SAPIENS INTERNATIONAL CORP (SPNS) Stock Fundamental Analysis
USA - NASDAQ:SPNS - KYG7T16G1039 - Common Stock
43.07 USD
-0.03 (-0.07%)
43.07 USD
0 (0%)
SPNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. While SPNS has a great profitability rating, 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.
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.
1.2 Ratios
SPNS has a Return On Assets of 9.24%. This is amongst the best in the industry. SPNS outperforms 84.21% of its industry peers.
With an excellent Return On Equity value of 13.72%, SPNS belongs to the best of the industry, outperforming 80.35% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.68%, SPNS belongs to the top of the industry, outperforming 88.42% 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 11.88%.
| 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's Profit Margin of 12.45% is fine compared to the rest of the industry. SPNS outperforms 74.74% of its industry peers.
In the last couple of years the Profit Margin of SPNS has grown nicely.
SPNS has a Operating Margin of 14.83%. This is amongst the best in the industry. SPNS outperforms 81.40% of its industry peers.
SPNS's Operating Margin has improved in the last couple of years.
The Gross Margin of SPNS (44.26%) is worse than 71.58% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SPNS is creating some value.
SPNS has more shares outstanding than it did 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 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/WACC1.27
WACC9.16%
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.
The Current ratio of SPNS (1.37) is comparable to the rest of the industry.
SPNS has a Quick 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.
Looking at the Quick ratio, with a value of 1.37, SPNS is in line with its industry, outperforming 45.26% 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 has been growing slightly by 1.40% 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.
SPNS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
SPNS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.74% yearly.
EPS 1Y (TTM)1.4%
EPS 3Y7.3%
EPS 5Y13.51%
EPS Q2Q%-8.11%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%3.51%
3.2 Future
SPNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.07% yearly.
Based on estimates for the next years, SPNS will show a small growth in Revenue. The Revenue will grow by 7.22% on average per year.
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
SPNS is valuated quite expensively with a Price/Earnings ratio of 29.70.
Compared to the rest of the industry, the Price/Earnings ratio of SPNS indicates a somewhat cheap valuation: SPNS is cheaper than 67.72% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, SPNS is valued at the same level.
A Price/Forward Earnings ratio of 27.24 indicates a quite expensive valuation of SPNS.
65.96% of the companies in the same industry are more expensive than SPNS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, SPNS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.7 | ||
| Fwd PE | 27.24 |
4.2 Price Multiples
79.30% of the companies in the same industry are more expensive than SPNS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SPNS is valued a bit cheaper than 70.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.45 | ||
| EV/EBITDA | 22.95 |
4.3 Compensation for Growth
SPNS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.2
EPS Next 2Y3.71%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
SPNS has a Yearly Dividend Yield of 1.37%.
SPNS's Dividend Yield is rather good when compared to the industry average which is at 34.34. SPNS pays more dividend than 94.04% 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 2.31.
| 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 been paying a dividend for at least 10 years, so it has 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%
43.07
-0.03 (-0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners36.99%
Inst Owner Change-0.55%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap2.41B
Revenue(TTM)549.04M
Net Income(TTM)68.37M
Analysts46.67
Price Target37.99 (-11.79%)
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 | 29.7 | ||
| Fwd PE | 27.24 | ||
| P/S | 4.38 | ||
| P/FCF | 33.45 | ||
| P/OCF | 29.21 | ||
| P/B | 4.83 | ||
| P/tB | 40.7 | ||
| EV/EBITDA | 22.95 |
EPS(TTM)1.45
EY3.37%
EPS(NY)1.58
Fwd EY3.67%
FCF(TTM)1.29
FCFY2.99%
OCF(TTM)1.47
OCFY3.42%
SpS9.82
BVpS8.92
TBVpS1.06
PEG (NY)N/A
PEG (5Y)2.2
Graham Number17.06
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
WACC9.16%
ROIC/WACC1.27
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)1.4%
EPS 3Y7.3%
EPS 5Y13.51%
EPS Q2Q%-8.11%
EPS Next Y-1.47%
EPS Next 2Y3.71%
EPS Next 3Y6.07%
EPS Next 5YN/A
Revenue 1Y (TTM)3.08%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%3.51%
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 29.7 and the Price/Book (PB) ratio is 4.83.
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.