Software Aktiengesellschaft provides software development, licensing, and maintenance; and information technology (IT) services worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||€41.36|
|52 Week High||€30.20|
|52 Week Low||€44.00|
|1 Month Change||-3.09%|
|3 Month Change||10.12%|
|1 Year Change||-2.87%|
|3 Year Change||4.18%|
|5 Year Change||10.22%|
|Change since IPO||382.80%|
Recent News & Updates
|SOW||DE Software||DE Market|
Return vs Industry: SOW exceeded the German Software industry which returned -7.1% over the past year.
Return vs Market: SOW underperformed the German Market which returned 22.5% over the past year.
Stable Share Price: SOW is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SOW's weekly volatility (3%) has been stable over the past year.
About the Company
Software Aktiengesellschaft provides software development, licensing, and maintenance; and information technology (IT) services worldwide. It operates through three segments: Digital Business Platform, Adabas & Natural, and Professional Services. The company offers Adabas & Natural, a transaction processing platform; Alfabet for use in IT planning and portfolio management, as well as enterprise architecture management; Apama, a platform for streaming analytics and automated actions on big data; and Architecture for Integrated Information Systems, a platform that makes processes transparent, controlled, manageable, and agile.
Is Software undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SOW (€41.36) is trading below our estimate of fair value (€53.04)
Significantly Below Fair Value: SOW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SOW is good value based on its PE Ratio (31.5x) compared to the German Software industry average (39.9x).
PE vs Market: SOW is poor value based on its PE Ratio (31.5x) compared to the German market (23.3x).
Price to Earnings Growth Ratio
PEG Ratio: SOW is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: SOW is good value based on its PB Ratio (2.3x) compared to the DE Software industry average (4.5x).
How is Software forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SOW's forecast earnings growth (28.3% per year) is above the savings rate (0.01%).
Earnings vs Market: SOW's earnings (28.3% per year) are forecast to grow faster than the German market (12% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SOW's revenue (6.9% per year) is forecast to grow faster than the German market (5.7% per year).
High Growth Revenue: SOW's revenue (6.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SOW's Return on Equity is forecast to be low in 3 years time (9.8%).
How has Software performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SOW has high quality earnings.
Growing Profit Margin: SOW's current net profit margins (11.8%) are lower than last year (15%).
Past Earnings Growth Analysis
Earnings Trend: SOW's earnings have declined by 6% per year over the past 5 years.
Accelerating Growth: SOW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SOW had negative earnings growth (-27.4%) over the past year, making it difficult to compare to the Software industry average (-4.4%).
Return on Equity
High ROE: SOW's Return on Equity (7.3%) is considered low.
How is Software's financial position?
Financial Position Analysis
Short Term Liabilities: SOW's short term assets (€797.0M) exceed its short term liabilities (€444.5M).
Long Term Liabilities: SOW's short term assets (€797.0M) exceed its long term liabilities (€314.3M).
Debt to Equity History and Analysis
Debt Level: SOW's debt to equity ratio (23.3%) is considered satisfactory.
Reducing Debt: SOW's debt to equity ratio has reduced from 35.2% to 23.3% over the past 5 years.
Debt Coverage: SOW's debt is well covered by operating cash flow (30.8%).
Interest Coverage: SOW earns more interest than it pays, so coverage of interest payments is not a concern.
What is Software current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SOW's dividend (1.84%) is higher than the bottom 25% of dividend payers in the German market (0.97%).
High Dividend: SOW's dividend (1.84%) is low compared to the top 25% of dividend payers in the German market (3.16%).
Stability and Growth of Payments
Stable Dividend: SOW's dividend payments have been volatile in the past 10 years.
Growing Dividend: SOW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.9%), SOW's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SOW's dividends in 3 years are forecast to be well covered by earnings (39.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sanjay Brahmawar (51 yo)
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...
CEO Compensation Analysis
Compensation vs Market: Sanjay's total compensation ($USD6.35M) is above average for companies of similar size in the German market ($USD2.10M).
Compensation vs Earnings: Sanjay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: SOW's management team is considered experienced (2.4 years average tenure).
Experienced Board: SOW's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Software Aktiengesellschaft's employee growth, exchange listings and data sources
- Name: Software Aktiengesellschaft
- Ticker: SOW
- Exchange: XTRA
- Founded: 1969
- Industry: Systems Software
- Sector: Software
- Market Cap: €3.049b
- Shares outstanding: 73.98m
- Website: https://www.softwareag.com
Number of Employees
- Software Aktiengesellschaft
- Uhlandstrasse 12
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 21:28|
|End of Day Share Price||2021/09/16 00:00|
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.