| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 3/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
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.
Rewards
PE ratio (27.7x) is below the Software industry average (50.9x)
Risk Analysis
No risks detected for SGE from our risk checks.
Sage Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£7.72 |
| 52 Week High | UK£8.11 |
| 52 Week Low | UK£5.43 |
| Beta | 0.55 |
| 1 Month Change | 8.58% |
| 3 Month Change | 3.32% |
| 1 Year Change | 31.26% |
| 3 Year Change | 31.75% |
| 5 Year Change | 24.58% |
| Change since IPO | 21,353.19% |
Recent News & Updates
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...
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...
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
| SGE | GB Software | GB Market | |
|---|---|---|---|
| 7D | -1.5% | -2.1% | -2.6% |
| 1Y | 31.3% | 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
| SGE volatility | |
|---|---|
| SGE Average Weekly Movement | 3.7% |
| Software Industry Average Movement | 4.7% |
| Market Average Movement | 4.9% |
| 10% most volatile stocks in GB Market | 9.8% |
| 10% least volatile stocks in GB Market | 2.5% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1981 | 11,647 | Steve Hare | https://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
| SGE fundamental statistics | |
|---|---|
| Market Cap | UK£7.89b |
| Earnings (TTM) | UK£285.00m |
| Revenue (TTM) | UK£1.85b |
27.7x
P/E Ratio4.3x
P/S RatioIs SGE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SGE income statement (TTM) | |
|---|---|
| Revenue | UK£1.85b |
| Cost of Revenue | UK£131.00m |
| Gross Profit | UK£1.72b |
| Expenses | UK£1.43b |
| Earnings | UK£285.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.28 |
| Gross Margin | 92.90% |
| Net Profit Margin | 15.44% |
| Debt/Equity Ratio | 64.3% |
How did SGE perform over the long term?
See historical performance and comparisonDividends
2.3%
Current Dividend Yield67%
Payout RatioDoes SGE pay a reliable dividends?
See SGE dividend history and benchmarks| Sage Group dividend dates | |
|---|---|
| Ex Dividend Date | Jan 13 2022 |
| Dividend Pay Date | Feb 10 2022 |
| Days until Ex dividend | 42 days |
| Days until Dividend pay date | 70 days |
Does SGE pay a reliable dividends?
See SGE dividend history and benchmarksValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/11/30 21:36 |
| End of Day Share Price | 2021/11/30 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/09/30 |
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.