SWORD GROUP SE (SWP) AI Stock Analysis

• Market Cap: €338.69M
• Dividend Yield: 5.63%
• Average Volume (3M): 7.34K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.86
• Revenue Growth: 14.40%
• EPS Growth: 1.92%
• Country: FR
• Employees: 3,211
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.94
• Shares Outstanding: 9,544,965
• 10 Day Avg. Volume: 6,871
• 30 Day Avg. Volume: 7,344
• PEG Ratio: -4.63
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 17.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €41.00 ▲(15.98% Upside)

Sword Group SE's overall stock score is driven by strong financial performance and attractive valuation. The company's robust revenue growth and solid balance sheet contribute positively, while the reasonable P/E ratio and high dividend yield enhance its investment appeal. Technical indicators suggest a stable market position with potential for upward movement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Sword Group's offerings and effective market penetration, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing Sword Group to invest in growth opportunities and manage obligations effectively.

Balance Sheet Health

A healthy balance sheet with moderate leverage provides stability and supports strategic initiatives without excessive financial risk.

Negative Factors

Profitability Pressure

Decreasing net profit margins can strain profitability, potentially impacting Sword Group's ability to reinvest in business growth and innovation.

Equity Growth Challenges

Challenges in equity growth may limit Sword Group's ability to attract investment and sustain long-term financial health.

Free Cash Flow Decline

A decline in free cash flow could constrain Sword Group's capacity to fund new projects or return capital to shareholders, affecting future growth.

SWORD GROUP SE Business Overview & Revenue Model

Company Description

Sword Group S.E. provides IT services and software in Europe, the United States, the Oceania, and Asia. Its products include Sword GRC, a governance, compliance, and enterprise risk management solution; Sword Aequos offers collaborative tools and solutions; and Sword Venue, an event planning, collaboration, and organizing software. The company also provides information systems integration and engineering services, including strategic and operational consulting, solution engineering and application development, project ownership support and project management support, infrastructure management and application maintenance for third parties, and resource outsourcing. The company serves banking and insurance, energy, public services, aviation, defence, and government institutions. Sword Group S.E. was founded in 2000 and is headquartered in Windhof, Luxembourg.

How the Company Makes Money

SWORD GROUP SE generates revenue primarily through its service offerings, which include consulting, software development, and managed services. Key revenue streams come from long-term contracts with clients in sectors such as finance and telecommunications, where they provide custom software solutions and ongoing support. The company also earns income from licensing its proprietary software products and solutions. Additionally, strategic partnerships with technology providers and industry leaders enhance its service portfolio, contributing to its earnings by expanding client reach and enhancing service offerings.

SWORD GROUP SE Financial Statement Overview

Summary

Sword Group SE exhibits robust revenue growth and maintains a healthy balance sheet with moderate debt levels. While profitability metrics show slight pressure, the company continues to generate strong cash flows, supporting its operational and strategic objectives. The financials indicate a stable trajectory with some areas for improvement in profitability and equity growth.

Income Statement

Sword Group SE has demonstrated steady revenue growth with a 12.1% increase from 2023 to 2024. The gross profit margin improved to 51.0%, indicating efficient cost management. However, the net profit margin decreased slightly to 6.8% due to rising expenses. EBIT and EBITDA margins at 7.8% and 11.8%, respectively, reflect moderate operational efficiency.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.71, indicating moderate leverage. The equity ratio stands at 32.6%, reflecting a stable capital structure. However, the decline in stockholders' equity over the year suggests potential challenges in equity retention or growth.

Cash Flow

Operating cash flow improved by 5.5%, and free cash flow generation remains strong. However, the free cash flow decreased slightly, leading to a free cash flow to net income ratio of 0.87, suggesting a close alignment of cash generation to earnings. The operating cash flow to net income ratio of 1.06 indicates adequate cash coverage of earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	341.94M	323.01M	288.13M	272.26M	214.56M	212.53M
Gross Profit	87.33M	164.85M	122.08M	126.71M	105.52M	203.11M
EBITDA	38.77M	37.97M	36.45M	121.12M	28.69M	66.50M
Net Income	20.48M	21.81M	22.82M	109.75M	17.65M	53.28M
Balance Sheet
Total Assets	285.73M	292.55M	250.54M	244.70M	225.68M	235.25M
Cash, Cash Equivalents and Short-Term Investments	41.37M	70.62M	62.59M	57.14M	55.30M	105.84M
Total Debt	98.61M	67.34M	47.44M	31.23M	9.28M	7.89M
Total Liabilities	218.94M	195.44M	145.13M	143.15M	131.35M	99.31M
Stockholders Equity	65.12M	95.45M	104.15M	100.81M	92.91M	134.15M
Cash Flow
Free Cash Flow	10.85M	19.07M	19.12M	8.71M	7.04M	28.65M
Operating Cash Flow	12.19M	23.22M	22.01M	14.73M	17.33M	32.84M
Investing Cash Flow	-4.57M	-11.76M	4.24M	98.78M	-18.75M	53.06M
Financing Cash Flow	-13.05M	-4.74M	-21.20M	-111.33M	-51.15M	-50.25M

SWORD GROUP SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.35
• 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 FR:SWP, the sentiment is Negative. The current price of 35.35 is below the 20-day moving average (MA) of 35.56, below the 50-day MA of 36.05, and above the 200-day MA of 34.71, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SWP.

SWORD GROUP SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPRO	80 Outperform	€202.99M	7.34	―	―	21.73%	―
SWP	75 Outperform	€338.69M	16.36	25.87%	5.63%	14.40%	1.92%
ALBFR	68 Neutral	€361.43M	40.99	21.64%	―	24.74%	18.04%
LIN	63 Neutral	€224.10M	8.14	―	3.80%	0.23%	10.46%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALSTW	61 Neutral	€214.23M	37.73	21.37%	―	14.04%	24.09%
CLA	41 Neutral	€71.32M	-20.57	―	―	-0.95%	49.19%