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

Fundamentals

Adequate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

AXW

0.1%

FR Software

-0.4%

FR Market


1 Year Return

-2.2%

AXW

35.6%

FR Software

17.8%

FR Market

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

Return vs Market: AXW underperformed the French Market which returned 17.8% over the past year.


Shareholder returns

AXWIndustryMarket
7 Day1.8%0.1%-0.4%
30 Day9.6%5.2%3.8%
90 Day1.3%10.0%8.7%
1 Year0.9%-2.2%36.4%35.6%21.8%17.8%
3 Year-56.7%-59.0%88.3%84.5%48.8%34.6%
5 Year-24.0%-30.8%164.2%151.8%65.5%42.0%

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 (€11.4) is trading below our estimate of fair value (€27.23)

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 (231.8x) compared to the Software industry average (35.2x).

PE vs Market: AXW is poor value based on its PE Ratio (231.8x) compared to the French market (18x).


Price to Earnings Growth Ratio

PEG Ratio: AXW is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: AXW is good value based on its PB Ratio (0.7x) compared to the FR Software industry average (2x).


Next Steps

Future Growth

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

49.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXW's forecast earnings growth (49.5% per year) is above the savings rate (0.7%).

Earnings vs Market: AXW's earnings (49.5% per year) are forecast to grow faster than the French market (11.6% per year).

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

Revenue vs Market: AXW's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: AXW's revenue is forecast to decline over the next 3 years (-0.2% 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 (3.8%).


Next Steps

Past Performance

How has Axway Software performed over the past 5 years?

-28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXW has large one-off items impacting its financial results.

Growing Profit Margin: AXW's current net profit margins (0.4%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: AXW's earnings have declined by -28.8% 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 (-81.5%) over the past year, making it difficult to compare to the Software industry average (2.3%).


Return on Equity

High ROE: AXW's Return on Equity (0.3%) 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 (€123.5M) do not cover its short term liabilities (€141.1M)

Long Term Liabilities: AXW's short term assets (€123.5M) exceeds its long term liabilities (72.1M)


Debt to Equity History and Analysis

Debt Level: AXW's debt to equity ratio (12.5%) is considered satisfactory.

Reducing Debt: AXW's debt to equity ratio has reduced from 25% to 12.5% over the past 5 years.

Debt Coverage: AXW's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: AXW's interest payments on its debt are well covered by EBIT (12.5x 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 2.8x debt).


Next Steps

Dividend

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

3.51%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.5%markettop25%4.5%industryaverage0.5%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: AXW's dividend (3.51%) is higher than the bottom 25% of dividend payers in the French market (1.5%).

High Dividend: AXW's dividend (3.51%) is low compared to the top 25% of dividend payers in the French market (4.52%).


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 (813.2%), 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 (48.8% payout ratio).


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Patrick Donovan (49yo)

1.6yrs

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 ($USD540.89K) is above average for companies of similar size in the French market ($USD289.19K).

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


Management Age and Tenure

0.5yrs

Average Tenure

Experienced Management: AXW's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

7.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: AXW's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

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.


Management Team

  • Scott Hausman (55yo)

    Executive Vice President of Strategy & Corporate Development

    • Tenure: 0yrs
  • Mike Nason

    Executive Vice President of Global Distribution & Sales

    • Tenure: 0yrs
  • Patrick Donovan (49yo)

    Chief Executive Officer

    • Tenure: 1.6yrs
    • Compensation: €490.48k
  • Paul French

    Executive Vice President of Go To Market

    • Tenure: 0.08yrs
  • Morgan Exare

    Head of Corporate Services

    • Tenure: 0yrs
  • Roland Royer

    Chief Customer Officer

    • Tenure: 0yrs
  • Vince Padua

    Chief Technology & Innovation Officer

    • Tenure: 1.6yrs
  • Arthur Carli

    Investor Relations Manager

    • Tenure: 0yrs
  • Dominique Fougerat

    Executive Vice President of People & Culture

    • Tenure: 0.5yrs
  • Cecile Allmacher

    Chief Financial Officer

    • Tenure: 0.08yrs

Board Members

  • Michael Gollner (60yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: €25.92k
  • Yves de Talhouët (61yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: €15.07k
  • Pierre Pasquier (84yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: €155.95k
  • Pascal Imbert (61yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: €26.58k
  • Hervé Saint-Sauveur (74yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: €36.41k
  • Kathleen Clark Bracco (51yo)

    Vice Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: €24.78k
  • Hervé Déchelette (74yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: €32.75k
  • Pierre-Yves Commanay (54yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: €22.27k
  • Yann Metz-Pasquier (31yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: €10.40k
  • Véronique de La Bachelerie (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: €23.40k

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: €241.460m
  • 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 Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 21:29
End of Day Share Price2019/11/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.