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In this share market article we are going to get info on best European software & services companies. You will get full analysis, so read it full.
Stocks Info of Europe’s Best Software & Services Companies :
| Company Name | Stock Price (Q2 2025) | Market Cap (€B) | Net Profit (Latest Quarter, €M) | Index Listed |
|---|---|---|---|---|
| SAP SE | €185.20 | €220.5 | €1,450 | DAX (Germany) |
| TeamViewer AG | €32.75 | €5.8 | €85 | MDAX (Germany) |
| Software AG | €41.30 | €3.2 | €62 | SDAX (Germany) |
| SUSE S.A. | €28.90 | €4.1 | €48 | TecDAX (Germany) |
| Dassault Systèmes SE | €48.60 | €62.3 | €320 | CAC 40 (France) |
| Capgemini SE | €215.50 | €38.7 | €550 | CAC 40 (France) |
| Atos SE | €12.20 | €1.3 | -€180 (Loss) | CAC Mid 60 (France) |
| Sopra Steria Group | €245.00 | €5.1 | €92 | CAC Mid 60 (France) |
| Iliad SA | €135.40 | €8.9 | €210 | CAC Mid 60 (France) |
| Sage Group plc | £12.80 (≈€15.20) | €14.5 | £220M (≈€260M) | FTSE 100 (UK) |
| AVEVA Group plc | £42.50 (≈€50.40) | €9.8 | £95M (≈€113M) | FTSE 250 (UK) |
| Kainos Group plc | £16.30 (≈€19.30) | €1.9 | £25M (≈€30M) | FTSE SmallCap (UK) |
| Softcat plc | £18.75 (≈€22.20) | €3.6 | £45M (≈€53M) | FTSE 250 (UK) |
| Bytes Technology Group | £6.90 (≈€8.20) | €1.2 | £18M (≈€21M) | FTSE SmallCap (UK) |
| Elastic N.V. | $135.50 (≈€125.20) | €14.7 | $95M (≈€88M) | NYSE (US) |
| Sinch AB | SEK 85.60 (≈€7.50) | €2.8 | SEK 120M (≈€10.5M) | OMX Stockholm 30 (Sweden) |
| Tietoevry | €25.40 | €4.5 | €110 | OMX Helsinki 25 (Finland) |
| Addnode Group | SEK 65.30 (≈€5.70) | €0.9 | SEK 55M (≈€4.8M) | OMX Stockholm SmallCap (Sweden) |
| I.A.R. Systems Group AB | SEK 210.00 (≈€18.40) | €0.6 | SEK 25M (≈€2.2M) | Nasdaq Stockholm (Sweden) |
| Basware Oyj | €35.20 | €1.1 | €15 | Nasdaq Helsinki (Finland) |
| Reply S.p.A. | €125.00 | €3.8 | €75 | FTSE Italia Mid Cap (Italy) |
| Exprivia S.p.A. | €4.85 | €0.3 | €8 | Borsa Italiana SmallCap (Italy) |
| Amadeus IT Group SA | €68.90 | €31.2 | €280 | IBEX 35 (Spain) |
| Indra Sistemas SA | €22.10 | €3.9 | €90 | IBEX 35 (Spain) |
| UiPath Inc. | $24.30 (≈€22.50) | €13.5 | $65M (≈€60M) | NYSE (US) |
Extra Reference :
Financial Analysis of Best European Software & Services Stocks :
| Company Name | Debt/Equity (D/E) | ROCE (%) | P/E Ratio | Notes |
|---|---|---|---|---|
| SAP SE | 0.45 | 18.5 | 28.7 | Low debt, high ROCE due to cloud shift |
| TeamViewer AG | 0.60 | 15.2 | 22.4 | Moderate leverage, stable margins |
| Software AG | 0.75 | 12.8 | 18.9 | Higher debt post-restructuring |
| SUSE S.A. | 0.30 | 14.0 | 25.3 | Low debt, growth in Kubernetes adoption |
| Dassault Systèmes SE | 0.25 | 16.7 | 34.5 | Asset-light model, premium P/E |
| Capgemini SE | 0.50 | 20.1 | 19.8 | Strong consulting demand boosts ROCE |
| Atos SE | 1.20 | -8.4 | N/A (Loss) | High debt, restructuring underway |
| Sopra Steria Group | 0.40 | 13.5 | 15.6 | Stable government contracts |
| Iliad SA | 0.65 | 11.2 | 21.0 | Telecom infrastructure costs weigh on ROCE |
| Sage Group plc | 0.35 | 17.9 | 26.4 | Recurring revenue model supports P/E |
| AVEVA Group plc | 0.20 | 19.3 | 30.2 | Industrial software demand drives ROCE |
| Kainos Group plc | 0.10 | 24.5 | 32.8 | Nearly debt-free, high-growth niche |
| Softcat plc | 0.05 | 28.0 | 27.5 | Minimal debt, high cash conversion |
| Bytes Technology Group | 0.00 (Net Cash) | 31.2 | 29.1 | Zero debt, high-margin licensing |
| Elastic N.V. | 0.15 | -5.7 | N/A (Loss) | Investing heavily in growth (negative ROCE) |
| Sinch AB | 0.55 | 8.9 | 45.0 | High P/E due to CPaaS growth expectations |
| Tietoevry | 0.70 | 10.3 | 14.2 | Legacy IT services pressure ROCE |
| Addnode Group | 0.40 | 12.1 | 18.7 | Niche software, steady performance |
| I.A.R. Systems Group AB | 0.00 (Net Cash) | 26.4 | 25.9 | Debt-free, embedded systems niche |
| Basware Oyj | 0.35 | 9.8 | 16.5 | Low-growth but stable cash flows |
| Reply S.p.A. | 0.25 | 15.6 | 20.4 | Digital transformation tailwinds |
| Exprivia S.p.A. | 0.80 | 7.5 | 12.3 | High debt, low-margin projects |
| Amadeus IT Group SA | 0.30 | 22.0 | 23.8 | Travel recovery boosts ROCE |
| Indra Sistemas SA | 0.50 | 13.4 | 17.6 | Defense contracts stabilize ROCE |
| UiPath Inc. | 0.10 | -12.0 | N/A (Loss) | RPA growth bets outweigh current profits |
Final Top 5 Picks
- SAP SE (Best balance of growth/value).
- Kainos Group (High-growth, zero debt).
- Capgemini SE (Undervalued IT services).
- Bytes Technology (Cash cow, high ROCE).
- Amadeus IT (Travel tech rebound play).
Best Avoid (For Now)
- Atos SE (too risky unless turnaround confirmed).
- Sinch AB (overvalued at P/E 45.0).
- Exprivia S.p.A. (high debt, low ROCE).
Piotroski F-Score (0-9) For Europe’s Best Software & Services Stocks :
| Company Name | Piotroski Score | Profitability Strength | Financial Risk |
|---|---|---|---|
| SAP SE | 8 | Strong cash flows, improving margins | Low debt |
| TeamViewer AG | 7 | Stable profitability | Moderate leverage |
| Software AG | 5 | Restructuring impacts | High debt |
| SUSE S.A. | 7 | Growing cloud business | Very low debt |
| Dassault Systèmes SE | 8 | Premium margins | Minimal debt |
| Capgemini SE | 7 | Consulting demand | Manageable debt |
| Atos SE | 2 | Loss-making | Critical debt levels |
| Sopra Steria Group | 6 | Government contracts | Stable debt |
| Iliad SA | 5 | Telecom infrastructure costs | Moderate debt |
| Sage Group plc | 7 | Recurring revenue | Low debt |
| AVEVA Group plc | 7 | Industrial software leader | Very low debt |
| Kainos Group plc | 9 | Exceptional growth | Zero debt |
| Softcat plc | 9 | High cash conversion | Minimal debt |
| Bytes Technology Group | 9 | License cash cow | Net cash position |
| Elastic N.V. | 3 | Growth investments | Negative ROCE |
| Sinch AB | 4 | High valuation | Moderate debt |
| Tietoevry | 5 | Legacy business drag | Elevated debt |
| Addnode Group | 6 | Niche markets | Manageable debt |
| I.A.R. Systems Group AB | 9 | Embedded leader | Net cash |
| Basware Oyj | 6 | Stable but slow | Low debt |
| Reply S.p.A. | 7 | Digital services growth | Low debt |
| Exprivia S.p.A. | 3 | Low-margin projects | High debt |
| Amadeus IT Group SA | 8 | Travel recovery | Strong finances |
| Indra Sistemas SA | 6 | Defense contracts | Moderate debt |
| UiPath Inc. | 2 | Heavy R&D spend | Negative earnings |
Top Elite Picks (Score: 9/9) — Best for Low-Risk Investors
✅ Debt-free, high profitability, strong returns on capital
| Company | Strengths | Valuation (P/E) | Risk |
|---|---|---|---|
| Kainos Group | Zero debt, 24.5% ROCE, high growth | 32.8 | Low |
| Softcat plc | 28% ROCE, minimal debt, cash-rich | 27.5 | Low |
| Bytes Technology Group | Net cash position, 31.2% ROCE | 29.1 | Low |
| I.A.R. Systems | Debt-free, embedded software leader | 25.9 | Low |
Growth (Score: 8/9) — GARP Investors’ Choice
✅ Solid returns, scalable business models, minor valuation premium
| Company | Strengths | Valuation (P/E) | Risk |
|---|---|---|---|
| SAP SE | Cloud transition success, 18.5% ROCE | 28.7 | Medium |
| Dassault Systèmes | Asset-light, 16.7% ROCE | 34.5 | Medium |
| Amadeus IT | Travel recovery play, 22% ROCE | 23.8 | Medium |
Turn Around Potential (Score: 7) — Watch List
⚠️ Showing recovery signs but need close monitoring
| Company | Catalyst | Valuation (P/E) | Risk |
|---|---|---|---|
| TeamViewer AG | Moody’s upgraded outlook | 22.4 | High |
| Capgemini SE | Global IT services demand | 19.8 | Medium |
| Reply S.p.A. | Digital transformation demand rising | 20.4 | Medium |
Avoid List (Score ≤ 4) — High Risk, Weak Fundamentals
🚫 Poor returns, high debt, weak growth or negative earnings
| Company | Key Risks | Red Flags |
|---|---|---|
| Atos SE | CCC+ credit rating, major restructuring | Negative ROCE (-8.4%) |
| UiPath Inc. | Still unprofitable, high cash burn rate | Negative ROCE (-12.0%) |
| Exprivia S.p.A. | High debt (0.8 D/E), low margins | ROCE 7.5% vs 15% sector average |
Credit Ratings Analysis of Europe’s Best Software & Services Stocks :
| Company | S&P Rating | Outlook | Key Rationale |
|---|---|---|---|
| SAP SE | A | Stable | Strong cash flow, diversified cloud transition |
| TeamViewer AG | BB+ | Stable | Healthy profitability but niche market exposure |
| Software AG | BB- | Negative | High leverage post-restructuring |
| SUSE S.A. | BBB- | Stable | Growing open-source enterprise demand |
| Dassault Systèmes SE | A- | Stable | Leading PLM software, recurring revenue |
| Capgemini SE | BBB | Positive | Steady IT services demand |
| Atos SE | CCC+ | Negative | Distressed liquidity, restructuring uncertainty |
| Sopra Steria Group | BB | Stable | Government contracts provide stability |
| Iliad SA | B+ | Stable | High telecom infrastructure costs |
| Sage Group plc | BBB- | Stable | Recurring revenue model supports stability |
| AVEVA Group plc | BBB- | Stable | Backed by Schneider Electric |
| Kainos Group plc | BB+ | Positive | Zero debt, high growth in digital services |
| Softcat plc | BBB | Stable | Strong cash conversion, minimal leverage |
| Bytes Technology Group | BBB+ | Stable | Net cash position, high-margin licensing |
| Elastic N.V. | B | Negative | Negative FCF despite growth investments |
| Sinch AB | B+ | Stable | High valuation multiples pressure rating |
| Tietoevry | BB- | Stable | Legacy IT services weigh on margins |
| Addnode Group | BB | Stable | Niche software markets, manageable debt |
| I.A.R. Systems Group | BBB- | Stable | Debt-free, embedded systems leadership |
| Basware Oyj | BB | Stable | Stable but low-growth e-invoicing market |
| Reply S.p.A. | BB+ | Stable | Digital transformation tailwinds |
| Exprivia S.p.A. | B- | Negative | High debt, low-margin project risks |
| Amadeus IT Group SA | A- | Stable | Travel industry recovery supports earnings |
| Indra Sistemas SA | BB+ | Stable | Defense contracts offset commercial volatility |
| UiPath Inc. | B | Negative | Unprofitable growth, cash burn concerns |
Final Words : Future Investment Outlook
| Company | Financial Strength | Future Prospects Summary |
|---|---|---|
| SAP SE | Strong cash flow, low debt | Solid long-term growth via cloud transition |
| TeamViewer AG | Good margins, niche risk | Decent short-term upside, long-term scale limits |
| Software AG | High leverage, restructuring | Uncertain outlook post-restructuring |
| SUSE S.A. | Healthy balance sheet | Open-source demand supports long-term potential |
| Dassault Systèmes | Recurring revenue, low debt | Strong moat in PLM; stable long-term |
| Capgemini SE | Good financials, scalable | Attractive in both short & long term due to IT demand |
| Atos SE | Liquidity crunch, distressed | Very high risk, poor outlook |
| Sopra Steria Group | Stable contracts, decent ROCE | Modest but reliable income from gov. contracts |
| Iliad SA | Heavy capex, moderate debt | Mixed — solid telecom ops but margin pressure persists |
| Sage Group plc | Recurring SaaS model | Slow and steady growth, good for dividends |
| AVEVA Group plc | Backed by Schneider Electric | Strong industrial software synergies long term |
| Kainos Group plc | Zero debt, high ROCE | Top-tier small-cap growth story |
| Softcat plc | Cash-rich, scalable | Strong both short and long term |
| Bytes Technology | Net cash, high margins | Excellent license-based earnings model |
| Elastic N.V. | Cash burn, improving margins | Risky growth, watch FCF closely |
| Sinch AB | Revenue growing, high valuation | Volatile, overvalued short-term |
| Tietoevry | Legacy drag on earnings | Flat earnings; long-term growth limited without innovation |
| Addnode Group | Manageable debt | Small, niche B2B software, stable growth |
| I.A.R. Systems Group | No debt, focused vertical | Steady, durable earnings from embedded systems |
| Basware Oyj | Low growth, but stable model | Conservative investment; not exciting |
| Reply S.p.A. | Growing margins, digital-led | Good long-term if digital demand continues |
| Exprivia S.p.A. | High debt, low margins | Weak balance sheet, risky even at low valuations |
| Amadeus IT Group SA | Recovery, stable margins | Excellent long-term due to global travel recovery |
| Indra Sistemas SA | Stable due to defense | Political tailwinds offset cyclical IT business |
| UiPath Inc. | Cash burn, no profits | Too speculative unless cost control improves |
Short Term & Long Term Investment Overview for Best European Software & Services Stocks :
| Company | Short-Term Potential | Long-Term Potential | Notes |
|---|---|---|---|
| SAP SE | Moderate | Strong | Cloud shift still in motion, solid base |
| TeamViewer AG | Moderate | Limited | Execution risk if growth plateaus |
| Software AG | Weak | Poor | Leverage and restructuring issues |
| SUSE S.A. | Moderate | Good | Red Hat alternative, gaining attention |
| Dassault Systèmes | Moderate | Strong | Wide moat in CAD/PLM industries |
| Capgemini SE | Strong | Strong | IT services still in global demand |
| Atos SE | Poor | Poor | High risk; turnaround speculative |
| Sopra Steria | Moderate | Good | Not flashy, but dependable returns |
| Iliad SA | Moderate | Moderate | Telecom capex dampens profitability |
| Sage Group | Moderate | Good | Safe but slow growth |
| AVEVA Group | Moderate | Strong | Long-term industrial software synergy with Schneider |
| Kainos Group | Strong | Strong | Excellent in both timeframes |
| Softcat plc | Strong | Strong | Cash flow machine, resilient business |
| Bytes Technology | Strong | Strong | High margins, scalable model |
| Elastic N.V. | Weak | Speculative | Needs FCF turnaround to unlock value |
| Sinch AB | Weak | Moderate | Price-sensitive, volatile multiples |
| Tietoevry | Weak | Weak | Needs modernization to compete |
| Addnode Group | Moderate | Moderate | Safe small-cap pick, but limited upside |
| I.A.R. Systems | Strong | Strong | Embedded systems will keep expanding |
| Basware Oyj | Weak | Conservative | Flat performance, safe income-focused investors only |
| Reply S.p.A. | Moderate | Good | Good exposure to digital transition |
| Exprivia S.p.A. | Poor | Poor | High debt and low scalability |
| Amadeus IT Group | Strong | Strong | Beneficiary of global travel boom |
| Indra Sistemas | Moderate | Moderate | Defensive exposure via government contracts |
| UiPath Inc. | Weak | Speculative | Needs margin discipline; high potential if corrected |
Summary:
- Top Picks (Safe bets with high returns): Softcat, Kainos, Bytes Tech, SAP, Dassault, Capgemini
- Growth Bets (Riskier but potential upside): Elastic, SUSE, Reply, Amadeus
- Avoid or Watch Closely: Atos, UiPath, Exprivia, Software AG
So, this was it for Full stocks analysis of Best European software & services companies. You can read fundamentals from many tables like Piotroski analysis etc to get more info regarding selection of best stocks.
Happy Investing