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Sage Group

LSE:SGE
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SGE
LSE
£6B
Market Cap
  1. Home
  2. GB
  3. Software
Company description

The Sage Group plc, together with its subsidiaries, provides technology solutions and services. The last earnings update was 124 days ago. More info.


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  • Sage Group has significant price volatility in the past 3 months.
SGE Share Price and Events
7 Day Returns
-5.8%
LSE:SGE
-3.5%
GB Software
-2.4%
GB Market
1 Year Returns
-20.5%
LSE:SGE
-22.4%
GB Software
-25.9%
GB Market
SGE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sage Group (SGE) -5.8% -15.4% -23.1% -20.5% -10.8% 18.4%
GB Software -3.5% -17.9% -26.6% -22.4% -32.8% -11.3%
GB Market -2.4% -18% -29.1% -25.9% -26.6% -26.1%
1 Year Return vs Industry and Market
  • SGE outperformed the Software industry which returned -22.4% over the past year.
  • SGE outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -25.9% over the past year.
Price Volatility
SGE
Industry
5yr Volatility vs Market

Value

 Is Sage Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sage Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sage Group.

LSE:SGE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SGE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Software Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.016 (1 + (1- 19%) (12.41%))
1.079
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.079 * 6.07%)
7.08%

Discounted Cash Flow Calculation for LSE:SGE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sage Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

LSE:SGE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.08%)
2020 326.92 Analyst x9 305.30
2021 346.01 Analyst x10 301.76
2022 371.33 Analyst x9 302.42
2023 488.00 Analyst x2 371.16
2024 440.00 Analyst x1 312.52
2025 411.45 Est @ -6.49% 272.92
2026 393.41 Est @ -4.38% 243.70
2027 381.97 Est @ -2.91% 220.96
2028 374.80 Est @ -1.88% 202.47
2029 370.47 Est @ -1.16% 186.90
Present value of next 10 years cash flows £2,720.00
LSE:SGE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £370.47 × (1 + 0.53%) ÷ (7.08% – 0.53%)
£5,684.70
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £5,684.70 ÷ (1 + 7.08%)10
£2,867.90
LSE:SGE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £2,720.00 + £2,867.90
£5,587.90
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £5,587.90 / 1,090.37
£5.12
LSE:SGE Discount to Share Price
Calculation Result
Value per share (GBP) From above. £5.12
Current discount Discount to share price of £5.65
= -1 x (£5.65 - £5.12) / £5.12
-10.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sage Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sage Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sage Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SGE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.24
LSE:SGE Share Price ** LSE (2020-04-06) in GBP £5.65
United Kingdom of Great Britain and Northern Ireland Software Industry PE Ratio Median Figure of 32 Publicly-Listed Software Companies 29.07x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sage Group.

LSE:SGE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SGE Share Price ÷ EPS (both in GBP)

= 5.65 ÷ 0.24

23.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sage Group is good value based on earnings compared to the GB Software industry average.
  • Sage Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Sage Group's expected growth come at a high price?
Raw Data
LSE:SGE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
6.9%per year
United Kingdom of Great Britain and Northern Ireland Software Industry PEG Ratio Median Figure of 22 Publicly-Listed Software Companies 2.52x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 517 Publicly-Listed Companies 0.97x

*Line of best fit is calculated by linear regression .

LSE:SGE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.08x ÷ 6.9%

3.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sage Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sage Group's assets?
Raw Data
LSE:SGE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £1.38
LSE:SGE Share Price * LSE (2020-04-06) in GBP £5.65
United Kingdom of Great Britain and Northern Ireland Software Industry PB Ratio Median Figure of 73 Publicly-Listed Software Companies 2.31x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,322 Publicly-Listed Companies 1.06x
LSE:SGE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SGE Share Price ÷ Book Value per Share (both in GBP)

= 5.65 ÷ 1.38

4.09x

* Primary Listing of Sage Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sage Group is overvalued based on assets compared to the GB Software industry average.
X
Value checks
We assess Sage Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Sage Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Sage Group expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sage Group expected to grow at an attractive rate?
  • Sage Group's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Sage Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Sage Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SGE Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SGE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 6.9%
LSE:SGE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 3.6%
United Kingdom of Great Britain and Northern Ireland Software Industry Earnings Growth Rate Market Cap Weighted Average 24.5%
United Kingdom of Great Britain and Northern Ireland Software Industry Revenue Growth Rate Market Cap Weighted Average 6.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SGE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SGE Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-09-30 2,317 1
2023-09-30 2,301 2
2022-09-30 2,129 466 333 17
2021-09-30 2,000 436 305 18
2020-09-30 1,920 395 300 18
2020-04-06
LSE:SGE Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 1,936 472 266
2019-06-30 1,920 485 290
2019-03-31 1,904 498 314
2018-12-31 1,875 446 305
2018-09-30 1,846 393 295
2018-06-30 1,810 344 276
2018-03-31 1,774 295 256
2017-12-31 1,745 299 257
2017-09-30 1,715 302 257
2017-06-30 1,655 306 242
2017-03-31 1,595 309 226
2016-12-31 1,517 297 207

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sage Group's earnings are expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
  • Sage Group's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SGE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Sage Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SGE Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-09-30
2023-09-30
2022-09-30 0.31 0.35 0.26 7.00
2021-09-30 0.28 0.32 0.23 10.00
2020-09-30 0.29 0.40 0.20 8.00
2020-04-06
LSE:SGE Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.24
2019-06-30 0.27
2019-03-31 0.29
2018-12-31 0.28
2018-09-30 0.27
2018-06-30 0.25
2018-03-31 0.24
2017-12-31 0.24
2017-09-30 0.24
2017-06-30 0.22
2017-03-31 0.21
2016-12-31 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sage Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sage Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sage Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Sage Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sage Group's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sage Group's year on year earnings growth rate has been positive over the past 5 years.
  • Sage Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sage Group's 1-year earnings growth is negative, it can't be compared to the GB Software industry average.
Earnings and Revenue History
Sage Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sage Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SGE Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 1,936.00 266.00 1,275.00
2019-06-30 1,920.00 290.00 1,243.00
2019-03-31 1,904.00 314.00 1,211.00
2018-12-31 1,875.00 304.50 1,203.00
2018-09-30 1,846.00 295.00 1,195.00
2018-06-30 1,810.00 275.50 1,176.00
2018-03-31 1,774.00 256.00 1,157.00
2017-12-31 1,744.50 256.50 1,128.50
2017-09-30 1,715.00 257.00 1,100.00
2017-06-30 1,655.00 241.50 1,062.00
2017-03-31 1,595.00 226.00 1,024.00
2016-12-31 1,517.00 207.00 970.00
2016-09-30 1,439.00 188.00 916.00
2016-06-30 1,420.60 177.75 919.10
2016-03-31 1,402.20 167.50 922.20
2015-12-31 1,418.85 180.90 931.10
2015-09-30 1,435.50 194.30 940.00
2015-06-30 1,424.90 195.45 939.90
2015-03-31 1,414.30 196.60 939.80
2014-12-31 1,383.90 192.30 915.10
2014-09-30 1,353.50 188.00 890.40
2014-06-30 1,315.65 212.65 840.70
2014-03-31 1,324.50 238.50 835.60
2013-12-31 1,350.30 142.45 856.40
2013-09-30 1,376.10 46.40 877.20
2013-06-30 1,375.65 45.35 894.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sage Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sage Group used its assets more efficiently than the GB Software industry average last year based on Return on Assets.
  • Sage Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sage Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sage Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sage Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sage Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sage Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Sage Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sage Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sage Group Company Filings, last reported 6 months ago.

LSE:SGE Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,504.00 765.00 371.00
2019-06-30 1,504.00 765.00 371.00
2019-03-31 1,383.00 773.00 351.00
2018-12-31 1,383.00 773.00 351.00
2018-09-30 1,327.00 921.00 272.00
2018-06-30 1,327.00 921.00 272.00
2018-03-31 1,178.00 952.00 296.00
2017-12-31 1,178.00 952.00 296.00
2017-09-30 1,168.00 969.00 231.00
2017-06-30 1,168.00 969.00 231.00
2017-03-31 1,119.00 647.00 309.00
2016-12-31 1,119.00 647.00 309.00
2016-09-30 1,053.00 578.00 264.00
2016-06-30 1,053.00 578.00 264.00
2016-03-31 917.50 626.40 356.20
2015-12-31 917.50 626.40 356.20
2015-09-30 862.10 604.00 263.40
2015-06-30 862.10 604.00 263.40
2015-03-31 883.50 685.20 268.00
2014-12-31 883.50 685.20 268.00
2014-09-30 767.90 539.70 144.60
2014-06-30 783.90 539.70 144.60
2014-03-31 853.40 470.90 111.50
2013-12-31 853.40 470.90 111.50
2013-09-30 870.30 459.90 100.80
2013-06-30 870.30 459.90 100.80
  • Sage Group's level of debt (50.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (70.4% vs 50.9% today).
  • Debt is well covered by operating cash flow (61.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.3x coverage).
X
Financial health checks
We assess Sage Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sage Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Sage Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.99%
Current annual income from Sage Group dividends. Estimated to be 3.13% next year.
If you bought £2,000 of Sage Group shares you are expected to receive £60 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sage Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.66%).
  • Sage Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.4%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SGE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 587 Stocks 5.7%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SGE Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-09-30
2023-09-30
2022-09-30 0.18 18.00
2021-09-30 0.18 19.00
2020-09-30 0.17 19.00
2020-04-06
LSE:SGE Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-12-04 0.169 2.428
2019-11-20 0.169 2.287
2018-12-03 0.165 2.387
2018-11-21 0.165 2.847
2017-12-04 0.154 2.379
2017-11-22 0.154 1.948
2016-12-14 0.142 2.080
2016-11-30 0.142 2.231
2016-05-05 0.135 1.991
2015-12-02 0.131 2.199
2015-03-04 0.121 2.336
2013-12-05 0.113 2.783
2013-05-08 0.109 3.121
2012-12-05 0.107 3.122
2011-11-30 0.103 3.339
2010-12-20 0.082 2.843
2010-12-01 0.082 2.784
2009-12-02 0.078 3.042

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Sage Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Sage Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sage Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sage Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Sage Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Hare
COMPENSATION £2,515,000
AGE 58
TENURE AS CEO 1.4 years
CEO Bio

Mr. Stephen Hare, also known as Steve, BA, ACA, is Chief Executive Officer of The Sage Group plc since November 2, 2018. He has been Executive Director of The Sage Group plc since January 3, 2014 and has served as its Interim Chief Operating Officer since August 31, 2018. He was Group Chief Financial Officer of The Sage Group plc since January 3, 2014 until December 10, 2018. Mr. Hare served as Operating Partner, Co-Head of the Portfolio Support Group of Apax Partners LLP. He served as Chief Operating Officer of Apax Partners LLP until June 2012. He joined Apax Partners in 2009. Prior to joining Apax in 2009, he accumulated over 10 years' experience as Chief Financial Officer for three listed UK companies. Mr. Hare served as Chief Financial Officer of Invensys Plc. from July 21, 2006 to May 31, 2009. Mr. Hare served as a Group Finance Director of Spectris Plc, from December 1, 2004 to October 1, 2006. As finance director of Invensys and Spectris, he built a strong track record for driving organisational change, including greater focus on cash and margin improvement as well as upgrading processes to be consistent with a growing global business. He joined Spectris from Hba partners LLp, a consultancy he co-founded in 2003 and served as its Partner. On February1, 2013, he was appointed Interim Chief Executive Officer of Netrada GmbH and Netrada Europe GmbH. He served as Finance Director of Northwood Technologies Inc. Between 1997 and 2003, Mr. Hare was with Marconi PLC, where he served as an Acting Chief Financial Officer from 2001 and to 2003. He served as Chief Financial Officer of M (2003) plc.He was instrumental in achieving agreement for the successful financial restructuring package for the firm. He also oversaw a business divestment programme which raised in excess of 2bn over a twelve month period. Prior to Marconi, Mr. Hare served for eight years with GPT Limited (a joint venture between GEC and Siemens), where he worked his way up through the finance functions to become Group Finance Director. In 1985, he was with Ernst & Whinney, a part of Ernst & Young. He has significant financial and operating experience as a Chief Financial Officer. He served as a Director of Marken Limited, Invensys plc., from July 21, 2006 to May 31, 2009, Spectris Plc., from December 1, 2004 to July 21, 2006 and Marconi PLC. (M (2003) plc) until November 14, 2002. Mr. Hare is a Chartered Accountant and holds a Bachelor of Commerce from Liverpool University.

CEO Compensation
  • Steve's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Steve's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Sage Group management team in years:

1.4
Average Tenure
55
Average Age
  • The average tenure for the Sage Group management team is less than 2 years, this suggests a new team.
Management Team

Steve Hare

TITLE
CEO, Interim COO & Executive Director
COMPENSATION
£3M
AGE
58
TENURE
1.4 yrs

Jonathan Anton Howell

TITLE
CFO & Director
COMPENSATION
£2M
AGE
56
TENURE
1.3 yrs

Aaron Harris

TITLE
Chief Technology Officer
TENURE
1 yrs

Lauren Wholley

TITLE
Investor Relations Director

Vicki Bradin

TITLE
General Counsel & Company Secretary
AGE
41
TENURE
3.5 yrs

Amy Lawson

TITLE
Executive Vice President of Communications

Derk Bleeker

TITLE
Chief Corporate Development Officer

Amanda Cusdin

TITLE
Chief People Officer
AGE
42
TENURE
2.5 yrs

Klaus-Michael Vogelberg

TITLE
Chief Architect & Technology Advisor
AGE
54
TENURE
1 yrs

Nancy Harris

TITLE
Managing Director of North America
AGE
56
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Sage Group board of directors in years:

2.8
Average Tenure
57.5
Average Age
  • The average tenure for the Sage Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Donald Brydon

TITLE
Independent Chairman
COMPENSATION
£434K
AGE
73
TENURE
7.6 yrs

Steve Hare

TITLE
CEO, Interim COO & Executive Director
COMPENSATION
£3M
AGE
58
TENURE
6.3 yrs

Jonathan Anton Howell

TITLE
CFO & Director
COMPENSATION
£2M
AGE
56
TENURE
6.9 yrs

Cath Fischette

TITLE
Executive Director
AGE
68
TENURE
2.8 yrs

Annette Court

TITLE
Independent Non-Executive Director
COMPENSATION
£39K
AGE
57
TENURE
1 yrs

Jonathan Bewes

TITLE
Independent Non-Executive Director
COMPENSATION
£39K
TENURE
1 yrs

John William Hall

TITLE
Independent Non-Executive Director
COMPENSATION
£82K
AGE
70
TENURE
6.3 yrs

Cath Keers

TITLE
Independent Non-Executive Director
COMPENSATION
£60K
AGE
54
TENURE
2.8 yrs

John Bates

TITLE
Independent Non-Executive Director
COMPENSATION
£20K
AGE
49
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Sage Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
09. Mar 20 Buy Stephen Hare Individual 09. Mar 20 09. Mar 20 5,000 £6.21 £31,050
06. Mar 20 Buy Stephen Hare Individual 06. Mar 20 06. Mar 20 5,000 £6.72 £33,610
26. Nov 19 Buy Jonathan Anton Howell Individual 25. Nov 19 25. Nov 19 20,000 £7.45 £149,000
23. Sep 19 Buy Jonathan Bewes Individual 23. Sep 19 23. Sep 19 10,000 £6.80 £68,040
15. Aug 19 Sell Aaron Harris Individual 15. Aug 19 15. Aug 19 -66,543 £6.99 £-464,984
26. Jun 19 Buy Amanda Cusdin Individual 25. Jun 19 25. Jun 19 56 £7.99 £447
26. Jun 19 Buy Victoria Bradin Individual 25. Jun 19 25. Jun 19 12 £7.99 £96
26. Jun 19 Buy Stephen Hare Individual 25. Jun 19 25. Jun 19 2,293 £7.99 £18,317
26. Jun 19 Buy Robert Reid Individual 25. Jun 19 25. Jun 19 829 £7.99 £6,622
20. May 19 Buy Annette Court Individual 20. May 19 20. May 19 1,350 £7.46 £10,076
X
Management checks
We assess Sage Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sage Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

The Sage Group plc (LON:SGE) Delivered A Better ROE Than Its Industry

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Sage Group: 23% = UK£314m ÷ UK£1.4b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Sage Group's Debt And Its 23% ROE Although Sage Group does use debt, its debt to equity ratio of 0.56 is still low. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Do You Like The Sage Group plc (LON:SGE) At This P/E Ratio?

Check out our latest analysis for Sage Group How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Sage Group: P/E of 24.15 = £6.99 ÷ £0.29 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does Sage Group's P/E Ratio Compare To Its Peers?

Simply Wall St -

Does Sage Group (LON:SGE) Deserve A Spot On Your Watchlist?

So if you're like me, you might be more interested in profitable, growing companies, like Sage Group (LON:SGE). … Check out our latest analysis for Sage Group Sage Group's Earnings Per Share Are Growing. … You can't deny that Sage Group has grown its earnings per share at a very impressive rate.

Simply Wall St -

Is The Sage Group plc (LON:SGE) Undervalued After Accounting For Its Future Growth?

The Sage Group plc (LON:SGE) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of £7.338 is based on unrealistic expectations. … As the legendary value investor Ben Graham once said, “Price is what you pay, value is what you get.” Sage Group is trading at price-to-earnings (PE) ratio of 25.36x, which tells us the stock is undervalued based on its latest annual earnings update compared to the Software average of 33.22x , and overvalued compared to the GB market average ratio of 16.32x. … But, seeing as Sage Group is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio.

Simply Wall St -

Why We Like The Sage Group plc’s (LON:SGE) 22% Return On Capital Employed

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Sage Group: 0.22 = UK£487m ÷ (UK£3.2b - UK£1.0b) (Based on the trailing twelve months to March 2019.) So, Sage Group has an ROCE of 22%. … Sage Group's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Here's Why Sage Group (LON:SGE) Can Manage Its Debt Responsibly

We note that The Sage Group plc (LON:SGE) does have debt on its balance sheet. … LSE:SGE Historical Debt, July 12th 2019 A Look At Sage Group's Liabilities The latest balance sheet data shows that Sage Group had liabilities of UK£1.00b due within a year, and liabilities of UK£842.0m falling due after that. … Since Sage Group does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

A Look At The Sage Group plc's (LON:SGE) Exceptional Fundamentals

The Sage Group plc (LON:SGE) is a stock with outstanding fundamental characteristics. … LSE:SGE Historical Dividend Yield, June 22nd 2019 Next Steps: For Sage Group, I've put together three important factors you should look at: Future Outlook: What are well-informed industry analysts predicting for SGE’s future growth? … Take a look at our free research report of analyst consensus for SGE’s outlook.

Simply Wall St -

How The Sage Group plc (LON:SGE) Could Add Value To Your Portfolio

If you're interested in understanding beyond my broad commentary, take a look at the report on Sage Group here. … LSE:SGE Historical Dividend Yield, June 22nd 2019 Next Steps: For Sage Group, I've put together three important aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for SGE’s future growth? … Take a look at our free research report of analyst consensus for SGE’s outlook.

Simply Wall St -

Should The Sage Group plc (LON:SGE) Be Part Of Your Dividend Portfolio?

Sage Group's cash payout ratio in the last year was 39%, which suggests dividends were well covered by cash generated by the business. … For the purpose of this article, we only scrutinise the last decade of Sage Group's dividend payments. … First, we think Sage Group has an acceptable payout ratio and its dividend is well covered by cashflow.

Simply Wall St -

Does The Sage Group plc's (LON:SGE) 23% Earnings Growth Make It An Outperformer?

Assessing The Sage Group plc's (LON:SGE) past track record of performance is a valuable exercise for investors. … See our latest analysis for Sage Group Commentary On SGE's Past Performance SGE's trailing twelve-month earnings (from 31 March 2019) of UK£314m has jumped 23% compared to the previous year. … I recommend you continue to research Sage Group to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for SGE’s future growth?

Simply Wall St -

Company Info

Description

The Sage Group plc, together with its subsidiaries, provides technology solutions and services. It offers Sage business cloud accounting solution; Sage business cloud Payroll, an online payroll system; Sage business cloud Intacct, a financial management system, which automates complex processes and enhance company performance; Sage business cloud people, a cloud HR and people management solution; and Sage business cloud X3, a business management solution. The company also provides cloud connected solutions, Sage 50cloud, and Sage 200cloud. It operates North America, Northern Europe, and Central and Southern Europe. The Sage Group plc was founded in 1981 and is headquartered in Newcastle upon Tyne, the United Kingdom.

Details
Name: The Sage Group plc
SGE
Exchange: LSE
Founded: 1981
£6,164,924,377
1,090,365,118
Website: http://www.sage.com
Address: The Sage Group plc
North Park,
Newcastle upon Tyne,
Tyne and Wear, NE13 9AA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SGE Ordinary Shares London Stock Exchange GB GBP 11. Jan 1990
OTCPK SGGE.F Ordinary Shares Pink Sheets LLC US USD 11. Jan 1990
DB SGK1 Ordinary Shares Deutsche Boerse AG DE EUR 11. Jan 1990
BATS-CHIXE SGEL Ordinary Shares BATS 'Chi-X Europe' GB GBP 11. Jan 1990
OTCPK SGPY.Y UNSPONSORD ADR Pink Sheets LLC US USD 28. Jan 2005
Number of employees
Current staff
Staff numbers
12,643
Sage Group employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 20:43
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2019/12/04
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.