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Stock Analysis & ValuationStreamwide S.A. (ALSTW.PA)

Professional Stock Screener
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75.60
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)74.01-2
Intrinsic value (DCF)47.54-37
Graham-Dodd Method18.19-76
Graham Formula27.59-64

Strategic Investment Analysis

Company Overview

Streamwide S.A. (ALSTW.PA) is a Paris-based communications software technology provider specializing in solutions for mobile, landline, business, and MVNO operators. Founded in 2001, the company offers a comprehensive suite of software technologies that enable legacy system replacement, value-added services (VAS), and over-the-top (OTT) services. Key offerings include mobile messaging, call completion, virtual voicemail, social telephony, convergent charging, conferencing, virtual contact center solutions, and call control and routing. Streamwide serves a global clientele, helping operators enhance their service portfolios and operational efficiency. With a market capitalization of approximately €97.3 million, Streamwide operates in the competitive Software - Application sector, leveraging its niche expertise in telecom software solutions. The company’s strong cash position (€14.96 million) and positive operating cash flow (€10.58 million) underscore its financial stability in a rapidly evolving industry.

Investment Summary

Streamwide S.A. presents a niche investment opportunity in the telecom software sector, with a focus on legacy system modernization and VAS/OTT solutions. The company’s solid financials, including €21 million in revenue and €4.7 million net income (FY 2024), reflect profitability and efficient operations. Its beta of 1.138 suggests moderate volatility relative to the market. However, the lack of dividends may deter income-focused investors. Streamwide’s competitive edge lies in its specialized telecom software suite, but it faces stiff competition from larger players in the broader communications software space. Investors should weigh its strong cash flow and niche positioning against potential risks from technological disruption and competitive pressures.

Competitive Analysis

Streamwide S.A. competes in the telecom software market by offering specialized solutions for operators, differentiating itself through its focus on legacy system replacement and value-added services. Its competitive advantage stems from deep industry expertise and a modular software suite tailored to telecom needs. However, the company operates in a highly competitive landscape dominated by larger, diversified software providers with greater R&D budgets and global reach. Streamwide’s ability to maintain profitability (€4.7 million net income) and generate positive operating cash flow (€10.58 million) indicates operational efficiency, but its smaller scale limits its ability to compete on pricing or innovation speed with tech giants. The company’s success hinges on its ability to retain and expand its niche client base while adapting to emerging trends like cloud-based communications and AI-driven solutions. Its lack of dividend payouts may also impact its attractiveness compared to competitors offering shareholder returns.

Major Competitors

  • Orange S.A. (ORAN.PA): Orange S.A. is a major telecom operator with in-house software solutions, posing indirect competition to Streamwide. Its strengths include vast resources and direct access to telecom infrastructure, but its software offerings are less specialized than Streamwide’s. Orange’s focus on end-to-end services limits its agility in niche software markets.
  • ServiceNow, Inc. (NOW): ServiceNow provides cloud-based workflow automation solutions, overlapping with Streamwide’s virtual contact center and service creation offerings. Its strengths lie in scalability and enterprise adoption, but it lacks Streamwide’s telecom-specific focus. ServiceNow’s broader IT service management platform gives it an edge in cross-industry applications.
  • Avalara, Inc. (AVLR): Avalara specializes in tax compliance software, indirectly competing with Streamwide’s convergent charging solutions. Its strengths include regulatory expertise and SaaS scalability, but it does not offer telecom-specific call routing or messaging services. Avalara’s broader compliance focus makes it less of a direct threat.
  • SAP SE (SAP): SAP’s enterprise software suite includes modules for telecom operators, competing with Streamwide’s charging and routing solutions. SAP’s global reach and integration capabilities are strengths, but its solutions are less tailored to niche telecom needs compared to Streamwide’s specialized offerings.
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