SOFTWARE AG (SOW.DE) Stock Fundamental Analysis
Europe - FRA:SOW - DE000A2GS401 - Common Stock
37.1 EUR
+0.1 (+0.27%)
Overall SOW gets a fundamental rating of 4 out of 10. We evaluated SOW against 103 industry peers in the Software industry. SOW has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, SOW is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SOW was profitable.
In the past year SOW had a positive cash flow from operations.
Each year in the past 5 years SOW has been profitable.
In the past 5 years SOW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SOW (0.66%) is comparable to the rest of the industry.
SOW's Return On Equity of 1.13% is in line compared to the rest of the industry. SOW outperforms 42.70% of its industry peers.
SOW has a Return On Invested Capital (2.20%) which is in line with its industry peers.
SOW had an Average Return On Invested Capital over the past 3 years of 3.42%. This is significantly below the industry average of 12.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 1.13% | ||
| ROIC | 2.2% |
ROA(3y)3.06%
ROA(5y)4.94%
ROE(3y)4.8%
ROE(5y)7.82%
ROIC(3y)3.42%
ROIC(5y)4.83%
1.3 Margins
The Profit Margin of SOW (1.73%) is comparable to the rest of the industry.
SOW's Profit Margin has declined in the last couple of years.
SOW's Operating Margin of 8.39% is in line compared to the rest of the industry. SOW outperforms 58.43% of its industry peers.
SOW's Operating Margin has declined in the last couple of years.
SOW has a Gross Margin (74.51%) which is comparable to the rest of the industry.
SOW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.39% | ||
| PM (TTM) | 1.73% | ||
| GM | 74.51% |
OM growth 3Y-23.97%
OM growth 5Y-16.12%
PM growth 3Y-51.53%
PM growth 5Y-34.12%
GM growth 3Y-0.97%
GM growth 5Y-0.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOW is destroying value.
The number of shares outstanding for SOW remains at a similar level compared to 1 year ago.
The debt/assets ratio for SOW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.81 indicates that SOW is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOW has a Altman-Z score of 2.81. This is comparable to the rest of the industry: SOW outperforms 56.18% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that SOW is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.22, SOW perfoms like the industry average, outperforming 59.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.81 |
ROIC/WACC0.36
WACC6.04%
2.3 Liquidity
SOW has a Current Ratio of 1.10. This is a normal value and indicates that SOW is financially healthy and should not expect problems in meeting its short term obligations.
SOW's Current ratio of 1.10 is on the low side compared to the rest of the industry. SOW is outperformed by 73.03% of its industry peers.
SOW has a Quick Ratio of 1.10. This is a normal value and indicates that SOW is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.10, SOW is not doing good in the industry: 67.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
SOW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.45%.
Measured over the past years, SOW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.86% on average per year.
The Revenue has grown by 11.54% in the past year. This is quite good.
Measured over the past years, SOW shows a small growth in Revenue. The Revenue has been growing by 1.74% on average per year.
EPS 1Y (TTM)-66.45%
EPS 3Y-29.5%
EPS 5Y-17.86%
EPS Q2Q%-2.78%
Revenue 1Y (TTM)11.54%
Revenue growth 3Y2.47%
Revenue growth 5Y1.74%
Sales Q2Q%3.28%
3.2 Future
SOW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.58% yearly.
The Revenue is expected to grow by 5.22% on average over the next years.
EPS Next Y58.65%
EPS Next 2Y35.5%
EPS Next 3Y34.58%
EPS Next 5YN/A
Revenue Next Year5.86%
Revenue Next 2Y6.46%
Revenue Next 3Y7.28%
Revenue Next 5Y5.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
SOW is valuated quite expensively with a Price/Earnings ratio of 71.35.
Compared to the rest of the industry, the Price/Earnings ratio of SOW is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.11. SOW is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 22.70, the valuation of SOW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOW indicates a somewhat cheap valuation: SOW is cheaper than 67.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, SOW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.35 | ||
| Fwd PE | 22.7 |
4.2 Price Multiples
SOW's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.96 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SOW's earnings are expected to grow with 34.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y35.5%
EPS Next 3Y34.58%
5. Dividend
5.1 Amount
SOW has a yearly dividend return of 0.13%, which is pretty low.
SOW's Dividend Yield is a higher than the industry average which is at 2.15.
Compared to an average S&P500 Dividend Yield of 2.37, SOW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
The dividend of SOW has a limited annual growth rate of 5.26%.
Dividend Growth(5Y)5.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SOW pays out 21.59% of its income as dividend. This is a sustainable payout ratio.
SOW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.59%
EPS Next 2Y35.5%
EPS Next 3Y34.58%
FRA:SOW (2/23/2024, 7:00:00 PM)
37.1
+0.1 (+0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.74B
Revenue(TTM)991.50M
Net Income(TTM)17.13M
Analysts45.71
Price Target31.05 (-16.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
Yearly Dividend0.77
Dividend Growth(5Y)5.26%
DP21.59%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.41%
Min EPS beat(2)-39.28%
Max EPS beat(2)20.46%
EPS beat(4)2
Avg EPS beat(4)-35.28%
Min EPS beat(4)-131.64%
Max EPS beat(4)20.46%
EPS beat(8)5
Avg EPS beat(8)-6.29%
EPS beat(12)9
Avg EPS beat(12)3.36%
EPS beat(16)11
Avg EPS beat(16)0.6%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)2.03%
Revenue beat(4)2
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)2.93%
Revenue beat(8)3
Avg Revenue beat(8)0%
Revenue beat(12)6
Avg Revenue beat(12)0.84%
Revenue beat(16)8
Avg Revenue beat(16)1.05%
PT rev (1m)2.79%
PT rev (3m)0.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.04%
EPS NY rev (1m)0%
EPS NY rev (3m)10.38%
Revenue NQ rev (1m)1.16%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.35 | ||
| Fwd PE | 22.7 | ||
| P/S | 2.77 | ||
| P/FCF | N/A | ||
| P/OCF | 449.87 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.96 |
EPS(TTM)0.52
EY1.4%
EPS(NY)1.63
Fwd EY4.4%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.08
OCFY0.22%
SpS13.4
BVpS20.47
TBVpS-0.84
PEG (NY)1.22
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 1.13% | ||
| ROCE | 4.34% | ||
| ROIC | 2.2% | ||
| ROICexc | 2.79% | ||
| ROICexgc | N/A | ||
| OM | 8.39% | ||
| PM (TTM) | 1.73% | ||
| GM | 74.51% | ||
| FCFM | N/A |
ROA(3y)3.06%
ROA(5y)4.94%
ROE(3y)4.8%
ROE(5y)7.82%
ROIC(3y)3.42%
ROIC(5y)4.83%
ROICexc(3y)4.86%
ROICexc(5y)6.94%
ROICexgc(3y)70.6%
ROICexgc(5y)N/A
ROCE(3y)6.77%
ROCE(5y)9.54%
ROICexgc growth 3Y-57.11%
ROICexgc growth 5YN/A
ROICexc growth 3Y-33.25%
ROICexc growth 5Y-24.74%
OM growth 3Y-23.97%
OM growth 5Y-16.12%
PM growth 3Y-51.53%
PM growth 5Y-34.12%
GM growth 3Y-0.97%
GM growth 5Y-0.2%
F-Score4
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 18.01% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 4.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.81 |
F-Score4
WACC6.04%
ROIC/WACC0.36
Cap/Depr(3y)23.18%
Cap/Depr(5y)25.19%
Cap/Sales(3y)1.32%
Cap/Sales(5y)1.29%
Profit Quality(3y)86.04%
Profit Quality(5y)94.74%
High Growth Momentum
Growth
EPS 1Y (TTM)-66.45%
EPS 3Y-29.5%
EPS 5Y-17.86%
EPS Q2Q%-2.78%
EPS Next Y58.65%
EPS Next 2Y35.5%
EPS Next 3Y34.58%
EPS Next 5YN/A
Revenue 1Y (TTM)11.54%
Revenue growth 3Y2.47%
Revenue growth 5Y1.74%
Sales Q2Q%3.28%
Revenue Next Year5.86%
Revenue Next 2Y6.46%
Revenue Next 3Y7.28%
Revenue Next 5Y5.22%
EBIT growth 1Y1.57%
EBIT growth 3Y-22.09%
EBIT growth 5Y-14.66%
EBIT Next Year23.98%
EBIT Next 3Y23.42%
EBIT Next 5Y4.42%
FCF growth 1Y-104.62%
FCF growth 3Y-68.67%
FCF growth 5Y-50.37%
OCF growth 1Y-94.16%
OCF growth 3Y-52.53%
OCF growth 5Y-37.27%
SOFTWARE AG / SOW.DE FAQ
What is the ChartMill fundamental rating of SOFTWARE AG (SOW.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SOW.DE.
What is the valuation status of SOFTWARE AG (SOW.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to SOFTWARE AG (SOW.DE). This can be considered as Overvalued.
How profitable is SOFTWARE AG (SOW.DE) stock?
SOFTWARE AG (SOW.DE) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SOW stock?
The Price/Earnings (PE) ratio for SOFTWARE AG (SOW.DE) is 71.35 and the Price/Book (PB) ratio is 1.81.
Can you provide the financial health for SOW stock?
The financial health rating of SOFTWARE AG (SOW.DE) is 3 / 10.