74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
EPA:74SW - Euronext Paris - Matif - FR0011040500 - Common Stock - Currency: EUR
Overall 74SW gets a fundamental rating of 5 out of 10. We evaluated 74SW against 97 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 not overvalued while it is showing excellent growth. 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.
Each year in the past 5 years 74SW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.16%, 74SW is in line with its industry, outperforming 55.67% of the companies in the same industry.
74SW has a Return On Equity (7.36%) which is in line with its industry peers.
The Return On Invested Capital of 74SW (6.46%) is better than 64.95% of its industry peers.
| 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
The Profit Margin of 74SW (8.48%) 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 15.44%. This is in the better half of the industry: 74SW outperforms 72.16% of its industry peers.
In the last couple of years the Operating Margin of 74SW has grown nicely.
The Gross Margin of 74SW (83.05%) is better than 78.35% of its industry peers.
74SW's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 74SW is destroying value.
74SW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 74SW has been increased compared to 5 years ago.
74SW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.03 indicates that 74SW is not a great score, but indicates only limited risk for bankruptcy at the moment.
74SW's Altman-Z score of 2.03 is in line compared to the rest of the industry. 74SW outperforms 48.45% of its industry peers.
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.
The Debt to FCF ratio of 74SW (17.51) is comparable to the rest of the industry.
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 64.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 17.51 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.78
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.39 indicates that 74SW should not have too much problems paying its short term obligations.
74SW has a Current ratio of 1.39. This is comparable to the rest of the industry: 74SW outperforms 54.64% of its industry peers.
A Quick Ratio of 1.38 indicates that 74SW should not have too much problems paying its short term obligations.
The Quick ratio of 74SW (1.38) is better than 60.82% of its industry peers.
| 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%.
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
The Earnings Per Share is expected to grow by 24.04% on average over the next years. This is a very strong growth
74SW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.89% yearly.
EPS Next Y23.86%
EPS Next 2Y24.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year53.13%
Revenue Next 2Y25.67%
Revenue Next 3Y18.14%
Revenue Next 5Y11.89%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 20.64, 74SW is valued on the expensive side.
Based on the Price/Earnings ratio, 74SW is valued cheaper than 80.41% of the companies in the same industry.
74SW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
Based on the Price/Forward Earnings ratio of 22.83, the valuation of 74SW can be described as rather expensive.
Based on the Price/Forward Earnings ratio, 74SW is valued a bit cheaper than the industry average as 70.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, 74SW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 74SW is valued a bit cheaper than 67.01% of the companies in the same industry.
74SW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.65 | ||
| EV/EBITDA | 14.56 |
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 has a very decent profitability rating, which 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)0.87
PEG (5Y)0.45
EPS Next 2Y24.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
74SW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:74SW (5/9/2025, 2:57:20 PM)
33.65
-0.05 (-0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners21.86%
Inst Owner ChangeN/A
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap1.00B
Analysts86.67
Price Target33.32 (-0.98%)
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 YearsN/A
Div Non Decr YearsN/A
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)-5.56%
EPS NY rev (3m)-24.87%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 22.83 | ||
| P/S | 2.17 | ||
| P/FCF | 50.65 | ||
| P/OCF | 31.58 | ||
| P/B | 1.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.56 |
EPS(TTM)1.63
EY4.84%
EPS(NY)1.47
Fwd EY4.38%
FCF(TTM)0.66
FCFY1.97%
OCF(TTM)1.07
OCFY3.17%
SpS15.53
BVpS17.89
TBVpS-5.29
PEG (NY)0.87
PEG (5Y)0.45
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 | 2.03 |
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 5YN/A
Revenue 1Y (TTM)44.8%
Revenue growth 3Y17.39%
Revenue growth 5Y9.02%
Sales Q2Q%80.51%
Revenue Next Year53.13%
Revenue Next 2Y25.67%
Revenue Next 3Y18.14%
Revenue Next 5Y11.89%
EBIT growth 1Y39.94%
EBIT growth 3Y59.21%
EBIT growth 5Y35.84%
EBIT Next Year121.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
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%