SoftwareOne Holding Ltd. (SWON) AI Stock Analysis

• Market Cap: CHF1.72B
• Dividend Yield: 3.7%
• Average Volume (3M): 588.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -5.87%
• EPS Growth: -224.75%
• Country: CH
• Employees: 9,199
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Application
• EPS (TTM): 0.22
• Shares Outstanding: 221,102,950
• 10 Day Avg. Volume: 718,721
• 30 Day Avg. Volume: 588,046
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF8.82
• Price Target Upside: 8.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: CHF8.50 ▲(4.94% Upside)

SoftwareOne Holding Ltd. scores well on technical analysis with positive price trends and momentum. Financial performance is stable but challenged by profitability issues. Valuation is impacted by a negative P/E ratio, though the dividend yield offers some appeal.

Positive Factors

Strong Partnerships

Partnerships with industry leaders like Microsoft and AWS bolster SoftwareOne's market position, enabling it to offer integrated solutions and drive revenue growth through enhanced product offerings.

Cash Flow Generation

Positive free cash flow, despite reduced operating cash flow, indicates effective capital management and provides the company with financial flexibility to invest in growth opportunities.

Solid Balance Sheet

A strong balance sheet with prudent leverage enhances financial stability, allowing SoftwareOne to navigate economic fluctuations and invest in strategic initiatives.

Negative Factors

Negative Profit Margin

A negative net profit margin indicates profitability challenges, which could hinder long-term financial health and limit reinvestment in business growth.

Revenue Decline

A decline in revenue growth suggests potential market share loss or reduced demand for services, which could impact future earnings and competitive positioning.

EBITDA Margin Decline

A declining EBITDA margin due to rising operating expenses may pressure profitability, indicating potential inefficiencies or increased costs that need addressing for sustainable growth.

SoftwareOne Holding Ltd. Business Overview & Revenue Model

Company Description

SoftwareONE Holding AG offers software and cloud technology solutions in Switzerland and internationally. The company provides Pyracloud, a proprietary digital hub that allows to transact, manage, and optimize their entire spend using a data-driven, actionable platform. It also offers managed backup; managed security services, which protects business from security threats; and software lifecycle management, a combination of digitized procurement and software asset management which offers professional services, diagnostic platform, cloud cost optimization, and SaaS management. In addition, the company offers simple services, including BackupSimple, secure backup as a service from on-premises to the cloud; Simple for Amazon Web Services(AWS), service offering to help you maximize the value of AWS; AzureSimple, simplify and accelerate Azure cloud deployment; and SAMSimple, optimize management for high-risk software publishers, as well as 365Simple solution. Further, it also provides user productivity solutions, which include digital workspace, security and threat protection, data and analytics, and unified communications and collaboration, as well as adoption and change management, cloud financial management, software digital supply chain, publisher advisory, SAP, unified communications, and unified support services. The company serves education; architecture, engineering, and construction; finance; healthcare; nonprofit; and state and local government industries. SoftwareONE Holding AG was founded in 2000 and is headquartered in Stans, Switzerland.

How the Company Makes Money

SoftwareOne generates revenue primarily through its software and cloud technology solutions. The company earns money by providing software licensing and procurement services, helping organizations select and manage the right software products and licenses to meet their needs. Additionally, SoftwareOne offers cloud technology and advisory services, assisting companies in migrating to and optimizing cloud environments. Managed services, where SoftwareOne takes on the management of a client's software and IT infrastructure, also contribute significantly to its revenue. Key partnerships with major software vendors like Microsoft, AWS, and others enhance its offerings and revenue potential by allowing SoftwareOne to resell and integrate these vendors' products into its solutions.

SoftwareOne Holding Ltd. Financial Statement Overview

Summary

SoftwareOne Holding Ltd. shows stable revenue growth and strong cost management, but faces challenges with profitability as indicated by a negative net profit margin. The balance sheet is solid with prudent leverage, and cash flow remains positive despite net income volatility.

Income Statement

SoftwareOne Holding Ltd. has demonstrated a stable revenue trajectory with a slight increase from the previous year. The gross profit margin is strong, indicative of effective cost management. However, the net profit margin has turned negative, reflecting challenges in maintaining profitability. The EBIT margin remains robust, although there was a notable decline in EBITDA margin, suggesting rising operating expenses.

Balance Sheet

The company's balance sheet reveals a solid equity position, with a favorable debt-to-equity ratio indicating prudent leverage use. However, the return on equity has been impacted adversely due to negative net income. The equity ratio remains healthy, showcasing a strong financial foundation.

Cash Flow

Cash flow analysis shows a reduction in operating cash flow, yet free cash flow remains positive due to decreased capital expenditures. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to reported earnings, despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	972.80M	1.02B	1.01B	975.83M	914.28M	832.40M
Gross Profit	928.99M	975.20M	971.85M	932.60M	851.64M	729.62M
EBITDA	146.74M	143.89M	159.39M	166.60M	156.91M	274.54M
Net Income	-19.61M	-1.51M	21.42M	-58.28M	117.63M	176.84M
Balance Sheet
Total Assets	4.96B	4.31B	3.78B	3.45B	3.40B	3.13B
Cash, Cash Equivalents and Short-Term Investments	726.59M	333.65M	311.12M	384.21M	559.11M	578.32M
Total Debt	733.85M	40.40M	33.12M	38.25M	39.21M	51.32M
Total Liabilities	4.45B	3.72B	3.14B	2.71B	2.52B	2.35B
Stockholders Equity	508.43M	582.52M	640.09M	738.99M	869.58M	776.45M
Cash Flow
Free Cash Flow	410.29M	25.32M	20.05M	43.80M	124.76M	253.45M
Operating Cash Flow	417.05M	34.69M	77.28M	91.07M	158.05M	276.27M
Investing Cash Flow	-115.19M	-72.68M	-89.69M	-11.79M	-144.90M	-64.22M
Financing Cash Flow	227.28M	39.18M	-35.53M	-97.44M	-94.93M	-79.20M

SoftwareOne Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SWON, the sentiment is Positive. The current price of 8.1 is above the 20-day moving average (MA) of 7.13, above the 50-day MA of 6.98, and above the 200-day MA of 6.42, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 67.66 is Neutral, neither overbought nor oversold. The STOCH value of 92.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SWON.

SoftwareOne Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWON	68 Neutral	CHF1.72B	―		3.70%	-5.87%	-224.75%
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
TMNSF	―	$5.31B	24.02	41.83%	1.75%	―	―
IFCN	75 Outperform	CHF2.28B	25.27		2.24%	-0.84%	-8.41%
AUKUF	―	$1.22B	―	-9.68%	―	―	―
0QNH	―	CHF2.52B	34.31	11.64%	1.41%	―	―
UBLXF	―	$1.27B	―	-20.37%	1.00%	―	―

SoftwareOne Holding Ltd. Corporate Events

SoftwareOne Completes Full Acquisition of Crayon

SoftwareOne Holding AG has completed the compulsory acquisition of the remaining shares of Crayon, achieving full ownership of the company. This strategic move allows SoftwareOne to delist Crayon shares from the Euronext Oslo Børs, potentially enhancing its market position and operational capabilities in the software and cloud solutions industry.

The most recent analyst rating on (CH:SWON) stock is a Hold with a CHF8.90 price target. To see the full list of analyst forecasts on SoftwareOne Holding Ltd. stock, see the CH:SWON Stock Forecast page.

SoftwareOne Completes Acquisition of Crayon, Expanding Global Reach

SoftwareOne has successfully completed its acquisition of Crayon, merging two prominent global software and cloud solution providers. This strategic move, marked by a secondary listing on Euronext Oslo Børs, positions the combined entity to offer expanded services and achieve significant cost synergies, while maintaining a strong market presence and delivering enhanced value to customers and stakeholders.

The most recent analyst rating on (CH:SWON) stock is a Hold with a CHF8.90 price target. To see the full list of analyst forecasts on SoftwareOne Holding Ltd. stock, see the CH:SWON Stock Forecast page.

SoftwareOne Expands Stake in Crayon, Plans Delisting

SoftwareOne Holding AG has terminated its Total Return Swap agreement and received 4,578,588 Crayon shares, increasing its stake to approximately 6.99% of Crayon’s shares. Following a voluntary takeover offer, SoftwareOne will hold 91.77% of Crayon’s shares and plans a compulsory acquisition of the remaining shares, followed by delisting Crayon from Euronext Oslo Børs, significantly impacting its market positioning and stakeholder interests.

The most recent analyst rating on (CH:SWON) stock is a Hold with a CHF8.90 price target. To see the full list of analyst forecasts on SoftwareOne Holding Ltd. stock, see the CH:SWON Stock Forecast page.

SoftwareOne Set to Finalize Crayon Acquisition by July 2025

SoftwareOne Holding AG has announced the completion of all conditions for acquiring Crayon, with the transaction expected to finalize by July 2, 2025. This acquisition will see the integration of management teams, with Raphael Erb and Melissa Mulholland serving as Co-CEOs. The transaction will lead to a compulsory acquisition of remaining Crayon shares and delisting from the stock exchange, positioning SoftwareOne to enhance its market presence and operational capabilities.

The most recent analyst rating on (CH:SWON) stock is a Hold with a CHF8.90 price target. To see the full list of analyst forecasts on SoftwareOne Holding Ltd. stock, see the CH:SWON Stock Forecast page.

SoftwareOne Sees Margin Growth Amid Revenue Dip in Q1 2025

SoftwareOne Holding AG reported a revenue decline of 6.0% in the first quarter of 2025, attributed to challenges in the NORAM region and changes in Microsoft incentives. Despite this, the company achieved a margin improvement due to a successful cost reduction program, which exceeded its savings target. The company is optimistic about a turnaround in the second half of the year, supported by the acquisition of Crayon and expected improvements in the NORAM region.

The most recent analyst rating on (CH:SWON) stock is a Hold with a CHF8.90 price target. To see the full list of analyst forecasts on SoftwareOne Holding Ltd. stock, see the CH:SWON Stock Forecast page.

SoftwareOne Elects New Chairman Amid Strategic Merger

SoftwareOne Holding AG has elected Till Spillmann as the new Chairman of the Board during its 2025 General Meeting, succeeding Daniel von Stockar. This leadership change coincides with the company’s strategic merger with Crayon, positioning SoftwareOne to become a global market leader in software, cloud, data, and AI. The shareholders approved all board proposals, including a dividend distribution, marking a new phase in the company’s growth and development.

The most recent analyst rating on (CH:SWON) stock is a Hold with a CHF8.90 price target. To see the full list of analyst forecasts on SoftwareOne Holding Ltd. stock, see the CH:SWON Stock Forecast page.

SoftwareOne Appoints New CFO to Drive Growth and Integration

SoftwareOne has appointed Hanspeter Schraner as the new Group Chief Financial Officer, effective June 1, 2025. Schraner, with over 20 years of international financial leadership experience, is expected to play a key role in the company’s growth strategy and integration efforts with Crayon, enhancing SoftwareOne’s market position and operational capabilities.

SoftwareOne Secures Majority Stake in Crayon with Successful Offer

SoftwareOne Holding AG announced that it has secured 91.6% of Crayon’s share capital following the expiration of its voluntary purchase and exchange offer. The transaction, which involves a cash and share exchange, is subject to regulatory approvals and is expected to be completed by June 2025. This acquisition will enhance SoftwareOne’s market position by integrating Crayon’s expertise in IT optimization and innovation, potentially leading to cost synergies and expanded service offerings for stakeholders.

SoftwareOne Secures Majority Stake in Crayon, Plans Dual Listing

SoftwareOne Holding AG announced that it has secured over 90% of Crayon’s share capital by the end of the offer period for its voluntary purchase and exchange offer. This acquisition is expected to create strategic and financial value for shareholders, with the transaction completion anticipated in June 2025, pending regulatory approvals. The dual listing of SoftwareOne shares on the Oslo Stock Exchange is also progressing, with an application expected to be submitted soon.

SoftwareOne Concludes Acquisition Offer for Crayon

SoftwareOne Holding AG has announced the conclusion of its voluntary purchase and exchange offer for Crayon, which ends on May 6, 2025. The offer, which includes a cash component and new SoftwareOne shares, will not be extended further. The acquisition aims to enhance SoftwareOne’s market position by integrating Crayon’s expertise in IT optimization and innovation, potentially impacting stakeholders by expanding the company’s service offerings and market reach.

SoftwareOne’s Acquisition Offer for Crayon Nears Conclusion

SoftwareOne Holding AG is nearing the conclusion of its voluntary purchase and exchange offer to acquire all outstanding shares of Crayon, with the offer period ending on May 6, 2025. The acquisition, priced at NOK 69 in cash and 0.8233 new SoftwareOne shares per Crayon share, is a strategic move to enhance SoftwareOne’s market position in IT optimization and cloud solutions. The offer, which will not be extended further, is subject to certain conditions and regulatory approvals, indicating a significant step in SoftwareOne’s expansion strategy.