SAPIENS INTERNATIONAL CORP (SPNS)
KYG7T16G1039 - Common Stock
SPNS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. While SPNS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SPNS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SPNS was profitable.
In the past year SPNS had a positive cash flow from operations.
In the past 5 years SPNS has always been profitable.
Each year in the past 5 years SPNS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.43%, SPNS belongs to the best of the industry, outperforming 88.17% of the companies in the same industry.
SPNS has a Return On Equity of 15.12%. This is amongst the best in the industry. SPNS outperforms 84.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.76%, SPNS belongs to the top of the industry, outperforming 89.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPNS is below the industry average of 12.22%.
The 3 year average ROIC (10.15%) for SPNS is below the current ROIC(12.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 15.12% | ||
| ROIC | 12.76% |
ROA(3y)7.84%
ROA(5y)6.81%
ROE(3y)12.9%
ROE(5y)11.85%
ROIC(3y)10.15%
ROIC(5y)9.14%
1.3 Margins
Looking at the Profit Margin, with a value of 13.23%, SPNS belongs to the top of the industry, outperforming 81.36% of the companies in the same industry.
SPNS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.63%, SPNS belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
SPNS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 43.40%, SPNS is doing worse than 74.55% of the companies in the same industry.
In the last couple of years the Gross Margin of SPNS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.63% | ||
| PM (TTM) | 13.23% | ||
| GM | 43.4% |
OM growth 3Y9.25%
OM growth 5Y14.06%
PM growth 3Y11.19%
PM growth 5Y20.56%
GM growth 3Y1.56%
GM growth 5Y2.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SPNS is still creating some value.
SPNS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SPNS has been increased compared to 5 years ago.
The debt/assets ratio for SPNS has been reduced compared to a year ago.
2.2 Solvency
SPNS has a debt to FCF ratio of 0.57. This is a very positive value and a sign of high solvency as it would only need 0.57 years to pay back of all of its debts.
The Debt to FCF ratio of SPNS (0.57) is better than 76.70% of its industry peers.
SPNS has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.04, SPNS perfoms like the industry average, outperforming 57.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC9%
2.3 Liquidity
A Current Ratio of 2.18 indicates that SPNS has no problem at all paying its short term obligations.
SPNS has a better Current ratio (2.18) than 63.44% of its industry peers.
SPNS has a Quick Ratio of 2.18. This indicates that SPNS is financially healthy and has no problem in meeting its short term obligations.
SPNS has a Quick ratio of 2.18. This is in the better half of the industry: SPNS outperforms 65.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
SPNS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.31%, which is quite good.
Measured over the past years, SPNS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.64% on average per year.
SPNS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.10%.
SPNS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.18% yearly.
EPS 1Y (TTM)12.31%
EPS 3Y10.25%
EPS 5Y18.64%
EPS Q2Q%8.82%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y10.35%
Revenue growth 5Y12.18%
Sales Q2Q%4.84%
3.2 Future
SPNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.86% yearly.
Based on estimates for the next years, SPNS will show a small growth in Revenue. The Revenue will grow by 5.51% on average per year.
EPS Next Y12.2%
EPS Next 2Y6.83%
EPS Next 3Y6.93%
EPS Next 5Y5.86%
Revenue Next Year5.72%
Revenue Next 2Y4.21%
Revenue Next 3Y4.56%
Revenue Next 5Y5.51%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.01, SPNS is valued on the expensive side.
SPNS's Price/Earnings ratio is rather cheap when compared to the industry. SPNS is cheaper than 83.51% of the companies in the same industry.
SPNS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 18.15 indicates a rather expensive valuation of SPNS.
81.72% of the companies in the same industry are more expensive than SPNS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.73. SPNS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 18.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPNS is valued cheaply inside the industry as 89.96% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SPNS is valued cheaply inside the industry as 84.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.45 | ||
| EV/EBITDA | 12.96 |
4.3 Compensation for Growth
SPNS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SPNS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.56
PEG (5Y)1.02
EPS Next 2Y6.83%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
SPNS has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
The stock price of SPNS dropped by -22.76% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 13.95, SPNS pays a better dividend. On top of this SPNS pays more dividend than 95.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SPNS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
On average, the dividend of SPNS grows each year by 20.49%, which is quite nice.
SPNS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SPNS decreased recently.
Dividend Growth(5Y)20.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SPNS pays out 41.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
SPNS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.79%
EPS Next 2Y6.83%
EPS Next 3Y6.93%
SAPIENS INTERNATIONAL CORP
NASDAQ:SPNS (12/20/2024, 8:00:02 PM)
After market: 27.76 0 (0%)27.76
+0.19 (+0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners34.9%
Inst Owner Change4.88%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap1.55B
Analysts52
Price Target32.39 (16.68%)
Short Float %1%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Dividend Growth(5Y)20.49%
DP41.79%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.54%
Min EPS beat(2)-3.53%
Max EPS beat(2)0.44%
EPS beat(4)3
Avg EPS beat(4)0.88%
Min EPS beat(4)-3.53%
Max EPS beat(4)3.81%
EPS beat(8)5
Avg EPS beat(8)0.39%
EPS beat(12)7
Avg EPS beat(12)0.98%
EPS beat(16)10
Avg EPS beat(16)1.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-4.1%
Max Revenue beat(2)-2.57%
Revenue beat(4)0
Avg Revenue beat(4)-2.51%
Min Revenue beat(4)-4.1%
Max Revenue beat(4)-1.55%
Revenue beat(8)1
Avg Revenue beat(8)-1.78%
Revenue beat(12)1
Avg Revenue beat(12)-2.27%
Revenue beat(16)1
Avg Revenue beat(16)-2.03%
PT rev (1m)-15.33%
PT rev (3m)-17.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.58%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 18.15 | ||
| P/S | 2.88 | ||
| P/FCF | 22.45 | ||
| P/OCF | 19.7 | ||
| P/B | 3.29 | ||
| P/tB | 9.65 | ||
| EV/EBITDA | 12.96 |
EPS(TTM)1.46
EY5.26%
EPS(NY)1.53
Fwd EY5.51%
FCF(TTM)1.24
FCFY4.45%
OCF(TTM)1.41
OCFY5.08%
SpS9.64
BVpS8.43
TBVpS2.88
PEG (NY)1.56
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 15.12% | ||
| ROCE | 15.72% | ||
| ROIC | 12.76% | ||
| ROICexc | 19.53% | ||
| ROICexgc | 173.04% | ||
| OM | 15.63% | ||
| PM (TTM) | 13.23% | ||
| GM | 43.4% | ||
| FCFM | 12.82% |
ROA(3y)7.84%
ROA(5y)6.81%
ROE(3y)12.9%
ROE(5y)11.85%
ROIC(3y)10.15%
ROIC(5y)9.14%
ROICexc(3y)15.97%
ROICexc(5y)13.66%
ROICexgc(3y)338.88%
ROICexgc(5y)246.53%
ROCE(3y)12.51%
ROCE(5y)11.27%
ROICexcg growth 3Y24.58%
ROICexcg growth 5Y-20.89%
ROICexc growth 3Y26.06%
ROICexc growth 5Y18.77%
OM growth 3Y9.25%
OM growth 5Y14.06%
PM growth 3Y11.19%
PM growth 5Y20.56%
GM growth 3Y1.56%
GM growth 5Y2.44%
F-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.57 | ||
| Debt/EBITDA | 0.19 | ||
| Cap/Depr | 45.78% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.79% | ||
| Profit Quality | 96.95% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | N/A |
F-Score8
WACC9%
ROIC/WACC1.42
Cap/Depr(3y)41.75%
Cap/Depr(5y)52.58%
Cap/Sales(3y)2.09%
Cap/Sales(5y)2.9%
Profit Quality(3y)107.97%
Profit Quality(5y)130.02%
High Growth Momentum
Growth
EPS 1Y (TTM)12.31%
EPS 3Y10.25%
EPS 5Y18.64%
EPS Q2Q%8.82%
EPS Next Y12.2%
EPS Next 2Y6.83%
EPS Next 3Y6.93%
EPS Next 5Y5.86%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y10.35%
Revenue growth 5Y12.18%
Sales Q2Q%4.84%
Revenue Next Year5.72%
Revenue Next 2Y4.21%
Revenue Next 3Y4.56%
Revenue Next 5Y5.51%
EBIT growth 1Y11.87%
EBIT growth 3Y20.57%
EBIT growth 5Y27.95%
EBIT Next Year10.55%
EBIT Next 3Y7.83%
EBIT Next 5Y6.95%
FCF growth 1Y49.17%
FCF growth 3Y14.27%
FCF growth 5Y27.74%
OCF growth 1Y38.83%
OCF growth 3Y10.88%
OCF growth 5Y23.45%