Sage Group SGE.L
Sage Group is a business management software company for SMEs, with a cloud subscription model. Sage Group shows exceptional quality with an ROE of 75.56% and a gross margin of 92.56%, although its financial health is weighed down by tight liquidity (0.62). Double-digit growth in revenue and earnings, along with a reasonable valuation (P/E 24.88), position it as a solid business, but the low dividend yield limits its appeal for income investors.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Sage Group is a business management software company for SMEs, with a cloud subscription model. Sage Group shows exceptional quality with an ROE of 75.56% and a gross margin of 92.56%, although its financial health is weighed down by tight liquidity (0.62). Double-digit growth in revenue and earnings, along with a reasonable valuation (P/E 24.88), position it as a solid business, but the low dividend yield limits its appeal for income investors.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.9 |
| Quality / Moat | 9.3 |
| Valuation | 6.9 |
| Growth | 6.8 |
| Dividend | 4.6 |
| Momentum | 5.9 |
| Risk & Context | 8.8 |
OVERALL SCORE: 7.3/10
Context and risks
Moderate regulatory risk in the UK, its country of domicile, which may affect its operating framework. Exposure to the AI cycle is indirect and not material to its SME software business.
News considered in the analysis
- Sage Group (LSE:SGE) Stock Fair Value Edges Higher After Mixed Analyst Target Changes — Ajustes mixtos de objetivos de analistas, reflejan un ligero optimismo pero sin cambios fundamentales.
- Intuit Q4 Revenues Rise: Can Double-Digit Growth Continue? — Noticia sobre un competidor directo, pero sin información nueva que afecte directamente a Sage.
- Intuit Consumer Flywheel Gains: Can Cross-Selling Sustain Higher ARPU? — Análisis de estrategia de un competidor, sin impacto directo en los fundamentales de Sage.
- The Sage Group Q3 Earnings Call Highlights — Resumen de la llamada de resultados del tercer trimestre, probablemente con detalles operativos ya conocidos por el mercado.
- Sage Group (LSE:SGE) Stock Fair Value Falls As Analysts Debate Growth And Valuation — Debate entre analistas sobre el equilibrio entre crecimiento y valoración, lo que introduce cierta cautela.
Verdict: Hold, given the balance between its high quality and moat, and a valuation that does not offer a significant margin of safety.
Main risk: Tight liquidity (ratio of 0.62) could be a risk if growth decelerates or if it needs external financing in a higher interest rate environment.
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