74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - EPA:74SW - FR0011040500 - Common Stock
35.1 EUR
+0.1 (+0.29%)
We assign a fundamental rating of 5 out of 10 to 74SW. 74SW was compared to 111 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
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.
74SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
74SW's Return On Assets of 3.50% is in line compared to the rest of the industry. 74SW outperforms 50.45% of its industry peers.
74SW has a Return On Equity of 8.23%. This is comparable to the rest of the industry: 74SW outperforms 52.25% of its industry peers.
The Return On Invested Capital of 74SW (8.56%) is better than 66.67% 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
74SW has a Profit Margin (6.42%) which is in line with its industry peers.
In the last couple of years the Profit Margin of 74SW has grown nicely.
74SW's Operating Margin of 13.51% is fine compared to the rest of the industry. 74SW outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of 74SW has grown nicely.
With a Gross Margin value of 58.36%, 74SW is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 74SW is creating some value.
74SW has more shares outstanding than it did 1 year ago.
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 2.30 indicates that 74SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.30, 74SW is not doing good in the industry: 60.36% of the companies in the same industry are doing better.
The Debt to FCF ratio of 74SW is 3.80, which is a good value as it means it would take 74SW, 3.80 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.80, 74SW perfoms like the industry average, outperforming 58.56% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that 74SW is somewhat dependend on debt financing.
74SW has a worse Debt to Equity ratio (0.56) than 68.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.3 |
ROIC/WACC1
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.27 indicates that 74SW should not have too much problems paying its short term obligations.
74SW has a Current ratio (1.27) which is in line with its industry peers.
A Quick Ratio of 1.25 indicates that 74SW should not have too much problems paying its short term obligations.
74SW has a Quick ratio (1.25) which is in line with its industry peers.
| 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 12.69%, which is quite good.
The Earnings Per Share has been growing by 46.02% on average over the past years. This is a very strong growth
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)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.
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 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.
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 20.53, 74SW is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 74SW indicates a somewhat cheap valuation: 74SW is cheaper than 79.28% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, 74SW is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.55, 74SW is valued correctly.
74SW's Price/Forward Earnings ratio is rather cheap when compared to the industry. 74SW is cheaper than 85.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 74SW to the average of the S&P500 Index (22.63), we can say 74SW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 74SW is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
74SW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 74SW is cheaper than 87.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.66 | ||
| EV/EBITDA | 10.72 |
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 35.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)0.45
EPS Next 2Y42.38%
EPS Next 3Y35.11%
5. Dividend
5.1 Amount
74SW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:74SW (10/29/2025, 7:00:00 PM)
35.1
+0.1 (+0.29%)
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 Cap1.04B
Revenue(TTM)657.21M
Net Income(TTM)42.17M
Analysts84
Price Target48.3 (37.61%)
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)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 14.55 | ||
| P/S | 1.59 | ||
| P/FCF | 12.66 | ||
| P/OCF | 9.82 | ||
| P/B | 2.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.72 |
EPS(TTM)1.71
EY4.87%
EPS(NY)2.41
Fwd EY6.87%
FCF(TTM)2.77
FCFY7.9%
OCF(TTM)3.57
OCFY10.18%
SpS22.09
BVpS17.23
TBVpS-4.79
PEG (NY)0.46
PEG (5Y)0.45
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 | 2.3 |
F-Score4
WACC8.56%
ROIC/WACC1
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.