SAPIENS INTERNATIONAL CORP (SPNS) Stock Fundamental Analysis
NASDAQ:SPNS - Nasdaq - KYG7T16G1039 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SPNS. SPNS was compared to 281 industry peers in the Software industry. SPNS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SPNS has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years SPNS has been profitable.
In the past 5 years SPNS always reported a positive cash flow from operatings.
1.2 Ratios
SPNS has a Return On Assets of 10.43%. This is amongst the best in the industry. SPNS outperforms 86.12% of its industry peers.
SPNS's Return On Equity of 15.05% is amongst the best of the industry. SPNS outperforms 81.14% of its industry peers.
With an excellent Return On Invested Capital value of 12.83%, SPNS belongs to the best of the industry, outperforming 90.39% of the companies in the same industry.
SPNS had an Average Return On Invested Capital over the past 3 years of 11.66%. This is in line with the industry average of 12.03%.
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 Rank | Sector 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%
1.3 Margins
SPNS has a Profit Margin of 13.31%. This is in the better half of the industry: SPNS outperforms 77.94% of its industry peers.
In the last couple of years the Profit Margin of SPNS has grown nicely.
SPNS's Operating Margin of 15.83% is amongst the best of the industry. SPNS outperforms 83.27% 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 71.89% of its industry peers.
In the last couple of years the Gross Margin of SPNS has grown nicely.
| Industry Rank | Sector 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%
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.
The debt/assets ratio for SPNS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.16 indicates that SPNS is not in any danger for bankruptcy at the moment.
SPNS has a Altman-Z score of 6.16. This is in the better half of the industry: SPNS outperforms 75.44% 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.
SPNS's Debt to FCF ratio of 0.55 is fine compared to the rest of the industry. SPNS outperforms 77.22% 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.
Looking at the Debt to Equity ratio, with a value of 0.04, SPNS is in line with its industry, outperforming 58.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 6.16 |
ROIC/WACC1.44
WACC8.91%
2.3 Liquidity
A Current Ratio of 2.24 indicates that SPNS has no problem at all paying its short term obligations.
SPNS has a Current ratio of 2.24. This is in the better half of the industry: SPNS outperforms 64.41% of its industry peers.
SPNS has a Quick Ratio of 2.24. This indicates that SPNS is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SPNS (2.24) is better than 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
SPNS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.70%, which is quite good.
SPNS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.51% yearly.
Looking at the last year, SPNS shows a small growth in Revenue. The Revenue has grown by 5.41% in the last year.
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)9.7%
EPS 3Y7.3%
EPS 5Y13.51%
EPS Q2Q%2.78%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%2.59%
3.2 Future
SPNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.14% yearly.
Based on estimates for the next years, SPNS will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y2.07%
EPS Next 2Y4.37%
EPS Next 3Y5.14%
EPS Next 5YN/A
Revenue Next Year2.13%
Revenue Next 2Y3.63%
Revenue Next 3Y5.31%
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.
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
Based on the Price/Earnings ratio of 19.14, the valuation of SPNS can be described as rather expensive.
SPNS's Price/Earnings ratio is a bit cheaper when compared to the industry. SPNS is cheaper than 79.72% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.75. SPNS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.75 indicates a rather expensive valuation of SPNS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPNS indicates a somewhat cheap valuation: SPNS is cheaper than 79.72% of the companies listed in the same industry.
SPNS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 18.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPNS indicates a rather cheap valuation: SPNS is cheaper than 89.68% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SPNS is valued a bit cheaper than 79.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.78 | ||
| EV/EBITDA | 12.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPNS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SPNS may justify a higher PE ratio.
PEG (NY)9.25
PEG (5Y)1.42
EPS Next 2Y4.37%
EPS Next 3Y5.14%
5. Dividend
5.1 Amount
SPNS has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
SPNS's Dividend Yield is rather good when compared to the industry average which is at 14.64. SPNS pays more dividend than 96.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SPNS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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
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 2Y4.37%
EPS Next 3Y5.14%
NASDAQ:SPNS (5/2/2025, 3:42:00 PM)
28.14
+0.82 (+3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners37.7%
Inst Owner Change0.47%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap1.57B
Analysts48
Price Target30.94 (9.95%)
Short Float %1.23%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend0.57
Dividend Growth(5Y)21%
DP44.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-2.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 18.75 | ||
| P/S | 2.9 | ||
| P/FCF | 21.78 | ||
| P/OCF | 19.13 | ||
| P/B | 3.28 | ||
| P/tB | 8.88 | ||
| EV/EBITDA | 12.25 |
EPS(TTM)1.47
EY5.22%
EPS(NY)1.5
Fwd EY5.33%
FCF(TTM)1.29
FCFY4.59%
OCF(TTM)1.47
OCFY5.23%
SpS9.7
BVpS8.58
TBVpS3.17
PEG (NY)9.25
PEG (5Y)1.42
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.16 |
F-Score8
WACC8.91%
ROIC/WACC1.44
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)9.7%
EPS 3Y7.3%
EPS 5Y13.51%
EPS Q2Q%2.78%
EPS Next Y2.07%
EPS Next 2Y4.37%
EPS Next 3Y5.14%
EPS Next 5YN/A
Revenue 1Y (TTM)5.41%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%2.59%
Revenue Next Year2.13%
Revenue Next 2Y3.63%
Revenue Next 3Y5.31%
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%