74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - EPA:74SW - FR0011040500 - Common Stock
36 EUR
-0.4 (-1.1%)
We assign a fundamental rating of 5 out of 10 to 74SW. 74SW was compared to 103 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 growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
74SW had positive earnings in the past year.
74SW had a positive operating cash flow in the past year.
Of the past 5 years 74SW 4 years were profitable.
In the past 5 years 74SW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 74SW (3.50%) is comparable to the rest of the industry.
The Return On Equity of 74SW (8.23%) is comparable to the rest of the industry.
The Return On Invested Capital of 74SW (8.56%) is better than 66.02% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of 74SW (6.42%) is comparable to the rest of the industry.
74SW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.51%, 74SW is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
74SW's Operating Margin has improved in the last couple of years.
74SW has a Gross Margin of 58.36%. This is in the lower half of the industry: 74SW underperforms 62.14% of its industry peers.
74SW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
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.
74SW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.34 indicates that 74SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
74SW has a Altman-Z score (2.34) which is comparable to the rest of the industry.
74SW has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as 74SW would need 3.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.80, 74SW is in line with its industry, outperforming 57.28% of the companies in the same industry.
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 69.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.04
WACC8.27%
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.
Looking at the Current ratio, with a value of 1.27, 74SW is in line with its industry, outperforming 42.72% 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 43.69% 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 12.69% 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 46.02% on average per year.
74SW shows a strong growth in Revenue. In the last year, the Revenue has grown by 103.99%.
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)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
74SW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.37% yearly.
The Revenue is expected to grow by 11.89% on average over the next years. This is quite good.
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.
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
The Price/Earnings ratio is 21.05, which indicates a rather expensive current valuation of 74SW.
Based on the Price/Earnings ratio, 74SW is valued cheaper than 82.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of 74SW to the average of the S&P500 Index (26.13), we can say 74SW is valued inline with the index average.
A Price/Forward Earnings ratio of 14.92 indicates a correct valuation of 74SW.
74SW's Price/Forward Earnings ratio is rather cheap when compared to the industry. 74SW is cheaper than 82.52% of the companies in the same industry.
74SW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 74SW is valued a bit cheaper than 77.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 74SW is valued cheaper than 87.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 11.07 |
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 35.11% in the coming years.
PEG (NY)0.47
PEG (5Y)0.46
EPS Next 2Y42.38%
EPS Next 3Y35.11%
5. Dividend
5.1 Amount
No dividends for 74SW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:74SW (11/5/2025, 7:00:00 PM)
36
-0.4 (-1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners21.22%
Inst Owner ChangeN/A
Ins Owners1.79%
Ins Owner ChangeN/A
Market Cap1.07B
Revenue(TTM)657.21M
Net Income(TTM)42.17M
Analysts84
Price Target48.3 (34.17%)
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)9.23%
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)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 14.92 | ||
| P/S | 1.63 | ||
| P/FCF | 12.99 | ||
| P/OCF | 10.07 | ||
| P/B | 2.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.07 |
EPS(TTM)1.71
EY4.75%
EPS(NY)2.41
Fwd EY6.7%
FCF(TTM)2.77
FCFY7.7%
OCF(TTM)3.57
OCFY9.93%
SpS22.09
BVpS17.23
TBVpS-4.79
PEG (NY)0.47
PEG (5Y)0.46
Graham Number25.75
Profitability
| Industry Rank | Sector 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
ROICexgc growth 3Y20.33%
ROICexgc 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 Rank | Sector 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 | 2.34 |
F-Score4
WACC8.27%
ROIC/WACC1.04
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%
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 44.64% in the next year.