Sage Group
Market Cap
UK£7.6b
Last Updated
2020/10/21 20:32 UTC
Data Sources
Company Financials +
Executive Summary
The Sage Group plc, together with its subsidiaries, provides technology solutions and services. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 3.8% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Sage Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SGE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.6%
SGE
-1.7%
GB Software
-1.9%
GB Market
1 Year Return
-0.1%
SGE
6.1%
GB Software
-16.2%
GB Market
Return vs Industry: SGE underperformed the UK Software industry which returned 7.1% over the past year.
Return vs Market: SGE exceeded the UK Market which returned -14.8% over the past year.
Shareholder returns
| SGE | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.6% | -1.7% | -1.9% |
| 30 Day | -3.2% | -1.5% | 0.7% |
| 90 Day | -8.0% | 0.7% | -4.8% |
| 1 Year | 2.2%-0.1% | 7.5%6.1% | -13.0%-16.2% |
| 3 Year | 1.1%-5.8% | -25.1%-34.5% | -9.4%-20.6% |
| 5 Year | 43.1%27.4% | 29.0%6.5% | 13.5%-12.0% |
Price Volatility Vs. Market
How volatile is Sage Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Sage Group (LON:SGE) Shareholders Have Enjoyed A 35% Share Price Gain2 weeks ago | Simply Wall St
The Sage Group plc's (LON:SGE) Intrinsic Value Is Potentially 55% Above Its Share Price1 month ago | Simply Wall St
The Sage Group plc's (LON:SGE) Recent Stock Performance Looks Decent- Can Strong Fundamentals Be the Reason?Valuation
Is Sage Group undervalued compared to its fair value and its price relative to the market?
36.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SGE (£6.94) is trading below our estimate of fair value (£10.92)
Significantly Below Fair Value: SGE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SGE is good value based on its PE Ratio (22.5x) compared to the GB Software industry average (33.5x).
PE vs Market: SGE is poor value based on its PE Ratio (22.5x) compared to the UK market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: SGE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SGE is overvalued based on its PB Ratio (4.7x) compared to the GB Software industry average (3.7x).
Next Steps
Future Growth
How is Sage Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
-3.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SGE's earnings are forecast to decline over the next 3 years (-3.8% per year).
Earnings vs Market: SGE's earnings are forecast to decline over the next 3 years (-3.8% per year).
High Growth Earnings: SGE's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SGE's revenue (3.6% per year) is forecast to grow slower than the UK market (6% per year).
High Growth Revenue: SGE's revenue (3.6% 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 low in 3 years time (17.3%).
Next Steps
Past Performance
How has Sage Group performed over the past 5 years?
12.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SGE has high quality earnings.
Growing Profit Margin: SGE's current net profit margins (17.2%) are higher than last year (16.5%).
Past Earnings Growth Analysis
Earnings Trend: SGE's earnings have grown by 12.6% per year over the past 5 years.
Accelerating Growth: SGE's earnings growth over the past year (7.1%) is below its 5-year average (12.6% per year).
Earnings vs Industry: SGE earnings growth over the past year (7.1%) underperformed the Software industry 7.7%.
Return on Equity
High ROE: SGE's Return on Equity (20.7%) is considered high.
Next Steps
Financial Health
How is Sage Group's financial position?
Financial Position Analysis
Short Term Liabilities: SGE's short term assets (£1.3B) exceed its short term liabilities (£1.1B).
Long Term Liabilities: SGE's short term assets (£1.3B) exceed its long term liabilities (£1.1B).
Debt to Equity History and Analysis
Debt Level: SGE's debt to equity ratio (62.7%) is considered high.
Reducing Debt: SGE's debt to equity ratio has reduced from 77.4% to 62.7% over the past 5 years.
Debt Coverage: SGE's debt is well covered by operating cash flow (42.6%).
Interest Coverage: SGE's interest payments on its debt are well covered by EBIT (21x coverage).
Balance Sheet
Next Steps
Dividend
What is Sage Group current dividend yield, its reliability and sustainability?
2.44%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SGE's dividend (2.44%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: SGE's dividend (2.44%) is low compared to the top 25% of dividend payers in the UK market (5.32%).
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 (55.2%), 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 (62% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Steve Hare (59 yo)
1.92yrs
Tenure
UK£2,515,000
Compensation
Mr. Stephen Hare, also known as Steve, BA, ACA, 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 serve ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD3.31M) is below average for companies of similar size in the UK market ($USD4.87M).
Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.92yrs | UK£2.52m | 0.033% £ 2.5m | |
| CFO & Director | 7.42yrs | UK£1.66m | 0.012% £ 899.7k | |
| Chief Marketing Officer | 0.75yr | UK£60.00k | no data | |
| Chief Operating Officer | 0.17yr | no data | 0.0031% £ 232.7k | |
| Chief Technology Officer | 1.5yrs | no data | 0.020% £ 1.5m | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Company Secretary | 4yrs | no data | 0.0016% £ 118.2k | |
| Executive Vice President of Communications | no data | no data | no data | |
| Chief Corporate Development Officer | no data | no data | 0.0051% £ 386.5k | |
| Chief People Officer | 3yrs | no data | 0.0036% £ 275.9k | |
| Chief Architect & Technology Advisor | 1.5yrs | no data | 0.036% £ 2.7m | |
| Managing Director of North America | 3.33yrs | no data | no data |
1.8yrs
Average Tenure
55yo
Average Age
Experienced Management: SGE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.92yrs | UK£2.52m | 0.033% £ 2.5m | |
| CFO & Director | 7.42yrs | UK£1.66m | 0.012% £ 899.7k | |
| Executive Director | 3.25yrs | no data | no data | |
| Independent Chairman | 8.08yrs | UK£434.00k | 0.0092% £ 693.5k | |
| Independent Non-Executive Director | 1.42yrs | UK£20.00k | no data | |
| Senior Independent Director | no data | UK£82.00k | 0.00092% £ 69.7k | |
| Independent Non-Executive Director | 1.5yrs | UK£39.00k | 0.00012% £ 9.1k | |
| Independent Non-Executive Director | 1.5yrs | UK£39.00k | 0.00092% £ 69.7k | |
| Independent Non-Executive Director | 0.42yr | no data | no data | |
| Independent Non-Executive Director | 0.42yr | no data | no data |
1.5yrs
Average Tenure
59yo
Average Age
Experienced Board: SGE's board of directors are not considered experienced ( 1.5 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: SGE insiders have only sold shares 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 company bio, 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£7.579b
- Shares outstanding: 1.09b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SGGE.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1990 |
| SGE | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1990 |
| SGK1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1990 |
| SGEL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1990 |
| SGPY.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Jan 2005 |
Biography
The Sage Group plc, together with its subsidiaries, provides technology solutions and services. It offers Sage business cloud accounting solution; Sage business cloud Payroll, an online payroll system; Sag ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/21 20:32 |
| End of Day Share Price | 2020/10/21 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/09/30 |
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.