SAPIENS INTERNATIONAL CORP (SPNS) Stock Fundamental Analysis
USA - NASDAQ:SPNS - KYG7T16G1039 - Common Stock
43.02 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
In the past year SPNS was profitable.
In the past year SPNS had a positive cash flow from operations.
In the past 5 years SPNS has always been profitable.
SPNS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPNS has a Return On Assets of 9.24%. This is amongst the best in the industry. SPNS outperforms 83.99% of its industry peers.
Looking at the Return On Equity, with a value of 13.72%, SPNS belongs to the top of the industry, outperforming 80.07% of the companies in the same industry.
SPNS has a better Return On Invested Capital (11.68%) than 88.26% 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 11.98%.
| 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 better Profit Margin (12.45%) than 74.73% 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 81.14% of its industry peers.
In the last couple of years the Operating Margin of SPNS has grown nicely.
Looking at the Gross Margin, with a value of 44.26%, SPNS is doing worse than 71.89% of the companies in the same industry.
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.
The number of shares outstanding for SPNS has been increased compared to 1 year ago.
The number of shares outstanding for SPNS has been increased compared to 5 years ago.
The debt/assets ratio for SPNS has been reduced compared to a year ago.
2.2 Solvency
There is no outstanding debt for SPNS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.29
WACC9.03%
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 45.20% 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.
SPNS has a Quick ratio of 1.37. This is comparable to the rest of the industry: SPNS outperforms 45.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
SPNS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.40%.
The Earnings Per Share has been growing by 13.51% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.08% in the past year.
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
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.67, the valuation of SPNS can be described as expensive.
SPNS's Price/Earnings ratio is a bit cheaper when compared to the industry. SPNS is cheaper than 67.26% of the companies in the same industry.
SPNS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.21, which means the current valuation is very expensive for SPNS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPNS indicates a somewhat cheap valuation: SPNS is cheaper than 65.84% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. SPNS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.67 | ||
| Fwd PE | 27.21 |
4.2 Price Multiples
SPNS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPNS is cheaper than 79.00% 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 69.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.41 | ||
| EV/EBITDA | 22.91 |
4.3 Compensation for Growth
The excellent profitability rating of SPNS 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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 27.57, SPNS pays a better dividend. On top of this SPNS pays more dividend than 93.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SPNS's dividend is way lower than the S&P500 average.
| 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
SPNS pays out 77.85% of its income as dividend. This is not a sustainable payout ratio.
SPNS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP77.85%
EPS Next 2Y3.71%
EPS Next 3Y6.07%
NASDAQ:SPNS (10/6/2025, 12:13:40 PM)
43.02
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners36.99%
Inst Owner Change0%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap2.40B
Analysts46.67
Price Target37.99 (-11.69%)
Short Float %2.27%
Short Ratio0.62
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)0.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.67 | ||
| Fwd PE | 27.21 | ||
| P/S | 4.38 | ||
| P/FCF | 33.41 | ||
| P/OCF | 29.17 | ||
| P/B | 4.83 | ||
| P/tB | 40.65 | ||
| EV/EBITDA | 22.91 |
EPS(TTM)1.45
EY3.37%
EPS(NY)1.58
Fwd EY3.68%
FCF(TTM)1.29
FCFY2.99%
OCF(TTM)1.47
OCFY3.43%
SpS9.82
BVpS8.92
TBVpS1.06
PEG (NY)N/A
PEG (5Y)2.2
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%
ROICexcg growth 3Y-14.08%
ROICexcg 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
WACC9.03%
ROIC/WACC1.29
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%