NasdaqGS:SPNS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sapiens International Corporation N.V. provides software solutions for the insurance and financial services industries in North America, Europe, the Asia Pacific, and South Africa. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Sapiens International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPNS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

SPNS

-5.0%

US Software

-4.6%

US Market


1 Year Return

28.3%

SPNS

45.7%

US Software

11.5%

US Market

Return vs Industry: SPNS underperformed the US Software industry which returned 45.7% over the past year.

Return vs Market: SPNS exceeded the US Market which returned 11.5% over the past year.


Shareholder returns

SPNSIndustryMarket
7 Day-4.9%-5.0%-4.6%
30 Day-10.0%-1.7%-0.9%
90 Day-11.3%4.7%2.2%
1 Year29.1%28.3%46.7%45.7%14.0%11.5%
3 Year106.9%96.5%125.6%118.1%34.5%25.6%
5 Year154.8%137.9%224.7%205.8%73.0%53.6%

Price Volatility Vs. Market

How volatile is Sapiens International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sapiens International undervalued compared to its fair value and its price relative to the market?

44.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SPNS ($27.12) is trading above our estimate of fair value ($18.71)

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


Price To Earnings Ratio

PE vs Industry: SPNS is good value based on its PE Ratio (44.8x) compared to the US Software industry average (56.9x).

PE vs Market: SPNS is poor value based on its PE Ratio (44.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: SPNS is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: SPNS is good value based on its PB Ratio (5.8x) compared to the US Software industry average (6.8x).


Next Steps

Future Growth

How is Sapiens International forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPNS's forecast earnings growth (18.8% per year) is above the savings rate (2.2%).

Earnings vs Market: SPNS's earnings (18.8% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: SPNS's revenue (10.4% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: SPNS's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPNS's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Sapiens International performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPNS has high quality earnings.

Growing Profit Margin: SPNS's current net profit margins (8.6%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: SPNS's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: SPNS's earnings growth over the past year (44.9%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: SPNS earnings growth over the past year (44.9%) exceeded the Software industry 15.9%.


Return on Equity

High ROE: SPNS's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is Sapiens International's financial position?


Financial Position Analysis

Short Term Liabilities: SPNS's short term assets ($200.0M) exceed its short term liabilities ($124.1M).

Long Term Liabilities: SPNS's short term assets ($200.0M) exceed its long term liabilities ($165.7M).


Debt to Equity History and Analysis

Debt Level: SPNS's debt to equity ratio (49.8%) is considered high.

Reducing Debt: Insufficient data to determine if SPNS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SPNS's debt is well covered by operating cash flow (51.3%).

Interest Coverage: SPNS's interest payments on its debt are well covered by EBIT (21.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Sapiens International current dividend yield, its reliability and sustainability?

2.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPNS's dividend (2.06%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: SPNS's dividend (2.06%) is low compared to the top 25% of dividend payers in the US market (4.86%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SPNS's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SPNS's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Roni Al-Dor (59 yo)

14.92yrs

Tenure

Mr. Roni Al-Dor, also known as Ron, has been the Chief Executive Officer and President of Sapiens International Corporation N.V. since November 2005. Mr. Al-Dor serves as President, Chief Executive Officer ...


Leadership Team

NamePositionTenureCompensationOwnership
Roni Al-Dor
President14.92yrsno data0.77%
$ 11.3m
Roni Giladi
CFO & VP13.25yrsno datano data
Ben Shory
Corporate CTO & Digital Division Manager2.58yrsno datano data
Iris Cohen-Carmel
VP of Corporate Development & General Counsel11.75yrsno datano data
Osnat Segev-Harel
Head of Corporate Development11.75yrsno datano data
Alex Zukerman
Chief Marketing Officer & Chief of Corporate Strategy0.50yrno datano data
Noa Brummer
Vice President of Human Resources0.50yrno datano data
Raj Ghuman
Senior Vice President of Business Development Operations – EMEA & APAC0.083yrno datano data
Hagit Ashkenazi
Executive VP & Head of Professional Servicesno datano datano data
Harold Westervelt
Managing Director of DECISION2.92yrsno datano data
Tamar Alon-Verber
Chief Business Finance Officer2.58yrsno datano data
Tal Sharon
President of Life2.75yrsno datano data

2.8yrs

Average Tenure

58yo

Average Age

Experienced Management: SPNS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roni Al-Dor
President14.92yrsno data0.77%
$ 11.3m
Naamit Salomon
Independent Director17.08yrsno datano data
Andre Boisvert
Chairman of Sapiens Decision4.25yrsno datano data
Guy Bernstein
Chairman of the Board10.92yrsno datano data
Yacov Elinav
Independent Director15.58yrsno datano data
Uzi Netanel
Independent Director15.58yrsno datano data
Eyal Ben-Chlouche
Independent Director12.17yrsno datano data

14.9yrs

Average Tenure

59yo

Average Age

Experienced Board: SPNS's board of directors are seasoned and experienced ( 14.9 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.2%.


Top Shareholders

Company Information

Sapiens International Corporation N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sapiens International Corporation N.V.
  • Ticker: SPNS
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$1.468b
  • Shares outstanding: 54.13m
  • Website: https://www.sapiens.com

Number of Employees


Location

  • Sapiens International Corporation N.V.
  • Azrieli Center
  • 26 Harokmim Street
  • Holon
  • 5885800
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPNSNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDMay 1992
SPNSTASE (The Tel-Aviv Stock Exchange)YesCommon SharesILILSMay 1992
S3PDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1992

Biography

Sapiens International Corporation N.V. provides software solutions for the insurance and financial services industries in North America, Europe, the Asia Pacific, and South Africa. The company offers Sapie ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 00:08
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.