74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:74SW - FR0011040500 - Common Stock
41.5 EUR
+0.2 (+0.48%)
Overall 74SW gets a fundamental rating of 5 out of 10. We evaluated 74SW against 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
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.
74SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.47%, 74SW is in line with its industry, outperforming 47.62% of the companies in the same industry.
74SW has a Return On Equity of 8.15%. This is comparable to the rest of the industry: 74SW outperforms 49.52% of its industry peers.
The Return On Invested Capital of 74SW (8.61%) is better than 63.81% 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
74SW's Profit Margin of 6.36% is in line compared to the rest of the industry. 74SW outperforms 54.29% of its industry peers.
74SW's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.57%, 74SW is doing good in the industry, outperforming 63.81% of the companies in the same industry.
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.
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
74SW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 2.47 indicates that 74SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
74SW has a Altman-Z score of 2.47. This is comparable to the rest of the industry: 74SW outperforms 46.67% of its industry peers.
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.
A Debt/Equity ratio of 0.56 indicates that 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
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.27 indicates that 74SW should not have too much problems paying its short term obligations.
74SW's Current ratio of 1.27 is in line compared to the rest of the industry. 74SW outperforms 41.90% of its industry peers.
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.
With a Quick ratio value of 1.25, 74SW perfoms like the industry average, outperforming 41.90% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 46.06% on average over the past years. This is a very strong growth
The Revenue has grown by 103.99% in the past year. This is a very strong growth!
Measured over the past years, 74SW shows a quite strong growth in Revenue. The Revenue has been growing by 9.02% on average per year.
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.
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 Y45.29%
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
With a Price/Earnings ratio of 24.56, 74SW is valued on the expensive side.
Based on the Price/Earnings ratio, 74SW is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
74SW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
74SW is valuated rather expensively with a Price/Forward Earnings ratio of 17.20.
74SW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 74SW is cheaper than 80.00% of the companies in the same industry.
74SW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| 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 76.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 74SW is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.89 | ||
| EV/EBITDA | 12.3 |
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)0.54
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 (12/31/2025, 7:00:00 PM)
41.5
+0.2 (+0.48%)
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 (16.39%)
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)0.15%
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 | 24.56 | ||
| 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
WACC7.92%
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.
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.