ScoreWhy is The Sage Group plc ?
1
High Management Efficiency with a high ROCE of 22.94%
2
Weak Long Term Fundamental Strength with a 8.18% CAGR growth in Operating Profits over the last 5 years
3
Poor long term growth as Operating profit has grown by an annual rate 8.18% of over the last 5 years
4
With a growth in Operating Profit of 5.59%, the company declared Very Positive results in Sep 25
- OPERATING CASH FLOW(Y) Highest at GBP 1,048 MM
- ROCE(HY) Highest at 40.71%
- NET SALES(Q) Highest at GBP 1,271 MM
5
With ROE of 54.43%, it has a expensive valuation with a 11.10 Price to Book Value
- Over the past year, while the stock has generated a return of -28.24%, its profits have risen by 13.6% ; the PEG ratio of the company is 1.3
6
Below par performance in long term as well as near term
- Along with generating -28.24% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to The Sage Group plc 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 The Sage Group plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Sage Group plc
-27.9%
-0.76
25.70%
FTSE 100
15.58%
1.15
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.72%
EBIT Growth (5y)
8.18%
EBIT to Interest (avg)
10.52
Debt to EBITDA (avg)
1.21
Net Debt to Equity (avg)
1.13
Sales to Capital Employed (avg)
0.93
Tax Ratio
24.40%
Dividend Payout Ratio
57.91%
Pledged Shares
0
Institutional Holding
0.09%
ROCE (avg)
22.94%
ROE (avg)
29.08%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
11.10
EV to EBIT
16.24
EV to EBITDA
14.00
EV to Capital Employed
4.99
EV to Sales
3.62
PEG Ratio
1.34
Dividend Yield
2.65%
ROCE (Latest)
30.72%
ROE (Latest)
54.43%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 1,048 MM
ROCE(HY)
Highest at 40.71%
NET SALES(Q)
Highest at GBP 1,271 MM
OPERATING PROFIT(Q)
Highest at GBP 335 MM
OPERATING PROFIT MARGIN(Q)
Highest at 26.36 %
PRE-TAX PROFIT(Q)
Highest at GBP 265 MM
NET PROFIT(Q)
Highest at GBP 201.96 MM
RAW MATERIAL COST(Y)
Fallen by -1.63% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 7.82 times
EPS(Q)
Highest at GBP 0.19
-8What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,046.88
DIVIDEND PAYOUT RATIO(Y)
Lowest at 73.47%
CASH AND EQV(HY)
Lowest at GBP 390 MM
DEBT-EQUITY RATIO
(HY)
Highest at 165.14 %
INTEREST(Q)
Highest at GBP 32 MM
Here's what is working for The Sage Group plc
Net Sales
Highest at GBP 1,271 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (GBP MM)
Operating Profit
Highest at GBP 335 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (GBP MM)
Operating Profit Margin
Highest at 26.36 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at GBP 265 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 201.96 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (GBP MM)
Operating Cash Flow
Highest at GBP 1,048 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
EPS
Highest at GBP 0.19
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Debtors Turnover Ratio
Highest at 7.82 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -1.63% (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 The Sage Group plc
Interest Coverage Ratio
Lowest at 1,046.88
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at GBP 32 MM
in the last five periods and Increased by 23.08% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (GBP MM)
Cash and Eqv
Lowest at GBP 390 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 165.14 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Dividend Payout Ratio
Lowest at 73.47%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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