SAPIENS INTERNATIONAL CORP (SPNS)
KYG7T16G1039 - Common Stock
Overall SPNS gets a fundamental rating of 6 out of 10. We evaluated SPNS against 279 industry peers in the Software industry. SPNS has an excellent profitability rating, but there are some minor concerns on its financial health. SPNS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SPNS had positive earnings in the past year.
SPNS had a positive operating cash flow in the past year.
SPNS had positive earnings in each of the past 5 years.
SPNS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.43%, SPNS belongs to the best of the industry, outperforming 88.53% of the companies in the same industry.
SPNS has a better Return On Equity (15.12%) than 85.30% of its industry peers.
The Return On Invested Capital of SPNS (12.76%) is better than 90.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPNS is in line with the industry average of 11.54%.
The last Return On Invested Capital (12.76%) for SPNS is above the 3 year average (10.15%), which is a sign of increasing profitability.
| 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
SPNS's Profit Margin of 13.23% is amongst the best of the industry. SPNS outperforms 81.72% of its industry peers.
In the last couple of years the Profit Margin of SPNS has grown nicely.
SPNS's Operating Margin of 15.63% is amongst the best of the industry. SPNS outperforms 84.95% of its industry peers.
SPNS's Operating Margin has improved in the last couple of years.
SPNS has a Gross Margin of 43.40%. This is in the lower half of the industry: SPNS underperforms 74.55% of its industry peers.
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
SPNS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SPNS has been increased compared to 1 year ago.
SPNS has more shares outstanding than it did 5 years ago.
SPNS has a better debt/assets ratio than last year.
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.
SPNS's Debt to FCF ratio of 0.57 is fine compared to the rest of the industry. SPNS outperforms 78.14% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that SPNS is not too dependend on debt financing.
SPNS's Debt to Equity ratio of 0.04 is in line compared to the rest of the industry. SPNS outperforms 57.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | N/A |
ROIC/WACC1.39
WACC9.2%
2.3 Liquidity
A Current Ratio of 2.18 indicates that SPNS has no problem at all paying its short term obligations.
SPNS's Current ratio of 2.18 is fine compared to the rest of the industry. SPNS outperforms 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.
The Quick ratio of SPNS (2.18) is better than 64.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.31% over the past year.
SPNS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.64% yearly.
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
The Earnings Per Share is expected to grow by 10.66% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.98% on average over the next years.
EPS Next Y13.42%
EPS Next 2Y10.15%
EPS Next 3Y10.66%
EPS Next 5YN/A
Revenue Next Year7.41%
Revenue Next 2Y7.24%
Revenue Next 3Y6.98%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SPNS is valuated rather expensively with a Price/Earnings ratio of 18.87.
85.30% of the companies in the same industry are more expensive than SPNS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.96. SPNS is valued slightly cheaper when compared to this.
SPNS is valuated correctly with a Price/Forward Earnings ratio of 16.94.
Based on the Price/Forward Earnings ratio, SPNS is valued cheaply inside the industry as 84.95% of the companies are valued more expensively.
SPNS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 16.94 |
4.2 Price Multiples
89.25% of the companies in the same industry are more expensive than SPNS, based on the Enterprise Value to EBITDA ratio.
83.15% of the companies in the same industry are more expensive than SPNS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.22 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SPNS may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)1.01
EPS Next 2Y10.15%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
SPNS has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of SPNS has falen by -23.64%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SPNS's Dividend Yield is rather good when compared to the industry average which is at 11.80. SPNS pays more dividend than 96.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, SPNS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of SPNS is nicely growing with an annual growth rate of 20.49%!
SPNS has been paying a dividend for at least 10 years, so it has a reliable track record.
SPNS has decreased its dividend recently.
Dividend Growth(5Y)20.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
41.79% of the earnings are spent on dividend by SPNS. This is a bit on the high side, but may be sustainable.
The dividend of SPNS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.79%
EPS Next 2Y10.15%
EPS Next 3Y10.66%
SAPIENS INTERNATIONAL CORP
NASDAQ:SPNS (11/21/2024, 8:00:02 PM)
After market: 27.55 0 (0%)27.55
+0.43 (+1.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 16.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.41
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 15.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.63% | ||
| PM (TTM) | 13.23% | ||
| GM | 43.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.31%
EPS 3Y10.25%
EPS 5Y
EPS Q2Q%
EPS Next Y13.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.1%
Revenue growth 3Y10.35%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y