SoftwareOne Holding Ltd. (SWON) AI Stock Analysis

• Market Cap: CHF1.79B
• Dividend Yield: 3.61%
• Average Volume (3M): 493.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -5.87%
• EPS Growth: -224.75%
• Country: CH
• Employees: 9,199
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.22
• Shares Outstanding: 221,102,950
• 10 Day Avg. Volume: 289,438
• 30 Day Avg. Volume: 493,105
• 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: CHF8.90
• Price Target Upside: 7.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: CHF9.00 ▲(8.43% Upside)

SoftwareOne Holding Ltd. scores well in technical analysis due to positive price trends and moderate momentum. Financial performance is stable but challenged by profitability issues. Valuation is a concern with a negative P/E ratio, though the dividend yield is a positive aspect.

Positive Factors

Strong Cost Management

Effective cost management supports margin sustainability and operational efficiency, crucial for long-term profitability and competitiveness.

Solid Balance Sheet

A strong balance sheet with prudent leverage enhances financial stability and flexibility, supporting growth initiatives and risk management.

Positive Cash Flow

Positive free cash flow ensures liquidity for reinvestment and debt servicing, underpinning long-term financial health and strategic opportunities.

Negative Factors

Negative Net Profit Margin

A negative net profit margin indicates profitability challenges that could hinder reinvestment and shareholder returns if not addressed.

Decline in EBITDA Margin

A declining EBITDA margin signals rising costs, which can pressure profitability and necessitate cost control measures to sustain margins.

Revenue Growth Decline

A decline in revenue growth can impact market position and competitive edge, requiring strategic adjustments to regain momentum.

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

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: 8.30
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 8.3 is below the 20-day moving average (MA) of 8.32, above the 50-day MA of 7.94, and above the 200-day MA of 6.74, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 47.30 is Neutral, 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
HUBN	―	CHF2.68B	36.47	11.64%	1.29%	13.03%	20.38%
TEMN	―	$5.02B	20.14	41.83%	2.09%	-24.73%	86.66%
IFCN	―	CHF2.27B	25.06	―	2.24%	-0.84%	-8.41%
SWON	―	CHF1.79B	―	―	3.61%	-5.87%	-224.75%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AMS	―	$1.18B	―	-9.68%	―	-5.11%	88.12%
UBXN	―	$1.01B	―	-20.37%	―	-27.51%	-36.15%

SoftwareOne Holding Ltd. Corporate Events

Share Transfer Consolidates Ownership in SoftwareOne

Rugz AS has transferred 16,386 shares in SoftwareOne Holding AG to Karbon Invest AS, both of which are closely associated with board members Jens Rugseth and Rune Syversen. This transfer consolidates Mr. Rugseth’s share ownership without changing his indirect ownership in the company, and is subject to regulatory disclosure requirements.

The most recent analyst rating on (CH:SWON) stock is a Buy with a CHF9.60 price target. To see the full list of analyst forecasts on SoftwareOne Holding Ltd. stock, see the CH:SWON Stock Forecast page.

SoftwareOne Reports Revenue Decline but Margin Improvement in H1 2025

SoftwareOne reported a decline in revenue but an improved margin for the first half of 2025, with the integration of Crayon progressing as planned. The company achieved cost synergies and anticipates flat revenue growth for the year, focusing on strategic growth initiatives and leveraging combined capabilities to support digital transformation and growth in the CSP area.

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.