74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:74SW - FR0011040500 - Common Stock
41.3 EUR
+0.4 (+0.98%)
We assign a fundamental rating of 5 out of 10 to 74SW. 74SW was compared to 105 industry peers in the Software industry. There are concerns on the financial health of 74SW while its profitability can be described as average. 74SW is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
Each year in the past 5 years 74SW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 74SW (3.47%) is comparable to the rest of the industry.
74SW has a Return On Equity of 8.15%. This is comparable to the rest of the industry: 74SW outperforms 48.57% of its industry peers.
74SW has a better Return On Invested Capital (8.61%) than 62.86% 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
Looking at the Profit Margin, with a value of 6.36%, 74SW is in line with its industry, outperforming 53.33% of the companies in the same industry.
In the last couple of years the Profit Margin of 74SW has grown nicely.
74SW has a better Operating Margin (13.57%) than 62.86% of its industry peers.
In the last couple of years the Operating Margin of 74SW has grown nicely.
74SW's Gross Margin of 58.36% is on the low side compared to the rest of the industry. 74SW is outperformed by 66.67% of its industry peers.
74SW's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for 74SW has been increased compared to 1 year ago.
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.
The Altman-Z score of 74SW (2.47) is comparable to the rest of the industry.
74SW has a debt to FCF ratio of 3.77. This is a good value and a sign of high solvency as 74SW would need 3.77 years to pay back of all of its debts.
74SW has a Debt to FCF ratio (3.77) which is comparable to the rest of the 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 70.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.09
WACC7.92%
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.
The Current ratio of 74SW (1.27) 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.
74SW's Quick ratio of 1.25 is in line compared to the rest of the industry. 74SW outperforms 40.95% of its industry peers.
| 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.
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%.
The Revenue has been growing by 9.02% on average over the past years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 24.44, the valuation of 74SW can be described as rather expensive.
Based on the Price/Earnings ratio, 74SW is valued a bit cheaper than 74.29% 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 26.84, which is the current average of the S&P500 Index.
74SW is valuated rather expensively with a Price/Forward Earnings ratio of 17.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 74SW indicates a somewhat cheap valuation: 74SW is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, 74SW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 17.12 |
4.2 Price Multiples
74SW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 74SW is cheaper than 73.33% of the companies in the same industry.
85.71% 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 | 14.82 | ||
| EV/EBITDA | 12.25 |
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.
A more expensive valuation may be justified as 74SW's earnings are expected to grow with 35.23% in the coming years.
PEG (NY)0.54
PEG (5Y)0.53
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 (12/29/2025, 7:00:00 PM)
41.3
+0.4 (+0.98%)
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 Cap1.23B
Revenue(TTM)657.21M
Net Income(TTM)41.80M
Analysts84
Price Target48.3 (16.95%)
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 | 24.44 | ||
| Fwd PE | 17.12 | ||
| P/S | 1.87 | ||
| P/FCF | 14.82 | ||
| P/OCF | 11.48 | ||
| P/B | 2.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.25 |
EPS(TTM)1.69
EY4.09%
EPS(NY)2.41
Fwd EY5.84%
FCF(TTM)2.79
FCFY6.75%
OCF(TTM)3.6
OCFY8.71%
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
WACC7.92%
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.
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.