Software Aktiengesellschaft provides software development, licensing, and maintenance; and information technology (IT) services worldwide.
Flawless balance sheet and good value.
Share Price & News
How has Software's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SOW's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: SOW exceeded the German Software industry which returned 5.7% over the past year.
Return vs Market: SOW exceeded the German Market which returned 0.2% over the past year.
Price Volatility Vs. Market
How volatile is Software's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 months ago | Simply Wall StDoes Software Aktiengesellschaft's (ETR:SOW) P/E Ratio Signal A Buying Opportunity?
5 months ago | Simply Wall StWas Software Aktiengesellschaft's (ETR:SOW) Earnings Growth Better Than The Industry's?
6 months ago | Simply Wall StWhy You Should Like Software Aktiengesellschaft’s (ETR:SOW) ROCE
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 (€34.78) is trading below our estimate of fair value (€40.87)
Significantly Below Fair Value: SOW is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SOW is good value based on its PE Ratio (17.7x) compared to the Software industry average (27.3x).
PE vs Market: SOW is good value based on its PE Ratio (17.7x) compared to the German market (19.3x).
Price to Earnings Growth Ratio
PEG Ratio: SOW is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: SOW is good value based on its PB Ratio (1.9x) compared to the DE Software industry average (3.2x).
How is Software forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SOW's forecast earnings growth (5.2% per year) is above the savings rate (0.2%).
Earnings vs Market: SOW's earnings (5.2% per year) are forecast to grow slower than the German market (21.6% per year).
High Growth Earnings: SOW's earnings are forecast to grow, but not significantly.
Revenue vs Market: SOW's revenue (3.9% per year) is forecast to grow slower than the German market (5.8% per year).
High Growth Revenue: SOW's revenue (3.9% 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 (9.2%).
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 (16.2%) are lower than last year (18.7%).
Past Earnings Growth Analysis
Earnings Trend: SOW's earnings have grown by 4.7% 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 (-11.5%) over the past year, making it difficult to compare to the Software industry average (30.4%).
Return on Equity
High ROE: SOW's Return on Equity (10.6%) is considered low.
How is Software's financial position?
Financial Position Analysis
Short Term Liabilities: SOW's short term assets (€755.0M) exceed its short term liabilities (€432.6M).
Long Term Liabilities: SOW's short term assets (€755.0M) exceed its long term liabilities (€285.9M).
Debt to Equity History and Analysis
Debt Level: SOW's debt to equity ratio (15%) is considered satisfactory.
Reducing Debt: SOW's debt to equity ratio has reduced from 40.7% to 15% over the past 5 years.
Debt Coverage: SOW's debt is well covered by operating cash flow (84.1%).
Interest Coverage: SOW earns more interest than it pays, so coverage of interest payments is not a concern.
What is Software's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SOW's dividend (2.19%) is higher than the bottom 25% of dividend payers in the German market (1.28%).
High Dividend: SOW's dividend (2.19%) is low compared to the top 25% of dividend payers in the German market (3.93%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SOW has been paying a dividend for less than 10 years.
Growing Dividend: SOW's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.6%), SOW's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SOW's dividends in 3 years are forecast to be well covered by earnings (36.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sanjay Brahmawar (49yo)
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 ($USD4.87M) is above average for companies of similar size in the German market ($USD2.36M).
Compensation vs Earnings: Sanjay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Chairman of the Management Board & CEO||1.83yrs||€4.38m||no data|
|Chief Product Officer & Member of Management Board||3.17yrs||€1.81m||no data|
|Chief Revenue Officer & Member of the Management Board||1.58yrs||€2.74m||no data|
|CFO & Member of Executive Board||0.25yr||no data||no data|
|Chief Human Resources Officer and Member of Management Board - Legal & IT||0.83yr||no data||no data|
|Chief Technology Officer||1.42yrs||no data||no data|
|Senior VP & Head of Investor Relations||no data||no data||no data|
|Senior Vice President of Global Legal & General Counsel||no data||no data||no data|
|Senior Vice President of Corporate Communications||no data||no data||no data|
|Chief Marketing Officer||1.42yrs||no data||no data|
Experienced Management: SOW's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
|Shareholder Representative Chairman of Supervisory Board||11.17yrs||€189.20k||no data|
|Shareholder Representative Member of Supervisory Board||5.08yrs||€80.00k||no data|
|Shareholder Representative Member of the Supervisory Board||13.08yrs||€88.00k||0.00054% €13.9k|
|Shareholder Representative Member of Supervisory Board||5.08yrs||€74.00k||no data|
|Employee Representative Deputy Chairman of Supervisory Board||5.08yrs||€117.00k||no data|
|Employee Representative Member of Supervisory Board||5.08yrs||€70.00k||no data|
Experienced Board: SOW's board of directors are considered experienced (5.1 years average tenure).
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 company bio, employee growth, exchange listings and data sources
- Name: Software Aktiengesellschaft
- Ticker: SOW
- Exchange: XTRA
- Founded: 1969
- Industry: Systems Software
- Sector: Software
- Market Cap: €2.573b
- Shares outstanding: 73.98m
- Website: https://www.softwareag.com
Number of Employees
- Software Aktiengesellschaft
- Uhlandstrasse 12
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|STWR.Y||OTCPK (Pink Sheets LLC)||SPONSORED ADR||US||USD||Nov 2005|
|SWDA.F||OTCPK (Pink Sheets LLC)||Yes||Registered Shares||US||USD||Oct 2017|
|SOW||DB (Deutsche Boerse AG)||Yes||Registered Shares||DE||EUR||Oct 2017|
|SOWD||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Registered Shares||GB||EUR||Oct 2017|
|SOW||WBAG (Wiener Boerse AG)||Yes||Registered Shares||AT||EUR||Oct 2017|
|0RUL||LSE (London Stock Exchange)||Yes||Registered Shares||GB||EUR||Oct 2017|
|SOW||SWX (SIX Swiss Exchange)||Yes||Registered Shares||CH||CHF||Oct 2017|
|SOW||XTRA (XETRA Trading Platform)||Yes||Registered Shares||DE||EUR||Oct 2017|
|SOW-U||ETLX (Eurotlx)||Yes||Registered Shares||IT||EUR||Oct 2017|
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 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 automated actions on 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 offers real-time read/write SQL data access and integration; Cumulocity, which provides 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 data in-memory; TRENDMINER, an industrial analytics for time-series data for plant managers and process engineers to analyze, monitor, and predict process and asset 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 and platform consulting, performance ready content, platform rapid innovation methodology, training, and support services. It offers its products and services for customers in banking, energy and natural resources, government, insurance, manufacturing, retail, transportation, and utilities, as well as communication, media, and services industries. The company was founded in 1969 and is headquartered in Darmstadt, Germany.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/01 01:35|
|End of Day Share Price||2020/05/29 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.