NasdaqCM:SPNS

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


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


Market Performance


7 Day Return

-2.5%

SPNS

-4.4%

US Software

0.07%

US Market


1 Year Return

70.2%

SPNS

19.3%

US Software

8.9%

US Market

Return vs Industry: SPNS exceeded the US Software industry which returned 19.3% over the past year.

Return vs Market: SPNS exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

SPNSIndustryMarket
7 Day-2.5%-4.4%0.07%
30 Day9.8%-4.4%-0.3%
90 Day19.4%-9.3%-1.6%
1 Year72.2%70.2%21.1%19.3%11.3%8.9%
3 Year51.2%44.4%108.2%99.8%46.3%36.8%
5 Year175.8%154.9%157.9%139.3%62.1%44.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPNS ($19.45) is trading below our estimate of fair value ($51.47)

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


Price To Earnings Ratio

PE vs Industry: SPNS is poor value based on its PE Ratio (46.4x) compared to the Software industry average (45x).

PE vs Market: SPNS is poor value based on its PE Ratio (46.4x) compared to the US market (17.8x).


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 (4.4x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

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

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPNS's forecast earnings growth (19.2% per year) is above the savings rate (2.7%).

Earnings vs Market: SPNS's earnings (19.2% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: SPNS's revenue (9.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SPNS's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SPNS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sapiens International performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SPNS's earnings have declined by -7.3% per year over the past 5 years.

Accelerating Growth: SPNS's earnings growth over the past year (90.4%) exceeds its 5-year average (-7.3% per year).

Earnings vs Industry: SPNS earnings growth over the past year (90.4%) exceeded the Software industry 19.1%.


Return on Equity

High ROE: SPNS's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: SPNS's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: SPNS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sapiens International's financial position?


Financial Position Analysis

Short Term Liabilities: SPNS's short term assets ($143.7M) exceeds its short term liabilities ($96.7M)

Long Term Liabilities: SPNS's short term assets (143.7M) exceeds its long term liabilities (130.2M)


Debt to Equity History and Analysis

Debt Level: SPNS's debt to equity ratio (31.2%) is considered satisfactory

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 (64%).

Interest Coverage: SPNS's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet

Inventory Level: SPNS has a low level of unsold assets or inventory.

Debt Coverage by Assets: SPNS's debt is covered by short term assets (assets are 2.093240x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SPNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SPNS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SPNS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPNS's dividend payments have been increasing.


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: No need to calculate the sustainability of SPNS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Roni Al-Dor (58yo)

13.9yrs

Tenure

0

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 ...


Management Age and Tenure

2.8yrs

Average Tenure

57yo

Average Age

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


Board Age and Tenure

13.9yrs

Average Tenure

58yo

Average Age

Experienced Board: SPNS's board of directors are seasoned and experienced ( 13.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Roni Al-Dor (58yo)

    President

    • Tenure: 13.9yrs
  • Roni Giladi (48yo)

    CFO & VP

    • Tenure: 12.3yrs
  • Harold Westervelt

    Managing Director of DECISION

    • Tenure: 1.9yrs
  • Yaffa Cohen-Ifrah

    Chief Marketing Officer & Head of Corporate Communications

    • Tenure: 0yrs
  • Osnat Segev-Harel (57yo)

    Head of Corporate Development

    • Tenure: 10.8yrs
  • Hagit Ashkenazi

    Executive VP & Head of Professional Services

    • Tenure: 0yrs
  • Liana Gelikas

    President of P&C/General Insurance and Reinsurance Division

    • Tenure: 3.7yrs
  • Tamar Alon-Verber

    Chief Business Finance Officer

    • Tenure: 1.6yrs
  • Ben Shory

    Corporate CTO & Digital Division Manager

    • Tenure: 1.6yrs
  • Tal Sharon

    President of Sapiens Israel & East Europe

    • Tenure: 1.8yrs

Board Members

  • Naamit Salomon (55yo)

    Director

    • Tenure: 16.1yrs
  • Roni Al-Dor (58yo)

    President

    • Tenure: 13.9yrs
  • Andre Boisvert (65yo)

    Chairman of Sapiens Decision

    • Tenure: 3.3yrs
  • Guy Bernstein (51yo)

    Chairman of the Board

    • Tenure: 9.9yrs
  • Yacov Elinav (75yo)

    Director

    • Tenure: 14.6yrs
  • Uzi Netanel (83yo)

    Director

    • Tenure: 14.6yrs
  • Eyal Ben-Chlouche (58yo)

    Director

    • Tenure: 11.2yrs

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: NasdaqCM
  • Founded: 1982
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$973.504m
  • Shares outstanding: 50.05m
  • 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
SPNSNasdaqCM (Nasdaq Capital Market)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 softw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:46
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.