SoftwareOne Holding Ltd. (SWON) AI Stock Analysis

• Market Cap: CHF1.70B
• Dividend Yield: 3.4%
• Average Volume (3M): 493.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -5.87%
• EPS Growth: -224.75%
• Country: CH
• Employees: 9,199
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.19
• Shares Outstanding: 221,102,950
• 10 Day Avg. Volume: 289,438
• 30 Day Avg. Volume: 493,105
• PEG Ratio: 5.69
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 36.46
• 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: CHF9.30
• Price Target Upside: 15.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: CHF9.50 ▲(18.45% Upside)

The score is primarily supported by solid underlying financial structure and positive free cash flow, but is held back by recent profitability weakness and a mixed-to-weak near-term technical setup. Valuation is constrained by negative earnings, partially offset by the dividend yield.

Positive Factors

Recurring services and partner-led model

SoftwareOne’s mix of software resale, consulting engagements and recurring managed services creates durable revenue streams and high customer stickiness. Vendor partnerships drive partner-led sales motions and cross-sell opportunities, supporting predictable contract pipelines and longer-term client relationships.

Strong gross margins and positive free cash flow

Sustained gross margin strength and positive free cash flow provide a structural buffer against earnings volatility. FCF enables reinvestment in services, certifications and cloud capabilities, while supporting dividends and debt servicing even when net income is temporarily negative.

Healthy balance sheet and prudent leverage

A strong equity base and conservative leverage offer financial flexibility for strategic investments, M&A or downturns. Prudent debt levels reduce refinancing risk and preserve capacity to fund growth initiatives or absorb cyclical swings in vendor-driven spend patterns.

Negative Factors

Negative net margin / profitability weakness

A negative net margin signals persistent profitability pressure that undermines return metrics and limits retained earnings for growth. Over time this can constrain investment in services, pressure management to cut costs or raise prices, and weaken stakeholder confidence if not reversed.

Declining operating cash flow

Falling operating cash flow is a structural concern: it reduces internal funding for working capital and investments and increases reliance on financing or capex cuts to preserve FCF. If operational cash conversion keeps weakening, growth and service delivery could be impaired.

Negative recent revenue growth

Negative top-line growth points to demand headwinds or reduced vendor-driven spend that can erode scale economics in resale and services. Prolonged revenue decline would pressure margins, limit cross-sell opportunities and make it harder to leverage fixed-cost service delivery infrastructure profitably.

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 through multiple key streams, primarily from software licensing and cloud services. The company acts as a reseller for major software vendors, earning commissions and margins on the sale of software licenses. Additionally, SoftwareOne provides consulting services related to cloud migration and IT asset management, which contribute to its earnings through service fees. The company has formed significant partnerships with major technology providers, enabling it to offer tailored solutions and maintain a competitive edge in the market. Furthermore, recurring revenue from managed services and subscription-based offerings enhances its financial stability and growth potential.

SoftwareOne Holding Ltd. Financial Statement Overview

Summary

Stable revenue with strong gross margin and resilient free cash flow, supported by a healthy equity position and prudent leverage. However, profitability has deteriorated (negative net margin) and operating cash flow declined, tempering the score.

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: Negative
• Last Price: 8.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SWON, the sentiment is Negative. The current price of 8.02 is below the 20-day moving average (MA) of 8.39, below the 50-day MA of 8.57, and above the 200-day MA of 7.61, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 41.26 is Neutral, neither overbought nor oversold. The STOCH value of 30.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SWON.

SoftwareOne Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEMN	78 Outperform	$4.61B	21.16	55.30%	1.64%	-25.91%	83.70%
IFCN	75 Outperform	CHF2.98B	33.08	―	2.14%	-0.84%	-8.41%
HUBN	67 Neutral	CHF2.88B	39.39	11.64%	1.32%	13.03%	20.38%
SWON	63 Neutral	CHF1.70B	-63.15	―	3.40%	-5.87%	-224.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UBXN	58 Neutral	CHF1.02B	-8.99	-20.37%	―	-27.51%	-36.15%
AMS	46 Neutral	$796.34M	-5.12	-14.27%	―	-5.48%	79.75%

SoftwareOne Holding Ltd. Corporate Events

SoftwareOne Achieves Strong Revenue Growth in Q3 2025

SoftwareOne reported a significant revenue growth of 46.0% in the third quarter of 2025, largely driven by the acquisition of Crayon and a positive performance trend. The company is on track to achieve substantial cost synergies and aims for sustainable, profitable growth by leveraging its strong positioning in the cloud and AI value chain.

The most recent analyst rating on (CH:SWON) stock is a Hold with a CHF7.50 price target. To see the full list of analyst forecasts on SoftwareOne Holding Ltd. stock, see the CH:SWON Stock Forecast page.