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Description
The Sage Group plc operates as an enterprise resource planning (ERP) software company that focuses on providing financial, human resources, and payroll solutions primarily to small and mid-sized businesses (SMBs).
Business Segments
The company oper…
Analysis
Bargain bin
The Sage Group plc is priced cheaply, and that invites the natural question of why, since the underlying business scores below average. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is fair. The owner-earnings multiple stands at 18.8×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 5% a year, against analyst forecasts of 14%. The price, in other words, assumes less than the experts do.
Growth is moderate; the safety picture is adequate. The company scores 18/20 on our value-creation score: strong value creator.
Flags to be aware of: Some accounting patterns deserve a closer look. A large part of the company's book value is the price paid for past acquisitions. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202353
74
2023202420252026
All-time high
78
Jan 2024
All-time low
34
Jan 2025
Average rank
56
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
31
26
27
51
Price/Earnings
45
29
31
50
Price/Book
3
10
28
31
Dividend Yield
81
68
79
88
Value (overall)
41
32
50
73
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.