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

Europe - EPA:74SW - FR0011040500 - Common Stock

36.8 EUR
0 (0%)
Last: 10/16/2025, 7:00:00 PM
Fundamental Rating

5

Overall 74SW gets a fundamental rating of 5 out of 10. We evaluated 74SW against 111 industry peers in the Software industry. While 74SW is still in line with the averages on profitability rating, there are concerns on its financial health. 74SW has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!


Dividend Valuation Growth Profitability Health

5

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.
74SW had positive earnings in 4 of the past 5 years.
Each year in the past 5 years 74SW had a positive operating cash flow.
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 2024 0 20M -20M 40M -40M 60M

1.2 Ratios

74SW has a Return On Assets (3.50%) which is in line with its industry peers.
74SW has a Return On Equity of 8.23%. This is comparable to the rest of the industry: 74SW outperforms 53.15% of its industry peers.
74SW has a Return On Invested Capital of 8.56%. This is in the better half of the industry: 74SW outperforms 68.47% of its industry peers.
Industry RankSector 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
74SW.PA Yearly ROA, ROE, ROIC74SW.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10

1.3 Margins

74SW has a Profit Margin of 6.42%. This is comparable to the rest of the industry: 74SW outperforms 57.66% of its industry peers.
In the last couple of years the Profit Margin of 74SW has grown nicely.
With a decent Operating Margin value of 13.51%, 74SW is doing good in the industry, outperforming 68.47% of the companies in the same industry.
74SW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.36%, 74SW is doing worse than 60.36% 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 RankSector 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%
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 2024 0 20 40 60 80

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 74SW is destroying value.
The number of shares outstanding for 74SW has been increased compared to 1 year ago.
The number of shares outstanding for 74SW has been increased compared to 5 years ago.
The debt/assets ratio for 74SW is higher compared to a year ago.
74SW.PA Yearly Shares Outstanding74SW.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
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 2024 200M 400M 600M 800M 1B

2.2 Solvency

74SW has an Altman-Z score of 2.35. 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 has a Altman-Z score of 2.35. This is comparable to the rest of the industry: 74SW outperforms 42.34% of its industry peers.
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.
74SW has a Debt to FCF ratio (3.80) which is in line with 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.
With a Debt to Equity ratio value of 0.56, 74SW is not doing good in the industry: 67.57% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 3.8
Altman-Z 2.35
ROIC/WACC1
WACC8.58%
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 2024 100M 200M 300M 400M 500M

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.
74SW has a Quick ratio (1.25) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.27
Quick Ratio 1.25
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 2024 100M 200M 300M 400M

8

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

The Earnings Per Share is expected to grow by 39.37% on average over the next years. This is a very strong growth
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 5Y39.37%
Revenue Next Year54.49%
Revenue Next 2Y26.48%
Revenue Next 3Y17.48%
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 21.52, which indicates a rather expensive current valuation of 74SW.
74SW's Price/Earnings ratio is rather cheap when compared to the industry. 74SW is cheaper than 81.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of 74SW to the average of the S&P500 Index (27.31), we can say 74SW is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.26, which indicates a correct valuation of 74SW.
84.68% of the companies in the same industry are more expensive than 74SW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, 74SW is valued a bit cheaper.
Industry RankSector Rank
PE 21.52
Fwd PE 15.26
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

Based on the Enterprise Value to EBITDA ratio, 74SW is valued a bit cheaper than the industry average as 79.28% of the companies are valued more expensively.
74SW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 74SW is cheaper than 87.39% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.28
EV/EBITDA 11.17
74SW.PA Per share data74SW.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

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%

0

5. Dividend

5.1 Amount

74SW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

74SOFTWARE SA

EPA:74SW (10/16/2025, 7:00:00 PM)

36.8

0 (0%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-24 2025-07-24
Earnings (Next)10-30 2025-10-30
Inst Owners21.22%
Inst Owner ChangeN/A
Ins Owners1.79%
Ins Owner ChangeN/A
Market Cap1.09B
Analysts84
Price Target48.3 (31.25%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)0%
EPS NY rev (3m)16.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE 21.52
Fwd PE 15.26
P/S 1.67
P/FCF 13.28
P/OCF 10.3
P/B 2.14
P/tB N/A
EV/EBITDA 11.17
EPS(TTM)1.71
EY4.65%
EPS(NY)2.41
Fwd EY6.56%
FCF(TTM)2.77
FCFY7.53%
OCF(TTM)3.57
OCFY9.71%
SpS22.09
BVpS17.23
TBVpS-4.79
PEG (NY)0.48
PEG (5Y)0.47
Profitability
Industry RankSector 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 RankSector 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 2.35
F-Score4
WACC8.58%
ROIC/WACC1
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 5Y39.37%
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 Year104.73%
EBIT Next 3Y36.79%
EBIT Next 5Y28.21%
FCF growth 1Y313.53%
FCF growth 3Y25.01%
FCF growth 5Y16.9%
OCF growth 1Y361.91%
OCF growth 3Y34.79%
OCF growth 5Y18.43%