74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:74SW - FR0011040500 - Common Stock
41.1 EUR
-0.1 (-0.24%)
Overall 74SW gets a fundamental rating of 5 out of 10. We evaluated 74SW against 114 industry peers in the Software industry. 74SW has a medium profitability rating, but doesn't score so well on its financial health evaluation. 74SW is growing strongly while it is still valued neutral. This is a good 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
74SW has a Return On Assets of 3.47%. This is comparable to the rest of the industry: 74SW outperforms 50.00% of its industry peers.
74SW has a Return On Equity of 8.15%. This is comparable to the rest of the industry: 74SW outperforms 51.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.61%, 74SW is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
| 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 56.14% 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 65.79% 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 63.16% 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
74SW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
The debt/assets ratio for 74SW is higher compared to a year ago.
2.2 Solvency
74SW has an Altman-Z score of 2.46. 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.
With a Altman-Z score value of 2.46, 74SW perfoms like the industry average, outperforming 50.88% 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.
74SW has a Debt to FCF ratio (3.77) which 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's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. 74SW is outperformed by 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.02
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.27 indicates that 74SW should not have too much problems paying its short term obligations.
The Current ratio of 74SW (1.27) is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.25, 74SW is in line with its industry, outperforming 42.98% of the companies in the same industry.
| 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
The Earnings Per Share is expected to grow by 40.08% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.89% on average over the next years. This is quite good.
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
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.
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
The Price/Earnings ratio is 24.32, which indicates a rather expensive current valuation of 74SW.
74SW's Price/Earnings ratio is a bit cheaper when compared to the industry. 74SW is cheaper than 73.68% of the companies in the same industry.
74SW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.04 indicates a rather expensive valuation of 74SW.
78.95% 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 23.79, 74SW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.32 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
73.68% of the companies in the same industry are more expensive than 74SW, based on the Enterprise Value to EBITDA ratio.
82.46% of the companies in the same industry are more expensive than 74SW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 12.22 |
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
74SW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EPA:74SW (1/6/2026, 7:00:00 PM)
41.1
-0.1 (-0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners20.69%
Inst Owner ChangeN/A
Ins Owners1.79%
Ins Owner ChangeN/A
Market Cap1.22B
Revenue(TTM)657.21M
Net Income(TTM)41.80M
Analysts84
Price Target48.3 (17.52%)
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%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.32 | ||
| Fwd PE | 17.04 | ||
| P/S | 1.86 | ||
| P/FCF | 14.74 | ||
| P/OCF | 11.43 | ||
| P/B | 2.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.22 |
EPS(TTM)1.69
EY4.11%
EPS(NY)2.41
Fwd EY5.87%
FCF(TTM)2.79
FCFY6.78%
OCF(TTM)3.6
OCFY8.75%
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 | 2.46 |
F-Score4
WACC8.42%
ROIC/WACC1.02
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.