ENXTPA:SWP

Stock Analysis Report

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Executive Summary

Sword Group S.E. provides IT services and software in Europe, North America, the Oceania, and Asia.


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

How has Sword Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.7%

SWP

4.0%

FR IT

5.6%

FR Market


1 Year Return

-8.3%

SWP

-0.3%

FR IT

-8.1%

FR Market

Return vs Industry: SWP underperformed the French IT industry which returned -2.9% over the past year.

Return vs Market: SWP exceeded the French Market which returned -9.4% over the past year.


Shareholder returns

SWPIndustryMarket
7 Day1.7%4.0%5.6%
30 Day4.4%6.6%3.5%
90 Day-13.4%-7.7%-10.2%
1 Year-8.3%-8.3%0.6%-0.3%-6.5%-8.1%
3 Year-4.0%-20.1%6.0%-5.0%1.3%-7.0%
5 Year72.5%31.2%70.5%50.6%20.5%4.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sword Group undervalued compared to its fair value and its price relative to the market?

7.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWP (€27.1) is trading below our estimate of fair value (€29.24)

Significantly Below Fair Value: SWP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SWP is poor value based on its PE Ratio (19.5x) compared to the IT industry average (14.2x).

PE vs Market: SWP is poor value based on its PE Ratio (19.5x) compared to the French market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: SWP is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SWP is overvalued based on its PB Ratio (1.8x) compared to the FR IT industry average (1.6x).


Next Steps

Future Growth

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

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWP's forecast earnings growth (10.9% per year) is above the savings rate (0.6%).

Earnings vs Market: SWP's earnings (10.9% per year) are forecast to grow slower than the French market (13% per year).

High Growth Earnings: SWP's earnings are forecast to grow, but not significantly.

Revenue vs Market: SWP's revenue (6.3% per year) is forecast to grow faster than the French market (3.9% per year).

High Growth Revenue: SWP's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWP's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Sword Group performed over the past 5 years?

43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWP has high quality earnings.

Growing Profit Margin: SWP's current net profit margins (6.2%) are lower than last year (47.6%).


Past Earnings Growth Analysis

Earnings Trend: SWP's earnings have grown significantly by 43.2% per year over the past 5 years.

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

Earnings vs Industry: SWP had negative earnings growth (-83.7%) over the past year, making it difficult to compare to the IT industry average (9%).


Return on Equity

High ROE: SWP's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Sword Group's financial position?


Financial Position Analysis

Short Term Liabilities: SWP's short term assets (€146.5M) exceed its short term liabilities (€82.6M).

Long Term Liabilities: SWP's short term assets (€146.5M) exceed its long term liabilities (€24.5M).


Debt to Equity History and Analysis

Debt Level: SWP's debt to equity ratio (0.6%) is considered satisfactory.

Reducing Debt: SWP's debt to equity ratio has reduced from 34.7% to 0.6% over the past 5 years.

Debt Coverage: SWP's debt is well covered by operating cash flow (2479.3%).

Interest Coverage: SWP's interest payments on its debt are well covered by EBIT (38.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Sword Group's current dividend yield, its reliability and sustainability?

5.38%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SWP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SWP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SWP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SWP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SWP is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SWP's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

9.5yrs

Average board tenure


CEO

Jacques Mottard (66yo)

no data

Tenure

€32,745

Compensation

Mr. Jacques F. Mottard founded Sword Group SA on November 17, 2000 and serves as its Chief Executive Officer and Managing Director. Mr. Mottard served as General Manager and Executive Vice President of Swo ...


CEO Compensation Analysis

Compensation vs Market: Jacques's total compensation ($USD36.20K) is below average for companies of similar size in the French market ($USD439.51K).

Compensation vs Earnings: Jacques's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Jacques Mottard
Executive Chairmanno data€32.75kno data
Frederic Goosse
MD, Group CFO & Director7.25yrs€20.00kno data
Francois Barbier
Independent Director10.08yrs€20.00kno data
M. Ory
Independent Director9yrs€20.00kno data
Nicolas Mottard
Director18.92yrs€15.00kno data
Patrice Crochet
Independent Director6.5yrs€20.00kno data

9.5yrs

Average Tenure

60yo

Average Age

Experienced Board: SWP's board of directors are considered experienced (9.5 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

Sword Group S.E.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sword Group S.E.
  • Ticker: SWP
  • Exchange: ENXTPA
  • Founded: 2000
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €258.559m
  • Shares outstanding: 9.54m
  • Website: https://www.sword-group.com

Number of Employees


Location

  • Sword Group S.E.
  • 2 Rue d'Arlon
  • Windhof
  • Luxembourg City
  • 8399
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWPENXTPA (Euronext Paris)YesCommon SharesFREURMar 2002
0MN5LSE (London Stock Exchange)YesCommon SharesGBEURMar 2002
9RSDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2002
SWPPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURMar 2002

Biography

Sword Group S.E. provides IT services and software in Europe, North America, the Oceania, and Asia. Its products include Sword Achiever, a governance and compliance software; Sword Active Risk, a software for managing corporate risks; Sword Intellect, an intellectual property rights management software; Sword Bizdock, a project portfolio management software; and Sword Citizen, a modular solution for coverage of the relation between users and their administrative services. The company’s products also comprise Sword Insight, a software that addresses past and future issues; Sword Kami, a desktop publishing (DTP) document template design software; Sword Orizon, a secure telemedicine software; and Sword Venue, an event planning, collaboration, and organizing software. In addition, it provides a range of services comprising electronic documents, document management and workflow, and DTP; enterprise portal deployment, Web content management, process management, collaborative work, enterprise social networking, customer relationship management, information retrieval, repository management, and natural language processing; geographic information system; business intelligence; management consulting, IT strategy consulting, project management, quality assurance and testing, and digital marketing and CRM, as well as information systems performance engineering; specific and business intranet development; development of Web and mobile applications; infrastructure and the cloud; cyber security; and interconnection and interoperability of information systems. The company serves banks and insurance, legal, goods and services, healthcare, public sector, sports, and transport markets. Sword Group S.E. has a strategic partnership with Esker to market its cloud-based accounts payable automation solution in France. The company was founded in 2000 and is headquartered in Luxembourg City, Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 21:18
End of Day Share Price2020/05/28 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.