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Sword Group S.E.

SWP.PA
52
Information Technology Services · Technology
Also trades as: 0MN5.L
Price
€31.30
+0.30 (+0.97%)
Market Cap
€295.8M
Exchange
Euronext Paris
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Dec 31, 2025
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Strong
Stability
Good
Valuation
Strong
Dividends
Good

Winston Score History

The full picture

Sword Group is a European technology services company that helps businesses manage their software, data, and digital systems. It sells IT consulting, software development, and document management services mainly to large companies and government agencies. The firm has a notable focus on regulated industries like energy, finance, and the public sector.

Sword makes money by charging clients fees for project work and ongoing managed services, rather than selling packaged software products. It operates primarily in Europe, with a strong base in France, Luxembourg, and the UK, and generates roughly $300 million in market value as a mid-sized specialist. Its competitive edge comes from deep expertise in complex, regulated environments where clients tend to stay loyal and switching costs are high. The main risk is that IT services is a crowded market, and larger rivals like Capgemini or Sopra Steria can outbid Sword on big contracts, putting pressure on growth and margins.

Growth Profile

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

Revenue Growth

+9.5% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-12.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

€0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

39.9%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€60M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

Growth context

Sword Group S.E. is growing revenue at 10% 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.

Share count broadly stable

1.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 9.5M (2021) → 9.4M (2025)

Score breakdown

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Quality

Profit per sale
Gross Margin
10.8%
Thin — 10.8% gross margin
Profit after running costs
Operating Margin
8.5%
Modest — 8.5% operating margin
Return on the money invested
ROCE
21.5%
Exceptional — 21.5% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+10.8%
Steady sales growth (+10.8% YoY)
Profit growth
EPS YoY
-12.6%
Earnings shrinking (-12.6% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
113%
Turns 113% of profit into real cash
Spare cash per sale
FCF Margin
5.6%
Thin free cash flow (5.6%)

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
1.26
Elevated debt (1.26)
Covers its interest
Interest Cover
10.44x
Comfortably covers interest (10.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
15.5x
Fair value — P/E 15.5

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
+4.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (15.5 → 11.2)

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Dividends

Dividend
Dividend Yield
6.30%
Healthy income — 6.30% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record
Dividend Growth
-64.4%
Dividend cut (-64.4% YoY) — warning sign

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