The Sage Group plc
The Sage Group plc Fundamental Analysis
The Sage Group plc (SGPYY) shows moderate financial fundamentals with a PE ratio of 21.84, profit margin of 14.68%, and ROE of 48.53%. The company generates $2.5B in annual revenue with moderate year-over-year growth of 6.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SGPYY's fundamental strength across five key dimensions:
Efficiency Score
WeakSGPYY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSGPYY shows balanced valuation metrics.
Growth Score
ExcellentSGPYY delivers strong and consistent growth momentum.
Financial Health Score
WeakSGPYY carries high financial risk with limited liquidity.
Profitability Score
ModerateSGPYY maintains healthy but balanced margins.
Key Financial Metrics
Is SGPYY Expensive or Cheap?
P/E Ratio
SGPYY trades at 21.84 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SGPYY's PEG of 2.50 indicates potential overvaluation.
Price to Book
The market values The Sage Group plc at 11.18 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.80 times EBITDA. This signals the market has high growth expectations.
How Well Does SGPYY Make Money?
Net Profit Margin
For every $100 in sales, The Sage Group plc keeps $14.68 as profit after all expenses.
Operating Margin
Core operations generate 21.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $48.53 in profit for every $100 of shareholder equity.
ROA
The Sage Group plc generates $9.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Sage Group plc produces operating cash flow of $541.28M, showing steady but balanced cash generation.
Free Cash Flow
The Sage Group plc generates strong free cash flow of $499.35M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.09 in free cash annually.
FCF Yield
SGPYY converts 6.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.49
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How SGPYY Stacks Against Its Sector Peers
| Metric | SGPYY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.84 | 35.87 | Better (Cheaper) |
| ROE | 48.53% | 1175.00% | Weak |
| Net Margin | 14.68% | -136937.00% (disorted) | Strong |
| Debt/Equity | 2.19 | 0.45 | Weak (High Leverage) |
| Current Ratio | 0.64 | 4.81 | Weak Liquidity |
| ROA | 9.93% | -312685.00% (disorted) | Weak |
SGPYY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Sage Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.90%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
30.95%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
12.19%
Industry Style: Growth, Innovation, High Beta
High Growth