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. There are concerns on the financial health of 74SW while its profitability can be described as average. 74SW is not overvalued while it is showing excellent growth. 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.
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
The Return On Assets of 74SW (3.16%) is comparable to the rest of the industry.
The Return On Equity of 74SW (7.36%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.46%, 74SW is in the better half of the industry, outperforming 64.08% 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
With a Profit Margin value of 8.48%, 74SW perfoms like the industry average, outperforming 57.28% of the companies in the same industry.
74SW's Profit Margin has improved in the last couple of years.
74SW has a better Operating Margin (15.44%) than 70.87% of its industry peers.
In the last couple of years the Operating Margin of 74SW has grown nicely.
With a decent Gross Margin value of 83.05%, 74SW is doing good in the industry, outperforming 77.67% 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
74SW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 74SW has more shares outstanding
74SW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 74SW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.10 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 2.10, 74SW is in line with its industry, outperforming 43.69% 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 47.57% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that 74SW is somewhat dependend on debt financing.
The Debt to Equity ratio of 74SW (0.58) is worse than 66.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 17.51 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.78
WACC8.33%
2.3 Liquidity
74SW has a Current Ratio of 1.39. This is a normal value and indicates that 74SW is financially healthy and should not expect problems in meeting 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 61.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
74SW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.81%.
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.
Looking at the last year, 74SW shows a very strong growth in Revenue. The Revenue has grown by 44.80%.
74SW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.02% yearly.
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
The Earnings Per Share is expected to grow by 40.25% on average over the next years. This is a very strong growth
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 Y23.86%
EPS Next 2Y24.04%
EPS Next 3YN/A
EPS Next 5Y40.25%
Revenue Next Year54.45%
Revenue Next 2Y26.5%
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
74SW is valuated rather expensively with a Price/Earnings ratio of 22.88.
Based on the Price/Earnings ratio, 74SW is valued cheaply inside the industry as 82.52% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.03. 74SW is around the same levels.
Based on the Price/Forward Earnings ratio of 25.31, the valuation of 74SW can be described as expensive.
Based on the Price/Forward Earnings ratio, 74SW is valued a bit cheaper than 67.96% of the companies in the same industry.
74SW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 25.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 74SW indicates a somewhat cheap valuation: 74SW is cheaper than 66.99% of the companies listed in the same industry.
74SW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.14 | ||
| EV/EBITDA | 15.56 |
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.
The decent profitability rating of 74SW may justify a higher PE ratio.
74SW's earnings are expected to grow with 24.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)0.5
EPS Next 2Y24.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for 74SW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:74SW (8/6/2025, 4:35:17 PM)
37.3
+0.6 (+1.63%)
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 Cap1.11B
Analysts86.67
Price Target44.22 (18.55%)
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)20.42%
PT rev (3m)32.7%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 25.31 | ||
| P/S | 2.4 | ||
| P/FCF | 56.14 | ||
| P/OCF | 35.01 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.56 |
EPS(TTM)1.63
EY4.37%
EPS(NY)1.47
Fwd EY3.95%
FCF(TTM)0.66
FCFY1.78%
OCF(TTM)1.07
OCFY2.86%
SpS15.53
BVpS17.89
TBVpS-5.29
PEG (NY)0.96
PEG (5Y)0.5
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 | 2.1 |
F-Score3
WACC8.33%
ROIC/WACC0.78
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 Year54.45%
Revenue Next 2Y26.5%
Revenue Next 3Y17.48%
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%