - Common Stock - Currency: EUR

30.2  +0.6 (+2.03%)

Fundamental Rating

5

Overall 74SW gets a fundamental rating of 5 out of 10. We evaluated 74SW against 99 industry peers in the Software industry. 74SW has an excellent profitability rating, but there are some minor concerns on its financial health. 74SW has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

74SW had positive earnings in the past year.
In the past year 74SW had a positive cash flow from operations.
Of the past 5 years 74SW 4 years were profitable.
In the past 5 years 74SW always reported a positive cash flow from operatings.
74SW.PA Yearly Net Income VS EBIT VS OCF VS FCF74SW.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M -40M

1.2 Ratios

74SW's Return On Assets of 5.91% is fine compared to the rest of the industry. 74SW outperforms 63.64% of its industry peers.
Looking at the Return On Equity, with a value of 9.82%, 74SW is in the better half of the industry, outperforming 62.63% of the companies in the same industry.
The Return On Invested Capital of 74SW (8.44%) is better than 67.68% of its industry peers.
Industry RankSector Rank
ROA 5.91%
ROE 9.82%
ROIC 8.44%
ROA(3y)0.22%
ROA(5y)0.63%
ROE(3y)0.24%
ROE(5y)0.92%
ROIC(3y)N/A
ROIC(5y)N/A
74SW.PA Yearly ROA, ROE, ROIC74SW.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 -10

1.3 Margins

Looking at the Profit Margin, with a value of 10.84%, 74SW is in the better half of the industry, outperforming 64.65% of the companies in the same industry.
74SW's Profit Margin has improved in the last couple of years.
74SW's Operating Margin of 14.86% is fine compared to the rest of the industry. 74SW outperforms 73.74% of its industry peers.
74SW's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 79.13%, 74SW is doing good in the industry, outperforming 69.70% of the companies in the same industry.
In the last couple of years the Gross Margin of 74SW has grown nicely.
Industry RankSector Rank
OM 14.86%
PM (TTM) 10.84%
GM 79.13%
OM growth 3Y40.26%
OM growth 5Y16.17%
PM growth 3Y57.93%
PM growth 5Y23.73%
GM growth 3Y0.08%
GM growth 5Y1.58%
74SW.PA Yearly Profit, Operating, Gross Margins74SW.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

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5

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.
74SW has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 74SW has more shares outstanding
74SW has a better debt/assets ratio than last year.
74SW.PA Yearly Shares Outstanding74SW.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
74SW.PA Yearly Total Debt VS Total Assets74SW.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

2.2 Solvency

An Altman-Z score of 4.00 indicates that 74SW is not in any danger for bankruptcy at the moment.
74SW's Altman-Z score of 4.00 is fine compared to the rest of the industry. 74SW outperforms 64.65% of its industry peers.
The Debt to FCF ratio of 74SW is 5.41, which is a neutral value as it means it would take 74SW, 5.41 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 74SW (5.41) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.29 indicates that 74SW is not too dependend on debt financing.
74SW has a Debt to Equity ratio (0.29) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 5.41
Altman-Z 4
ROIC/WACC1.06
WACC7.94%
74SW.PA Yearly LT Debt VS Equity VS FCF74SW.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.3 Liquidity

74SW has a Current Ratio of 1.90. This is a normal value and indicates that 74SW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 74SW (1.90) is better than 75.76% of its industry peers.
A Quick Ratio of 1.90 indicates that 74SW should not have too much problems paying its short term obligations.
The Quick ratio of 74SW (1.90) is better than 76.77% of its industry peers.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.9
74SW.PA Yearly Current Assets VS Current Liabilites74SW.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

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6

3. Growth

3.1 Past

74SW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 184.61%, which is quite impressive.
Measured over the past years, 74SW shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.49% on average per year.
Looking at the last year, 74SW shows a decrease in Revenue. The Revenue has decreased by -0.27% in the last year.
74SW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.36% yearly.
EPS 1Y (TTM)184.61%
EPS 3Y58.68%
EPS 5Y24.49%
EPS Q2Q%-33.16%
Revenue 1Y (TTM)-0.27%
Revenue growth 3Y2.38%
Revenue growth 5Y2.36%
Sales Q2Q%2.2%

3.2 Future

74SW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.99% yearly.
Based on estimates for the next years, 74SW will show a quite strong growth in Revenue. The Revenue will grow by 19.75% on average per year.
EPS Next Y-4.66%
EPS Next 2Y13.11%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue Next Year46.01%
Revenue Next 2Y49.53%
Revenue Next 3Y32.12%
Revenue Next 5Y19.75%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
74SW.PA Yearly Revenue VS Estimates74SW.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 200M 400M 600M 800M
74SW.PA Yearly EPS VS Estimates74SW.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0.5 1 1.5 2

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 19.87 indicates a rather expensive valuation of 74SW.
Based on the Price/Earnings ratio, 74SW is valued cheaper than 86.87% of the companies in the same industry.
74SW is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.39 indicates a correct valuation of 74SW.
Based on the Price/Forward Earnings ratio, 74SW is valued cheaply inside the industry as 82.83% of the companies are valued more expensively.
74SW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.87
Fwd PE 15.39
74SW.PA Price Earnings VS Forward Price Earnings74SW.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 74SW indicates a somewhat cheap valuation: 74SW is cheaper than 66.67% of the companies listed in the same industry.
74SW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 74SW is cheaper than 62.63% of the companies in the same industry.
Industry RankSector Rank
P/FCF 44.48
EV/EBITDA 16.22
74SW.PA Per share data74SW.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

74SW has a very decent profitability rating, which may justify a higher PE ratio.
74SW's earnings are expected to grow with 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y13.11%
EPS Next 3Y13.99%

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0

5. Dividend

5.1 Amount

No dividends for 74SW!.
Industry RankSector Rank
Dividend Yield N/A

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74SOFTWARE SA

EPA:74SW (3/7/2025, 7:00:00 PM)

30.2

+0.6 (+2.03%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26 2025-02-26/amc
Earnings (Next)07-24 2025-07-24
Inst Owners21.86%
Inst Owner ChangeN/A
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap898.45M
Analysts86.67
Price Target33.32 (10.33%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.36
Dividend Growth(5Y)12.13%
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 19.87
Fwd PE 15.39
P/S 2.79
P/FCF 44.48
P/OCF 37.4
P/B 2.52
P/tB 20.53
EV/EBITDA 16.22
EPS(TTM)1.52
EY5.03%
EPS(NY)1.96
Fwd EY6.5%
FCF(TTM)0.68
FCFY2.25%
OCF(TTM)0.81
OCFY2.67%
SpS10.83
BVpS11.96
TBVpS1.47
PEG (NY)N/A
PEG (5Y)0.81
Profitability
Industry RankSector Rank
ROA 5.91%
ROE 9.82%
ROCE 10.09%
ROIC 8.44%
ROICexc 8.76%
ROICexgc 27.47%
OM 14.86%
PM (TTM) 10.84%
GM 79.13%
FCFM 6.27%
ROA(3y)0.22%
ROA(5y)0.63%
ROE(3y)0.24%
ROE(5y)0.92%
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
ROICexcg growth 3Y11.37%
ROICexcg growth 5YN/A
ROICexc growth 3Y40.16%
ROICexc growth 5Y14.9%
OM growth 3Y40.26%
OM growth 5Y16.17%
PM growth 3Y57.93%
PM growth 5Y23.73%
GM growth 3Y0.08%
GM growth 5Y1.58%
F-Score6
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 5.41
Debt/EBITDA 1.68
Cap/Depr 29.05%
Cap/Sales 1.19%
Interest Coverage 250
Cash Conversion 39.35%
Profit Quality 57.82%
Current Ratio 1.9
Quick Ratio 1.9
Altman-Z 4
F-Score6
WACC7.94%
ROIC/WACC1.06
Cap/Depr(3y)13.52%
Cap/Depr(5y)20.33%
Cap/Sales(3y)0.83%
Cap/Sales(5y)1.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)184.61%
EPS 3Y58.68%
EPS 5Y24.49%
EPS Q2Q%-33.16%
EPS Next Y-4.66%
EPS Next 2Y13.11%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.27%
Revenue growth 3Y2.38%
Revenue growth 5Y2.36%
Sales Q2Q%2.2%
Revenue Next Year46.01%
Revenue Next 2Y49.53%
Revenue Next 3Y32.12%
Revenue Next 5Y19.75%
EBIT growth 1Y244.74%
EBIT growth 3Y43.6%
EBIT growth 5Y18.92%
EBIT Next Year52.38%
EBIT Next 3Y42.53%
EBIT Next 5YN/A
FCF growth 1Y660.47%
FCF growth 3Y89.36%
FCF growth 5Y10.26%
OCF growth 1Y536.26%
OCF growth 3Y38.41%
OCF growth 5Y7.29%