Sapiens International Corporation N.V.
Sapiens International Corporation N.V. Fundamental Analysis
Sapiens International Corporation N.V. (SPNS) shows moderate financial fundamentals with a PE ratio of 38.63, profit margin of 11.40%, and ROE of 13.18%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 5.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SPNS's fundamental strength across five key dimensions:
Efficiency Score
WeakSPNS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSPNS shows balanced valuation metrics.
Growth Score
ExcellentSPNS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSPNS maintains a strong and stable balance sheet.
Profitability Score
WeakSPNS struggles to sustain strong margins.
Key Financial Metrics
Is SPNS Expensive or Cheap?
P/E Ratio
SPNS trades at 38.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SPNS's PEG of -6.73 indicates potential undervaluation.
Price to Book
The market values Sapiens International Corporation N.V. at 4.84 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.40 times EBITDA. This signals the market has high growth expectations.
How Well Does SPNS Make Money?
Net Profit Margin
For every $100 in sales, Sapiens International Corporation N.V. keeps $11.40 as profit after all expenses.
Operating Margin
Core operations generate 13.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.18 in profit for every $100 of shareholder equity.
ROA
Sapiens International Corporation N.V. generates $8.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sapiens International Corporation N.V. produces operating cash flow of $78.16M, showing steady but balanced cash generation.
Free Cash Flow
Sapiens International Corporation N.V. generates strong free cash flow of $70.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.26 in free cash annually.
FCF Yield
SPNS converts 2.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SPNS Stacks Against Its Sector Peers
| Metric | SPNS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.63 | 35.19 | Neutral |
| ROE | 13.18% | 1155.00% | Weak |
| Net Margin | 11.40% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.52 | 4.71 | Neutral |
| ROA | 8.65% | -314918.00% (disorted) | Weak |
SPNS 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 Sapiens International Corporation N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.27%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
146.47%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
11.40%
Industry Style: Growth, Innovation, High Beta
High Growth