Sage Group (SGPYY)
OTHER OTC:SGPYY
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Sage Group
(OTC:SGPYY)
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Rating:73Outperform
Price Target:
$48.00
▼(-14.91% Downside)
Action:ReiteratedDate:12/11/25
Sage Group's overall stock score reflects its strong financial performance and positive earnings call, which highlight growth in cloud revenue and strategic innovation in AI. However, technical indicators suggest bearish momentum, and the stock's valuation appears high, which tempers the overall score.
Positive Factors
Recurring cloud subscription model
Sage's material ARR growth (GBP 245m to GBP 2.6bn) and a 101% renewal rate underscore a durable subscription revenue base. Cloud-native adoption drives predictable recurring cash flows and creates high lifetime value, enabling steady upsell, retention and long-term revenue visibility.
Negative Factors
Elevated leverage
A debt-to-equity of 2.19 and low equity ratio (19.39%) signal meaningful reliance on leverage. Persistently elevated debt increases interest and refinancing risk, constrains strategic flexibility for M&A or investment, and heightens vulnerability during economic or cash-flow stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring cloud subscription model
Sage's material ARR growth (GBP 245m to GBP 2.6bn) and a 101% renewal rate underscore a durable subscription revenue base. Cloud-native adoption drives predictable recurring cash flows and creates high lifetime value, enabling steady upsell, retention and long-term revenue visibility.
Read all positive factors
Sage Group (SGPYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.06B
Dividend Yield1.87%
Average Volume (3M)4.49K
Price to Earnings (P/E)29.2
Beta (1Y)0.55
Revenue Growth11.09%
EPS Growth21.32%
CountryUS
Employees10,740
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.21
Shares Outstanding233,194,430
10 Day Avg. Volume2,093
30 Day Avg. Volume4,488
Financial Highlights & Ratios
PEG Ratio1.29
Price to Book (P/B)14.95
Price to Sales (P/S)4.28
P/FCF Ratio22.95
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue3.48
Enterprise Value/Gross Profit3.75
Enterprise Value/Ebitda13.88
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.7
Revenue Forecast (FY)$3.71B
Sage Group 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 ...
How the Company Makes Money
Sage primarily makes money by selling software and related services to businesses through recurring subscriptions and, to a lesser extent, licenses and support. The company’s largest revenue stream is subscription revenue from cloud and subscripti...
Sage Group Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Sage's strong financial performance, significant growth in cloud revenue and ARR, and positive outlook for future growth. Despite some concerns about multiyear contracts and competitive dynamics, the company's strategic focus on AI and innovation positions it well for continued success.Positive Updates
Strong Financial Performance
Sage delivered a strong financial performance with revenue growth of 10%, operating profit margin expansion of 150 basis points to 23.9%, and an 18% increase in EPS.
Negative Updates
Multiyear Contracts Impact
While multiyear contracts simplify customer propositions and improve sales motion, they spread revenue recognition over a longer period, potentially impacting short-term financial results.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Financial Performance
Sage delivered a strong financial performance with revenue growth of 10%, operating profit margin expansion of 150 basis points to 23.9%, and an 18% increase in EPS.
Read all positive updates
Company Guidance
In Sage's 2025 fiscal year results call, the company reported strong performance marked by a 10% revenue growth and a 17% increase in operating profit, leading to an EPS growth of 18%. The company achieved a 23.9% operating profit margin, expanding by 150 basis points, and maintained a robust cash conversion rate of 110%. Sage's cloud-native ARR grew over 20%, contributing to a total ARR increase of GBP 245 million to GBP 2.6 billion, with a renewal rate by value of 101%. The Sage Business Cloud revenue increased by 13%, with cloud-native revenue rising by 23%. Investments in AI and innovation, such as Sage CoPilot and AI agents, have been significant, with CoPilot now used by around 150,000 customers. The company aims to continue this momentum into FY '26, expecting organic total revenue growth of 9% or above while further expanding operating margins.Sage Group Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.51B | 2.33B | 2.18B | 1.95B | 1.85B |
| Gross Profit | 2.33B | 2.16B | 2.03B | 1.81B | 1.72B |
| EBITDA | 629.00M | 565.00M | 456.00M | 464.00M | 458.00M |
| Net Income | 369.00M | 323.00M | 211.00M | 260.00M | 285.00M |
Balance Sheet | |||||
| Total Assets | 3.71B | 3.64B | 3.94B | 3.90B | 3.33B |
| Cash, Cash Equivalents and Short-Term Investments | 390.00M | 508.00M | 696.00M | 489.00M | 553.00M |
| Total Debt | 1.58B | 1.25B | 1.26B | 1.22B | 814.00M |
| Total Liabilities | 2.99B | 2.54B | 2.53B | 2.50B | 2.22B |
| Stockholders Equity | 720.00M | 1.09B | 1.41B | 1.40B | 1.11B |
Cash Flow | |||||
| Free Cash Flow | 469.00M | 454.00M | 365.00M | 233.00M | 320.00M |
| Operating Cash Flow | 528.00M | 491.00M | 387.00M | 285.00M | 376.00M |
| Investing Cash Flow | -127.00M | -41.00M | -36.00M | -284.00M | 62.00M |
| Financing Cash Flow | -521.00M | -610.00M | -114.00M | -127.00M | -694.00M |
Sage Group Technical Analysis
Negative
56.41
Price Trends
47.62
Negative
52.45
Negative
57.22
Negative
Market Momentum
-0.85
Negative
38.37
Neutral
3.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGPYY, the sentiment is Negative. The current price of 56.41 is above the 20-day moving average (MA) of 44.64, above the 50-day MA of 47.62, and below the 200-day MA of 57.22, indicating a bearish trend. The MACD of -0.85 indicates Negative momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 3.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGPYY.
Sage Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $10.06B | 29.17 | 48.58% | 1.87% | 11.09% | 21.32% | |
73 Outperform | $7.91B | 47.65 | 76.65% | ― | 4.10% | -0.21% | |
73 Outperform | $9.00B | 34.08 | 15.65% | ― | 8.45% | -69.85% | |
71 Outperform | $6.68B | 19.61 | 26.06% | 0.94% | 9.72% | -2.69% | |
70 Outperform | $5.98B | 41.43 | 20.52% | ― | 13.30% | 2.80% | |
70 Outperform | $10.96B | 51.21 | 23.93% | 0.72% | 11.12% | -26.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
SGPYY
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.