We Think 74Software's (EPA:74SW) Solid Earnings Are Understated
Apr 01
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- 7D4.0%
- 3M-26.8%
- 1Y-48.3%
- YTD-25.6%
The Software industry is up 3.7% in the last week, with Dassault Systèmes up 4.3%. During this same period, the Linedata Services underperformed, falling 6.2%. However, the industry is down 49% over the past year. Earnings are forecast to grow by 8.9% annually.
Industry Valuation and Performance
Has the French Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 02 Apr 2026 | €26.8b | €8.4b | €1.2b | 19.2x | 21.6x | 3.2x |
| Sat, 28 Feb 2026 | €28.3b | €8.3b | €1.2b | 19.3x | 22.8x | 3.4x |
| Mon, 26 Jan 2026 | €36.2b | €8.4b | €1.2b | 25.2x | 29.5x | 4.3x |
| Wed, 24 Dec 2025 | €36.3b | €8.4b | €1.2b | 26.6x | 29.6x | 4.3x |
| Fri, 21 Nov 2025 | €35.5b | €8.4b | €1.2b | 24.4x | 28.9x | 4.2x |
| Sun, 19 Oct 2025 | €43.5b | €8.3b | €1.2b | 25.5x | 35.7x | 5.2x |
| Tue, 16 Sep 2025 | €40.5b | €8.3b | €1.2b | 25.6x | 33.3x | 4.9x |
| Thu, 14 Aug 2025 | €40.4b | €8.3b | €1.2b | 26x | 33.1x | 4.8x |
| Sat, 12 Jul 2025 | €48.0b | €8.1b | €1.3b | 24.6x | 36.9x | 5.9x |
| Mon, 09 Jun 2025 | €48.3b | €8.1b | €1.3b | 24.4x | 37.2x | 5.9x |
| Wed, 07 May 2025 | €48.7b | €8.1b | €1.3b | 23x | 38.2x | 6x |
| Fri, 04 Apr 2025 | €49.5b | €8.0b | €1.3b | 25x | 37.6x | 6.2x |
| Sun, 02 Mar 2025 | €55.1b | €7.9b | €1.3b | 24.7x | 42.2x | 7x |
| Tue, 28 Jan 2025 | €55.0b | €8.0b | €1.2b | 30.2x | 44.8x | 6.9x |
| Thu, 26 Dec 2024 | €50.6b | €8.0b | €1.2b | 22.7x | 41.1x | 6.3x |
| Sat, 23 Nov 2024 | €48.8b | €8.0b | €1.2b | 23.6x | 39.7x | 6.1x |
| Mon, 21 Oct 2024 | €50.2b | €7.9b | €1.2b | 21.9x | 41.2x | 6.3x |
| Wed, 18 Sep 2024 | €52.7b | €7.9b | €1.2b | 34.2x | 43x | 6.7x |
| Fri, 16 Aug 2024 | €51.2b | €7.9b | €1.2b | 24.8x | 41.6x | 6.5x |
| Sun, 14 Jul 2024 | €51.2b | €7.8b | €1.2b | 37.3x | 43x | 6.5x |
| Tue, 11 Jun 2024 | €54.8b | €7.8b | €1.2b | 44x | 46.2x | 7x |
| Thu, 09 May 2024 | €56.0b | €7.8b | €1.2b | 40x | 46.9x | 7.1x |
| Sat, 06 Apr 2024 | €57.0b | €7.6b | €1.1b | 57.7x | 51x | 7.5x |
| Mon, 04 Mar 2024 | €60.2b | €7.6b | €1.1b | 58.2x | 53.9x | 7.9x |
| Wed, 31 Jan 2024 | €70.1b | €8.0b | €1.1b | 60.7x | 64.8x | 8.8x |
| Fri, 29 Dec 2023 | €64.4b | €8.0b | €1.1b | 61.7x | 59.5x | 8.1x |
| Sun, 26 Nov 2023 | €62.0b | €8.0b | €1.1b | 55.7x | 57.5x | 7.8x |
| Tue, 24 Oct 2023 | €50.2b | €7.9b | €1.1b | 43.9x | 47.3x | 6.3x |
| Thu, 21 Sep 2023 | €51.1b | €7.8b | €1.0b | 44.2x | 49.3x | 6.6x |
| Sat, 19 Aug 2023 | €52.0b | €7.8b | €1.1b | 47x | 49.4x | 6.7x |
| Mon, 17 Jul 2023 | €58.4b | €7.7b | €949.1m | 40.8x | 61.5x | 7.6x |
| Wed, 14 Jun 2023 | €58.7b | €7.7b | €950.2m | 28.7x | 61.7x | 7.6x |
| Fri, 12 May 2023 | €51.9b | €7.7b | €958.8m | 31.7x | 54.2x | 6.7x |
| Sun, 09 Apr 2023 | €53.7b | €7.6b | €972.4m | 34.9x | 55.3x | 7.1x |
Price to Earnings Ratio
55.3x
Current Industry PE
- Investors are pessimistic on the French Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 21.3x which is lower than its 3-year average PE of 43.7x.
- The 3-year average PS ratio of 6.3x is higher than the industry's current PS ratio of 3.1x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 8.5% per year over the last three years.
- Revenues for these companies have grown 3.5% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the French Tech industry?
| FR Market | 1.87% | |
| Tech | 3.87% | |
| Software | 3.99% | |
| Application Software | 4.03% | |
| Systems Software | -1.18% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 42.4x.
- Analysts are expecting annual earnings growth of 8.2%, which is higher than its past year's earnings growth of 4.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 113% over the next 5 years.
- In contrast, the Application Software industry is expected to see its earnings grow by 8.2% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| DSY Dassault Systèmes | €17.52 | 4.3% +€955.6m | -50.6% | PE19.2x | |
| 74SW 74Software | €32.10 | 3.5% +€31.5m | 0.9% | PE22.9x | |
| PLNW Planisware SAS | €14.70 | 1.8% +€18.1m | -40.0% | PE21.2x | |
| LSS Lectra | €16.46 | 2.4% +€14.4m | -41.3% | PE24.1x | |
| ALBFR Sidetrade | €154.50 | 5.5% +€11.3m | -35.6% | PE25.9x |
