74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:74SW - FR0011040500 - Common Stock
38.4 EUR
-0.5 (-1.29%)
Overall 74SW gets a fundamental rating of 5 out of 10. We evaluated 74SW against 113 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 priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
74SW had positive earnings in the past year.
In the past year 74SW had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.47%, 74SW is in line with its industry, outperforming 48.67% of the companies in the same industry.
74SW has a Return On Equity (8.15%) which is in line with its industry peers.
74SW has a better Return On Invested Capital (8.61%) than 62.83% of its industry peers.
| 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
The Profit Margin of 74SW (6.36%) is comparable to the rest of the industry.
74SW's Profit Margin has improved in the last couple of years.
74SW has a Operating Margin of 13.57%. This is in the better half of the industry: 74SW outperforms 64.60% of its industry peers.
74SW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.36%, 74SW is doing worse than 63.72% 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 | 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.
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
74SW has an Altman-Z score of 2.40. 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 2.40, 74SW perfoms like the industry average, outperforming 44.25% 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.
A Debt/Equity ratio of 0.56 indicates that 74SW is somewhat dependend on debt financing.
The Debt to Equity ratio of 74SW (0.56) is worse than 69.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.01
WACC8.52%
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's Quick ratio of 1.25 is in line compared to the rest of the industry. 74SW outperforms 42.48% 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 11.45% over the past year.
The Earnings Per Share has been growing by 46.06% on average over the past years. This is a very strong growth
The Revenue has grown by 103.99% in the past year. This is a very strong growth!
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
Based on estimates for the next years, 74SW will show a very strong growth in Earnings Per Share. The EPS will grow by 40.08% on average per year.
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
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
With a Price/Earnings ratio of 22.72, 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 73.45% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. 74SW is around the same levels.
A Price/Forward Earnings ratio of 15.92 indicates a correct valuation of 74SW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 74SW indicates a rather cheap valuation: 74SW is cheaper than 81.42% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 74SW to the average of the S&P500 Index (23.80), we can say 74SW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 15.92 |
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 78.76% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 74SW is valued cheaply inside the industry as 86.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.78 | ||
| EV/EBITDA | 11.66 |
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.
74SW's earnings are expected to grow with 35.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)0.49
EPS Next 2Y42.38%
EPS Next 3Y35.23%
5. Dividend
5.1 Amount
No dividends for 74SW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:74SW (12/10/2025, 7:00:00 PM)
38.4
-0.5 (-1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners20.93%
Inst Owner ChangeN/A
Ins Owners1.79%
Ins Owner ChangeN/A
Market Cap1.14B
Revenue(TTM)657.21M
Net Income(TTM)41.80M
Analysts84
Price Target48.3 (25.78%)
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)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 15.92 | ||
| P/S | 1.74 | ||
| P/FCF | 13.78 | ||
| P/OCF | 10.68 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.66 |
EPS(TTM)1.69
EY4.4%
EPS(NY)2.41
Fwd EY6.28%
FCF(TTM)2.79
FCFY7.26%
OCF(TTM)3.6
OCFY9.37%
SpS22.09
BVpS17.24
TBVpS-4.77
PEG (NY)0.5
PEG (5Y)0.49
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 | 2.4 |
F-Score4
WACC8.52%
ROIC/WACC1.01
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.
What is the valuation status for 74SW stock?
ChartMill assigns a valuation rating of 6 / 10 to 74SOFTWARE SA (74SW.PA). This can be considered as Fairly Valued.
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 45.29% in the next year.