The Sage Group plc (SGE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

BOKU, Inc.

Learning Technologies Group Plc

Craneware Plc

Alfa Financial Software Holdings Plc

GB Group Plc

The Sage Group plc

Deliveroo Plc

Playtech Plc

Alphawave IP Group Plc

FD Technologies Plc

EMIS Group Plc

Why is The Sage Group plc ?

High Management Efficiency with a high ROCE of 22.94%

Weak Long Term Fundamental Strength with a 8.10% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 8.10% of over the last 5 years

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at GBP 972 MM
ROCE(HY) Highest at 36.78%
NET SALES(Q) Highest at GBP 1,242 MM

With ROE of 46.17%, it has a very expensive valuation with a 13.53 Price to Book Value

Over the past year, while the stock has generated a return of -18.08%, its profits have risen by 21.6% ; the PEG ratio of the company is 1.3

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 15.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.08% returns

Real-Time Research Report

Verdict Report

How 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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Sage Group plc

-18.08%

0.10

19.97%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.72%

EBIT Growth (5y)

8.10%

EBIT to Interest (avg)

10.52

Debt to EBITDA (avg)

1.21

Net Debt to Equity (avg)

1.13

Sales to Capital Employed (avg)

0.92

Tax Ratio

24.40%

Dividend Payout Ratio

57.91%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

22.94%

ROE (avg)

29.08%

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

13.53

EV to EBIT

22.49

EV to EBITDA

19.08

EV to Capital Employed

6.88

EV to Sales

4.84

PEG Ratio

1.25

Dividend Yield

128.67%

ROCE (Latest)

30.59%

ROE (Latest)

46.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly 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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 972 MM

ROCE(HY)

Highest at 36.78%

NET SALES(Q)

Highest at GBP 1,242 MM

NET PROFIT(Q)

Highest at GBP 189.92 MM

RAW MATERIAL COST(Y)

Fallen by -1.17% (YoY

OPERATING PROFIT(Q)

Highest at GBP 315 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.36 %

PRE-TAX PROFIT(Q)

Highest at GBP 249 MM

EPS(Q)

Highest at GBP 0.18

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 41.09%

DEBT-EQUITY RATIO (HY)

Highest at 122.15 %

INTEREST(Q)

Highest at GBP 26 MM

Here's what is working for The Sage Group plc

Net Sales

Highest at GBP 1,242 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Net Profit

Highest at GBP 189.92 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Operating Cash Flow

Highest at GBP 972 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Operating Profit

Highest at GBP 315 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 25.36 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 249 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

EPS

Highest at GBP 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Raw Material Cost

Fallen by -1.17% (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

Highest at GBP 26 MM

in the last five periods and Increased by 13.04% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at 122.15 %

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

Dividend Payout Ratio

Lowest at 41.09%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)