74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
EPA:74SW - Euronext Paris - Matif - FR0011040500 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 74SW. 74SW was compared to 103 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 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.
In the past 5 years 74SW always reported a positive cash flow from operatings.
1.2 Ratios
74SW has a Return On Assets (3.16%) which is in line with its industry peers.
74SW's Return On Equity of 7.36% is in line compared to the rest of the industry. 74SW outperforms 57.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.46%, 74SW is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 7.36% | ||
| ROIC | 6.46% |
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
74SW has a better Profit Margin (8.48%) than 62.50% of its industry peers.
74SW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.44%, 74SW is in the better half of the industry, outperforming 73.08% 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 83.05%, 74SW is in the better half of the industry, outperforming 75.96% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.44% | ||
| PM (TTM) | 8.48% | ||
| GM | 83.05% |
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 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.
74SW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.22 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 2.22, 74SW is in line with its industry, outperforming 49.04% of the companies in the same industry.
The Debt to FCF ratio of 74SW is 17.51, which is on the high side as it means it would take 74SW, 17.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.51, 74SW is in line with its industry, outperforming 50.96% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that 74SW is somewhat dependend on debt financing.
74SW has a Debt to Equity ratio of 0.58. This is in the lower half of the industry: 74SW underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 17.51 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.76
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.39 indicates that 74SW should not have too much problems paying its short term obligations.
74SW has a Current ratio (1.39) which is in line with its industry peers.
74SW has a Quick Ratio of 1.38. 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 Quick ratio, with a value of 1.38, 74SW is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.81% over the past year.
The Earnings Per Share has been growing by 46.02% on average over the past years. This is a very strong growth
Looking at the last year, 74SW shows a very strong growth in Revenue. The Revenue has grown by 44.80%.
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)3.81%
EPS 3Y62.08%
EPS 5Y46.02%
EPS Q2Q%8.3%
Revenue 1Y (TTM)44.8%
Revenue growth 3Y17.39%
Revenue growth 5Y9.02%
Sales Q2Q%80.51%
3.2 Future
74SW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.25% yearly.
The Revenue is expected to grow by 11.89% on average over the next years. This is quite good.
EPS Next Y23.86%
EPS Next 2Y24.04%
EPS Next 3YN/A
EPS Next 5Y40.25%
Revenue Next Year54.34%
Revenue Next 2Y26.19%
Revenue Next 3Y17.83%
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
The Price/Earnings ratio is 25.46, which means the current valuation is very expensive for 74SW.
Based on the Price/Earnings ratio, 74SW is valued cheaper than 81.73% of the companies in the same industry.
74SW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 28.16, the valuation of 74SW can be described as expensive.
Based on the Price/Forward Earnings ratio, 74SW is valued a bit cheaper than the industry average as 64.42% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 74SW is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 28.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 74SW is valued a bit cheaper than the industry average as 66.35% of the companies are valued more expensively.
74SW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.47 | ||
| EV/EBITDA | 17.15 |
4.3 Compensation for Growth
74SW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
74SW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 74SW's earnings are expected to grow with 24.04% in the coming years.
PEG (NY)1.07
PEG (5Y)0.55
EPS Next 2Y24.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
74SW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:74SW (7/11/2025, 7:00:00 PM)
41.5
+1.8 (+4.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners21.8%
Inst Owner ChangeN/A
Ins Owners1.79%
Ins Owner ChangeN/A
Market Cap1.23B
Analysts86.67
Price Target36.72 (-11.52%)
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)10.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 28.16 | ||
| P/S | 2.67 | ||
| P/FCF | 62.47 | ||
| P/OCF | 38.95 | ||
| P/B | 2.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.15 |
EPS(TTM)1.63
EY3.93%
EPS(NY)1.47
Fwd EY3.55%
FCF(TTM)0.66
FCFY1.6%
OCF(TTM)1.07
OCFY2.57%
SpS15.53
BVpS17.89
TBVpS-5.29
PEG (NY)1.07
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 7.36% | ||
| ROCE | 7.69% | ||
| ROIC | 6.46% | ||
| ROICexc | 6.76% | ||
| ROICexgc | 30.53% | ||
| OM | 15.44% | ||
| PM (TTM) | 8.48% | ||
| GM | 83.05% | ||
| FCFM | 4.28% |
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-Score3
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 17.51 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 64.74% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.31% | ||
| Profit Quality | 50.46% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.22 |
F-Score3
WACC8.47%
ROIC/WACC0.76
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)3.81%
EPS 3Y62.08%
EPS 5Y46.02%
EPS Q2Q%8.3%
EPS Next Y23.86%
EPS Next 2Y24.04%
EPS Next 3YN/A
EPS Next 5Y40.25%
Revenue 1Y (TTM)44.8%
Revenue growth 3Y17.39%
Revenue growth 5Y9.02%
Sales Q2Q%80.51%
Revenue Next Year54.34%
Revenue Next 2Y26.19%
Revenue Next 3Y17.83%
Revenue Next 5Y11.89%
EBIT growth 1Y39.94%
EBIT growth 3Y59.21%
EBIT growth 5Y35.84%
EBIT Next Year122.91%
EBIT Next 3Y36.4%
EBIT Next 5Y27.58%
FCF growth 1Y-33.5%
FCF growth 3Y25.01%
FCF growth 5Y16.9%
OCF growth 1Y-1.4%
OCF growth 3Y34.79%
OCF growth 5Y18.43%