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 11.23% CAGR growth in Operating Profits over the last 5 years
3
Poor long term growth as Operating profit has grown by an annual rate 11.23% of over the last 5 years
4
The company has declared Positive results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at GBP 1,083 MM
- ROCE(HY) Highest at 75.56%
- NET SALES(Q) Highest at GBP 1,363 MM
5
With ROE of 184.63%, it has a very expensive valuation with a 35.28 Price to Book Value
- Over the past year, while the stock has generated a return of -13.40%, its profits have risen by 10.1% ; the PEG ratio of the company is 1.2
6
Underperformed the market in the last 1 year
- Even though the market (FTSE 100) has generated returns of 18.59% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.40% returns
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?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Sage Group plc
-13.4%
-0.05
32.45%
FTSE 100
18.59%
1.58
11.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.15%
EBIT Growth (5y)
11.23%
EBIT to Interest (avg)
10.04
Debt to EBITDA (avg)
1.58
Net Debt to Equity (avg)
1.13
Sales to Capital Employed (avg)
0.96
Tax Ratio
24.51%
Dividend Payout Ratio
57.91%
Pledged Shares
0
Institutional Holding
0.09%
ROCE (avg)
25.24%
ROE (avg)
29.08%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
35.28
EV to EBIT
15.42
EV to EBITDA
13.42
EV to Capital Employed
5.57
EV to Sales
3.49
PEG Ratio
1.15
Dividend Yield
3.69%
ROCE (Latest)
36.14%
ROE (Latest)
184.63%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 1,083 MM
ROCE(HY)
Highest at 75.56%
NET SALES(Q)
Highest at GBP 1,363 MM
OPERATING PROFIT(Q)
Highest at GBP 350 MM
PRE-TAX PROFIT(Q)
Highest at GBP 273 MM
NET PROFIT(Q)
Highest at GBP 204.23 MM
RAW MATERIAL COST(Y)
Fallen by -0.61% (YoY
DIVIDEND PER SHARE(HY)
Highest at GBP 5.28
EPS(Q)
Highest at GBP 0.2
-7What is not working for the Company
INTEREST(HY)
At GBP 35 MM has Grown at 34.62%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,000
DIVIDEND PAYOUT RATIO(Y)
Lowest at 38.85%
DEBT-EQUITY RATIO
(HY)
Highest at 683.64 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.28 times
Here's what is working for The Sage Group plc
Operating Cash Flow
Highest at GBP 1,083 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Net Sales
Highest at GBP 1,363 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 350 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (GBP MM)
Pre-Tax Profit
Highest at GBP 273 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 204.23 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (GBP MM)
EPS
Highest at GBP 0.2
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Dividend per share
Highest at GBP 5.28
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (GBP)
Raw Material Cost
Fallen by -0.61% (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 1,000
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At GBP 35 MM has Grown at 34.62%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (GBP MM)
Debt-Equity Ratio
Highest at 683.64 %
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
Debtors Turnover Ratio
Lowest at 5.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio
Lowest at 38.85%
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
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
