Sage Group plc (SGE) AI Stock Analysis

• Market Cap: £10.99B
• Dividend Yield: 1.92%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.87
• Revenue Growth: 7.76%
• EPS Growth: 18.17%
• Country: UK
• Employees: 10,740
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.23
• Shares Outstanding: 963,464,230
• 10 Day Avg. Volume: 2,524,062
• 30 Day Avg. Volume: 2,751,974
• PEG Ratio: 0.53
• Price to Book (P/B): 9.44
• Price to Sales (P/S): 4.42
• P/FCF Ratio: 22.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,319.00
• Price Target Upside: 23.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 1,318.00p ▲(22.95% Upside)

Sage Group plc's overall stock score of 78 reflects its strong financial performance and positive earnings call, which highlight robust revenue growth and strategic investments in AI and cloud solutions. Technical analysis indicates bullish momentum, although valuation metrics suggest the stock is relatively expensive. The company's resilience in the face of macroeconomic challenges further supports its favorable outlook.

Positive Factors

Revenue Growth

Sage's robust revenue growth, driven by its subscription model, indicates strong market demand and a reliable income stream, enhancing long-term stability.

Cash Flow Generation

Strong cash flow generation supports Sage's ability to invest in growth opportunities and withstand economic fluctuations, ensuring financial resilience.

Investment in AI and Cloud Solutions

Strategic investments in AI and cloud solutions position Sage as a leader in digital transformation, enhancing its competitive edge and market relevance.

Negative Factors

Macroeconomic Volatility

Macroeconomic volatility poses risks to Sage's operations, potentially impacting demand and financial performance, requiring adaptive strategies.

Intacct's International Growth Lag

Slower international growth for Sage Intacct may limit global market expansion, affecting overall revenue potential and competitive positioning.

Slight Revenue Growth Deceleration

A deceleration in recurring revenue growth could signal market saturation or increased competition, impacting long-term growth trajectories.

Sage Group plc Business Overview & Revenue Model

Company Description

The Sage Group plc, together with its subsidiaries, provides technology solutions and services for small and medium businesses in North America, Northern Europe, and internationally. It offers cloud native solutions, such as Sage Intacct, a cloud accounting software products and financial management solutions; Sage People, a cloud HR and people management solution; Sage Accounting, a solution for small businesses, accountants, and bookkeepers to remotely manage customer data, accounts, and people; Sage Payroll, a cloud-based payroll solution; and Sage HR, a HR management solution. The company also provides cloud connected and hybrid solutions, including Sage X3, a business management solution; and Sage 50cloud and Sage 200cloud that provides a range of cloud connected accounting solutions. The company was founded in 1981 and is based in Newcastle upon Tyne, the United Kingdom.

How the Company Makes Money

Sage Group generates revenue primarily through the sale of software licenses, subscription services, and support and maintenance contracts. The company's revenue model is predominantly subscription-based, with a significant portion of its earnings derived from recurring revenue streams associated with cloud services and software-as-a-service (SaaS) offerings. Key revenue streams include direct sales of its software products, ongoing subscription fees for cloud-based services, and additional services such as training, consulting, and technical support. Sage also engages in partnerships with various organizations, including financial institutions and technology providers, to enhance its product offerings and expand its market reach, contributing to its overall earnings.

Sage Group plc Financial Statement Overview

Summary

Sage Group plc demonstrates strong financial health with impressive profit margins and cash flow metrics. The company shows a gross profit margin of 92.8% and a net profit margin of 13.9% for 2024. Revenue growth from 2023 to 2024 was 6.8%, indicating a positive trend. The EBIT margin improved to 19.4%, and the EBITDA margin was 24.2%. The debt-to-equity ratio is moderate at 1.14, and the return on equity is strong at 29.6%. Cash flow is robust with a significant free cash flow growth rate of 24.4%.

Income Statement

The company shows a strong financial performance with a gross profit margin of 92.8% and a net profit margin of 13.9% for 2024. Revenue growth from 2023 to 2024 was 6.8%, indicating a positive trend. The EBIT margin improved to 19.4%, and the EBITDA margin was 24.2%, reflecting robust operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at 1.14, indicating moderate leverage. The return on equity (ROE) is 29.6%, showing strong profitability relative to equity. However, the equity ratio of 30% suggests a moderate reliance on debt, which could pose some financial risk.

Cash Flow

There was a significant free cash flow growth rate of 24.4% from 2023 to 2024. The operating cash flow to net income ratio is 1.52, and the free cash flow to net income ratio is 1.41, both indicating strong cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.80B	2.33B	2.18B	1.95B	1.85B	1.90B
Gross Profit	1.62B	2.16B	2.03B	1.71B	1.63B	1.65B
EBITDA	449.00M	565.00M	434.00M	432.00M	461.00M	525.00M
Net Income	257.00M	323.00M	211.00M	260.00M	285.00M	310.00M
Balance Sheet
Total Assets	3.83B	3.64B	3.94B	3.90B	3.33B	3.71B
Cash, Cash Equivalents and Short-Term Investments	574.00M	508.00M	696.00M	489.00M	553.00M	831.00M
Total Debt	1.56B	1.25B	1.26B	1.22B	814.00M	990.00M
Total Liabilities	3.03B	2.54B	2.53B	2.50B	2.22B	2.06B
Stockholders Equity	799.00M	1.09B	1.41B	1.40B	1.11B	1.65B
Cash Flow
Free Cash Flow	386.50M	454.00M	365.00M	234.00M	321.00M	369.00M
Operating Cash Flow	414.00M	491.00M	387.00M	286.00M	377.00M	409.00M
Investing Cash Flow	-72.00M	-41.00M	-36.00M	-285.00M	61.00M	176.00M
Financing Cash Flow	-304.00M	-610.00M	-114.00M	-127.00M	-694.00M	-88.00M

Sage Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1072.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SGE, the sentiment is Negative. The current price of 1072 is below the 20-day moving average (MA) of 1105.45, below the 50-day MA of 1117.50, and below the 200-day MA of 1179.96, indicating a bearish trend. The MACD of -16.32 indicates Positive momentum. The RSI at 40.41 is Neutral, neither overbought nor oversold. The STOCH value of 32.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SGE.

Sage Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGE	78 Outperform	£10.99B	33.00	40.71%	1.92%	7.76%	18.17%
KNOS	74 Outperform	£1.13B	33.19	23.28%	2.81%	2.15%	-39.26%
GBG	68 Neutral	£566.76M	68.77	1.56%	1.72%	-0.18%	11.49%
ALFA	68 Neutral	£658.76M	22.18	62.38%	3.50%	18.44%	33.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCC	59 Neutral	£457.87M	-18.72	―	2.02%	―	―
TRST	54 Neutral	£787.16M	971.50	2.53%	―	18.75%	-93.75%

Sage Group plc Corporate Events

Sage Group Announces Total Voting Rights Update

Sage Group plc announced its total exercisable voting rights as of 30 September 2025, amounting to 963,420,620. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure and Transparency Rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £1320.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Group Announces Key Leadership Appointment

Sage Group plc has announced the appointment of Jonathan Howell as an independent Non-executive Director and Chair of the Audit Committee at Whitbread PLC, effective from January 1, 2026. This strategic appointment may enhance Sage’s industry positioning by strengthening its governance and potentially influencing its stakeholder relationships.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Group’s Executive Exercises Share Options, Enhancing Stakeholder Alignment

Sage Group plc announced that Amanda Cusdin, Chief People Officer and member of the Executive Leadership Team, exercised options over 1,013 ordinary shares at an option price of £5.33. This transaction, part of The Sage Save and Share Plan, results in Cusdin holding a total of 154,881 ordinary shares. This move reflects the company’s commitment to aligning its leadership’s interests with shareholder value, potentially impacting stakeholder confidence positively.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £1319.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Executives Acquire Shares, Signaling Confidence in Growth

Sage Group plc announced that two of its senior executives, Aaron Harris and Walid Abu-Hadba, have purchased ordinary shares under the Sage Colleague Share Purchase Plan. This move reflects the executives’ confidence in the company’s growth and aligns with Sage’s strategy to engage its leadership in its financial success, potentially enhancing stakeholder trust and market positioning.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £15.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Group Executives Acquire Share Purchase Rights

Sage Group plc announced that two of its executives, Aaron Harris and Walid Abu-Hadba, have acquired rights to purchase ordinary shares under the company’s Colleague Share Purchase Plan (CSPP). This plan, aimed at Sage’s US employees, allows participants to purchase shares at a discounted price at the end of a six-month period. This move signifies Sage’s commitment to employee investment and aligns with its strategy to enhance stakeholder engagement and retention.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £14.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Group Announces Updated Voting Rights Total

Sage Group plc announced that its total exercisable voting rights as of July 31, 2025, are 963,428,228. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure and Transparency Rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £15.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Group’s Chief Product Officer Increases Stake in Company

Sage Group plc announced that Walid Abu-Hadba, its Chief Product Officer, purchased 600 ordinary shares at a price of £12.5734 per share on 30 July 2025. This transaction, conducted on the London Stock Exchange, increases Abu-Hadba’s total shareholding to 333,302 ordinary shares, reflecting a continued commitment to the company and potentially signaling confidence in its future prospects.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £15.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Group Completes £200 Million Share Buyback Program

Sage Group plc has completed its share buyback program, purchasing a total of 16,082,393 ordinary shares for approximately £200 million. The buyback, finalized on 30 July 2025, is part of Sage’s strategy to enhance shareholder value by reducing the number of outstanding shares, potentially increasing earnings per share and market confidence.

The most recent analyst rating on (GB:SGE) stock is a Sell with a £9.85 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Group Reports 9% Revenue Growth Amid Strong Cloud Performance

Sage Group plc reported a 9% increase in total revenue to £1,862 million for the first nine months of 2025, driven by strong growth across all regions and its Sage Business Cloud portfolio. The company highlighted significant performance in North America and the UKIA region, with notable growth in cloud-native revenue and software subscriptions, despite facing foreign exchange headwinds. Sage’s continued focus on cloud and AI-powered solutions has bolstered customer success and confidence in its growth strategy.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £15.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Group Executes Share Buyback to Enhance Shareholder Value

Sage Group plc announced the repurchase of 440,255 of its ordinary shares as part of its ongoing share buyback program, which is set to conclude by the end of July 2025. This strategic move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure, reflecting Sage’s confidence in its financial health and future prospects.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £15.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Sage Group Executes Share Buyback to Enhance Shareholder Value

Sage Group plc has executed a share buyback transaction, purchasing 450,114 of its ordinary shares through J.P. Morgan Securities plc as part of a previously announced program. The buyback, which will conclude by the end of July 2025, aims to enhance shareholder value by reducing the number of shares in circulation, thus potentially increasing the value of remaining shares.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £15.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.