ENXTPA:AXW

Stock Analysis Report

Executive Summary

Axway Software SA, an infrastructure software publisher, develops, distributes, integrates, and maintains infrastructure solutions to enable optimized data flow governance in the complex organizations.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Axway Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

46.3%

AXW

-5.8%

FR Software

-6.6%

FR Market


1 Year Return

47.5%

AXW

15.9%

FR Software

8.9%

FR Market

Return vs Industry: AXW exceeded the French Software industry which returned 14.5% over the past year.

Return vs Market: AXW exceeded the French Market which returned 8.5% over the past year.


Shareholder returns

AXWIndustryMarket
7 Day46.3%-5.8%-6.6%
30 Day49.4%-7.2%-2.4%
90 Day50.0%4.0%-2.7%
1 Year52.2%47.5%16.6%15.9%12.5%8.9%
3 Year-40.1%-43.3%82.7%78.9%32.4%20.8%
5 Year1.7%-7.4%141.8%131.7%43.1%24.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Axway Software undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXW (€17.6) is trading below our estimate of fair value (€68.5)

Significantly Below Fair Value: AXW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AXW is poor value based on its PE Ratio (70.4x) compared to the Software industry average (33.6x).

PE vs Market: AXW is poor value based on its PE Ratio (70.4x) compared to the French market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: AXW is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: AXW is good value based on its PB Ratio (1.1x) compared to the FR Software industry average (2.5x).


Next Steps

Future Growth

How is Axway Software forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

41.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXW's forecast earnings growth (41.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: AXW's earnings (41.4% per year) are forecast to grow faster than the French market (13% per year).

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

Revenue vs Market: AXW's revenue (2% per year) is forecast to grow slower than the French market (4.6% per year).

High Growth Revenue: AXW's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AXW's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Axway Software performed over the past 5 years?

-36.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXW has high quality earnings.

Growing Profit Margin: AXW's current net profit margins (1.8%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: AXW's earnings have declined by -36.1% per year over the past 5 years.

Accelerating Growth: AXW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AXW had negative earnings growth (-50.9%) over the past year, making it difficult to compare to the Software industry average (3%).


Return on Equity

High ROE: AXW's Return on Equity (1.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Axway Software's financial position?


Financial Position Analysis

Short Term Liabilities: AXW's short term assets (€126.2M) do not cover its short term liabilities (€130.6M).

Long Term Liabilities: AXW's short term assets (€126.2M) exceed its long term liabilities (€75.6M).


Debt to Equity History and Analysis

Debt Level: AXW's debt to equity ratio (11.8%) is considered satisfactory.

Reducing Debt: AXW's debt to equity ratio has reduced from 15.8% to 11.8% over the past 5 years.

Debt Coverage: AXW's debt is well covered by operating cash flow (31.9%).

Interest Coverage: AXW's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: AXW's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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

2.24%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.6%markettop25%4.8%industryaverage0.5%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: AXW's dividend (2.27%) is higher than the bottom 25% of dividend payers in the French market (1.6%).

High Dividend: AXW's dividend (2.27%) is low compared to the top 25% of dividend payers in the French market (4.82%).


Stability and Growth of Payments

Stable Dividend: AXW has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AXW has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (160%), AXW's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AXW's dividends in 3 years are forecast to be well covered by earnings (27.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Patrick Donovan (49yo)

1.8yrs

Tenure

€490,477

Compensation

Mr. Patrick Donovan has been Chief Executive Officer of Axway Software SA since April 6, 2018. Mr. Donovan served as the Chief Financial Officer of Axway Inc. and its holding company Axway Software S.A. He ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD533.59K) is about average for companies of similar size in the French market ($USD485.02K).

Compensation vs Earnings: Insufficient data to compare Patrick's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Donovan
Chief Executive Officer1.8yrs€490.48kno data
Cecile Allmacher
Chief Financial Officer0.3yrsno datano data
Vince Padua
Chief Technology & Innovation Officer1.8yrsno datano data
Arthur Carli
Investor Relations Manager0yrsno datano data
Scott Hausman
Executive Vice President of Strategy & Corporate Development0yrsno datano data
Dominique Fougerat
Executive Vice President of People & Culture0.8yrsno datano data
Mike Nason
Executive Vice President of Global Distribution & Sales0yrsno datano data
Paul French
Executive Vice President of Go To Market0.3yrsno datano data
Morgan Exare
Head of Corporate Services0yrsno datano data
Roland Royer
Chief Customer Officer0yrsno datano data

0.8yrs

Average Tenure

Experienced Management: AXW's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Gollner
Independent Director7.8yrs€25.92k0.033% 125.0k
Yves de Talhouët
Independent Director7.6yrs€15.07kno data
Pierre Pasquier
Chairman of the Board0yrs€155.95kno data
Pascal Imbert
Independent Director8.8yrs€26.58k0.0016% 6.1k
Hervé Saint-Sauveur
Independent Director8.8yrs€36.41k0.0043% 16.1k
Kathleen Clark Bracco
Vice Chairman of the Board6.3yrs€24.78k0.048% 183.0k
Hervé Déchelette
Independent Director8.8yrs€32.75k0.11% 399.9k
Pierre-Yves Commanay
Director5.7yrs€22.27k0.013% 50.3k
Yann Metz-Pasquier
Director1.7yrs€10.40k0.089% 336.9k
Véronique de La Bachelerie
Independent Director5yrs€23.40kno data

7.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: AXW's board of directors are considered experienced (7.6 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Axway Software SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Axway Software SA
  • Ticker: AXW
  • Exchange: ENXTPA
  • Founded: 2001
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €378.077m
  • Shares outstanding: 21.18m
  • Website: https://www.axway.com

Number of Employees


Location

  • Axway Software SA
  • 6811 East Mayo Boulevard
  • Suite 400
  • Phoenix
  • Arizona
  • 85054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AXWENXTPA (Euronext Paris)YesCommon StockFREURJun 2011
0P5LLSE (London Stock Exchange)YesCommon StockGBEURJun 2011
AXWPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 2011

Biography

Axway Software SA, an infrastructure software publisher, develops, distributes, integrates, and maintains infrastructure solutions to enable optimized data flow governance in the complex organizations. The company operates AMPLIFY, a hybrid integration platform. Its AMPLIFY products include API management, managed file transfer, content collaboration, B2B integration, application development, analytics, and application integration solutions. The company also provides Axway Accounting Integration Suite that streamlines the integration between business applications and financial information systems; Axway Automator for the cross-silo automation, synchronization, and orchestration of job sequencing and services within a hybrid environment; Axway MailGate SC, which protects the network from attacks delivered by email, as well as secures sensitive data shared by email or attachment; and Axway Sentinel to discover, monitor, report on, and analyze data flows across the business ecosystem. In addition, it offers other products, including Axway Controlled Substance Ordering System; Axway EndPoint solutions; Axway Track & Trace; Axway Validation Authority Suite; Axway WideVision Alert; and Axway WideVision Service Health Check. Further, the company provides support, catalysts, consulting, and training and certification services. It serves automotive, banking and financial services, healthcare, insurance, life sciences, manufacturing and CPG, retail, and transportation and logistics industries, as well as the United States federal government. The company operates in the Americas, the Asia Pacific, France, and rest of Europe. Axway Software SA was founded in 2001 and is headquartered in Phoenix, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:39
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.