74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:74SW - FR0011040500 - Common Stock
41.5 EUR
0 (0%)
Taking everything into account, 74SW scores 5 out of 10 in our fundamental rating. 74SW was compared to 114 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
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.
74SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
74SW's Return On Assets of 3.47% is in line compared to the rest of the industry. 74SW outperforms 47.62% of its industry peers.
74SW has a Return On Equity (8.15%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 8.61%, 74SW is doing good in the industry, outperforming 63.81% of the companies in the same industry.
| 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
74SW has a Profit Margin (6.36%) which 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 63.81% of its industry peers.
74SW's Operating Margin has improved in the last couple of years.
The Gross Margin of 74SW (58.36%) is worse than 66.67% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 74SW is creating some value.
Compared to 1 year ago, 74SW has more shares outstanding
Compared to 5 years ago, 74SW has more shares outstanding
Compared to 1 year ago, 74SW has a worse debt to assets ratio.
2.2 Solvency
74SW has an Altman-Z score of 2.47. 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.
74SW's Altman-Z score of 2.47 is in line compared to the rest of the industry. 74SW outperforms 46.67% of its industry peers.
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.
74SW has a Debt to FCF ratio of 3.77. This is comparable to the rest of the industry: 74SW outperforms 54.29% of its industry peers.
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 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.09
WACC7.93%
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 (1.27) which is comparable to the rest of the industry.
74SW has a Quick Ratio of 1.25. 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 Quick ratio (1.25) which 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
The Earnings Per Share has grown by an nice 11.45% over the past year.
74SW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.06% 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)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
Based on estimates for the next years, 74SW will show a very strong growth in Earnings Per Share. The EPS will grow by 40.08% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.56, which indicates a rather expensive current valuation of 74SW.
75.24% of the companies in the same industry are more expensive than 74SW, based on the Price/Earnings ratio.
74SW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 17.20, which indicates a rather expensive current valuation of 74SW.
Based on the Price/Forward Earnings ratio, 74SW is valued a bit cheaper than the industry average as 78.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.23. 74SW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 17.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 74SW is valued a bit cheaper than 73.33% of the companies in the same industry.
74SW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 74SW is cheaper than 84.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.89 | ||
| EV/EBITDA | 12.3 |
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)0.54
PEG (5Y)0.53
EPS Next 2Y42.38%
EPS Next 3Y35.23%
5. Dividend
5.1 Amount
74SW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EPA:74SW (1/2/2026, 7:00:00 PM)
41.5
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners20.69%
Inst Owner ChangeN/A
Ins Owners1.79%
Ins Owner ChangeN/A
Market Cap1.23B
Revenue(TTM)657.21M
Net Income(TTM)41.80M
Analysts84
Price Target48.3 (16.39%)
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%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 17.2 | ||
| P/S | 1.88 | ||
| P/FCF | 14.89 | ||
| P/OCF | 11.54 | ||
| P/B | 2.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.3 |
EPS(TTM)1.69
EY4.07%
EPS(NY)2.41
Fwd EY5.81%
FCF(TTM)2.79
FCFY6.72%
OCF(TTM)3.6
OCFY8.67%
SpS22.09
BVpS17.24
TBVpS-4.77
PEG (NY)0.54
PEG (5Y)0.53
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 | 2.47 |
F-Score4
WACC7.93%
ROIC/WACC1.09
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.
Can you provide the valuation status for 74SOFTWARE SA?
ChartMill assigns a valuation rating of 6 / 10 to 74SOFTWARE SA (74SW.PA). This can be considered as Fairly Valued.
What is the profitability of 74SW stock?
74SOFTWARE SA (74SW.PA) has a profitability rating of 5 / 10.
How financially healthy is 74SOFTWARE SA?
The financial health rating of 74SOFTWARE SA (74SW.PA) is 3 / 10.
Can you provide the expected EPS growth for 74SW stock?
The Earnings per Share (EPS) of 74SOFTWARE SA (74SW.PA) is expected to grow by 45.29% in the next year.