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SPNS

Sapiens International NasdaqGS:SPNS Stock Report

Last Price

US$24.29

Market Cap

US$1.3b

7D

-2.6%

1Y

-8.6%

Updated

03 Jul, 2022

Data

Company Financials +
SPNS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends1/6

SPNS Stock Overview

Sapiens International Corporation N.V. provides software solutions for the insurance and financial services industries in North America, the European Union, the United Kingdom, Israel, and internationally.

Sapiens International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sapiens International
Historical stock prices
Current Share PriceUS$24.29
52 Week HighUS$38.32
52 Week LowUS$20.00
Beta1.36
1 Month Change-7.99%
3 Month Change-6.25%
1 Year Change-8.58%
3 Year Change49.11%
5 Year Change119.82%
Change since IPO-56.82%

Recent News & Updates

Jun 22
When Should You Buy Sapiens International Corporation N.V. (NASDAQ:SPNS)?

When Should You Buy Sapiens International Corporation N.V. (NASDAQ:SPNS)?

While Sapiens International Corporation N.V. ( NASDAQ:SPNS ) might not be the most widely known stock at the moment, it...

Jun 09
Sapiens International (NASDAQ:SPNS) Might Have The Makings Of A Multi-Bagger

Sapiens International (NASDAQ:SPNS) Might Have The Makings Of A Multi-Bagger

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

SPNSUS SoftwareUS Market
7D-2.6%-4.7%-2.5%
1Y-8.6%-23.6%-21.2%

Return vs Industry: SPNS exceeded the US Software industry which returned -23.7% over the past year.

Return vs Market: SPNS exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is SPNS's price volatile compared to industry and market?
SPNS volatility
SPNS Average Weekly Movement7.9%
Software Industry Average Movement11.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.3%

Stable Share Price: SPNS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SPNS's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19824,044Ron Al-Dorhttps://www.sapiens.com

Sapiens International Corporation N.V. provides software solutions for the insurance and financial services industries in North America, the European Union, the United Kingdom, Israel, and internationally. The company offers Sapiens CoreSuite and Sapiens IDITSuite for personal, commercial, and specialty lines; and Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster for life, pension, and annuities. It also provides Sapiens DigitalSuite for customers, agents, brokers, risk managers, customer groups and third-party service providers; Sapiens ReinsuranceMaster and Sapiens ReinsurancePro reinsurance solutions; and Sapiens Platform, Sapiens CoreSuite, Sapiens PolicyPro, and Sapiens ClaimsPro, as well as Sapiens PolicyGo, and Sapiens ClaimsGo for workers’ compensation.

Sapiens International Fundamentals Summary

How do Sapiens International's earnings and revenue compare to its market cap?
SPNS fundamental statistics
Market CapUS$1.34b
Earnings (TTM)US$51.26m
Revenue (TTM)US$469.14m

26.1x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPNS income statement (TTM)
RevenueUS$469.14m
Cost of RevenueUS$276.13m
Gross ProfitUS$193.01m
Other ExpensesUS$141.74m
EarningsUS$51.26m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.93
Gross Margin41.14%
Net Profit Margin10.93%
Debt/Equity Ratio18.9%

How did SPNS perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

0%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SPNS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SPNS?

Other financial metrics that can be useful for relative valuation.

SPNS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA15.3x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does SPNS's PE Ratio compare to its peers?

SPNS PE Ratio vs Peers
The above table shows the PE ratio for SPNS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average87.9x
IDCC InterDigital
27.6x24.3%US$1.9b
CRNC Cerence
31.4x26.5%US$1.0b
AGYS Agilysys
260.9x23.9%US$1.2b
MGIC Magic Software Enterprises
31.9x31.4%US$872.4m
SPNS Sapiens International
26.1x12.3%US$1.3b

Price-To-Earnings vs Peers: SPNS is good value based on its Price-To-Earnings Ratio (26.1x) compared to the peer average (87.9x).


Price to Earnings Ratio vs Industry

How does SPNS's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: SPNS is good value based on its Price-To-Earnings Ratio (26.1x) compared to the US Software industry average (38.2x)


Price to Earnings Ratio vs Fair Ratio

What is SPNS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SPNS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.1x
Fair PE Ratio28.3x

Price-To-Earnings vs Fair Ratio: SPNS is good value based on its Price-To-Earnings Ratio (26.1x) compared to the estimated Fair Price-To-Earnings Ratio (28.3x).


Share Price vs Fair Value

What is the Fair Price of SPNS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SPNS ($24.29) is trading below our estimate of fair value ($35.33)

Significantly Below Fair Value: SPNS is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: SPNS is poor value based on its PEG Ratio (2.1x)


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Future Growth

How is Sapiens International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPNS's forecast earnings growth (12.3% per year) is above the savings rate (1.9%).

Earnings vs Market: SPNS's earnings (12.3% per year) are forecast to grow slower than the US market (13.6% per year).

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

Revenue vs Market: SPNS's revenue (8.1% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: SPNS's revenue (8.1% 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 (13.4%).


Discover growth companies

Past Performance

How has Sapiens International performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


41.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SPNS has high quality earnings.

Growing Profit Margin: SPNS's current net profit margins (10.9%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: SPNS's earnings have grown significantly by 41.1% per year over the past 5 years.

Accelerating Growth: SPNS's earnings growth over the past year (39.3%) is below its 5-year average (41.1% per year).

Earnings vs Industry: SPNS earnings growth over the past year (39.3%) exceeded the Software industry 26.8%.


Return on Equity

High ROE: SPNS's Return on Equity (12.3%) is considered low.


Discover strong past performing companies

Financial Health

How is Sapiens International's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SPNS's short term assets ($303.1M) exceed its short term liabilities ($158.1M).

Long Term Liabilities: SPNS's short term assets ($303.1M) exceed its long term liabilities ($132.0M).


Debt to Equity History and Analysis

Debt Level: SPNS has more cash than its total debt.

Reducing Debt: SPNS's debt to equity ratio has reduced from 20% to 18.9% over the past 5 years.

Debt Coverage: SPNS's debt is well covered by operating cash flow (110.3%).

Interest Coverage: SPNS's interest payments on its debt are well covered by EBIT (25.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SPNS's dividend (1.52%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: SPNS's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SPNS has been paying a dividend for less than 10 years.

Growing Dividend: SPNS's dividend payments have increased, but the company has only paid a dividend for 2 years.


Earnings Payout to Shareholders

Earnings Coverage: Unable to calculate sustainability of dividends as SPNS has not reported any payouts.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (27%), SPNS's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure


CEO

Ron Al-Dor (61 yo)

16.67yrs

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

Experienced Management: SPNS's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: SPNS's board of directors are seasoned and experienced ( 16.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sapiens International Corporation N.V.'s 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
  • Implied Market Cap: US$1.338b
  • Shares outstanding: 55.08m
  • Website: https://www.sapiens.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.