SAPIENS INTERNATIONAL CORP (SPNS) Stock Fundamental Analysis
USA - NASDAQ:SPNS - KYG7T16G1039 - Common Stock
43.18 USD
-0.03 (-0.07%)
43.18 USD
0 (0%)
SPNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. SPNS has an excellent profitability rating, but 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
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.
Each year in the past 5 years SPNS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.24%, SPNS belongs to the top of the industry, outperforming 82.21% of the companies in the same industry.
SPNS has a Return On Equity of 13.72%. This is amongst the best in the industry. SPNS outperforms 80.43% of its industry peers.
With an excellent Return On Invested Capital value of 11.68%, SPNS belongs to the best of the industry, outperforming 86.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SPNS is in line with the industry average of 12.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.24% | ||
| ROE | 13.72% | ||
| ROIC | 11.68% |
ROA(3y)9.12%
ROA(5y)7.74%
ROE(3y)14.05%
ROE(5y)12.52%
ROIC(3y)11.69%
ROIC(5y)9.95%
1.3 Margins
SPNS has a Profit Margin of 12.45%. This is in the better half of the industry: SPNS outperforms 74.02% of its industry peers.
In the last couple of years the Profit Margin of SPNS has grown nicely.
SPNS's Operating Margin of 14.83% is amongst the best of the industry. SPNS outperforms 81.49% of its industry peers.
In the last couple of years the Operating Margin of SPNS has grown nicely.
SPNS's Gross Margin of 44.26% is on the low side compared to the rest of the industry. SPNS is outperformed by 71.89% of its industry peers.
SPNS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.83% | ||
| PM (TTM) | 12.45% | ||
| GM | 44.26% |
OM growth 3Y8.52%
OM growth 5Y6.49%
PM growth 3Y9.13%
PM growth 5Y10.59%
GM growth 3Y2.52%
GM growth 5Y2%
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.
Compared to 1 year ago, SPNS has more shares outstanding
SPNS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SPNS has been reduced compared to a year ago.
2.2 Solvency
SPNS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.28
WACC9.09%
2.3 Liquidity
SPNS has a Current Ratio of 1.37. This is a normal value and indicates that SPNS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.37, SPNS perfoms like the industry average, outperforming 43.06% of the companies in the same industry.
A Quick Ratio of 1.37 indicates that SPNS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.37, SPNS perfoms like the industry average, outperforming 43.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The earnings per share for SPNS have decreased by -1.37% in the last year.
SPNS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.51% yearly.
SPNS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.40%.
Measured over the past years, SPNS shows a quite strong growth in Revenue. The Revenue has been growing by 10.74% on average per year.
EPS 1Y (TTM)-1.37%
EPS 3Y7.3%
EPS 5Y13.51%
EPS Q2Q%-2.7%
Revenue 1Y (TTM)5.4%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%11.16%
3.2 Future
Based on estimates for the next years, SPNS will show a small growth in Earnings Per Share. The EPS will grow by 6.07% on average per year.
The Revenue is expected to grow by 7.22% on average over the next years.
EPS Next Y-1.47%
EPS Next 2Y3.71%
EPS Next 3Y6.07%
EPS Next 5YN/A
Revenue Next Year6.05%
Revenue Next 2Y6.44%
Revenue Next 3Y7.22%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 29.99, which means the current valuation is very expensive for SPNS.
SPNS's Price/Earnings ratio is a bit cheaper when compared to the industry. SPNS is cheaper than 65.12% of the companies in the same industry.
SPNS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 27.31, SPNS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SPNS is valued a bit cheaper than 61.92% of the companies in the same industry.
SPNS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.99 | ||
| Fwd PE | 27.31 |
4.2 Price Multiples
SPNS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPNS is cheaper than 75.80% 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 67.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.54 | ||
| EV/EBITDA | 23 |
4.3 Compensation for Growth
The excellent profitability rating of SPNS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.22
EPS Next 2Y3.71%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, SPNS has a reasonable but not impressive dividend return.
SPNS's Dividend Yield is rather good when compared to the industry average which is at 42.42. SPNS pays more dividend than 92.53% of the companies in the same industry.
With a Dividend Yield of 1.37, SPNS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of SPNS is nicely growing with an annual growth rate of 21.00%!
SPNS has paid a dividend for at least 10 years, which is a reliable track record.
SPNS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)21%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
77.85% of the earnings are spent on dividend by SPNS. This is not a sustainable payout ratio.
The dividend of SPNS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP77.85%
EPS Next 2Y3.71%
EPS Next 3Y6.07%
43.18
-0.03 (-0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners36.99%
Inst Owner Change19%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap2.41B
Revenue(TTM)542.38M
Net Income(TTM)68.37M
Analysts46.67
Price Target37.99 (-12.02%)
Short Float %2.77%
Short Ratio1.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend0.57
Dividend Growth(5Y)21%
DP77.85%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.35%
Min EPS beat(2)2.3%
Max EPS beat(2)4.41%
EPS beat(4)3
Avg EPS beat(4)0.9%
Min EPS beat(4)-3.53%
Max EPS beat(4)4.41%
EPS beat(8)6
Avg EPS beat(8)1.24%
EPS beat(12)8
Avg EPS beat(12)0.83%
EPS beat(16)11
Avg EPS beat(16)1.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-2.51%
Min Revenue beat(4)-4.1%
Max Revenue beat(4)-0.82%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)1
Avg Revenue beat(12)-1.97%
Revenue beat(16)1
Avg Revenue beat(16)-2.21%
PT rev (1m)0%
PT rev (3m)20.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.99 | ||
| Fwd PE | 27.31 | ||
| P/S | 4.4 | ||
| P/FCF | 33.54 | ||
| P/OCF | 29.28 | ||
| P/B | 4.84 | ||
| P/tB | 40.8 | ||
| EV/EBITDA | 23 |
EPS(TTM)1.44
EY3.33%
EPS(NY)1.58
Fwd EY3.66%
FCF(TTM)1.29
FCFY2.98%
OCF(TTM)1.47
OCFY3.42%
SpS9.82
BVpS8.92
TBVpS1.06
PEG (NY)N/A
PEG (5Y)2.22
Graham Number17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.24% | ||
| ROE | 13.72% | ||
| ROCE | 14.41% | ||
| ROIC | 11.68% | ||
| ROICexc | 13.45% | ||
| ROICexgc | 128.73% | ||
| OM | 14.83% | ||
| PM (TTM) | 12.45% | ||
| GM | 44.26% | ||
| FCFM | 13.11% |
ROA(3y)9.12%
ROA(5y)7.74%
ROE(3y)14.05%
ROE(5y)12.52%
ROIC(3y)11.69%
ROIC(5y)9.95%
ROICexc(3y)18.71%
ROICexc(5y)15.75%
ROICexgc(3y)280.93%
ROICexgc(5y)294.09%
ROCE(3y)14.42%
ROCE(5y)12.28%
ROICexgc growth 3Y-14.08%
ROICexgc growth 5Y38.54%
ROICexc growth 3Y17.66%
ROICexc growth 5Y14.5%
OM growth 3Y8.52%
OM growth 5Y6.49%
PM growth 3Y9.13%
PM growth 5Y10.59%
GM growth 3Y2.52%
GM growth 5Y2%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.28 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 50.52% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.7% | ||
| Profit Quality | 105.26% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | N/A |
F-Score5
WACC9.09%
ROIC/WACC1.28
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)-1.37%
EPS 3Y7.3%
EPS 5Y13.51%
EPS Q2Q%-2.7%
EPS Next Y-1.47%
EPS Next 2Y3.71%
EPS Next 3Y6.07%
EPS Next 5YN/A
Revenue 1Y (TTM)5.4%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%11.16%
Revenue Next Year6.05%
Revenue Next 2Y6.44%
Revenue Next 3Y7.22%
Revenue Next 5YN/A
EBIT growth 1Y-1.64%
EBIT growth 3Y14.56%
EBIT growth 5Y17.93%
EBIT Next Year1.51%
EBIT Next 3Y7.35%
EBIT Next 5YN/A
FCF growth 1Y55.6%
FCF growth 3Y1.68%
FCF growth 5Y8.06%
OCF growth 1Y48.18%
OCF growth 3Y0.69%
OCF growth 5Y4.44%
SAPIENS INTERNATIONAL CORP / SPNS FAQ
What is the fundamental rating for SPNS stock?
ChartMill assigns a fundamental rating of 5 / 10 to SPNS.
What is the valuation status for SPNS stock?
ChartMill assigns a valuation rating of 4 / 10 to SAPIENS INTERNATIONAL CORP (SPNS). This can be considered as Fairly Valued.
How profitable is SAPIENS INTERNATIONAL CORP (SPNS) stock?
SAPIENS INTERNATIONAL CORP (SPNS) has a profitability rating of 8 / 10.
What are the PE and PB ratios of SAPIENS INTERNATIONAL CORP (SPNS) stock?
The Price/Earnings (PE) ratio for SAPIENS INTERNATIONAL CORP (SPNS) is 29.99 and the Price/Book (PB) ratio is 4.84.
Can you provide the expected EPS growth for SPNS stock?
The Earnings per Share (EPS) of SAPIENS INTERNATIONAL CORP (SPNS) is expected to decline by -1.47% in the next year.