74SOFTWARE SA (74SW.PA) Stock Fundamental Analysis
EPA:74SW - Euronext Paris - Matif - FR0011040500 - Common Stock - Currency: EUR
Taking everything into account, 74SW scores 5 out of 10 in our fundamental rating. 74SW was compared to 102 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!
1. Profitability
1.1 Basic Checks
In the past year 74SW was profitable.
In the past year 74SW had a positive cash flow from operations.
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
74SW has a Return On Assets of 3.16%. This is comparable to the rest of the industry: 74SW outperforms 58.82% of its industry peers.
The Return On Equity of 74SW (7.36%) is comparable to the rest of the industry.
74SW has a better Return On Invested Capital (6.46%) than 67.65% 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
74SW has a Profit Margin of 8.48%. This is in the better half of the industry: 74SW outperforms 63.73% of its industry peers.
74SW's Profit Margin has improved in the last couple of years.
74SW's Operating Margin of 15.44% is fine compared to the rest of the industry. 74SW outperforms 74.51% 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 78.43% 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 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.
The number of shares outstanding for 74SW has been increased compared to 1 year ago.
74SW has more shares outstanding than it did 5 years ago.
74SW has a worse debt/assets ratio than last year.
2.2 Solvency
74SW has an Altman-Z score of 2.10. 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.
74SW has a Altman-Z score (2.10) which is comparable to the rest of the 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 (17.51) which is comparable to the rest of the industry.
74SW has a Debt/Equity ratio of 0.58. This is a neutral value indicating 74SW is somewhat dependend on debt financing.
The Debt to Equity ratio of 74SW (0.58) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 17.51 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.76
WACC8.45%
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 (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 line with its industry, outperforming 58.82% 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.
The Revenue has grown by 44.80% in the past year. This is a very strong growth!
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 24.04% 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 5YN/A
Revenue Next Year54.34%
Revenue Next 2Y26.19%
Revenue Next 3Y17.83%
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.
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 23.56, 74SW is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 74SW indicates a rather cheap valuation: 74SW is cheaper than 84.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 74SW to the average of the S&P500 Index (26.34), we can say 74SW is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.05, 74SW can be considered very expensive at the moment.
66.67% of the companies in the same industry are more expensive than 74SW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, 74SW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 26.05 |
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 67.65% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 74SW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.8 | ||
| EV/EBITDA | 15.59 |
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 has a very decent profitability rating, which 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)0.99
PEG (5Y)0.51
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 (6/18/2025, 3:53:13 PM)
38.4
+1.6 (+4.35%)
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 Cap1.14B
Analysts86.67
Price Target36.72 (-4.37%)
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)10.2%
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)-24.87%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 26.05 | ||
| P/S | 2.47 | ||
| P/FCF | 57.8 | ||
| P/OCF | 36.04 | ||
| P/B | 2.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.59 |
EPS(TTM)1.63
EY4.24%
EPS(NY)1.47
Fwd EY3.84%
FCF(TTM)0.66
FCFY1.73%
OCF(TTM)1.07
OCFY2.77%
SpS15.53
BVpS17.89
TBVpS-5.29
PEG (NY)0.99
PEG (5Y)0.51
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
WACC8.45%
ROIC/WACC0.76
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 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 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%