SWORD GROUP SE (SWP) AI Stock Analysis

• Market Cap: €338.69M
• Dividend Yield: 5.59%
• Average Volume (3M): 7.15K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.05
• 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: 8,650
• 30 Day Avg. Volume: 7,153
• 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: €40.00
• Price Target Upside: 11.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: €40.00 ▲(11.73% Upside)

Sword Group SE's overall stock score is driven by solid financial performance and attractive valuation. The company's strong cash flow and reasonable P/E ratio, combined with a high dividend yield, make it appealing for income-focused investors. Technical analysis indicates a neutral market sentiment, with no strong momentum signals. The absence of earnings call data and corporate events does not impact the score.

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 through a diversified model that includes software licensing, consulting services, and managed IT services. The company earns money by selling bespoke software solutions to clients in various sectors, which often includes subscription-based licensing fees. Additionally, consulting services account for a significant portion of revenue, where the company provides expert advice and implementation support for digital transformation projects. Managed services, where SWORD GROUP SE oversees IT operations for its clients, also contribute to recurring revenue streams. Strategic partnerships with technology providers and industry leaders further enhance its service offerings and client base, allowing for additional revenue opportunities through collaborative projects and integrations.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	323.01M	288.13M	272.26M	214.56M	212.53M
Gross Profit	164.85M	122.08M	245.87M	202.57M	203.11M
EBITDA	37.97M	36.45M	121.12M	28.69M	66.50M
Net Income	21.81M	22.82M	109.75M	17.65M	53.28M
Balance Sheet
Total Assets	292.55M	250.54M	244.70M	225.68M	235.25M
Cash, Cash Equivalents and Short-Term Investments	70.62M	62.59M	57.14M	55.30M	105.84M
Total Debt	67.34M	47.44M	31.23M	9.28M	7.89M
Total Liabilities	195.44M	145.13M	143.15M	131.35M	99.31M
Stockholders Equity	95.45M	104.15M	100.81M	92.91M	134.15M
Cash Flow
Free Cash Flow	19.07M	19.12M	8.71M	7.04M	28.65M
Operating Cash Flow	23.22M	22.01M	14.73M	17.33M	32.84M
Investing Cash Flow	-11.76M	4.24M	98.78M	-18.75M	53.06M
Financing Cash Flow	-4.74M	-21.20M	-111.33M	-51.15M	-50.25M

SWORD GROUP SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 35.8 is above the 20-day moving average (MA) of 35.07, below the 50-day MA of 36.00, and above the 200-day MA of 33.71, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 32.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SWP.

SWORD GROUP SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALSTW	80 Outperform	€207.05M	38.24	18.94%	―	14.04%	21.45%
SWP	71 Outperform	€338.69M	16.36	25.87%	5.59%	14.40%	1.92%
ALBFR	68 Neutral	€330.37M	38.99	20.04%	―	24.74%	18.04%
ALPRO	67 Neutral	€86.27M	2.95	22.43%	―	75.72%	―
LIN	64 Neutral	€280.73M	10.20	20.30%	3.02%	0.23%	10.46%
CLA	45 Neutral	€95.59M	-28.15	―	―	-0.95%	49.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%