Software Aktiengesellschaft provides software development, licensing, and maintenance; and information (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: STWR.Y has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: STWR.Y underperformed the US Software industry which returned 42.2% over the past year.
Return vs Market: STWR.Y underperformed the US Market which returned 20.1% 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
No news available
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: STWR.Y ($9.35) is trading below our estimate of fair value ($11.68)
Significantly Below Fair Value: STWR.Y is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: STWR.Y is good value based on its PE Ratio (16.4x) compared to the Software industry average (52.1x).
PE vs Market: STWR.Y is good value based on its PE Ratio (16.4x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: STWR.Y's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: STWR.Y is good value based on its PB Ratio (1.9x) compared to the US Software industry average (6x).
How is Software forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STWR.Y's earnings are forecast to decline over the next 3 years (-3.7% per year).
Earnings vs Market: STWR.Y's earnings are forecast to decline over the next 3 years (-3.7% per year).
High Growth Earnings: STWR.Y's earnings are forecast to decline over the next 3 years.
Revenue vs Market: STWR.Y's revenue (1.9% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: STWR.Y's revenue (1.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: STWR.Y's Return on Equity is forecast to be low in 3 years time (9.4%).
How has Software performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STWR.Y has high quality earnings.
Growing Profit Margin: STWR.Y's current net profit margins (17.4%) are lower than last year (19%).
Past Earnings Growth Analysis
Earnings Trend: STWR.Y's earnings have grown by 6.1% per year over the past 5 years.
Accelerating Growth: STWR.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: STWR.Y had negative earnings growth (-6%) over the past year, making it difficult to compare to the Software industry average (17.1%).
Return on Equity
High ROE: STWR.Y's Return on Equity (11.4%) is considered low.
Return on Assets
Return on Capital Employed
How is Software's financial position?
Financial Position Analysis
Short Term Liabilities: STWR.Y's short term assets (€776.0M) exceed its short term liabilities (€468.2M).
Long Term Liabilities: STWR.Y's short term assets (€776.0M) exceed its long term liabilities (€290.4M).
Debt to Equity History and Analysis
Debt Level: STWR.Y's debt to equity ratio (18.9%) is considered satisfactory.
Reducing Debt: STWR.Y's debt to equity ratio has reduced from 44.5% to 18.9% over the past 5 years.
Debt Coverage: STWR.Y's debt is well covered by operating cash flow (67.1%).
Interest Coverage: STWR.Y earns more interest than it pays, so coverage of interest payments is not a concern.
Inventory Level: STWR.Y has a low level of unsold assets or inventory.
Debt Coverage by Assets: STWR.Y's debt is covered by short term assets (assets are 3x debt).
What is Software's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: STWR.Y's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: STWR.Y's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, STWR.Y has been paying a dividend for less than 10 years.
Growing Dividend: STWR.Y'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 (33.9%), STWR.Y's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: STWR.Y's dividends in 3 years are forecast to be well covered by earnings (29.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sanjay Brahmawar 0
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 ($USD2.92M) is below average for companies of similar size in the US market ($USD4.88M).
Compensation vs Earnings: Insufficient data to compare Sanjay's compensation with company performance.
|Chairman of the Management Board & CEO||1.5yrs||€2.70m||no data|
|CFO & Member of the Management Board||18.1yrs||€3.66m||0.034% €942.6k|
|Chief Product Officer & Member of Management Board||2.8yrs||€1.88m||no data|
|Chief Revenue Officer & Member of the Management Board||1.3yrs||€1.09m||no data|
|Chief Human Resources Officer & Member of Executive Board||0.5yrs||no data||no data|
|Chief Technology Officer||1.1yrs||no data||no data|
|Senior VP & Head of Investor Relations||0yrs||no data||no data|
|Senior Vice President of Global Legal||0yrs||no data||no data|
|Senior Vice President of Corporate Communications||0yrs||no data||no data|
|Chief Marketing Officer||1.1yrs||no data||no data|
Experienced Management: STWR.Y's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
|Chairman of Supervisory Board||10.8yrs||€185.20k||no data|
|Member of Supervisory Board||4.8yrs||€74.00k||no data|
|Member of the Supervisory Board||12.8yrs||€86.00k||0.00054% €14.9k|
|Member of Supervisory Board||4.8yrs||€78.00k||no data|
|Deputy Chairman of Supervisory Board||4.8yrs||€119.00k||no data|
|Member of Supervisory Board||4.8yrs||€72.00k||no data|
Experienced Board: STWR.Y's board of directors are considered experienced (4.8 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: STWR.Y
- Exchange: OTCPK
- Founded: 1969
- Industry: Systems Software
- Sector: Software
- Market Cap: €2.537b
- Listing Market Cap: €2.750b
- 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 (IT) services worldwide. It operates through three segments: Digital Business Platform, Adabas & Natural, and Consulting. 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 intelligent automated actions on fast-moving 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 provides secure, and real-time read/write SQL data access and integration; Cumulocity, which offers 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 large volumes of data in-memory, as well as enhance system 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 consulting, platform consulting, performance ready content, platform rapid innovation methodology, training, and support services. It offers its products and services for customers in banking and securities, communication and media, education, energy and natural resources, manufacturing, retail, transportation, healthcare, insurance, utilities, and government sectors. Software Aktiengesellschaft was founded in 1969 and is headquartered in Darmstadt, Germany.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/17 00:00|
|End of Day Share Price||2020/02/05 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.