The Sage Group plc SGE.L
Composite 56/100; the shares have moved about 36% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Balance-sheet strength ranks 24/100 — a strong mark against it.
Quality ranks 80/100 — a strong point in its favour. Growth ranks 63/100 — a moderate point in its favour. Momentum ranks 63/100 — a moderate point in its favour.
Balance-sheet strength ranks 24/100 — a strong mark against it. Valuation ranks 45/100 — a slight mark against it.
What the company does Sage provides cloud-based accounting, HR, payroll, and ERP solutions for SMEs across Europe, North America, and Asia-Pacific. Its portfolio includes Sage Intacct, Sage X3, Sage People, and Sage Accounting, serving mid-sized and small businesses with scalable financial and operational tools.
Key financials Sage reports strong profitability with ROE 75.6%, ROA 9.5%, and ROCE 47.2%. Margins are robust: gross 92.6%, operating 22.3%, net 14.6%. Revenue grew 9.7% and EPS 14.3%, supported by high cash conversion and a 7.3% FCF yield.
Stock health Quality is excellent (83.3), but growth (55.7) and momentum (42.9) lag. The balance sheet is solid with a Piotroski F-Score of 7/9 and Altman Z of 3.33, though leverage is high (Debt/Equity 9.19) and liquidity tight (Current ratio 0.62).
Price vs fair value The stock trades at a **discount** of 31.20% to our fair-value estimate and 7.65% below the 12-month analyst target. - Trading near 1022.00 vs fair value 1341.27 (MarketBeat) - Analysts see 1100.21 as a 12-month target (19.0 analysts) - Valuation percentile 53.4/100 suggests fair relative pricing - RSI 79.20 indicates overbought conditions
Looking forward Forward P/E of 15.90 and PEG of 0.33 suggest undemanding valuation despite high P/E (23.50). Dividend yield is 2.5% with a sustainable payout ratio of 55.0%. Growth outlook hinges on cloud migration and SME demand.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.