74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - EPA:74SW - FR0011040500 - Common Stock
36.9 EUR
-0.5 (-1.34%)
Taking everything into account, 74SW scores 5 out of 10 in our fundamental rating. 74SW was compared to 103 industry peers in the Software industry. 74SW has a medium profitability rating, but doesn't score so well on its financial health evaluation. An interesting combination arises when we look at growth and value: 74SW is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year 74SW was profitable.
74SW had a positive operating cash flow in the past year.
74SW had positive earnings in 4 of the past 5 years.
74SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
74SW has a Return On Assets of 3.50%. This is comparable to the rest of the industry: 74SW outperforms 51.46% of its industry peers.
74SW has a Return On Equity (8.23%) which is in line with its industry peers.
74SW has a Return On Invested Capital of 8.56%. This is in the better half of the industry: 74SW outperforms 66.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 8.23% | ||
| ROIC | 8.56% |
ROA(3y)0.72%
ROA(5y)1.07%
ROE(3y)1.83%
ROE(5y)2.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
74SW has a Profit Margin (6.42%) which is in line with its industry peers.
74SW's Profit Margin has improved in the last couple of years.
74SW has a Operating Margin of 13.51%. This is in the better half of the industry: 74SW outperforms 66.02% of its industry peers.
In the last couple of years the Operating Margin of 74SW has grown nicely.
74SW has a Gross Margin of 58.36%. This is in the lower half of the industry: 74SW underperforms 63.11% of its industry peers.
74SW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.51% | ||
| PM (TTM) | 6.42% | ||
| GM | 58.36% |
OM growth 3Y35.63%
OM growth 5Y24.6%
PM growth 3Y36.11%
PM growth 5Y36.31%
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.
74SW has more shares outstanding than it did 1 year ago.
74SW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 74SW is higher compared to a year ago.
2.2 Solvency
74SW has an Altman-Z score of 2.36. This is not the best score and indicates that 74SW is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.36, 74SW is in line with its industry, outperforming 41.75% of the companies in the same industry.
The Debt to FCF ratio of 74SW is 3.80, which is a good value as it means it would take 74SW, 3.80 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.80, 74SW perfoms like the industry average, outperforming 58.25% 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's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. 74SW is outperformed by 65.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.06
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.27 indicates that 74SW should not have too much problems paying its short term obligations.
74SW has a Current ratio of 1.27. This is comparable to the rest of the industry: 74SW outperforms 49.51% of its industry peers.
A Quick Ratio of 1.25 indicates that 74SW should not have too much problems paying its short term obligations.
74SW's Quick ratio of 1.25 is in line compared to the rest of the industry. 74SW outperforms 52.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.69% over the past year.
74SW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.02% yearly.
Looking at the last year, 74SW shows a very strong growth in Revenue. 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)12.69%
EPS 3Y62.08%
EPS 5Y46.02%
EPS Q2Q%66.81%
Revenue 1Y (TTM)103.99%
Revenue growth 3Y17.39%
Revenue growth 5Y9.02%
Sales Q2Q%131.39%
3.2 Future
Based on estimates for the next years, 74SW will show a very strong growth in Earnings Per Share. The EPS will grow by 39.52% on average per year.
Based on estimates for the next years, 74SW will show a quite strong growth in Revenue. The Revenue will grow by 11.89% on average per year.
EPS Next Y44.64%
EPS Next 2Y42.38%
EPS Next 3Y35.11%
EPS Next 5Y39.52%
Revenue Next Year54.49%
Revenue Next 2Y26.48%
Revenue Next 3Y17.48%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.58, 74SW is valued on the expensive side.
Based on the Price/Earnings ratio, 74SW is valued cheaper than 81.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. 74SW is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.30 indicates a correct valuation of 74SW.
Based on the Price/Forward Earnings ratio, 74SW is valued cheaper than 82.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 74SW to the average of the S&P500 Index (22.77), we can say 74SW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 74SW is valued a bit cheaper than 76.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 74SW is valued cheaply inside the industry as 87.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.31 | ||
| EV/EBITDA | 11.32 |
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 35.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.47
EPS Next 2Y42.38%
EPS Next 3Y35.11%
5. Dividend
5.1 Amount
74SW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:74SW (9/15/2025, 5:20:27 PM)
36.9
-0.5 (-1.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners21.8%
Inst Owner ChangeN/A
Ins Owners1.79%
Ins Owner ChangeN/A
Market Cap1.10B
Analysts84
Price Target48.3 (30.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)31.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)16.78%
EPS NY rev (3m)16.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 15.3 | ||
| P/S | 1.67 | ||
| P/FCF | 13.31 | ||
| P/OCF | 10.33 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.32 |
EPS(TTM)1.71
EY4.63%
EPS(NY)2.41
Fwd EY6.54%
FCF(TTM)2.77
FCFY7.51%
OCF(TTM)3.57
OCFY9.68%
SpS22.09
BVpS17.23
TBVpS-4.79
PEG (NY)0.48
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 8.23% | ||
| ROCE | 10.23% | ||
| ROIC | 8.56% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 47.5% | ||
| OM | 13.51% | ||
| PM (TTM) | 6.42% | ||
| GM | 58.36% | ||
| FCFM | 12.55% |
ROA(3y)0.72%
ROA(5y)1.07%
ROE(3y)1.83%
ROE(5y)2.09%
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 3Y20.33%
ROICexcg growth 5Y-3.93%
ROICexc growth 3Y26.86%
ROICexc growth 5Y16.93%
OM growth 3Y35.63%
OM growth 5Y24.6%
PM growth 3Y36.11%
PM growth 5Y36.31%
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 | 3.8 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 74.94% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.14% | ||
| Profit Quality | 195.5% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.36 |
F-Score4
WACC8.05%
ROIC/WACC1.06
Cap/Depr(3y)30.44%
Cap/Depr(5y)28.83%
Cap/Sales(3y)1.36%
Cap/Sales(5y)1.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.69%
EPS 3Y62.08%
EPS 5Y46.02%
EPS Q2Q%66.81%
EPS Next Y44.64%
EPS Next 2Y42.38%
EPS Next 3Y35.11%
EPS Next 5Y39.52%
Revenue 1Y (TTM)103.99%
Revenue growth 3Y17.39%
Revenue growth 5Y9.02%
Sales Q2Q%131.39%
Revenue Next Year54.49%
Revenue Next 2Y26.48%
Revenue Next 3Y17.48%
Revenue Next 5Y11.89%
EBIT growth 1Y85.41%
EBIT growth 3Y59.21%
EBIT growth 5Y35.84%
EBIT Next Year122.91%
EBIT Next 3Y36.4%
EBIT Next 5Y28.35%
FCF growth 1Y313.53%
FCF growth 3Y25.01%
FCF growth 5Y16.9%
OCF growth 1Y361.91%
OCF growth 3Y34.79%
OCF growth 5Y18.43%