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74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis

EPA:74SW - Euronext Paris - Matif - FR0011040500 - Common Stock - Currency: EUR

43.85  -0.35 (-0.79%)

Fundamental Rating

5

Overall 74SW gets a fundamental rating of 5 out of 10. We evaluated 74SW against 99 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 growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

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6

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.
Each year in the past 5 years 74SW had a positive operating cash flow.
74SW.PA Yearly Net Income VS EBIT VS OCF VS FCF74SW.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M 60M

1.2 Ratios

74SW has a Return On Assets (3.16%) which is comparable to the rest of the industry.
With a Return On Equity value of 7.36%, 74SW perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
74SW has a better Return On Invested Capital (6.46%) than 65.66% of its industry peers.
Industry RankSector 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
74SW.PA Yearly ROA, ROE, ROIC74SW.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10

1.3 Margins

74SW has a better Profit Margin (8.48%) than 61.62% of its industry peers.
In the last couple of years the Profit Margin of 74SW has grown nicely.
With a decent Operating Margin value of 15.44%, 74SW is doing good in the industry, outperforming 72.73% 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 83.05% is fine compared to the rest of the industry. 74SW outperforms 78.79% of its industry peers.
In the last couple of years the Gross Margin of 74SW has remained more or less at the same level.
Industry RankSector 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%
74SW.PA Yearly Profit, Operating, Gross Margins74SW.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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3

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.
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
74SW has a worse debt/assets ratio than last year.
74SW.PA Yearly Shares Outstanding74SW.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
74SW.PA Yearly Total Debt VS Total Assets74SW.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 2.29 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 2.29, 74SW perfoms like the industry average, outperforming 44.44% 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.
74SW has a Debt to FCF ratio of 17.51. This is comparable to the rest of the industry: 74SW outperforms 50.51% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that 74SW is somewhat dependend on debt financing.
74SW's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. 74SW is outperformed by 63.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 17.51
Altman-Z 2.29
ROIC/WACC0.75
WACC8.58%
74SW.PA Yearly LT Debt VS Equity VS FCF74SW.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.3 Liquidity

A Current Ratio of 1.39 indicates that 74SW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.39, 74SW is in line with its industry, outperforming 58.59% of the companies in the same industry.
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.
74SW's Quick ratio of 1.38 is fine compared to the rest of the industry. 74SW outperforms 62.63% of its industry peers.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 1.38
74SW.PA Yearly Current Assets VS Current Liabilites74SW.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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8

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.81% 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 46.02% on average per year.
74SW shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.80%.
The Revenue has been growing by 9.02% on average over the past years. This is quite good.
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

Based on estimates for the next years, 74SW will show a very strong growth in Earnings Per Share. The EPS will grow by 40.25% 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 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

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.
74SW.PA Yearly Revenue VS Estimates74SW.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 200M 400M 600M 800M
74SW.PA Yearly EPS VS Estimates74SW.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 1 2 3 4

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5

4. Valuation

4.1 Price/Earnings Ratio

74SW is valuated quite expensively with a Price/Earnings ratio of 26.90.
81.82% of the companies in the same industry are more expensive than 74SW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 74SW to the average of the S&P500 Index (27.51), we can say 74SW is valued inline with the index average.
74SW is valuated quite expensively with a Price/Forward Earnings ratio of 29.75.
Based on the Price/Forward Earnings ratio, 74SW is valued a bit cheaper than 65.66% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, 74SW is valued at the same level.
Industry RankSector Rank
PE 26.9
Fwd PE 29.75
74SW.PA Price Earnings VS Forward Price Earnings74SW.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

74SW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 74SW is cheaper than 64.65% of the companies in the same industry.
74SW's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 66
EV/EBITDA 18.04
74SW.PA Per share data74SW.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 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.
The decent profitability rating of 74SW 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)1.13
PEG (5Y)0.58
EPS Next 2Y24.04%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for 74SW!.
Industry RankSector Rank
Dividend Yield N/A

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74SOFTWARE SA

EPA:74SW (7/15/2025, 12:37:20 PM)

43.85

-0.35 (-0.79%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26 2025-02-26/amc
Earnings (Next)07-24 2025-07-24
Inst Owners21.8%
Inst Owner ChangeN/A
Ins Owners1.79%
Ins Owner ChangeN/A
Market Cap1.30B
Analysts86.67
Price Target36.72 (-16.26%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector Rank
PE 26.9
Fwd PE 29.75
P/S 2.82
P/FCF 66
P/OCF 41.16
P/B 2.45
P/tB N/A
EV/EBITDA 18.04
EPS(TTM)1.63
EY3.72%
EPS(NY)1.47
Fwd EY3.36%
FCF(TTM)0.66
FCFY1.52%
OCF(TTM)1.07
OCFY2.43%
SpS15.53
BVpS17.89
TBVpS-5.29
PEG (NY)1.13
PEG (5Y)0.58
Profitability
Industry RankSector 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 RankSector 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 2.29
F-Score3
WACC8.58%
ROIC/WACC0.75
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%