ENXTPA:AXW

Stock Analysis Report

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Market Cap

€591.9m

Last Updated

2021/06/24 16:34 UTC

Data Sources

Company Financials +

Executive Summary

Axway Software SA operates as an infrastructure software publisher in the Americas, the Asia Pacific, and Europe. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


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 is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AXW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.4%

AXW

1.8%

FR Software

-1.7%

FR Market


1 Year Return

55.7%

AXW

35.6%

FR Software

35.5%

FR Market

Return vs Industry: AXW exceeded the French Software industry which returned 35.6% over the past year.

Return vs Market: AXW exceeded the French Market which returned 35.5% over the past year.


Shareholder returns

AXWIndustryMarket
7 Day-0.4%1.8%-1.7%
30 Day-7.3%5.5%2.6%
90 Day3.3%10.0%10.3%
1 Year57.9%55.7%36.0%35.6%39.7%35.5%
3 Year50.7%42.6%68.5%65.9%35.8%24.4%
5 Year46.7%34.4%196.4%187.6%89.0%61.4%

Long-Term 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 (€27.5) is trading below our estimate of fair value (€97.81)

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 (69.1x) compared to the French Software industry average (57.4x).

PE vs Market: AXW is poor value based on its PE Ratio (69.1x) compared to the French market (23x).


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 (1.6x) compared to the FR Software industry average (3.6x).


Future Growth

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

40.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXW's forecast earnings growth (40.7% per year) is above the savings rate (0.4%).

Earnings vs Market: AXW's earnings (40.7% per year) are forecast to grow faster than the French market (18.9% per year).

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

Revenue vs Market: AXW's revenue (7% per year) is forecast to grow slower than the French market (7.1% per year).

High Growth Revenue: AXW's revenue (7% 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 (8.1%).


Past Performance

How has Axway Software performed over the past 5 years?

-44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXW has high quality earnings.

Growing Profit Margin: AXW's current net profit margins (2.9%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: AXW's earnings have declined by 44.7% per year over the past 5 years.

Accelerating Growth: AXW's earnings growth over the past year (56.8%) exceeds its 5-year average (-44.7% per year).

Earnings vs Industry: AXW earnings growth over the past year (56.8%) exceeded the Software industry 17.2%.


Return on Equity

High ROE: AXW's Return on Equity (2.4%) is considered low.


Financial Health

How is Axway Software's financial position?


Financial Position Analysis

Short Term Liabilities: AXW's short term assets (€136.4M) exceed its short term liabilities (€121.4M).

Long Term Liabilities: AXW's short term assets (€136.4M) exceed its long term liabilities (€82.5M).


Debt to Equity History and Analysis

Debt Level: AXW's debt to equity ratio (11.3%) is considered satisfactory.

Reducing Debt: AXW's debt to equity ratio has increased from 2.8% to 11.3% over the past 5 years.

Debt Coverage: AXW's debt is well covered by operating cash flow (30.2%).

Interest Coverage: AXW's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet


Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AXW's dividend (1.45%) is higher than the bottom 25% of dividend payers in the French market (1.27%).

High Dividend: AXW's dividend (1.45%) is low compared to the top 25% of dividend payers in the French market (3.75%).


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's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.5%), 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 (24.9% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Patrick Donovan (50 yo)

3.17yrs

Tenure

€2,939,056

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 ($USD3.50M) is above average for companies of similar size in the French market ($USD561.40K).

Compensation vs Earnings: Patrick's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AXW's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: AXW's board of directors are considered experienced (8.3 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: 2000
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €591.856m
  • Shares outstanding: 21.52m
  • Website: https://www.axway.com

Number of Employees


Location

  • Axway Software SA
  • 16220 North Scottsdale Road
  • Suite 500
  • Scottsdale
  • Arizona
  • 85254
  • United States

Listings


Biography

Axway Software SA operates as an infrastructure software publisher in the Americas, the Asia Pacific, and Europe. It provides AMPLIFY, a platform that offers application integration, API management, manage...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 16:34
End of Day Share Price2021/06/24 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.