SWX:SWON

Stock Analysis Report

SoftwareONE Holding

Executive Summary

SoftwareONE Holding AG provides software and services worldwide.

Rewards

Trading at 12.3% below its fair value

Earnings are forecast to grow 21.24% per year

Earnings grew by 76.4% over the past year

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Undervalued with high growth potential.

Share Price & News

How has SoftwareONE Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SWON's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.9%

SWON

1.2%

CH Electronic

2.0%

CH Market


1 Year Return

n/a

SWON

39.6%

CH Electronic

18.5%

CH Market

Return vs Industry: Insufficient data to determine how SWON performed against the Swiss Electronic industry.

Return vs Market: Insufficient data to determine how SWON performed against the Swiss Market.


Shareholder returns

SWONIndustryMarket
7 Day4.9%1.2%2.0%
30 Day10.0%4.6%1.8%
90 Dayn/a18.5%8.3%
1 Yearn/a43.4%39.6%24.3%18.5%
3 Yearn/a47.7%38.3%42.5%24.1%
5 Yearn/a131.6%104.0%55.0%30.3%

Price Volatility Vs. Market

How volatile is SoftwareONE Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SoftwareONE Holding undervalued compared to its fair value and its price relative to the market?

8.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWON (CHF24.8) is trading below our estimate of fair value (CHF28.28)

Significantly Below Fair Value: SWON is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SWON is good value based on its PE Ratio (3.3x) compared to the Electronic industry average (22x).

PE vs Market: SWON is good value based on its PE Ratio (3.3x) compared to the Swiss market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: SWON is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: SWON is good value based on its PB Ratio (0.7x) compared to the CH Electronic industry average (2.6x).


Next Steps

Future Growth

How is SoftwareONE Holding forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWON's forecast earnings growth (21.2% per year) is above the savings rate (-0.6%).

Earnings vs Market: SWON's earnings (21.2% per year) are forecast to grow faster than the Swiss market (10.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SWON's revenue (10.6% per year) is forecast to grow faster than the Swiss market (3.6% per year).

High Growth Revenue: SWON's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWON's Return on Equity is forecast to be high in 3 years time (22.1%)


Next Steps

Past Performance

How has SoftwareONE Holding performed over the past 5 years?

76.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SWON has a high level of non-cash earnings.

Growing Profit Margin: SWON's current net profit margins (1.8%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SWON's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare SWON's past year earnings growth to its 5-year average.

Earnings vs Industry: SWON earnings growth over the past year (76.4%) exceeded the Electronic industry -2.4%.


Return on Equity

High ROE: SWON's Return on Equity (18.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SoftwareONE Holding's financial position?


Financial Position Analysis

Short Term Liabilities: SWON's short term assets (CHF2.3B) exceed its short term liabilities (CHF2.1B).

Long Term Liabilities: SWON's short term assets (CHF2.3B) exceed its long term liabilities (CHF245.5M).


Debt to Equity History and Analysis

Debt Level: SWON's debt to equity ratio (2.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SWON's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SWON's debt is well covered by operating cash flow (407.4%).

Interest Coverage: SWON earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SWON has a low level of unsold assets or inventory.

Debt Coverage by Assets: SWON's debt is covered by short term assets (assets are 182.7x debt).


Next Steps

Dividend

What is SoftwareONE Holding's current dividend yield, its reliability and sustainability?

1.28%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.7%markettop25%3.4%industryaverage2.4%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SWON's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SWON's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SWON's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SWON's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SWON's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

What is the CEO of SoftwareONE Holding's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average board tenure


CEO

Dieter Schlosser 0

0yrs

Tenure

0

Dieter Schlosser serves as Chief Executive Officer of SoftwareONE Holding AG. 


Board Age and Tenure

0.3yrs

Average Tenure

53yo

Average Age

Experienced Board: SWON's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: SWON only recently listed within the past 12 months, with total shares outstanding growing by 6.9% in the past year..


Management Team

  • Hans Grüter (60yo)

    Chief Financial Officer

    • Alex Alexandrov

      Chief Operating Officer

      • Dieter Schlosser

        Chief Executive Officer

        • Neil Lomax

          President of Sales


          Board Members

          • Peter Kurer (70yo)

            Lead Independent Director

            • Timo Ihamuotila (53yo)

              Independent Director

              • Tenure: 0.3yrs
            • José Duarte (51yo)

              Independent Director

              • Tenure: 0.3yrs
            • Marina Nielsen

              Board of Director

              • Marie-Pierre Rogers

                Independent Director

                • Tenure: 0.3yrs
              • Daniel Stockar

                Chairman

                Company Information

                SoftwareONE Holding AG's company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: SoftwareONE Holding AG
                • Ticker: SWON
                • Exchange: SWX
                • Founded:
                • Industry: Technology Distributors
                • Sector: Tech
                • Market Cap: CHF3.978b
                • Shares outstanding: 154.20m
                • Website: https://www.softwareone.com

                Number of Employees


                Location

                • SoftwareONE Holding AG
                • Riedenmatt 4
                • Stans
                • Nidwalden
                • 6370
                • Switzerland

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                SWONSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFOct 2019

                Biography

                SoftwareONE Holding AG provides software and services worldwide. It operates as an account reseller and enterprise software advisor mainly focuses on software licensing and related services. The company also develops innovative services that support management and leverage software products; and provides managed services and infrastructure services. The company is based in Stans, Switzerland. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/20 23:01
                End of Day Share Price2020/01/20 00:00
                Earnings2019/06/30
                Annual Earnings2018/12/31


                Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.