74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:74SW - FR0011040500 - Common Stock
38 EUR
-0.5 (-1.3%)
We assign a fundamental rating of 5 out of 10 to 74SW. 74SW was compared to 116 industry peers in the Software industry. There are concerns on the financial health of 74SW while its profitability can be described as average. 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.
In the past year 74SW had a positive cash flow from operations.
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's Return On Assets of 3.47% is in line compared to the rest of the industry. 74SW outperforms 48.28% of its industry peers.
74SW has a Return On Equity of 8.15%. This is comparable to the rest of the industry: 74SW outperforms 51.72% of its industry peers.
74SW has a Return On Invested Capital of 8.61%. This is in the better half of the industry: 74SW outperforms 63.79% 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 53.45% of the companies in the same industry.
74SW's Profit Margin has improved in the last couple of years.
The Operating Margin of 74SW (13.57%) is better than 63.79% of its industry peers.
74SW's Operating Margin has improved in the last couple of years.
74SW's Gross Margin of 58.36% is on the low side compared to the rest of the industry. 74SW is outperformed by 63.79% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 74SW is still creating some value.
74SW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 74SW has been increased compared to 5 years ago.
Compared to 1 year ago, 74SW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.39 indicates that 74SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.39, 74SW is in line with its industry, outperforming 45.69% of the companies in the same 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.
The Debt to FCF ratio of 74SW (3.77) 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 68.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.01
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.27 indicates that 74SW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.27, 74SW perfoms like the industry average, outperforming 42.24% of the companies in the same 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's Quick ratio of 1.25 is in line compared to the rest of the industry. 74SW outperforms 43.10% 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 11.45% over the past year.
Measured over the past years, 74SW shows a very strong growth in Earnings Per Share. The EPS has been growing by 46.06% on average per year.
74SW shows a strong growth in Revenue. In the last year, 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
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.
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 Y45.07%
EPS Next 2Y42.3%
EPS Next 3Y35.23%
EPS Next 5Y40.08%
Revenue Next Year54.34%
Revenue Next 2Y26.48%
Revenue Next 3Y18.17%
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.
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 22.49, the valuation of 74SW can be described as rather expensive.
75.86% 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 26.46.
A Price/Forward Earnings ratio of 15.77 indicates a correct valuation of 74SW.
Based on the Price/Forward Earnings ratio, 74SW is valued cheaply inside the industry as 81.90% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 74SW to the average of the S&P500 Index (36.10), we can say 74SW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 74SW is valued a bit cheaper than 78.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 74SW is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.63 | ||
| EV/EBITDA | 11.56 |
4.3 Compensation for Growth
The 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)0.5
PEG (5Y)0.49
EPS Next 2Y42.3%
EPS Next 3Y35.23%
5. Dividend
5.1 Amount
No dividends for 74SW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:74SW (12/5/2025, 7:00:00 PM)
38
-0.5 (-1.3%)
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 Cap1.13B
Revenue(TTM)657.21M
Net Income(TTM)41.80M
Analysts84
Price Target48.3 (27.11%)
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)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 15.77 | ||
| P/S | 1.72 | ||
| P/FCF | 13.63 | ||
| P/OCF | 10.57 | ||
| P/B | 2.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.56 |
EPS(TTM)1.69
EY4.45%
EPS(NY)2.41
Fwd EY6.34%
FCF(TTM)2.79
FCFY7.34%
OCF(TTM)3.6
OCFY9.46%
SpS22.09
BVpS17.24
TBVpS-4.77
PEG (NY)0.5
PEG (5Y)0.49
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 | 2.39 |
F-Score4
WACC8.51%
ROIC/WACC1.01
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 Y45.07%
EPS Next 2Y42.3%
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 Year54.34%
Revenue Next 2Y26.48%
Revenue Next 3Y18.17%
Revenue Next 5Y11.89%
EBIT growth 1Y86.29%
EBIT growth 3Y58.93%
EBIT growth 5Y35.69%
EBIT Next Year104.73%
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 7 / 10 to 74SOFTWARE SA (74SW.PA). This can be considered as Undervalued.
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 45.07% in the next year.