Sapiens International Corp. NV (SPNS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Clear Secure, Inc.

ePlus, Inc.

Sprinklr, Inc.

Agilysys, Inc.

Appian Corp.

Schrödinger, Inc.

Clearwater Analytics Holdings, Inc.

Sapiens International Corp. NV

Alkami Technology, Inc.

Donnelley Financial Solutions, Inc.

NextGen Healthcare, Inc.

Why is Sapiens International Corp. NV ?

High Management Efficiency with a high ROE of 13.28%

Company has a low Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 8 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 82.76 MM
RAW MATERIAL COST(Y) Fallen by 0.43% (YoY)
NET SALES(Q) Highest at USD 141.6 MM

With ROE of 16.85%, it has a fair valuation with a 3.76 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 56.97%, its profits have risen by 17.6% ; the PEG ratio of the company is 1.4

High Institutional Holdings at 42.35%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.38% over the previous quarter.

Market Beating Performance

The stock has generated a return of 56.97% in the last 1 year, much higher than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sapiens International Corp. NV should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sapiens International Corp. NV for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sapiens International Corp. NV

56.23%

0.58

51.05%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.24%

EBIT Growth (5y)

15.19%

EBIT to Interest (avg)

52.38

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

1.04

Tax Ratio

19.71%

Dividend Payout Ratio

45.90%

Pledged Shares

Institutional Holding

42.35%

ROCE (avg)

23.61%

ROE (avg)

13.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.76

EV to EBIT

16.77

EV to EBITDA

14.47

EV to Capital Employed

5.50

EV to Sales

2.85

PEG Ratio

1.36

Dividend Yield

0.10%

ROCE (Latest)

32.81%

ROE (Latest)

16.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 82.76 MM

RAW MATERIAL COST(Y)

Fallen by 0.43% (YoY

NET SALES(Q)

Highest at USD 141.6 MM

-8What is not working for the Company

NET PROFIT(Q)

Lowest at USD 15.97 MM

DEBT-EQUITY RATIO (HY)

Highest at -5.85 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.63 times

OPERATING PROFIT(Q)

Lowest at USD 23.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.53 %

PRE-TAX PROFIT(Q)

Lowest at USD 20.25 MM

EPS(Q)

Lowest at USD 0.25

Here's what is working for Sapiens International Corp. NV

Operating Cash Flow

Highest at USD 82.76 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 141.6 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by 0.43% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sapiens International Corp. NV

Net Profit

Lowest at USD 15.97 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 23.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 16.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 20.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD 0.25

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at -5.85 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 4.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio