Should Quality Investors Include NASDAQ:SPNS in Their Portfolio?

In this article we will dive into SAPIENS INTERNATIONAL CORP (NASDAQ:SPNS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SAPIENS INTERNATIONAL CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

• The 5-year revenue growth of SAPIENS INTERNATIONAL CORP has been remarkable, with 12.18% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• SAPIENS INTERNATIONAL CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 2.0K% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 0.59, SAPIENS INTERNATIONAL CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• SAPIENS INTERNATIONAL CORP exhibits impressive Profit Quality (5-year) with a 130.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• With a robust 5-year EBIT growth of 27.95%, SAPIENS INTERNATIONAL CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• SAPIENS INTERNATIONAL CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall SPNS gets a fundamental rating of 5 out of 10. We evaluated SPNS against 277 industry peers in the Software industry. While SPNS has a great profitability rating, there are some minor concerns on its financial health. SPNS is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of SPNS

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.