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74software

74SW.PA
65
Software - Application · Technology
Price
€38.90
+0.10 (+0.26%)
Market Cap
€1.13B
Exchange
Euronext Paris
Winston Score
65
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Strong
Stability
Strong
Valuation
Strong

Share count rising — dilution

+30.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 22.4M (2021) → 29.4M (2025)

Winston Score History

The full picture

74software is a French software company that builds tools businesses use to manage their operations and data. Its products are aimed at mid-sized and large companies across industries like retail, logistics, and manufacturing. The company is based in France and is part of the broader European enterprise software market.

The company earns money primarily by selling software licenses and recurring subscription contracts to business customers. It operates mainly in Europe, with France as its core market, and generates roughly $1.1 billion in market value, suggesting a mid-sized player in a competitive space. Its 67% gross margin reflects the typical economics of software, where the main costs are development and sales rather than physical goods. The key risk is competition from much larger global software vendors like SAP, Oracle, and Microsoft, which have deeper resources and broader product suites that can make it harder for smaller regional players to retain and grow their customer base.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+394.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

€183M/ year

25.8% of revenue

1.7x the sector average (15%)

Research and development spending

Insider Activity

78.7%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€64M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

74software is growing revenue at 7% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
67.2%
Premium pricing power — 67.2% gross margin
Profit after running costs
Operating Margin
12.3%
Healthy — 12.3% operating margin
Return on the money invested
ROCE
13.4%
Good — 13.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+11.1%
Steady sales growth (+11.1% YoY)
Profit growth
EPS YoY
+34.0%
Earnings growing fast (+34.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
2/4 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
111%
Turns 111% of profit into real cash
Spare cash per sale
FCF Margin
0.4%
Thin free cash flow (0.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.43
Conservative — low debt load (0.43)
Covers its interest
Interest Cover
4.47x
Adequate interest coverage (4.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
18.3x
Fair value — P/E 18.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+7.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.3 → 10.8)

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Dividends

Not applicable for this business.
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