SWORD GROUP SE (SWP) AI Stock Analysis

• Market Cap: €367.79M
• Dividend Yield: 5.19%
• Average Volume (3M): 16.50K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.01
• Revenue Growth: 12.11%
• EPS Growth: -3.64%
• Country: FR
• Employees: 3,211
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 1.23
• Shares Outstanding: 9,544,965
• 10 Day Avg. Volume: 25,013
• 30 Day Avg. Volume: 16,497
• PEG Ratio: <0.01
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.15
• 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: 3.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: €43.00 ▲(11.54%Upside)

Sword Group SE's strong financial performance and solid technical indicators lead to a favorable stock score. Robust revenue growth and a stable balance sheet support the financial standing, while technical indicators suggest a bullish trend. However, the high RSI and Stochastic indicate potential overbought conditions. The valuation is reasonable with an attractive dividend yield, though it may not fully reflect growth potential.

SWORD GROUP SE Business Overview & Revenue Model

Company Description

Sword Group SE is an international leader in IT services, specializing in digital transformation and software development. The company operates across various sectors, including healthcare, finance, energy, and public services, delivering innovative solutions that enhance operational efficiency and business agility. Sword Group offers a comprehensive range of services, including IT consulting, software engineering, and managed services, tailored to meet the specific needs of its clients.

How the Company Makes Money

Sword Group SE generates revenue primarily through IT consulting services, software development, and managed services. By providing bespoke solutions and advisory services, the company assists organizations in implementing and managing complex IT systems. Software development, a key revenue stream, involves the creation and licensing of custom applications and platforms tailored to client requirements. Managed services contribute to revenue by offering ongoing IT support and maintenance contracts. Partnerships with technology providers and strategic acquisitions also play a significant role in expanding their service offerings and client base, further driving revenue.

SWORD GROUP SE Financial Statement Overview

Summary

Sword Group SE exhibits robust revenue growth and maintains a healthy balance sheet with moderate debt levels. Despite slight pressure on profitability metrics, the company continues to generate strong cash flows, indicating a stable trajectory.

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: 38.55
• 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 FR:SWP, the sentiment is Positive. The current price of 38.55 is above the 20-day moving average (MA) of 37.66, above the 50-day MA of 36.05, and above the 200-day MA of 33.19, indicating a bullish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 62.95 is Neutral, neither overbought nor oversold. The STOCH value of 57.72 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
SWP	76 Outperform	€367.79M	16.13	21.85%	5.19%	12.11%	-3.64%
ALSTW	73 Outperform	€157.91M	32.72	19.89%	―	7.72%	16.93%
ALBFR	69 Neutral	€323.31M	40.52	22.43%	―	25.69%	38.74%
ALPRO	66 Neutral	€80.47M	2.76		―	75.72%	―
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%
CLA	46 Neutral	€136.72M	―		―	-0.95%	49.19%