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74SOFTWARE (FR:74SW)
:74SW
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74SOFTWARE (74SW) AI Stock Analysis

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FR:74SW

74SOFTWARE

(LSE:74SW)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
€42.00
▲(13.21% Upside)
The overall stock score reflects strong financial performance driven by revenue growth and improved gross margins. However, challenges in profitability, increased leverage, and cash flow management are significant concerns. Technical indicators suggest neutral to slightly bearish momentum, and the valuation is moderate. The absence of earnings call data and corporate events limits further insights.

74SOFTWARE (74SW) vs. iShares MSCI France ETF (EWQ)

74SOFTWARE Business Overview & Revenue Model

Company Description74Software operates as an infrastructure software publisher in France, rest of Europe, the Americas, and the Asia Pacific. The company offers amplify software products comprising Axway Managed File Transfer that manages the critical data streams in accordance with compliance policies; Axway B2B Integration which manages business interactions across all value chains within the company; amplify platform, a management and governance platform to unify software infrastructures, streamline analysis, and deployment of digital services; Axway Financial Accounting Hub, automating and centralizing the management of accounting and financial processes; and Axway Managed Cloud Services, a cloud platform that manages critical business process. It provides specialty products that offers visibility, intelligence, and security across the digital ecosystem. The company serves banking and financial, healthcare, life sciences, automotive, energy and utilities, government, insurance, manufacturing and consumer packaged goods, and public sector industries. The company was formerly known as Axway Software SA and changed its name to 74Software in December 2024. 74Software was incorporated in 2000 and is headquartered in Scottsdale, Arizona.
How the Company Makes Money74SOFTWARE generates revenue primarily through its software development services, which include project-based contracts and ongoing maintenance agreements. Key revenue streams come from custom software solutions tailored to specific client needs, licensing of proprietary software products, and subscription-based cloud services. Additionally, the company has formed strategic partnerships with major technology firms to enhance its service offerings and expand its market reach, which contributes to its overall earnings.

74SOFTWARE Financial Statement Overview

Summary
74SOFTWARE is experiencing strong revenue growth and improving gross margins, which are positive indicators of operational efficiency. However, declining net profit margins and increasing leverage pose potential risks. The company should focus on enhancing profitability and managing its debt levels to ensure long-term financial health. Cash flow management also requires attention to support ongoing growth and investment needs.
Income Statement
75
Positive
74SOFTWARE has demonstrated strong revenue growth, particularly in the most recent year with a 44.8% increase. The gross profit margin has improved significantly from 30.5% in 2022 to 46.1% in 2024, indicating better cost management. However, the net profit margin has decreased from 11.2% in 2023 to 8.5% in 2024, suggesting increased expenses or other financial pressures. Overall, the company shows robust growth but needs to manage profitability more effectively.
Balance Sheet
68
Positive
The company's debt-to-equity ratio has increased from 0.34 in 2023 to 0.65 in 2024, indicating higher leverage, which could pose a risk if not managed carefully. Return on equity has decreased from 10.3% in 2023 to 7.4% in 2024, reflecting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure. While the company maintains a solid asset base, the rising debt levels warrant attention.
Cash Flow
60
Neutral
74SOFTWARE's free cash flow has declined by 33.5% in the latest year, highlighting potential challenges in generating cash. The operating cash flow to net income ratio is low at 0.10, indicating limited cash generation relative to net income. The free cash flow to net income ratio is moderate at 0.62, suggesting some ability to convert earnings into cash. The company needs to improve its cash flow management to support growth and financial stability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue657.21M461.88M318.98M314.03M285.55M297.23M
Gross Profit158.44M212.80M114.44M95.90M78.54M114.15M
EBITDA116.50M80.78M66.64M-28.80M38.06M34.99M
Net Income42.17M39.17M35.83M-40.05M9.60M8.48M
Balance Sheet
Total Assets1.20B1.24B594.59M571.07M582.91M559.35M
Cash, Cash Equivalents and Short-Term Investments58.52M41.44M16.68M18.32M25.36M16.16M
Total Debt312.12M346.13M116.20M117.25M95.39M78.74M
Total Liabilities691.98M708.47M248.32M243.25M210.69M203.88M
Stockholders Equity512.66M532.28M346.26M327.81M372.21M355.46M
Cash Flow
Free Cash Flow82.46M19.77M29.72M10.64M10.12M4.38M
Operating Cash Flow106.31M31.70M32.15M12.96M12.94M12.12M
Investing Cash Flow-324.37M-312.94M-12.63M-11.10M-2.83M-8.11M
Financing Cash Flow274.31M304.69M-21.10M-9.45M-1.73M-7.86M

74SOFTWARE Technical Analysis

Technical Analysis Sentiment
Negative
Last Price37.10
Price Trends
50DMA
37.93
Negative
100DMA
38.60
Negative
200DMA
34.19
Positive
Market Momentum
MACD
-0.35
Negative
RSI
43.01
Neutral
STOCH
77.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:74SW, the sentiment is Negative. The current price of 37.1 is below the 20-day moving average (MA) of 37.34, below the 50-day MA of 37.93, and above the 200-day MA of 34.19, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 77.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:74SW.

74SOFTWARE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€345.84M16.7825.87%5.49%14.40%1.92%
68
Neutral
€337.43M39.8321.64%24.74%18.04%
66
Neutral
€1.08B21.399.71%103.99%17.53%
65
Neutral
€913.12M30.189.61%1.64%5.07%-4.31%
64
Neutral
€266.21M10.2422.37%3.01%0.23%10.46%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
€467.00M7.375.80%5.20%0.13%11.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:74SW
74SOFTWARE
37.10
12.50
50.81%
FR:LSS
Lectra SA
24.15
-4.19
-14.78%
FR:LIN
Linedata Services
55.00
-22.27
-28.82%
FR:QDT
Quadient SA
13.46
-1.87
-12.22%
FR:SWP
SWORD GROUP SE
36.25
2.59
7.70%
FR:ALBFR
Sidetrade SA
239.00
15.00
6.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 10, 2025