SWORD GROUP (SWP.PA) Stock Fundamental Analysis
EPA:SWP - Euronext Paris - Matif - FR0004180578 - Common Stock - Currency: EUR
Overall SWP gets a fundamental rating of 6 out of 10. We evaluated SWP against 71 industry peers in the IT Services industry. While SWP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SWP has a decent growth rate and is not valued too expensively. SWP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SWP had positive earnings in the past year.
SWP had a positive operating cash flow in the past year.
Each year in the past 5 years SWP has been profitable.
In the past 5 years SWP always reported a positive cash flow from operatings.
1.2 Ratios
SWP has a Return On Assets of 7.45%. This is amongst the best in the industry. SWP outperforms 84.51% of its industry peers.
With an excellent Return On Equity value of 22.85%, SWP belongs to the best of the industry, outperforming 90.14% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.11%, SWP belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 22.85% | ||
| ROIC | 14.11% |
ROA(3y)20.47%
ROA(5y)18.38%
ROE(3y)51.21%
ROE(5y)42.47%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SWP has a better Profit Margin (6.75%) than 76.06% of its industry peers.
SWP's Profit Margin has improved in the last couple of years.
SWP's Operating Margin of 9.50% is fine compared to the rest of the industry. SWP outperforms 74.65% of its industry peers.
SWP's Operating Margin has been stable in the last couple of years.
SWP's Gross Margin of 91.12% is amongst the best of the industry. SWP outperforms 84.51% of its industry peers.
In the last couple of years the Gross Margin of SWP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 6.75% | ||
| GM | 91.12% |
OM growth 3Y-3.35%
OM growth 5Y-0.15%
PM growth 3Y-6.38%
PM growth 5Y1.74%
GM growth 3Y-1.17%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
SWP 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 SWP has been increased compared to 1 year ago.
SWP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SWP is higher compared to a year ago.
2.2 Solvency
SWP has an Altman-Z score of 2.85. This is not the best score and indicates that SWP is in the grey zone with still only limited risk for bankruptcy at the moment.
SWP has a Altman-Z score (2.85) which is comparable to the rest of the industry.
SWP has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as SWP would need 3.53 years to pay back of all of its debts.
SWP has a Debt to FCF ratio (3.53) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.67 indicates that SWP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, SWP is not doing good in the industry: 61.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.08
WACC13.01%
2.3 Liquidity
SWP has a Current Ratio of 1.67. This is a normal value and indicates that SWP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SWP (1.67) is better than 77.46% of its industry peers.
A Quick Ratio of 1.10 indicates that SWP should not have too much problems paying its short term obligations.
SWP's Quick ratio of 1.10 is on the low side compared to the rest of the industry. SWP is outperformed by 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
SWP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.62%.
SWP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.79% yearly.
SWP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.11%.
Measured over the past years, SWP shows a quite strong growth in Revenue. The Revenue has been growing by 8.67% on average per year.
EPS 1Y (TTM)-3.62%
EPS 3Y7.71%
EPS 5Y10.79%
EPS Q2Q%17.54%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y14.61%
Revenue growth 5Y8.67%
Sales Q2Q%16.99%
3.2 Future
The Earnings Per Share is expected to grow by 14.21% on average over the next years. This is quite good.
SWP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.31% yearly.
EPS Next Y13.88%
EPS Next 2Y14.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.46%
Revenue Next 2Y12.64%
Revenue Next 3Y12.31%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 16.07, the valuation of SWP can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of SWP indicates a somewhat cheap valuation: SWP is cheaper than 70.42% of the companies listed in the same industry.
SWP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 12.93, the valuation of SWP can be described as correct.
Based on the Price/Forward Earnings ratio, SWP is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
SWP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWP.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.57 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
SWP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SWP may justify a higher PE ratio.
SWP's earnings are expected to grow with 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)1.49
EPS Next 2Y14.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.35%, SWP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.93, SWP pays a better dividend. On top of this SWP pays more dividend than 91.55% of the companies listed in the same industry.
SWP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
5.2 History
On average, the dividend of SWP grows each year by 7.19%, which is quite nice.
Dividend Growth(5Y)7.19%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
SWP pays out 73.30% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SWP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.3%
EPS Next 2Y14.21%
EPS Next 3YN/A
EPA:SWP (7/2/2025, 2:04:53 PM)
37.125
+0.23 (+0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners23.07%
Inst Owner ChangeN/A
Ins Owners37.9%
Ins Owner ChangeN/A
Market Cap354.17M
Analysts82.86
Price Target46.92 (26.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
Yearly Dividend1.7
Dividend Growth(5Y)7.19%
DP73.3%
Div Incr Years1
Div Non Decr Years2
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)1.47%
PT rev (3m)-4.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.95%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 12.93 | ||
| P/S | 1.1 | ||
| P/FCF | 18.57 | ||
| P/OCF | 15.25 | ||
| P/B | 3.71 | ||
| P/tB | 82.73 | ||
| EV/EBITDA | 8.97 |
EPS(TTM)2.31
EY6.22%
EPS(NY)2.87
Fwd EY7.74%
FCF(TTM)2
FCFY5.38%
OCF(TTM)2.43
OCFY6.56%
SpS33.86
BVpS10.01
TBVpS0.45
PEG (NY)1.16
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 22.85% | ||
| ROCE | 16.87% | ||
| ROIC | 14.11% | ||
| ROICexc | 23.01% | ||
| ROICexgc | 123.81% | ||
| OM | 9.5% | ||
| PM (TTM) | 6.75% | ||
| GM | 91.12% | ||
| FCFM | 5.9% |
ROA(3y)20.47%
ROA(5y)18.38%
ROE(3y)51.21%
ROE(5y)42.47%
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 3Y-10.23%
ROICexcg growth 5Y4.8%
ROICexc growth 3Y5.46%
ROICexc growth 5Y6.83%
OM growth 3Y-3.35%
OM growth 5Y-0.15%
PM growth 3Y-6.38%
PM growth 5Y1.74%
GM growth 3Y-1.17%
GM growth 5Y-0.69%
F-Score4
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 51.04% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 11.7 | ||
| Cash Conversion | 59.81% | ||
| Profit Quality | 87.45% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.85 |
F-Score4
WACC13.01%
ROIC/WACC1.08
Cap/Depr(3y)55.2%
Cap/Depr(5y)73.45%
Cap/Sales(3y)1.5%
Cap/Sales(5y)2.25%
Profit Quality(3y)59.72%
Profit Quality(5y)54.56%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.62%
EPS 3Y7.71%
EPS 5Y10.79%
EPS Q2Q%17.54%
EPS Next Y13.88%
EPS Next 2Y14.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.11%
Revenue growth 3Y14.61%
Revenue growth 5Y8.67%
Sales Q2Q%16.99%
Revenue Next Year13.46%
Revenue Next 2Y12.64%
Revenue Next 3Y12.31%
Revenue Next 5YN/A
EBIT growth 1Y12.71%
EBIT growth 3Y10.78%
EBIT growth 5Y8.51%
EBIT Next Year53.47%
EBIT Next 3Y23.9%
EBIT Next 5YN/A
FCF growth 1Y-0.27%
FCF growth 3Y39.37%
FCF growth 5Y6.46%
OCF growth 1Y5.48%
OCF growth 3Y10.24%
OCF growth 5Y1.3%