Sage: Consistent Growth Continues; Shares Undervalued
Sage reported solid year-to-date organic growth of 10% in its third-quarter trading update. Shares rose 9% on July 29.
Sage Group (The) PLC SGE
Bulls Say, Bears Say
Bulls
Sage is over the hump in its transition to a primary cloud-focused software company. which means operating margins should rise going forward as the benefits of scale kick in.
Bears
The market for financial management software for small- and midsize businesses is fragmented, limiting pricing power in the industry.
News
Trading Information
- Previous Close Price
- GBX1,047.50
- Day Range
- GBX1,048.00–1,077.00
- 52-Week Range
- GBX771.66–1,181.00
- Bid/Ask
- GBX950.00 / GBX1,094.00
- Shares Outstanding
- 897.54M
- Market Cap
- GBX954.09B
- Volume/Avg
- 4M / 4M
Key Statistics
- Price/Earnings (Normalized)
- 23.60
- Price/Sales
- 3.85
- Dividend Yield (Trailing)
- 2.14%
- Dividend Yield (Forward)
- 2.14%
- Total Yield
- 9.10%
Company Profile
The Sage Group is a UK-based provider of accounting and enterprise resource planning software, predominantly to customers in the US and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud-connected and cloud native products, sold via software-as-a-service contracts. Sage’s main cloud-native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.
- Sector
- Technology
- Industry
- Software - Application
- Stock Style Box
- Mid Growth
- Total Number of Employees
- 11,170
- Website
- https://www.sage.com
Competitors
Valuation
|
Metric
|
SGE
|
SAP
|
INTU
|
|---|---|---|---|
Price/Earnings (Normalized) | 23.60 | 27.41 | 14.57 |
Price/Book Value | 44.09 | 4.70 | 4.46 |
Price/Sales | 3.85 | 5.45 | 4.49 |
Price/Cash Flow | 20.03 | 22.50 | 10.93 |
Price/Earnings
SGE
SAP
INTU
Financial Strength
|
Metric
|
SGE
|
SAP
|
INTU
|
|---|---|---|---|
Quick Ratio | 0.62 | 0.98 | 0.79 |
Current Ratio | 0.62 | 1.15 | 1.45 |
Interest Coverage | 8.83 | 19.48 | 24.13 |
Quick Ratio
SGE
SAP
INTU
Profitability
|
Metric
|
SGE
|
SAP
|
INTU
|
|---|---|---|---|
Return on Assets (Normalized) | 11.48% | 10.63% | 17.77% |
Return on Equity (Normalized) | 76.08% | 17.37% | 32.43% |
Return on Invested Capital (Normalized) | 21.01% | 14.14% | 24.27% |
Return on Assets
SGE
SAP
INTU
Software - Application Industry Comparables
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| SAP SE ADR
SAP
| LOCK|$gYf?HW | LOCK|tC | $240B | |||
| Shopify Inc Registered Shs -A- Subord Vtg
SHOP
| LOCK|DTT<&R | LOCK|D#^T | $191B | |||
| Salesforce Inc
CRM
| LOCK|Q!&%!Y | LOCK|#BLc | $156B | |||
| Uber Technologies Inc
UBER
| LOCK|#dz>WG@ | LOCK|C^Y!F | $153B | |||
| ServiceNow Inc
NOW
| LOCK|D?j^J$& | LOCK|>bqT | $122B | |||
| Snowflake Inc Ordinary Shares
SNOW
| LOCK|j!Vh%# | LOCK|#S# | $114B | |||
| Automatic Data Processing Inc
ADP
| LOCK|%r$kjK> | LOCK|dmNt$ | $106B | |||
| Adobe Inc
ADBE
| LOCK|C#^fWHwQ | LOCK|>hJN | $101B | |||
| Intuit Inc
INTU
| LOCK|#z$CYqJ | LOCK|CH>l | $92B | |||
| Cadence Design Systems Inc
CDNS
| LOCK|xG#P$yl | LOCK|b$J | $89B |
United States