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SWORD GROUP (SWP.PA) Stock Fundamental Analysis

EPA:SWP - Euronext Paris - Matif - FR0004180578 - Common Stock - Currency: EUR

32.7  -0.25 (-0.76%)

Fundamental Rating

6

Overall SWP gets a fundamental rating of 6 out of 10. We evaluated SWP against 72 industry peers in the IT Services industry. SWP scores excellent on profitability, but there are some minor concerns on its financial health. SWP has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year SWP was profitable.
SWP had a positive operating cash flow in the past year.
SWP had positive earnings in each of the past 5 years.
Each year in the past 5 years SWP had a positive operating cash flow.
SWP.PA Yearly Net Income VS EBIT VS OCF VS FCFSWP.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 0 50M -50M 100M

1.2 Ratios

SWP's Return On Assets of 7.54% is amongst the best of the industry. SWP outperforms 86.11% of its industry peers.
The Return On Equity of SWP (21.58%) is better than 84.72% of its industry peers.
SWP has a better Return On Invested Capital (12.79%) than 83.33% of its industry peers.
Industry RankSector Rank
ROA 7.54%
ROE 21.58%
ROIC 12.79%
ROA(3y)20.6%
ROA(5y)17.91%
ROE(3y)49.93%
ROE(5y)39.7%
ROIC(3y)N/A
ROIC(5y)N/A
SWP.PA Yearly ROA, ROE, ROICSWP.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 100

1.3 Margins

Looking at the Profit Margin, with a value of 6.73%, SWP belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
SWP's Profit Margin has declined in the last couple of years.
The Operating Margin of SWP (9.51%) is better than 75.00% of its industry peers.
SWP's Operating Margin has been stable in the last couple of years.
SWP has a better Gross Margin (90.38%) than 83.33% of its industry peers.
SWP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 9.51%
PM (TTM) 6.73%
GM 90.38%
OM growth 3Y-1%
OM growth 5Y0.83%
PM growth 3Y-31.89%
PM growth 5Y-30.88%
GM growth 3Y-2.06%
GM growth 5Y-1.41%
SWP.PA Yearly Profit, Operating, Gross MarginsSWP.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60 80

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5

2. Health

2.1 Basic Checks

SWP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SWP has less shares outstanding
The number of shares outstanding for SWP has been reduced compared to 5 years ago.
Compared to 1 year ago, SWP has a worse debt to assets ratio.
SWP.PA Yearly Shares OutstandingSWP.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M 10M
SWP.PA Yearly Total Debt VS Total AssetsSWP.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.2 Solvency

An Altman-Z score of 2.85 indicates that SWP is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.85, SWP is doing good in the industry, outperforming 65.28% of the companies in the same industry.
SWP has a debt to FCF ratio of 3.46. This is a good value and a sign of high solvency as SWP would need 3.46 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.46, SWP perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that SWP is somewhat dependend on debt financing.
SWP's Debt to Equity ratio of 0.62 is in line compared to the rest of the industry. SWP outperforms 43.06% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.46
Altman-Z 2.85
ROIC/WACC1.85
WACC6.93%
SWP.PA Yearly LT Debt VS Equity VS FCFSWP.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

2.3 Liquidity

A Current Ratio of 1.59 indicates that SWP should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.59, SWP is doing good in the industry, outperforming 72.22% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that SWP may have some problems paying its short term obligations.
SWP's Quick ratio of 0.99 is on the low side compared to the rest of the industry. SWP is outperformed by 63.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.59
Quick Ratio 0.99
SWP.PA Yearly Current Assets VS Current LiabilitesSWP.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 24.29% over the past year.
SWP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.27% yearly.
SWP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.37%.
Measured over the past years, SWP shows a quite strong growth in Revenue. The Revenue has been growing by 10.95% on average per year.
EPS 1Y (TTM)24.29%
EPS 3Y-24.56%
EPS 5Y-23.27%
EPS Q2Q%-20.07%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y10.68%
Revenue growth 5Y10.95%
Sales Q2Q%7.37%

3.2 Future

SWP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.95% yearly.
The Revenue is expected to grow by 13.61% on average over the next years. This is quite good.
EPS Next Y15.66%
EPS Next 2Y17.33%
EPS Next 3Y16.95%
EPS Next 5YN/A
Revenue Next Year14.76%
Revenue Next 2Y15.3%
Revenue Next 3Y13.61%
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.
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.
SWP.PA Yearly Revenue VS EstimatesSWP.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M
SWP.PA Yearly EPS VS EstimatesSWP.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.35 indicates a correct valuation of SWP.
70.83% of the companies in the same industry are more expensive than SWP, based on the Price/Earnings ratio.
SWP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.89.
Based on the Price/Forward Earnings ratio of 11.16, the valuation of SWP can be described as reasonable.
Based on the Price/Forward Earnings ratio, SWP is valued cheaper than 80.56% of the companies in the same industry.
SWP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.98.
Industry RankSector Rank
PE 15.35
Fwd PE 11.16
SWP.PA Price Earnings VS Forward Price EarningsSWP.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

SWP's Enterprise Value to EBITDA is on the same level as the industry average.
SWP's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 17.65
EV/EBITDA 9.07
SWP.PA Per share dataSWP.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
SWP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SWP's earnings are expected to grow with 16.95% in the coming years.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y17.33%
EPS Next 3Y16.95%

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6

5. Dividend

5.1 Amount

SWP has a Yearly Dividend Yield of 5.39%, which is a nice return.
SWP's Dividend Yield is rather good when compared to the industry average which is at 4.21. SWP pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, SWP pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.39%

5.2 History

The dividend of SWP decreases each year by -18.63%.
Dividend Growth(5Y)-18.63%
Div Incr Years0
Div Non Decr Years1
SWP.PA Yearly Dividends per shareSWP.PA Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

5.3 Sustainability

SWP pays out 79.49% of its income as dividend. This is not a sustainable payout ratio.
DP79.49%
EPS Next 2Y17.33%
EPS Next 3Y16.95%
SWP.PA Yearly Income VS Free CF VS DividendSWP.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
SWP.PA Dividend Payout.SWP.PA Dividend Payout, showing the Payout Ratio.SWP.PA Dividend Payout.PayoutRetained Earnings

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SWORD GROUP

EPA:SWP (3/27/2025, 11:05:21 AM)

32.7

-0.25 (-0.76%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)03-12 2025-03-12/amc
Earnings (Next)04-25 2025-04-25
Inst Owners19.22%
Inst Owner ChangeN/A
Ins Owners37.9%
Ins Owner ChangeN/A
Market Cap311.96M
Analysts82.86
Price Target48.96 (49.72%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.39%
Yearly Dividend1.71
Dividend Growth(5Y)-18.63%
DP79.49%
Div Incr Years0
Div Non Decr Years1
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)7.46%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
Industry RankSector Rank
PE 15.35
Fwd PE 11.16
P/S 1.04
P/FCF 17.65
P/OCF 14.74
P/B 3.35
P/tB 37.08
EV/EBITDA 9.07
EPS(TTM)2.13
EY6.51%
EPS(NY)2.93
Fwd EY8.96%
FCF(TTM)1.85
FCFY5.67%
OCF(TTM)2.22
OCFY6.78%
SpS31.33
BVpS9.77
TBVpS0.88
PEG (NY)0.98
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 7.54%
ROE 21.58%
ROCE 17.46%
ROIC 12.79%
ROICexc 18.21%
ROICexgc 69.81%
OM 9.51%
PM (TTM) 6.73%
GM 90.38%
FCFM 5.91%
ROA(3y)20.6%
ROA(5y)17.91%
ROE(3y)49.93%
ROE(5y)39.7%
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-7.33%
ROICexcg growth 5YN/A
ROICexc growth 3Y-0.43%
ROICexc growth 5YN/A
OM growth 3Y-1%
OM growth 5Y0.83%
PM growth 3Y-31.89%
PM growth 5Y-30.88%
GM growth 3Y-2.06%
GM growth 5Y-1.41%
F-Score6
Asset Turnover1.12
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.46
Debt/EBITDA 1.6
Cap/Depr 46.28%
Cap/Sales 1.17%
Interest Coverage 12.37
Cash Conversion 58.84%
Profit Quality 87.89%
Current Ratio 1.59
Quick Ratio 0.99
Altman-Z 2.85
F-Score6
WACC6.93%
ROIC/WACC1.85
Cap/Depr(3y)89.41%
Cap/Depr(5y)82.42%
Cap/Sales(3y)2.67%
Cap/Sales(5y)2.73%
Profit Quality(3y)43.88%
Profit Quality(5y)58.2%
High Growth Momentum
Growth
EPS 1Y (TTM)24.29%
EPS 3Y-24.56%
EPS 5Y-23.27%
EPS Q2Q%-20.07%
EPS Next Y15.66%
EPS Next 2Y17.33%
EPS Next 3Y16.95%
EPS Next 5YN/A
Revenue 1Y (TTM)4.37%
Revenue growth 3Y10.68%
Revenue growth 5Y10.95%
Sales Q2Q%7.37%
Revenue Next Year14.76%
Revenue Next 2Y15.3%
Revenue Next 3Y13.61%
Revenue Next 5YN/A
EBIT growth 1Y2.96%
EBIT growth 3Y9.57%
EBIT growth 5Y11.87%
EBIT Next Year-33.65%
EBIT Next 3Y-3.6%
EBIT Next 5YN/A
FCF growth 1Y1936.29%
FCF growth 3Y-12.59%
FCF growth 5Y22.79%
OCF growth 1Y70.13%
OCF growth 3Y-12.49%
OCF growth 5Y9.21%