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SAPIENS INTERNATIONAL CORP (SPNS) Stock Fundamental Analysis

NASDAQ:SPNS - Nasdaq - KYG7T16G1039 - Common Stock - Currency: USD

27.61  -0.19 (-0.68%)

After market: 27.61 0 (0%)

Fundamental Rating

6

SPNS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. Both the health and profitability get an excellent rating, making SPNS a very profitable company, without any liquidiy or solvency issues. SPNS has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

SPNS had positive earnings in the past year.
In the past year SPNS had a positive cash flow from operations.
SPNS had positive earnings in each of the past 5 years.
In the past 5 years SPNS always reported a positive cash flow from operatings.
SPNS Yearly Net Income VS EBIT VS OCF VS FCFSPNS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

1.2 Ratios

SPNS has a better Return On Assets (10.43%) than 86.57% of its industry peers.
SPNS has a Return On Equity of 15.05%. This is amongst the best in the industry. SPNS outperforms 81.63% of its industry peers.
SPNS has a Return On Invested Capital of 12.83%. This is amongst the best in the industry. SPNS outperforms 90.81% 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 12.21%.
The last Return On Invested Capital (12.83%) for SPNS is above the 3 year average (11.66%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.43%
ROE 15.05%
ROIC 12.83%
ROA(3y)9.12%
ROA(5y)7.74%
ROE(3y)14.05%
ROE(5y)12.52%
ROIC(3y)11.66%
ROIC(5y)9.93%
SPNS Yearly ROA, ROE, ROICSPNS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 13.31%, SPNS is in the better half of the industry, outperforming 78.45% of the companies in the same industry.
SPNS's Profit Margin has improved in the last couple of years.
SPNS has a better Operating Margin (15.83%) than 83.39% of its industry peers.
SPNS's Operating Margin has improved in the last couple of years.
The Gross Margin of SPNS (43.90%) is worse than 72.79% of its industry peers.
SPNS's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 15.83%
PM (TTM) 13.31%
GM 43.9%
OM growth 3Y8.27%
OM growth 5Y6.35%
PM growth 3Y9.13%
PM growth 5Y10.59%
GM growth 3Y2.52%
GM growth 5Y2%
SPNS Yearly Profit, Operating, Gross MarginsSPNS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

7

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.
Compared to 5 years ago, SPNS has more shares outstanding
The debt/assets ratio for SPNS has been reduced compared to a year ago.
SPNS Yearly Shares OutstandingSPNS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
SPNS Yearly Total Debt VS Total AssetsSPNS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.2 Solvency

An Altman-Z score of 6.24 indicates that SPNS is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPNS (6.24) is better than 73.85% of its industry peers.
SPNS has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
The Debt to FCF ratio of SPNS (0.55) is better than 77.03% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that SPNS is not too dependend on debt financing.
SPNS has a Debt to Equity ratio of 0.04. This is comparable to the rest of the industry: SPNS outperforms 59.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.55
Altman-Z 6.24
ROIC/WACC1.43
WACC8.98%
SPNS Yearly LT Debt VS Equity VS FCFSPNS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 2.24 indicates that SPNS has no problem at all paying its short term obligations.
SPNS's Current ratio of 2.24 is fine compared to the rest of the industry. SPNS outperforms 65.72% of its industry peers.
A Quick Ratio of 2.24 indicates that SPNS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.24, SPNS is in the better half of the industry, outperforming 66.08% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.24
Quick Ratio 2.24
SPNS Yearly Current Assets VS Current LiabilitesSPNS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.47% over the past year.
Measured over the past years, SPNS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.51% on average per year.
The Revenue has been growing slightly by 5.40% in the past year.
The Revenue has been growing by 10.74% on average over the past years. This is quite good.
EPS 1Y (TTM)6.47%
EPS 3Y7.3%
EPS 5Y13.51%
EPS Q2Q%2.78%
Revenue 1Y (TTM)5.4%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%1.38%

3.2 Future

SPNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.30% yearly.
Based on estimates for the next years, SPNS will show a small growth in Revenue. The Revenue will grow by 5.96% on average per year.
EPS Next Y-1.19%
EPS Next 2Y3.57%
EPS Next 3Y4.3%
EPS Next 5YN/A
Revenue Next Year5.12%
Revenue Next 2Y6.01%
Revenue Next 3Y5.96%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
SPNS Yearly Revenue VS EstimatesSPNS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M
SPNS Yearly EPS VS EstimatesSPNS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.66 indicates a rather expensive valuation of SPNS.
SPNS's Price/Earnings ratio is rather cheap when compared to the industry. SPNS is cheaper than 80.57% 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 25.91.
A Price/Forward Earnings ratio of 17.51 indicates a rather expensive valuation of SPNS.
Based on the Price/Forward Earnings ratio, SPNS is valued a bit cheaper than 78.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SPNS to the average of the S&P500 Index (21.85), we can say SPNS is valued inline with the index average.
Industry RankSector Rank
PE 18.66
Fwd PE 17.51
SPNS Price Earnings VS Forward Price EarningsSPNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

SPNS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SPNS is cheaper than 89.75% of the companies in the same industry.
SPNS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPNS is cheaper than 79.51% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.37
EV/EBITDA 12.51
SPNS Per share dataSPNS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

The excellent profitability rating of SPNS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y3.57%
EPS Next 3Y4.3%

5

5. Dividend

5.1 Amount

SPNS has a Yearly Dividend Yield of 2.07%.
Compared to an average industry Dividend Yield of 14.14, SPNS pays a better dividend. On top of this SPNS pays more dividend than 96.47% 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 RankSector Rank
Dividend Yield 2.07%

5.2 History

On average, the dividend of SPNS grows each year by 21.00%, which is quite nice.
SPNS has paid a dividend for at least 10 years, which is a reliable track record.
SPNS has decreased its dividend recently.
Dividend Growth(5Y)21%
Div Incr Years1
Div Non Decr Years1
SPNS Yearly Dividends per shareSPNS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

44.09% of the earnings are spent on dividend by SPNS. 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.
DP44.09%
EPS Next 2Y3.57%
EPS Next 3Y4.3%
SPNS Yearly Income VS Free CF VS DividendSPNS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
SPNS Dividend Payout.SPNS Dividend Payout, showing the Payout Ratio.SPNS Dividend Payout.PayoutRetained Earnings

SAPIENS INTERNATIONAL CORP

NASDAQ:SPNS (5/23/2025, 4:04:02 PM)

After market: 27.61 0 (0%)

27.61

-0.19 (-0.68%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-04 2025-08-04/bmo
Inst Owners37.7%
Inst Owner Change3.1%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap1.54B
Analysts48
Price Target30.94 (12.06%)
Short Float %1.25%
Short Ratio2.25
Dividend
Industry RankSector Rank
Dividend Yield 2.07%
Yearly Dividend0.57
Dividend Growth(5Y)21%
DP44.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-07 2025-04-07 (0.36)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.55%
Min EPS beat(2)-3.53%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)0.03%
Min EPS beat(4)-3.53%
Max EPS beat(4)2.8%
EPS beat(8)5
Avg EPS beat(8)0.22%
EPS beat(12)7
Avg EPS beat(12)0.52%
EPS beat(16)10
Avg EPS beat(16)1.44%
Revenue beat(2)0
Avg Revenue beat(2)-3.62%
Min Revenue beat(2)-4.1%
Max Revenue beat(2)-3.15%
Revenue beat(4)0
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-4.1%
Max Revenue beat(4)-1.55%
Revenue beat(8)1
Avg Revenue beat(8)-1.86%
Revenue beat(12)1
Avg Revenue beat(12)-2.29%
Revenue beat(16)1
Avg Revenue beat(16)-2.17%
PT rev (1m)0%
PT rev (3m)-9.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.83%
EPS NY rev (1m)-3.2%
EPS NY rev (3m)-4.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)2.92%
Revenue NY rev (3m)2.5%
Valuation
Industry RankSector Rank
PE 18.66
Fwd PE 17.51
P/S 2.85
P/FCF 21.37
P/OCF 18.77
P/B 3.22
P/tB 8.71
EV/EBITDA 12.51
EPS(TTM)1.48
EY5.36%
EPS(NY)1.58
Fwd EY5.71%
FCF(TTM)1.29
FCFY4.68%
OCF(TTM)1.47
OCFY5.33%
SpS9.7
BVpS8.58
TBVpS3.17
PEG (NY)N/A
PEG (5Y)1.38
Profitability
Industry RankSector Rank
ROA 10.43%
ROE 15.05%
ROCE 15.84%
ROIC 12.83%
ROICexc 21.34%
ROICexgc 296.39%
OM 15.83%
PM (TTM) 13.31%
GM 43.9%
FCFM 13.31%
ROA(3y)9.12%
ROA(5y)7.74%
ROE(3y)14.05%
ROE(5y)12.52%
ROIC(3y)11.66%
ROIC(5y)9.93%
ROICexc(3y)18.66%
ROICexc(5y)15.72%
ROICexgc(3y)280.24%
ROICexgc(5y)293.68%
ROCE(3y)14.39%
ROCE(5y)12.25%
ROICexcg growth 3Y-14.28%
ROICexcg growth 5Y38.34%
ROICexc growth 3Y17.38%
ROICexc growth 5Y14.34%
OM growth 3Y8.27%
OM growth 5Y6.35%
PM growth 3Y9.13%
PM growth 5Y10.59%
GM growth 3Y2.52%
GM growth 5Y2%
F-Score8
Asset Turnover0.78
Health
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.55
Debt/EBITDA 0.19
Cap/Depr 49.88%
Cap/Sales 1.85%
Interest Coverage 82.31
Cash Conversion 77.63%
Profit Quality 100.05%
Current Ratio 2.24
Quick Ratio 2.24
Altman-Z 6.24
F-Score8
WACC8.98%
ROIC/WACC1.43
Cap/Depr(3y)44.6%
Cap/Depr(5y)44.64%
Cap/Sales(3y)1.85%
Cap/Sales(5y)2.21%
Profit Quality(3y)92.81%
Profit Quality(5y)112.61%
High Growth Momentum
Growth
EPS 1Y (TTM)6.47%
EPS 3Y7.3%
EPS 5Y13.51%
EPS Q2Q%2.78%
EPS Next Y-1.19%
EPS Next 2Y3.57%
EPS Next 3Y4.3%
EPS Next 5YN/A
Revenue 1Y (TTM)5.4%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%1.38%
Revenue Next Year5.12%
Revenue Next 2Y6.01%
Revenue Next 3Y5.96%
Revenue Next 5YN/A
EBIT growth 1Y8.82%
EBIT growth 3Y14.29%
EBIT growth 5Y17.77%
EBIT Next Year7.01%
EBIT Next 3Y7.55%
EBIT Next 5YN/A
FCF growth 1Y2.93%
FCF growth 3Y1.68%
FCF growth 5Y8.06%
OCF growth 1Y3.53%
OCF growth 3Y0.69%
OCF growth 5Y4.44%