74SoftwareFRA:1XV -3.46%76 Net Margin % is 9.62% as of Dec. 2025, which is 166% above its 10-year median of 3.62. GuruFocus rates FRA:1XV with a GF Score™ of 76/100 and a GF Value™ of €39.91 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,827 Software companies, 74Software ranks better than 61.58% on this metric.
Net margin is calculated as Net Income divided by its Revenue. 74Software's Net Income for the
six
months ended in Dec. 2025 was €35.0 Mil. 74Software's Revenue for the
six
months ended in Dec. 2025 was €363.2 Mil. Therefore, 74Software's net margin for the quarter that ended in Dec. 2025 was 9.62%.
The historical rank and industry rank for 74Software's Net Margin % or its related term are showing as below:
FRA:1XV'
s Net Margin % Range Over the Past 10 Years
Min: -12.75 Med: 3.62 Max: 11.23
Current: 5.76
FRA:1XV's Net Margin % is ranked better than 61.58% of 2827
companies
in the Software industry
Industry Median: 2.54
vs FRA:1XV: 5.76
74Software (FRA:1XV) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
74Software Net Margin % Related Terms
74Software Net Margin % Historical Data
* Premium members only.
The historical data trend for 74Software's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:1XV vs CRM, SHOP, UBER: Net Margin % Comparison
For the Software - Application subindustry, 74Software's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
74Software Net Margin % vs Software Industry
For the Software industry and Technology sector, 74Software's Net Margin % distribution charts can be found below:
* The bar in red indicates where 74Software's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
74Software (FRA:1XV) has a Net Margin % of 9.62% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on 74Software and its competitors. This is 166% above median its historical median of 3.62. According to the industry distribution chart, 74Software ranks #1086 out of 2827 companies in the Software industry, placing it in the top 38.4%.
Is 74Software's Net Margin % too high?
74Software's current Net Margin % of 9.62% is 166% above median its 10-year median of 3.62. The Software industry median Net Margin % is 2.54. 74Software's value of 9.62% is 278.7% above this industry median. Based on the distribution chart, 74Software ranks #1086 out of 2827 companies in the Software industry, which is above the industry midpoint. Overall, 74Software has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does 74Software's Net Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, 74Software ranks #1086 out of 2827 companies for Net Margin %. This puts 74Software in the upper half of its industry. The industry median Net Margin % is 2.54. 74Software's value of 9.62% is 278.7% above this benchmark. While the company's 10-year median is 3.62 vs. the industry median of 2.54, 74Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 74Software's current Net Margin % of 9.62% is 278.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on 74Software and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 74Software's current Net Margin % is 9.62%, which is 166% above median its own 10-year median of 3.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 74Software stock overvalued right now?
Based on GuruFocus' analysis, 74Software (FRA:1XV) is currently considered Modestly Undervalued. The stock's GF Value™ is €39.91, compared to a current price of €36.30 — trading 9% below its estimated fair value. The current Net Margin % is 9.62%, which is 166% above median its 10-year median of 3.62 and 278.7% above the Software industry median of 2.54. 74Software's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For 74Software (FRA:1XV), the current Net Margin % is 9.62% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is 74Software (FRA:1XV) Overvalued in 2026?
Based on GuruFocus' analysis, 74Software stock appears to be undervalued.
The current stock price of €36.30 is trading 9% below its estimated GF Value™ of €39.91.
GuruFocus considers 74Software to be Modestly Undervalued.
Key valuation signals for FRA:1XV:
Net Margin %: 9.62% (166% above median its 10-year median of 3.62)
GF Value™: €39.91 vs. price of €36.30 (9% below fair value)
Industry Position: 278.7% above the Software median (#1086 of 2827)
No single metric tells the full story. See the FRA:1XV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
74Software operates a portfolio of enterprise software solutions through brands like Axway and SBS, which are used across different industries. Its portfolio of software solutions specializes in Managed File Transfer (MFT), API Management (APIM), and B2B integration, among other specialised products. Additionally, the Group offers integrated banking software products that offer transaction, account, compliance, and risk management solutions; a SaaS banking platform; and other solutions across the payments, lending, and processing space. Its operating segments are: SBS, which generates the maximum revenue, and Axway. Geographically, the Group generates maximum revenue from Europe, and the rest from the Americas, Middle East and Africa, and Asia-Pacific region.
76GF Score
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