Sage Group
Market Cap
UK£7.6b
Last Updated
2019/10/23 20:34 UTC
Data Sources
Company Financials +
Executive Summary
The Sage Group plc, together with its subsidiaries, provides technology solutions and services.
Snowflake
Fundamentals
Solid track record 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
Market Performance
7 Day Return
0.1%
SGE
-0.5%
GB Software
0.08%
GB Market
1 Year Return
32.1%
SGE
9.6%
GB Software
3.5%
GB Market
Return vs Industry: SGE exceeded the UK Software industry which returned 9.6% over the past year.
Return vs Market: SGE exceeded the UK Market which returned 3.5% over the past year.
Shareholder returns
| SGE | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.1% | -0.5% | 0.08% |
| 30 Day | 3.1% | 1.2% | -1.3% |
| 90 Day | -5.1% | -10.2% | -2.2% |
| 1 Year | 35.4%32.1% | 16.0%9.6% | 9.0%3.5% |
| 3 Year | 4.4%-2.6% | 2.8%-13.8% | 18.1%3.1% |
| 5 Year | 110.6%87.2% | 66.7%34.0% | 36.2%5.3% |
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
Is The Sage Group plc (LON:SGE) Potentially Underrated?3 weeks ago | Simply Wall St
Update: Sage Group (LON:SGE) Stock Gained 93% In The Last Five Years1 month ago | Simply Wall St
You Have To Love The Sage Group plc's (LON:SGE) DividendValuation
Is Sage Group undervalued compared to its fair value and its price relative to the market?
23.99x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SGE (£6.94) is trading above our estimate of fair value (£3.43)
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 (24x) compared to the Software industry average (27.5x).
PE vs Market: SGE is poor value based on its PE Ratio (24x) compared to the UK market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: SGE is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: SGE is overvalued based on its PB Ratio (5.5x) compared to the GB Software industry average (3.3x).
Next Steps
Future Growth
How is Sage Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
7.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SGE's forecast earnings growth (7% per year) is above the savings rate (1.2%).
Earnings vs Market: SGE's earnings (7% per year) are forecast to grow slower than the UK market (12.4% per year).
High Growth Earnings: SGE's earnings are forecast to grow, but not significantly.
Revenue vs Market: SGE's revenue (6.1% per year) is forecast to grow faster than the UK market (4% per year).
High Growth Revenue: SGE's revenue (6.1% 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 (21.3%)
Next Steps
Past Performance
How has Sage Group performed over the past 5 years?
9.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: SGE's earnings have grown by 9.7% per year over the past 5 years.
Accelerating Growth: SGE's earnings growth over the past year (22.7%) exceeds its 5-year average (9.7% per year).
Earnings vs Industry: SGE earnings growth over the past year (22.7%) exceeded the Software industry 7%.
Return on Equity
High ROE: SGE's Return on Equity (22.7%) is considered high.
Return on Assets
ROA vs Industry: SGE has a higher Return on Assets than the Software industry average last year.
Return on Capital Employed
ROCE Improving: SGE's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Sage Group's financial position?
Financial Position Analysis
Short Term Liabilities: SGE's short term assets (£757.0M) do not cover its short term liabilities (£1.0B)
Long Term Liabilities: SGE's short term assets (757.0M) do not cover its long term liabilities (842.0M)
Debt to Equity History and Analysis
Debt Level: SGE's debt to equity ratio (55.9%) is considered high
Reducing Debt: SGE's debt to equity ratio has increased from 55.3% to 55.9% over the past 5 years.
Debt Coverage: SGE's debt is well covered by operating cash flow (64.4%).
Interest Coverage: SGE's interest payments on its debt are well covered by EBIT (18.7x coverage).
Balance Sheet
Inventory Level: SGE has a low level of unsold assets or inventory.
Debt Coverage by Assets: SGE's debt is not covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is Sage Group's current dividend yield, its reliability and sustainability?
2.38%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: SGE's dividend (2.38%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).
High Dividend: SGE's dividend (2.38%) is low compared to the top 25% of dividend payers in the UK market (5.37%).
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 (57.5%), 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 (54.5% payout ratio).
Next Steps
Management
What is the CEO of Sage Group's salary, the management and board of directors tenure and is there insider trading?
1.5yrs
Average management tenure
CEO
Steve Hare (58yo)
0.9yrs
Tenure
UK£1,176,000
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 has s ...
CEO Compensation Analysis
Compensation vs. Market: Steve has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Management Age and Tenure
1.5yrs
Average Tenure
54yo
Average Age
Experienced Management: SGE's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Age and Tenure
2.5yrs
Average Tenure
57yo
Average Age
Experienced Board: SGE's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: SGE insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 10,000 |
| Max Price | UK£6.80 |
| Entity | Individual |
| Role | Chief Technology Officer Chief Technology Officer |
| Shares | 66,543 |
| Max Price | UK£6.99 |
| Entity | Individual |
| Shares | 829 |
| Max Price | UK£7.99 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, Interim COO & Executive Director |
| Shares | 2,293 |
| Max Price | UK£7.99 |
| Entity | Individual |
| Role | Chief Legal Officer General Counsel & Company Secretary |
| Shares | 12 |
| Max Price | UK£7.99 |
| Entity | Individual |
| Role | Head of Human Resources Chief People Officer |
| Shares | 56 |
| Max Price | UK£7.99 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 1,350 |
| Max Price | UK£7.46 |
| Entity | Individual |
| Shares | 334,933 |
| Max Price | UK£6.68 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Director |
| Shares | 44,000 |
| Max Price | UK£5.91 |
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman |
| Shares | 22,000 |
| Max Price | UK£5.15 |
Ownership Breakdown
Management Team
Steve Hare (58yo)
CEO, Interim COO & Executive Director
- Tenure: 0.9yrs
- Compensation: UK£1.18m
Jonathan A. Howell (56yo)
CFO & Director
- Tenure: 6.4yrs
- Compensation: UK£77.00k
Derk Bleeker
Executive Vice President of Commercial Finance & Corporate Development
- Tenure: 0yrs
Klaus-Michael Vogelberg (54yo)
Chief Architect & Technology Advisor
- Tenure: 0.5yrs
Aaron Harris
Chief Technology Officer
- Tenure: 0.5yrs
Ron McMurtrie (54yo)
Chief Marketing Officer
- Tenure: 2.8yrs
Daniel Crump (58yo)
President & Executive Director
- Tenure: 1.8yrs
- Compensation: UK£711.87k
Vicki Bradin (41yo)
General Counsel & Company Secretary
- Tenure: 3yrs
Amanda Cusdin (42yo)
Chief People Officer
- Tenure: 2yrs
Lauren Wholley
Investor Relations Director
- Tenure: 0yrs
Board Members
Donald Brydon (73yo)
Independent Chairman
- Tenure: 7.1yrs
- Compensation: UK£407.00k
Steve Hare (58yo)
CEO, Interim COO & Executive Director
- Tenure: 0.9yrs
- Compensation: UK£1.18m
John Bates (49yo)
Independent Non-Executive Director
- Tenure: 0.8yrs
Jonathan A. Howell (56yo)
CFO & Director
- Tenure: 6.4yrs
- Compensation: UK£77.00k
John William Hall (70yo)
Independent Non-Executive Director
- Tenure: 5.8yrs
- Compensation: UK£87.00k
Cath Keers (54yo)
Independent Non-Executive Director
- Tenure: 2.3yrs
- Compensation: UK£60.00k
Annette Court (57yo)
Independent Non-Executive Director
- Tenure: 0.5yrs
Soni Jiadani (53yo)
Independent Non-Executive Director
- Tenure: 2.7yrs
- Compensation: UK£60.00k
Jonathan Bewes
Independent Non-Executive Director
- Tenure: 0.5yrs
Daniel Crump (58yo)
President & Executive Director
- Tenure: 1.8yrs
- Compensation: UK£711.87k
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£7.562b
- 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 financials, a solution that provides r ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 20:34 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/03/31 |
| Annual Earnings | 2018/09/30 |
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.