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Software

XTRA:SOW
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SOW
XTRA
€2B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Software Aktiengesellschaft provides software development, licensing, and maintenance; and information (IT) services worldwide. The last earnings update was 47 days ago. More info.


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SOW Share Price and Events
7 Day Returns
-3.6%
XTRA:SOW
2.9%
DE Software
1.3%
DE Market
1 Year Returns
-28.3%
XTRA:SOW
13.4%
DE Software
-7.6%
DE Market
SOW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Software (SOW) -3.6% -4.1% -1.8% -28.3% - -
DE Software 2.9% 5.2% 13.3% 13.4% 42.9% 81.2%
DE Market 1.3% 2.8% 7.5% -7.6% 9.3% 13.3%
1 Year Return vs Industry and Market
  • SOW underperformed the Software industry which returned 13.4% over the past year.
  • SOW underperformed the Market in Germany which returned -7.6% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

SOW Value

 Is Software undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Software to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Software.

XTRA:SOW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for XTRA:SOW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.134 (1 + (1- 30%) (13.68%))
1.163
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.163 * 5.96%)
7.16%

Discounted Cash Flow Calculation for XTRA:SOW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Software is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

XTRA:SOW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.16%)
2019 176.43 Analyst x11 164.65
2020 174.51 Analyst x11 151.98
2021 172.44 Analyst x7 140.15
2022 190.90 Analyst x1 144.78
2023 193.50 Analyst x1 136.95
2024 195.47 Est @ 1.02% 129.10
2025 196.99 Est @ 0.78% 121.42
2026 198.20 Est @ 0.61% 114.00
2027 199.19 Est @ 0.5% 106.92
2028 200.02 Est @ 0.42% 100.19
Present value of next 10 years cash flows €1,310.15
XTRA:SOW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €200.02 × (1 + 0.23%) ÷ (7.16% – 0.23%)
€2,893.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €2,893.07 ÷ (1 + 7.16%)10
€1,449.23
XTRA:SOW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €1,310.15 + €1,449.23
€2,759.37
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €2,759.37 / 73.98
€37.3
XTRA:SOW Discount to Share Price
Calculation Result
Value per share (EUR) From above. €37.30
Current discount Discount to share price of €30.96
= -1 x (€30.96 - €37.30) / €37.30
17%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Software is available for.
Intrinsic value
17%
Share price is €30.96 vs Future cash flow value of €37.3
Current Discount Checks
For Software to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Software's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Software's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Software's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Software's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
XTRA:SOW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €2.23
XTRA:SOW Share Price ** XTRA (2019-03-19) in EUR €30.96
Germany Software Industry PE Ratio Median Figure of 23 Publicly-Listed Software Companies 35.42x
Germany Market PE Ratio Median Figure of 423 Publicly-Listed Companies 19.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Software.

XTRA:SOW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= XTRA:SOW Share Price ÷ EPS (both in EUR)

= 30.96 ÷ 2.23

13.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Software is good value based on earnings compared to the DE Software industry average.
  • Software is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Software's expected growth come at a high price?
Raw Data
XTRA:SOW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
1.2%per year
Germany Software Industry PEG Ratio Median Figure of 16 Publicly-Listed Software Companies 1.46x
Germany Market PEG Ratio Median Figure of 276 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

XTRA:SOW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.89x ÷ 1.2%

11.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Software is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Software's assets?
Raw Data
XTRA:SOW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €16.74
XTRA:SOW Share Price * XTRA (2019-03-19) in EUR €30.96
Germany Software Industry PB Ratio Median Figure of 33 Publicly-Listed Software Companies 2.82x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.76x
XTRA:SOW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= XTRA:SOW Share Price ÷ Book Value per Share (both in EUR)

= 30.96 ÷ 16.74

1.85x

* Primary Listing of Software.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Software is good value based on assets compared to the DE Software industry average.
X
Value checks
We assess Software's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Software has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SOW Future Performance

 How is Software expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Software expected to grow at an attractive rate?
  • Software's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Software's earnings growth is positive but not above the Germany market average.
  • Software's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
XTRA:SOW Future Growth Rates Data Sources
Data Point Source Value (per year)
XTRA:SOW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 1.2%
XTRA:SOW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 3.6%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
XTRA:SOW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
XTRA:SOW Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,058 4
2022-12-31 1,004 4
2021-12-31 956 186 168 12
2020-12-31 925 186 169 17
2019-12-31 899 177 157 17
XTRA:SOW Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 866 195 165
2018-09-30 870 177 152
2018-06-30 858 176 148
2018-03-31 860 189 143
2017-12-31 879 189 140
2017-09-30 875 192 142
2017-06-30 876 192 141
2017-03-31 872 204 138
2016-12-31 872 204 140
2016-09-30 865 203 146
2016-06-30 883 194 158
2016-03-31 885 186 150

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Software's earnings are expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
  • Software's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
XTRA:SOW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Software Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XTRA:SOW Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.22 2.55 1.93 7.00
2020-12-31 2.23 2.70 1.73 13.00
2019-12-31 2.09 2.19 1.97 9.00
XTRA:SOW Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 2.23
2018-09-30 2.05
2018-06-30 1.99
2018-03-31 1.93
2017-12-31 1.88
2017-09-30 1.89
2017-06-30 1.86
2017-03-31 1.81
2016-12-31 1.84
2016-09-30 1.91
2016-06-30 2.06
2016-03-31 1.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Software is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Software's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Software has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SOW Past Performance

  How has Software performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Software's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Software's year on year earnings growth rate has been positive over the past 5 years.
  • Software's 1-year earnings growth exceeds its 5-year average (17.5% vs 5.9%)
  • Software's earnings growth has exceeded the DE Software industry average in the past year (17.5% vs 4.2%).
Earnings and Revenue History
Software's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Software Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XTRA:SOW Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 865.71 164.88 318.67 124.42
2018-09-30 869.53 151.87 312.66 120.34
2018-06-30 858.00 147.53 305.18 118.37
2018-03-31 859.68 142.99 307.61 119.17
2017-12-31 878.98 140.33 319.40 120.64
2017-09-30 874.55 142.34 328.25 118.74
2017-06-30 875.57 141.07 326.38 118.22
2017-03-31 871.54 137.98 327.10 114.76
2016-12-31 871.83 140.16 324.99 112.45
2016-09-30 865.39 146.17 316.62 111.13
2016-06-30 882.96 158.44 322.05 108.58
2016-03-31 885.23 150.20 331.70 108.03
2015-12-31 873.06 139.45 337.14 107.91
2015-09-30 862.88 130.64 339.20 107.40
2015-06-30 852.65 116.29 341.87 109.49
2015-03-31 843.01 110.47 332.82 109.30
2014-12-31 857.83 110.36 337.11 109.06
2014-09-30 882.04 109.79 347.01 110.39
2014-06-30 914.90 110.45 359.92 109.29
2014-03-31 956.67 125.20 371.07 108.86
2013-12-31 972.69 133.84 373.22 107.92
2013-09-30 977.87 137.68 358.96 104.86
2013-06-30 996.79 147.32 349.64 103.96
2013-03-31 1,017.69 155.95 338.67 103.07
2012-12-31 1,047.33 164.51 322.79 101.08
2012-09-30 1,064.63 165.55 323.28 97.39
2012-06-30 1,081.84 171.52 316.60 94.16
2012-03-31 1,080.26 172.69 305.57 90.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Software has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Software used its assets more efficiently than the DE Software industry average last year based on Return on Assets.
  • Software's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Software's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Software has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SOW Health

 How is Software's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Software's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Software is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Software's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Software's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Software Company Filings, last reported 2 months ago.

XTRA:SOW Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,239.06 313.32 477.66
2018-09-30 1,168.78 315.39 413.07
2018-06-30 1,127.92 315.23 393.75
2018-03-31 1,115.34 256.22 378.26
2017-12-31 1,118.28 310.60 368.10
2017-09-30 1,084.78 304.58 349.27
2017-06-30 1,076.48 308.54 324.08
2017-03-31 1,203.37 287.28 381.53
2016-12-31 1,196.80 301.52 380.81
2016-09-30 1,114.62 270.84 364.29
2016-06-30 1,082.29 391.22 456.99
2016-03-31 1,097.39 356.58 405.65
2015-12-31 1,089.73 326.28 311.54
2015-09-30 1,064.68 344.76 343.09
2015-06-30 1,079.13 449.40 455.12
2015-03-31 1,105.90 449.55 454.32
2014-12-31 1,013.38 451.27 375.04
2014-09-30 972.35 437.01 335.08
2014-06-30 909.11 436.91 309.21
2014-03-31 916.64 612.95 480.74
2013-12-31 965.60 616.36 506.50
2013-09-30 975.62 609.88 499.93
2013-06-30 962.79 358.07 274.29
2013-03-31 1,046.09 361.99 422.80
2012-12-31 1,060.07 271.38 315.64
2012-09-30 1,026.96 264.18 274.69
2012-06-30 999.87 284.79 270.01
2012-03-31 974.60 278.56 272.31
  • Software's level of debt (25.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (63.9% vs 25.3% today).
  • Debt is well covered by operating cash flow (62.3%, greater than 20% of total debt).
  • Software earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Software's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Software has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SOW Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.1%
Current annual income from Software dividends. Estimated to be 2.51% next year.
If you bought €2,000 of Software shares you are expected to receive €42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Software's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.5%).
  • Software's dividend is below the markets top 25% of dividend payers in Germany (3.9%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
XTRA:SOW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

XTRA:SOW Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.90 9.00
2020-12-31 0.76 17.00
2019-12-31 0.73 17.00
XTRA:SOW Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2018-03-29 0.650 1.724
2018-01-25 0.650 1.516
2017-10-02 0.600 1.338

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Software has stable dividend payments.
  • Software only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Software's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Software's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Software afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Software has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SOW Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sanjay Brahmawar
TENURE AS CEO 0.6 years
CEO Bio

Mr. Sanjay Brahmawar has been Chief Executive Officer and Chairman of the Management Board of Software AG, Inc. and Software Aktiengesellschaft since August 1, 2018. Mr. Brahmawar serves as General Manager Global Revenue of IBM Watson Internet of Things at Munich, Germany. Mr. Brahmawar is responsible for global software sales with a focus on data analysis and artificial intelligence. Previously, he served as General Manager at IBM Consulting Services in London, where he was responsible for the business in the European industrial sector (oil and gas, automotive, aerospace, electronics and engineering). He has repeatedly and impressively demonstrated that he can increase business both in terms of sales and margin. He has an international and multicultural background with experience in Germany, England, Holland, Belgium, Finland and India. He earned his bachelor’s degree in civil engineering from Delhi College of Engineering and M.B.A. in Finance and Marketing from University of Leeds.

CEO Compensation
  • Insufficient data for Sanjay to compare compensation growth.
  • Insufficient data for Sanjay to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Software management team in years:

0.5
Average Tenure
53
Average Age
  • The average tenure for the Software management team is less than 2 years, this suggests a new team.
Management Team

Arnd Zinnhardt

TITLE
CFO & Member of the Management Board
COMPENSATION
€10M
AGE
56
TENURE
17.2 yrs

Stefan Sigg

TITLE
Chief Product Officer & Member of Mgmt. Board
COMPENSATION
€1M
AGE
53
TENURE
1.9 yrs

Sanjay Brahmawar

TITLE
Chairman of the Management Board & CEO
TENURE
0.6 yrs

John Schweitzer

TITLE
Chief Revenue Officer & Member of the Executive Board
AGE
50
TENURE
0.3 yrs

Bernd Gross

TITLE
Chief Technology Officer
TENURE
0.2 yrs

Otmar Winzig

TITLE
Senior VP & Head of Investor Relations

Benno Quade

TITLE
Senior Vice President of Global Legal

Byung-Hun Park

TITLE
Senior Vice President of Corporate Communications

Paz Macdonald

TITLE
Chief Marketing Officer
TENURE
0.2 yrs

Christine Schwab

TITLE
Senior Vice President of Global HR
Board of Directors Tenure

Average tenure and age of the Software board of directors in years:

3.8
Average Tenure
54
Average Age
  • The tenure for the Software board of directors is about average.
Board of Directors

Andreas Bereczky

TITLE
Chairman of Supervisory Board
COMPENSATION
€185K
AGE
65
TENURE
9.9 yrs

Guido Falkenberg

TITLE
Deputy Chairman of Supervisory Board
COMPENSATION
€119K
AGE
51
TENURE
3.8 yrs

Eun-Kyung Park

TITLE
Member of Supervisory Board
COMPENSATION
€76K
AGE
40
TENURE
3.8 yrs

Alf Wulf

TITLE
Member of the Supervisory Board
COMPENSATION
€86K
AGE
56
TENURE
11.8 yrs

Markus Ziener

TITLE
Member of Supervisory Board
COMPENSATION
€74K
AGE
52
TENURE
3.8 yrs

Christian Zimmermann

TITLE
Member of Supervisory Board
COMPENSATION
€72K
AGE
56
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Software's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Software has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SOW News

Simply Wall St News

The Software (ETR:SOW) Share Price Is Down 28% So Some Shareholders Are Getting Worried

That downside risk was realized by Software Aktiengesellschaft (ETR:SOW) shareholders over the last year, as the share price declined 28%. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the unfortunate twelve months during which the Software share price fell, it actually saw its earnings per share (EPS) improve by 19%.

Simply Wall St -

Software Aktiengesellschaft (ETR:SOW): Is It A Good Long Term Opportunity?

The latest earnings update Software Aktiengesellschaft (ETR:SOW) released in December 2018a … suggested

Simply Wall St -

Why Software Aktiengesellschaft’s (ETR:SOW) Return On Capital Employed Is Impressive

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Software Aktiengesellschaft (ETR:SOW): What Does The Future Look Like?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … On 31 December 2018, Software Aktiengesellschaft (ETR:SOW) released its most recent earnings update.

Simply Wall St -

A Closer Look At Software Aktiengesellschaft's (ETR:SOW) Impressive ROE

We'll use ROE to examine Software Aktiengesellschaft (ETR:SOW), by way of a worked example. … Another way to think of that is that for every €1 worth of equity in the company, it was able to earn €0.13. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should Software Aktiengesellschaft (ETR:SOW) Be Part Of Your Dividend Portfolio?

Software Aktiengesellschaft (ETR:SOW) has begun paying dividends recently. … Does Software tick all the boxes of a great dividend stock? … 5 questions I ask before picking a dividend stock

Simply Wall St -

Software Aktiengesellschaft's (ETR:SOW) Most Important Factor To Consider

If you are currently a shareholder in Software Aktiengesellschaft (ETR:SOW), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of Software’s cash flow, which will help you understand the stock from a cash standpoint. … Software’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

Does The Data Make Software Aktiengesellschaft (ETR:SOW) An Attractive Investment?

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.

Simply Wall St -

Do You Like Software Aktiengesellschaft (ETR:SOW) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Software Aktiengesellschaft's (ETR:SOW) P/E ratio and reflect on what it tells us about the company's share price. … Software has a price to earnings ratio of 15.03, based on the last twelve months.

Simply Wall St -

Is Software Aktiengesellschaft (ETR:SOW) A Financially Strong Company?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Software Aktiengesellschaft (ETR:SOW), with a market cap of €2.4b, often get neglected by retail investors. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Let’s take a look at SOW’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures.

Simply Wall St -

SOW Company Info

Description

Software Aktiengesellschaft provides software development, licensing, and maintenance; and information (IT) services worldwide. It operates through three segments: Digital Business Platform, Adabas & Natural, and Consulting. The company offers Adabas & Natural, a transaction processing platform that enables digital enterprises to leverage core systems in various ways; Alfabet for use in IT planning and portfolio management, as well as enterprise architecture management; Apama, a platform for streaming analytics and intelligent automated actions on fast-moving big data; and Architecture for Integrated Information Systems, a platform that makes processes transparent, controlled, manageable, and agile. It also provides cloud-based platform-as-a-service suite, such as CONNX that provides secure, and real-time read/write SQL data access and integration; Cumulocity, which offers Internet of things (IoT) connectivity for networked digital devices and sensors through a cloud-hosted IoT device management and application enablement platform; Terracotta, a platform that enables digital enterprises to access and store large volumes of data in-memory, as well as enhance system performance; webMethods, which enables customers to integrate systems, partners, data, devices, and software as a service applications; and Zementis that enables predictive analytics with artificial intelligence and machine learning capabilities. Further, the company provides digital transformation consulting, platform consulting, performance.ready content, platform rapid innovation methodology, training, and support services. It offers its products and services for customers in banking and securities, communication and media, education, energy and natural resources, manufacturing, retail, transportation, healthcare, insurance, utilities, and government sectors. Software Aktiengesellschaft was founded in 1969 and is headquartered in Darmstadt, Germany.

Details
Name: Software Aktiengesellschaft
SOW
Exchange: XTRA
Founded: 1969
€2,290,417,363
73,979,889
Website: http://www.softwareag.com
Address: Software Aktiengesellschaft
Uhlandstrasse 12,
Darmstadt,
Hessen, 64297,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
XTRA SOW Registered Shares XETRA Trading Platform DE EUR 02. Oct 2017
OTCPK SWDA.F Registered Shares Pink Sheets LLC US USD 02. Oct 2017
DB SOW Registered Shares Deutsche Boerse AG DE EUR 02. Oct 2017
LSE 0RUL Registered Shares London Stock Exchange GB EUR 02. Oct 2017
SWX SOW Registered Shares SIX Swiss Exchange CH CHF 02. Oct 2017
WBAG SOW Registered Shares Wiener Boerse AG AT EUR 02. Oct 2017
BATS-CHIXE SOWD Registered Shares BATS 'Chi-X Europe' GB EUR 02. Oct 2017
OTCPK STWR.Y SPONSORED ADR Pink Sheets LLC US USD 01. Nov 2005
Number of employees
Current staff
Staff numbers
4,763
Software employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 22:08
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/14
Last earnings filing: 2019/01/31
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.