SAPIENS INTERNATIONAL CORP (SPNS) Stock Fundamental Analysis
NASDAQ:SPNS - Nasdaq - KYG7T16G1039 - Common Stock - Currency: USD
Overall SPNS gets a fundamental rating of 6 out of 10. We evaluated SPNS against 284 industry peers in the Software industry. SPNS has an excellent profitability rating, but 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
In the past year SPNS was profitable.
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
The Return On Assets of SPNS (10.19%) is better than 87.32% of its industry peers.
With an excellent Return On Equity value of 15.80%, SPNS belongs to the best of the industry, outperforming 82.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.51%, SPNS belongs to the top of the industry, outperforming 91.20% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPNS is in line with the industry average of 12.33%.
The last Return On Invested Capital (13.51%) for SPNS is above the 3 year average (11.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 15.8% | ||
| ROIC | 13.51% |
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 13.37%. This is in the better half of the industry: SPNS outperforms 79.58% of its industry peers.
SPNS's Profit Margin has improved in the last couple of years.
The Operating Margin of SPNS (15.90%) is better than 83.80% of its industry peers.
SPNS's Operating Margin has improved in the last couple of years.
SPNS's Gross Margin of 44.32% is on the low side compared to the rest of the industry. SPNS is outperformed by 71.13% of its industry peers.
In the last couple of years the Gross Margin of SPNS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.9% | ||
| PM (TTM) | 13.37% | ||
| GM | 44.32% |
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
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.
Compared to 5 years ago, SPNS has more shares outstanding
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 | 0.25 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC9.4%
2.3 Liquidity
SPNS has a Current Ratio of 1.68. This is a normal value and indicates that SPNS is financially healthy and should not expect problems in meeting its short term obligations.
SPNS's Current ratio of 1.68 is in line compared to the rest of the industry. SPNS outperforms 51.76% of its industry peers.
SPNS has a Quick Ratio of 1.68. This is a normal value and indicates that SPNS is financially healthy and should not expect problems in meeting its short term obligations.
SPNS has a Quick ratio (1.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.47% over the past 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 3.84%.
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)3.84%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%1.38%
3.2 Future
The Earnings Per Share is expected to grow by 4.30% on average over the next years.
SPNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.96% yearly.
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.
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 rather expensively with a Price/Earnings ratio of 19.26.
80.63% of the companies in the same industry are more expensive than SPNS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.57. SPNS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.08, which indicates a rather expensive current valuation of SPNS.
Based on the Price/Forward Earnings ratio, SPNS is valued a bit cheaper than 77.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.41. SPNS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 18.08 |
4.2 Price Multiples
88.03% 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 cheaper than 82.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.18 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The excellent profitability rating of SPNS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.43
EPS Next 2Y3.57%
EPS Next 3Y4.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, SPNS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 16.42, SPNS pays a better dividend. On top of this SPNS pays more dividend than 96.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SPNS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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.
The dividend of SPNS decreased in the last 3 years.
Dividend Growth(5Y)21%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
43.74% 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.
DP43.74%
EPS Next 2Y3.57%
EPS Next 3Y4.3%
28.51
+0.57 (+2.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners37.96%
Inst Owner Change1.94%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap1.59B
Analysts48
Price Target31.96 (12.1%)
Short Float %2.73%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend0.57
Dividend Growth(5Y)21%
DP43.74%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.36%
Min EPS beat(2)0.43%
Max EPS beat(2)2.3%
EPS beat(4)3
Avg EPS beat(4)-0.09%
Min EPS beat(4)-3.53%
Max EPS beat(4)2.3%
EPS beat(8)6
Avg EPS beat(8)0.76%
EPS beat(12)7
Avg EPS beat(12)-0.41%
EPS beat(16)11
Avg EPS beat(16)1.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)-1.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.95%
Min Revenue beat(4)-4.1%
Max Revenue beat(4)-1.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.14%
Revenue beat(12)1
Avg Revenue beat(12)-2.32%
Revenue beat(16)1
Avg Revenue beat(16)-2.18%
PT rev (1m)3.3%
PT rev (3m)3.3%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-12.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.61%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 18.08 | ||
| P/S | 2.93 | ||
| P/FCF | 20.18 | ||
| P/OCF | 17.89 | ||
| P/B | 3.46 | ||
| P/tB | 12.18 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)1.48
EY5.19%
EPS(NY)1.58
Fwd EY5.53%
FCF(TTM)1.41
FCFY4.96%
OCF(TTM)1.59
OCFY5.59%
SpS9.74
BVpS8.24
TBVpS2.34
PEG (NY)N/A
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 15.8% | ||
| ROCE | 16.67% | ||
| ROIC | 13.51% | ||
| ROICexc | 22.38% | ||
| ROICexgc | N/A | ||
| OM | 15.9% | ||
| PM (TTM) | 13.37% | ||
| GM | 44.32% | ||
| FCFM | 14.51% |
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-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 52.55% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.2% | ||
| Profit Quality | 108.52% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | N/A |
F-Score6
WACC9.4%
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)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)3.84%
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 1Y7.47%
EBIT growth 3Y14.29%
EBIT growth 5Y17.77%
EBIT Next Year2.39%
EBIT Next 3Y6.67%
EBIT Next 5YN/A
FCF growth 1Y106.15%
FCF growth 3Y1.68%
FCF growth 5Y8.06%
OCF growth 1Y87.01%
OCF growth 3Y0.69%
OCF growth 5Y4.44%