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Sophos Group

LSE:SOPH
Snowflake Description

High growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SOPH
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Software
Company description

Sophos Group plc, through its subsidiaries, provides cloud-enabled end-user and network security solutions. The last earnings update was 33 days ago. More info.


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  • Sophos Group has significant price volatility in the past 3 months.
SOPH Share Price and Events
7 Day Returns
8.5%
LSE:SOPH
-1.3%
GB Software
0.6%
GB Market
1 Year Returns
-12.6%
LSE:SOPH
14.1%
GB Software
-1.1%
GB Market
SOPH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sophos Group (SOPH) 8.5% 18.1% 25.2% -12.6% 89.8% -
GB Software -1.3% -0.7% 6.5% 14.1% 22.5% 85.5%
GB Market 0.6% 2.3% 0.7% -1.1% 12.3% 7.2%
1 Year Return vs Industry and Market
  • SOPH underperformed the Software industry which returned 14.1% over the past year.
  • SOPH underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.1% over the past year.
Price Volatility
SOPH
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Sophos Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sophos Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sophos Group.

LSE:SOPH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SOPH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.119 (1 + (1- 19%) (11.07%))
1.147
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.147 * 6.65%)
8.85%

Discounted Cash Flow Calculation for LSE:SOPH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sophos Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:SOPH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.85%)
2020 102.19 Analyst x7 93.88
2021 130.96 Analyst x6 110.53
2022 162.14 Analyst x4 125.71
2023 176.35 Est @ 8.76% 125.60
2024 187.81 Est @ 6.5% 122.89
2025 197.05 Est @ 4.92% 118.45
2026 204.57 Est @ 3.81% 112.96
2027 210.78 Est @ 3.04% 106.92
2028 216.03 Est @ 2.49% 100.68
2029 220.60 Est @ 2.11% 94.44
Present value of next 10 years cash flows $1,112.06
LSE:SOPH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $220.60 × (1 + 1.23%) ÷ (8.85% – 1.23%)
$2,927.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,927.92 ÷ (1 + 8.85%)10
$1,253.50
LSE:SOPH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,112.06 + $1,253.50
$2,365.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,365.56 / 484.40
$4.88
LSE:SOPH Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:SOPH)
0.805
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $4.88 x 0.805
£3.93
Value per share (GBP) From above. £3.93
Current discount Discount to share price of £4.50
= -1 x (£4.50 - £3.93) / £3.93
-14.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sophos Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sophos Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sophos Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SOPH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.06
LSE:SOPH Share Price ** LSE (2019-07-17) in GBP £4.5
LSE:SOPH Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.243 $5.59
United Kingdom of Great Britain and Northern Ireland Software Industry PE Ratio Median Figure of 34 Publicly-Listed Software Companies 31.18x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.51x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sophos Group.

LSE:SOPH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SOPH Share Price ÷ EPS (both in USD)

= 5.59 ÷ 0.06

99.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sophos Group is overvalued based on earnings compared to the GB Software industry average.
  • Sophos Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Sophos Group's expected growth come at a high price?
Raw Data
LSE:SOPH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 99.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
28.6%per year
United Kingdom of Great Britain and Northern Ireland Software Industry PEG Ratio Median Figure of 23 Publicly-Listed Software Companies 1.53x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:SOPH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 99.01x ÷ 28.6%

3.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sophos Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sophos Group's assets?
Raw Data
LSE:SOPH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $0.32
LSE:SOPH Share Price * LSE (2019-07-17) in GBP £4.5
LSE:SOPH Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.243 $5.59
United Kingdom of Great Britain and Northern Ireland Software Industry PB Ratio Median Figure of 74 Publicly-Listed Software Companies 3.16x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.52x
LSE:SOPH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SOPH Share Price ÷ Book Value per Share (both in USD)

= 5.59 ÷ 0.32

17.3x

* Primary Listing of Sophos Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sophos Group is overvalued based on assets compared to the GB Software industry average.
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Value checks
We assess Sophos Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Sophos Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Sophos Group expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sophos Group expected to grow at an attractive rate?
  • Sophos Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Sophos Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Sophos Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SOPH Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SOPH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 28.6%
LSE:SOPH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 7.6%
United Kingdom of Great Britain and Northern Ireland Software Industry Earnings Growth Rate Market Cap Weighted Average 36.2%
United Kingdom of Great Britain and Northern Ireland Software Industry Revenue Growth Rate Market Cap Weighted Average 7.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SOPH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SOPH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 892 201 57 8
2021-03-31 824 159 36 10
2020-03-31 761 143 21 9
LSE:SOPH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 711 143 27
2018-12-31 701 146 8
2018-09-30 693 149 -17
2018-06-30 667 148 -42
2018-03-31 639 148 -61
2017-12-31 605 142 -58
2017-09-30 570 136 -51
2017-06-30 550 127 -49
2017-03-31 530 119 -47
2016-12-31 515 99 -53
2016-09-30 501 80 -59
2016-06-30 490 51 -65

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sophos Group's earnings are expected to grow significantly at over 20% yearly.
  • Sophos Group's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SOPH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Sophos Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SOPH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 0.11 0.11 0.10 2.00
2021-03-31 0.07 0.10 0.06 4.00
2020-03-31 0.04 0.07 0.01 5.00
LSE:SOPH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.06
2018-12-31 0.02
2018-09-30 -0.04
2018-06-30 -0.09
2018-03-31 -0.13
2017-12-31 -0.13
2017-09-30 -0.11
2017-06-30 -0.11
2017-03-31 -0.10
2016-12-31 -0.12
2016-09-30 -0.13
2016-06-30 -0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sophos Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Sophos Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sophos Group has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Sophos Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sophos Group's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sophos Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Sophos Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Sophos Group has become profitable in the last year making it difficult to compare the GB Software industry average.
Earnings and Revenue History
Sophos Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sophos Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SOPH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 710.60 26.90 347.30 143.90
2018-12-31 701.15 7.65 347.85 145.05
2018-09-30 693.40 -17.00 357.50 151.70
2018-06-30 667.05 -41.65 347.85 148.75
2018-03-31 639.00 -60.90 329.10 140.30
2017-12-31 604.50 -58.35 321.05 137.90
2017-09-30 569.60 -50.90 306.20 130.00
2017-06-30 549.65 -48.80 294.30 123.90
2017-03-31 529.70 -46.70 282.40 117.80
2016-12-31 515.30 -52.80 273.40 113.85
2016-09-30 500.90 -58.90 264.40 109.90
2016-06-30 489.55 -65.40 250.20 104.75
2016-03-31 478.20 -71.90 236.00 99.60
2015-12-31 472.00 -79.60 229.90 94.50
2015-09-30 465.80 -87.30 223.80 89.40
2015-06-30 456.25 -73.65 218.80 85.60
2015-03-31 446.70 -60.00 213.80 81.80
2014-03-31 378.80 -91.20 171.70 67.90
2013-03-31 361.60 -124.30 175.10 54.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sophos Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sophos Group used its assets less efficiently than the GB Software industry average last year based on Return on Assets.
  • Sophos Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sophos Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sophos Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sophos Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sophos Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sophos Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Sophos Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Sophos Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sophos Group Company Filings, last reported 3 months ago.

LSE:SOPH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 155.70 299.80 172.10
2018-12-31 155.70 299.80 172.10
2018-09-30 170.70 302.80 171.40
2018-06-30 170.70 302.80 171.40
2018-03-31 150.00 306.30 120.00
2017-12-31 91.80 306.30 120.00
2017-09-30 117.90 302.80 81.10
2017-06-30 117.90 302.80 81.10
2017-03-31 126.70 345.60 68.10
2016-12-31 126.70 345.60 68.10
2016-09-30 124.90 299.20 90.00
2016-06-30 124.90 299.20 90.00
2016-03-31 145.90 324.80 66.80
2015-12-31 145.90 324.80 66.80
2015-09-30 154.50 298.30 68.20
2015-06-30 154.50 298.30 68.20
2015-03-31 -405.80 852.60 72.60
2014-03-31 -339.90 823.50 64.10
2013-03-31 -269.10 762.40 47.90
  • Sophos Group's level of debt (192.5%) compared to net worth is high (greater than 40%).
  • Sophos Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (47.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).
X
Financial health checks
We assess Sophos Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sophos Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Sophos Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.93%
Current annual income from Sophos Group dividends. Estimated to be 1.07% next year.
If you bought £2,000 of Sophos Group shares you are expected to receive £19 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sophos Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.94%).
  • Sophos Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Upcoming dividend payment

Purchase Sophos Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SOPH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Software Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 2.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SOPH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.06 7.00
2021-03-31 0.06 10.00
2020-03-31 0.06 10.00
LSE:SOPH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-16 0.052 1.023
2018-10-02 0.049 1.061
2017-12-04 0.047 0.657
2017-06-05 0.046 0.682
2017-05-17 0.046 0.835
2016-12-06 0.026 0.731
2016-05-26 0.022 0.729
2015-11-11 0.014 0.422
2015-09-30 0.014 0.374

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sophos Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • Sophos Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Sophos Group's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Sophos Group's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
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Income/ dividend checks
We assess Sophos Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sophos Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sophos Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Sophos Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kris Hagerman
COMPENSATION $4,683,000
AGE 54
TENURE AS CEO 7.5 years
CEO Bio

Mr. Kristof Hagerman, also known as Kris, has been the Chief Executive Officer of Sophos Group plc since joined it in 2012. Mr. Hagerman serves as the Chief Executive Officer of Sophos Holdings Limited. He has been the Chief Executive Officer of Sophos Ltd., since September 2012. He served as the Chief Executive Officer of Corel Corporation since July 29, 2009. Mr. Hagerman served as an Interim Chief Executive Officer of Corel Corporation from May 8, 2008 to July 29, 2009. He served as Group President of Data Center Management at Symantec Corp. from May 2006 to November 5, 2007 and also previously served as its Senior Vice President of Data Center Management, Storage and Server Management Group. Mr. Hagerman served as Senior Adviser at Vector Capital. He joined Symantec through Symantec Corp.'s merger with VERITAS Software. He served as an Executive Vice President of Storage and Server Management group of Veritas Software Corporation since September 20, 2004 and Executive Vice President of Strategic Operations since March 2003. He also served as Senior Vice President and Senior Vice President of Data Center Management at Veritas Software Corp. and as its Senior Vice President of Strategic Operations from August 2001 to March 2003 and prior to that as its Vice President of Strategic Alliances from February 2001 to August 2001. Before joining VERITAS, he founded Affinia Inc., and served as its Chief Executive Officer from September 1998 to September 2000. Mr. Hagerman founded BigBook Inc. and served as its Chief Executive Officer from 1995 to 1998. Before BigBook, he held various management positions in consulting, sales and marketing, business development and finance at companies such as Graphics Properties Holdings, Inc, Silicon Graphics Computer Systems, Odyssey Research, McKinsey & Company, Inc., and Morgan Stanley. He serves as a Director at Sophos Holdings Limited. He serves as an Executive Director of Sophos Group plc. Mr. Hagerman has been a Director of Sophos Ltd. since September 2012. He served as a Director of Satmetrix Systems, Inc. Mr. Hagerman holds a Master of Business Administration from Stanford Graduate School of Business. He was GM of storage and server management at Veritas Software. He also received an M.Phil. in International Relations from Cambridge University and a BA in Russian and Economics from Dartmouth College.

CEO Compensation
  • Kris's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Kris's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Sophos Group management team in years:

4.4
Average Tenure
  • The tenure for the Sophos Group management team is about average.
Management Team

Kris Hagerman

TITLE
CEO & Executive Director
COMPENSATION
$5M
AGE
54
TENURE
7.5 yrs

Nick Bray

TITLE
CFO & Executive Director
COMPENSATION
$2M
AGE
54
TENURE
9.5 yrs

Jan Hruska

TITLE
Co-Founder & Special Advisor to the Board

Peter Lammer

TITLE
Co-Founder & Special Advisor to the Board

Joe Levy

TITLE
Chief Technology Officer
TENURE
4.4 yrs

Tony Young

TITLE
Chief Information Officer
TENURE
2.9 yrs

Derek Brown

TITLE
Vice President of Investor Relations

Eleanor Lacey

TITLE
Senior VP & Chief Legal Officer
TENURE
2.7 yrs

Matt Fairbanks

TITLE
Chief Marketing Officer
TENURE
7.5 yrs

Amanda Mallow

TITLE
Chief Human Resources Officer
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the Sophos Group board of directors in years:

7
Average Tenure
57.5
Average Age
  • The tenure for the Sophos Group board of directors is about average.
Board of Directors

Peter Gyenes

TITLE
Non-Executive Chairman
COMPENSATION
$255K
AGE
74
TENURE
13.5 yrs

Kris Hagerman

TITLE
CEO & Executive Director
COMPENSATION
$5M
AGE
54

Nick Bray

TITLE
CFO & Executive Director
COMPENSATION
$2M
AGE
54

Paul Walker

TITLE
Senior Independent Director
COMPENSATION
$175K
AGE
62
TENURE
4.5 yrs

Rick Medlock

TITLE
Independent Non-Executive Director
COMPENSATION
$165K
AGE
59
TENURE
2.3 yrs

Sandra Bergeron

TITLE
Independent Non-Executive Director
COMPENSATION
$150K
AGE
60
TENURE
9.5 yrs

Roy Mackenzie

TITLE
Non-Executive Director
AGE
48
TENURE
9.5 yrs

Vin Murria

TITLE
Independent Non-Executive Director
COMPENSATION
$150K
AGE
56
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • Sophos Group individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
22. May 19 Sell Nicholas P. Bray Individual 20. May 19 20. May 19 -199,443 £3.91 £-776,041
X
Management checks
We assess Sophos Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sophos Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Do Analysts See Sophos Group plc (LON:SOPH) Performing In The Years Ahead?

Below is a brief commentary on my key takeaways on how market analysts view Sophos Group's earnings growth trajectory over the next few years and whether the future looks brighter. … Check out our latest analysis for Sophos Group Market analysts' consensus outlook for the coming year seems pessimistic, with earnings declining by -3.3%. … This means, we can assume Sophos Group will grow its earnings by 26% every year for the next couple of years.

Simply Wall St -

How Does Sophos Group plc (LON:SOPH) Fare As A Dividend Stock?

Dividend paying stocks like Sophos Group plc (LON:SOPH) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. Investors might not know much about Sophos Group's dividend prospects, even though it has been paying dividends for the last four years and offers a 1.1% yield. A low yield is generally a turn-off, but if the prospects for earnings growth were strong, investors might be pleasantly surprised by the long-term results. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Click the interactive chart for our full dividend analysis LSE:SOPH Historical Dividend Yield, June 26th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Sophos Group paid out 92% of its profit as dividends, over the trailing twelve month period. This is quite a high payout ratio that suggests the dividend is not well covered by earnings. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Sophos Group paid out 20% of its free cash flow as dividends last year, which is conservative and suggests the dividend is sustainable. While the dividend was not well covered by profits, at least they were covered by free cash flow. Even so, if the company were to continue paying out almost all of its profits, we'd be concerned about whether the dividend is sustainable in a downturn. Is Sophos Group's Balance Sheet Risky? As Sophos Group's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Sophos Group has grown its earnings per share at 37% per annum over the past five years. The company has been growing its EPS at a very rapid rate, while paying out virtually all of its income as dividends. While EPS could grow fast enough to make the dividend sustainable, in this type of situation, we'd want to pay extra attention to any fragilities in the company's balance sheet. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Is Now The Time To Look At Buying Sophos Group plc (LON:SOPH)?

It’s trading around 7.7% below my intrinsic value, which means if you buy Sophos Group today, you’d be paying a fair price for it. … SOPH’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. … If you are no longer interested in Sophos Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

Is Sophos Group plc's (LON:SOPH) Future Growth Already Accounted For In Today's Price?

Growth expectations for Sophos Group plc (LON:SOPH) are high, but many investors are starting to ask whether its last close at £3.966 can still be rationalized by the future potential. … Sophos Group is available at price-to-earnings ratio of 89.27x, showing us it is overvalued based on current earnings compared to the Software industry average of 30.85x , and overvalued compared to the GB market average ratio of 16.09x. … Based on this growth, Sophos Group's stock can be considered overvalued , based on fundamental analysis.

Simply Wall St -

Sophos Group plc (LON:SOPH): Earnings Expected To Remain Subdued

As Sophos Group plc (LON:SOPH) announced its recent earnings release on 31 March 2019, the consensus outlook from analysts appear bearish, with profits predicted to drop by 19% next year relative to the past 5-year average growth rate of 32%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … LSE:SOPH Past and Future Earnings, May 28th 2019 From the current net income level of US$27m and the final forecast of US$56m by 2022, the annual rate of growth for SOPH’s earnings is 26%.

Simply Wall St -

Is Sophos Group plc (LON:SOPH) A High Quality Stock To Own?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Sophos Group: 17% = US$27m ÷ US$156m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Sophos Group Have A Good Return On Equity? … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Is Sophos Group plc's (LON:SOPH) CEO Salary Justified?

Kris Hagerman became the CEO of Sophos Group plc (LON:SOPH) in 2012. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Kris Hagerman's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Calculating The Fair Value Of Sophos Group plc (LON:SOPH)

by estimating the company's future cash flows and discounting them to their present value. … I will use the Discounted Cash Flow (DCF) model! … We generally believe that a company's value is the present value of all of the cash it will generate in the future.

Simply Wall St -

How Many Insiders Sold Sophos Group plc (LON:SOPH) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Sophos Group plc (LON:SOPH). … All up, insiders sold more shares in Sophos Group than they bought, over the last year. … It is certainly not great to see that insiders have sold shares in the company

Simply Wall St -

Is Now An Opportune Moment To Examine Sophos Group plc (LON:SOPH)?

received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to £3.93 at one point, and dropping to the lows of £3.1. … A question to answer is whether Sophos Group's current trading price of £3.13 reflective of the actual value of the? … Let’s take a look at Sophos Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Company Info

Description

Sophos Group plc, through its subsidiaries, provides cloud-enabled end-user and network security solutions. The company offers Intercept X, which delivers endpoint protection against unknown malware, exploits, and ransomware; XG Firewall, a next generation firewall that provides unprecedented visibility for networks, users, and applications directly from the control center; Sophos Central, a unified cloud administration console for managing various Sophos products; and Cloud Optix that offers artificial intelligence-based cloud security analytics, compliance, and DevSecOps platform to provide end-to-end protection in public cloud services. It also provides Sophos Wireless, a wireless access point; Sophos Email, an email security solution; Sophos Mobile, a unified endpoint management and mobile threat defense solution; UTM, a unified threat management solution; Phish Threat, a phishing simulation and engaging training solution; and Intercept X for Server, a next-generation server protection solution that provides security against cyber threats. In addition, the company offers SafeGuard Encryption solution; Secure Web Gateway for Web security; and Sophos Home for Mac and PC protection. It serves education, healthcare, retail, finance, and banking industries, as well as governments and public sectors in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Sophos Group plc was founded in 1985 and is headquartered in Abingdon, the United Kingdom.

Details
Name: Sophos Group plc
SOPH
Exchange: LSE
Founded: 1985
£2,179,334,018
484,404,094
Website: http://www.sophos.com
Address: Sophos Group plc
The Pentagon,
Abingdon Science Park,
Abingdon,
Oxfordshire, OX14 3YP,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SOPH Ordinary Shares London Stock Exchange GB GBP 26. Jun 2015
OTCPK SPHH.F Ordinary Shares Pink Sheets LLC US USD 26. Jun 2015
DB 2SO Ordinary Shares Deutsche Boerse AG DE EUR 26. Jun 2015
Number of employees
Current staff
Staff numbers
3,381
Sophos Group employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 21:56
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/06/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.