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SGE

Sage GroupLSE:SGE Stock Report

Market Cap

UK£7.9b

7D

-1.5%

1Y

31.3%

Updated

30 Nov, 2021

Data

Company Financials +
SGE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance3/6
Financial Health4/6
Dividends5/6

SGE Stock Overview

The Sage Group plc, together with its subsidiaries, provides technology solutions and services for small and medium businesses in North America, Northern Europe, Central and Southern Europe, and internationally.

Sage Group Competitors

salesforce.com

NYSE:CRM

US$279.0b

Oracle

NYSE:ORCL

US$248.1b

Intuit

NasdaqGS:INTU

US$184.7b

SAP

XTRA:SAP

€133.5b

Price History & Performance

Summary of all time highs, changes and price drops for Sage Group
Historical stock prices
Current Share PriceUK£7.72
52 Week HighUK£8.11
52 Week LowUK£5.43
Beta0.55
1 Month Change8.58%
3 Month Change3.32%
1 Year Change31.26%
3 Year Change31.75%
5 Year Change24.58%
Change since IPO21,353.19%

Recent News & Updates

Nov 20
Sage Group (LON:SGE) Is Due To Pay A Dividend Of UK£0.12

Sage Group (LON:SGE) Is Due To Pay A Dividend Of UK£0.12

The board of The Sage Group plc ( LON:SGE ) has announced that it will pay a dividend of UK£0.12 per share on the 10th...

Nov 18
Is The Sage Group plc (LON:SGE) Expensive For A Reason? A Look At Its Intrinsic Value

Is The Sage Group plc (LON:SGE) Expensive For A Reason? A Look At Its Intrinsic Value

In this article we are going to estimate the intrinsic value of The Sage Group plc ( LON:SGE ) by projecting its future...

Sep 16
Sage Group (LON:SGE) Knows How To Allocate Capital

Sage Group (LON:SGE) Knows How To Allocate Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

SGEGB SoftwareGB Market
7D-1.5%-2.1%-2.6%
1Y31.3%16.5%10.9%

Return vs Industry: SGE exceeded the UK Software industry which returned 14% over the past year.

Return vs Market: SGE exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is SGE's price volatile compared to industry and market?
SGE volatility
SGE Average Weekly Movement3.7%
Software Industry Average Movement4.7%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: SGE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SGE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198111,647Steve Harehttps://www.sage.com

The Sage Group plc, together with its subsidiaries, provides technology solutions and services for small and medium businesses in North America, Northern Europe, Central and Southern Europe, and internationally. It offers cloud native solutions, such as Sage Intacct, a cloud financial management platform; Sage People, a cloud HR and people management solution; Sage Accounting, a solution for small businesses, accountants and bookkeepers to remotely manage customer data, accounts, and people; Sage Payroll, a payroll and HR software; and CakeHR, a HR management solution that enables small businesses to manage workforces with tools comprises reporting, organization chart, pay slip, and absence request. The company also provides cloud connected and hybrid solutions, including Sage X3, a business management solution; and Sage 50cloud and Sage 200cloud provides a range of cloud connected accounting solutions.

Sage Group Fundamentals Summary

How do Sage Group's earnings and revenue compare to its market cap?
SGE fundamental statistics
Market CapUK£7.89b
Earnings (TTM)UK£285.00m
Revenue (TTM)UK£1.85b

27.7x

P/E Ratio

4.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SGE income statement (TTM)
RevenueUK£1.85b
Cost of RevenueUK£131.00m
Gross ProfitUK£1.72b
ExpensesUK£1.43b
EarningsUK£285.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.28
Gross Margin92.90%
Net Profit Margin15.44%
Debt/Equity Ratio64.3%

How did SGE perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

67%

Payout Ratio

Does SGE pay a reliable dividends?

See SGE dividend history and benchmarks
When do you need to buy SGE by to receive an upcoming dividend?
Sage Group dividend dates
Ex Dividend DateJan 13 2022
Dividend Pay DateFeb 10 2022
Days until Ex dividend42 days
Days until Dividend pay date70 days

Does SGE pay a reliable dividends?

See SGE dividend history and benchmarks

Valuation

Is Sage Group undervalued compared to its fair value and its price relative to the market?

27.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SGE (£7.72) is trading above our estimate of fair value (£6.22)

Significantly Below Fair Value: SGE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SGE is good value based on its PE Ratio (27.7x) compared to the UK Software industry average (50.9x).

PE vs Market: SGE is poor value based on its PE Ratio (27.7x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: SGE is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: SGE is overvalued based on its PB Ratio (7.1x) compared to the GB Software industry average (4x).


Future Growth

How is Sage Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGE's forecast earnings growth (5.6% per year) is above the savings rate (0.9%).

Earnings vs Market: SGE's earnings (5.6% per year) are forecast to grow slower than the UK market (12.6% per year).

High Growth Earnings: SGE's earnings are forecast to grow, but not significantly.

Revenue vs Market: SGE's revenue (5.8% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: SGE's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGE's Return on Equity is forecast to be high in 3 years time (27.5%)


Past Performance

How has Sage Group performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGE has high quality earnings.

Growing Profit Margin: SGE's current net profit margins (15.4%) are lower than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: SGE's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: SGE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SGE had negative earnings growth (-8.1%) over the past year, making it difficult to compare to the Software industry average (12.1%).


Return on Equity

High ROE: SGE's Return on Equity (25.7%) is considered high.


Financial Health

How is Sage Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGE's short term assets (£924.0M) do not cover its short term liabilities (£1.4B).

Long Term Liabilities: SGE's short term assets (£924.0M) exceed its long term liabilities (£838.0M).


Debt to Equity History and Analysis

Debt Level: SGE's net debt to equity ratio (14.5%) is considered satisfactory.

Reducing Debt: SGE's debt to equity ratio has increased from 53.2% to 64.3% over the past 5 years.

Debt Coverage: SGE's debt is well covered by operating cash flow (52.7%).

Interest Coverage: SGE's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet


Dividend

What is Sage Group current dividend yield, its reliability and sustainability?

2.29%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 01 2021Ex Dividend DateJan 13 2022Dividend Pay DateFeb 10 202228 days from Ex DividendBuy in the next 42 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SGE's dividend (2.29%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: SGE's dividend (2.29%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


Stability and Growth of Payments

Stable Dividend: SGE's dividends per share have been stable in the past 10 years.

Growing Dividend: SGE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67%), SGE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGE's dividends in 3 years are forecast to be covered by earnings (59.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Steve Hare (60 yo)

3yrs

Tenure

UK£1,633,000

Compensation

Mr. Stephen Hare, also known as Steve, BA, ACA, B.com is Chief Executive Officer of The Sage Group plc since November 2, 2018. He has been Executive Director of The Sage Group plc since January 3, 2014 and...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.16M) is below average for companies of similar size in the UK market ($USD3.65M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SGE's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: SGE's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Sage Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: The Sage Group plc
  • Ticker: SGE
  • Exchange: LSE
  • Founded: 1981
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£7.894b
  • Shares outstanding: 1.02b
  • Website: https://www.sage.com

Number of Employees


Location

  • The Sage Group plc
  • North Park
  • Newcastle upon Tyne
  • Tyne and Wear
  • NE13 9AA
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:36
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.