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 Analysis

Excellent balance sheet with proven track record.


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

17.8%

SPNS

8.6%

US Software

9.4%

US Market


1 Year Return

33.2%

SPNS

13.2%

US Software

-6.8%

US Market

Return vs Industry: SPNS exceeded the US Software industry which returned 12.1% over the past year.

Return vs Market: SPNS exceeded the US Market which returned -8.1% over the past year.


Shareholder returns

SPNSIndustryMarket
7 Day17.8%8.6%9.4%
30 Day13.5%1.9%-3.9%
90 Day-17.8%-4.7%-16.5%
1 Year34.8%33.2%14.4%13.2%-4.8%-6.8%
3 Year67.2%59.8%116.0%106.8%23.4%15.2%
5 Year170.2%149.8%180.5%160.6%41.3%25.7%

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?

4.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPNS ($20.26) is trading below our estimate of fair value ($20.91)

Significantly Below Fair Value: SPNS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SPNS is good value based on its PE Ratio (38.6x) compared to the Software industry average (43x).

PE vs Market: SPNS is poor value based on its PE Ratio (38.6x) compared to the US market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: SPNS is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: SPNS is overvalued based on its PB Ratio (4.5x) compared to the US Software industry average (4.5x).


Next Steps

Future Growth

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

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPNS's forecast earnings growth (17.5% per year) is above the savings rate (1.7%).

Earnings vs Market: SPNS's earnings (17.5% per year) are forecast to grow faster than the US market (13.3% per year).

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

Revenue vs Market: SPNS's revenue (11% per year) is forecast to grow faster than the US market (6.9% per year).

High Growth Revenue: SPNS's revenue (11% 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?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPNS has high quality earnings.

Growing Profit Margin: SPNS's current net profit margins (8.1%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: SPNS's earnings have declined by -0.4% per year over the past 5 years.

Accelerating Growth: SPNS's earnings growth over the past year (90.4%) exceeds its 5-year average (-0.4% per year).

Earnings vs Industry: SPNS earnings growth over the past year (90.4%) exceeded the Software industry 18.4%.


Return on Equity

High ROE: SPNS's Return on Equity (11.7%) 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 ($147.2M) exceed its short term liabilities ($104.9M).

Long Term Liabilities: SPNS's short term assets ($147.2M) exceed its long term liabilities ($122.0M).


Debt to Equity History and Analysis

Debt Level: SPNS's debt to equity ratio (30.5%) 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 (96.2%).

Interest Coverage: SPNS's interest payments on its debt are well covered by EBIT (13.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

4.2yrs

Average management tenure


CEO

Roni Al-Dor (58yo)

14.42s

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
President14.42yrsno data1.84% $19.3m
Roni Giladi
CFO & VP12.75yrsno datano data
Ben Shory
Corporate CTO & Digital Division Manager2.08yrsno datano data
Yaffa Cohen-Ifrah
Chief Marketing Officer & Head of Corporate Communications6.25yrsno datano data
Osnat Segev-Harel
Head of Corporate Development11.25yrsno datano data
Hagit Ashkenazi
Executive VP & Head of Professional Servicesno datano datano data
Harold Westervelt
Managing Director of DECISION2.42yrsno datano data
Tamar Alon-Verber
Chief Business Finance Officer2.08yrsno datano data
Tal Sharon
President of Sapiens Israel & East Europe2.25yrsno datano data
Liana Gelikas
President of P&C/General Insurance and Reinsurance Division4.17yrsno datano data

4.2yrs

Average Tenure

57yo

Average Age

Experienced Management: SPNS's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roni Al-Dor
President14.42yrsno data1.84% $19.3m
Naamit Salomon
Independent Director16.58yrsno datano data
Andre Boisvert
Chairman of Sapiens Decision3.75yrsno datano data
Guy Bernstein
Chairman of the Board10.42yrsno datano data
Yacov Elinav
Independent Director15.08yrsno datano data
Uzi Netanel
Independent Director15.08yrsno datano data
Eyal Ben-Chlouche
Independent Director11.67yrsno datano data

14.4yrs

Average Tenure

58yo

Average Age

Experienced Board: SPNS's board of directors are seasoned and experienced ( 14.4 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 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$1.049b
  • Shares outstanding: 50.23m
  • 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 software platform and solutions for personal, commercial, and specialty lines, as well as reinsurance and workers’ compensation, including Sapiens CoreSuite and Sapiens IDITSuite; and life, pension, and annuities, such as Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster. It also provides Sapiens DigitalSuite for customers, agents, brokers, customer groups, and third-party service providers; Sapiens DigitalHub, an API layer and digital studio; Sapiens AgentConnect and Sapiens CustomerConnect portals for the life, pension and annuities, property and casualty, and other insurance markets; and Sapiens PartnerHub, a cloud-based suite, as well as Sapiens Intelligence or Sapiens IntelligencePro advanced analytics solutions. In addition, the company offers Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO reinsurance solutions; and Sapiens Platform, Sapiens CoreSuite, Sapiens PolicyPro, and Sapiens ClaimsPro, as well as Sapiens PolicyGo, Sapiens ClaimsGo, and Sapiens Connect for workers’ compensation. Further, it provides financial and compliance solutions, which comprise Sapiens FinancialPro, Sapiens Financial GO, Sapiens StatementPro, Sapiens CheckPro, and Sapiens Reporting Tools; and Sapiens Decision, an enterprise-scale platform that enables institutions to centrally author, store, and manage various organizational business logics. Additionally, the company offers tailor-made solutions based on its Sapiens eMerge platform; and program delivery, business, and managed services. It markets and sells its products and services through direct and partner sales. The company was founded in 1982 and is headquartered in Holon, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 10:08
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.