SAPIENS INTERNATIONAL CORP (SPNS)
KYG7T16G1039 - Common Stock
Overall SPNS gets a fundamental rating of 6 out of 10. We evaluated SPNS against 277 industry peers in the Software industry. SPNS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SPNS has a correct valuation and a medium growth rate. These ratings would make SPNS suitable for quality investing!
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.
Each year in the past 5 years SPNS had a positive operating cash flow.
1.2 Ratios
SPNS's Return On Assets of 9.06% is amongst the best of the industry. SPNS outperforms 89.05% of its industry peers.
With an excellent Return On Equity value of 13.97%, SPNS belongs to the best of the industry, outperforming 86.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.85%, SPNS belongs to the top of the industry, outperforming 89.42% 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 10.38%.
The 3 year average ROIC (10.15%) for SPNS is below the current ROIC(11.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 13.97% | ||
| ROIC | 11.85% |
ROA(3y)7.84%
ROA(5y)6.81%
ROE(3y)12.9%
ROE(5y)11.85%
ROIC(3y)10.15%
ROIC(5y)9.14%
1.3 Margins
SPNS's Profit Margin of 12.14% is amongst the best of the industry. SPNS outperforms 82.85% of its industry peers.
In the last couple of years the Profit Margin of SPNS has grown nicely.
SPNS has a better Operating Margin (15.33%) than 86.50% of its industry peers.
SPNS's Operating Margin has improved in the last couple of years.
SPNS has a worse Gross Margin (42.69%) than 71.90% of its industry peers.
SPNS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.33% | ||
| PM (TTM) | 12.14% | ||
| GM | 42.69% |
OM growth 3Y9.25%
OM growth 5Y14.06%
PM growth 3Y11.19%
PM growth 5Y20.56%
GM growth 3Y1.56%
GM growth 5Y2.44%
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.
Compared to 1 year ago, SPNS has more shares outstanding
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 an Altman-Z score of 5.99. This indicates that SPNS is financially healthy and has little risk of bankruptcy at the moment.
SPNS's Altman-Z score of 5.99 is fine compared to the rest of the industry. SPNS outperforms 74.82% of its industry peers.
SPNS has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.85, SPNS is doing good in the industry, outperforming 77.37% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that SPNS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.09, SPNS is in line with its industry, outperforming 56.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 5.99 |
ROIC/WACC1.36
WACC8.72%
2.3 Liquidity
A Current Ratio of 2.11 indicates that SPNS has no problem at all paying its short term obligations.
The Current ratio of SPNS (2.11) is better than 62.41% of its industry peers.
SPNS has a Quick Ratio of 2.11. This indicates that SPNS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.11, SPNS is in the better half of the industry, outperforming 63.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
SPNS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.67%, 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 18.64% yearly.
The Revenue has grown by 8.37% in the past year. This is quite good.
SPNS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.18% yearly.
EPS 1Y (TTM)11.67%
EPS 3Y10.25%
EPS 5Y18.64%
EPS growth Q2Q12.5%
Revenue 1Y (TTM)8.37%
Revenue growth 3Y10.35%
Revenue growth 5Y12.18%
Revenue growth Q2Q9.51%
3.2 Future
Based on estimates for the next years, SPNS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.76% on average per year.
The Revenue is expected to grow by 7.43% on average over the next years.
EPS Next Y9.79%
EPS Next 2Y9.13%
EPS Next 3Y8.76%
EPS Next 5YN/A
Revenue Next Year7.46%
Revenue Next 2Y7.41%
Revenue Next 3Y7.43%
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
With a Price/Earnings ratio of 25.01, SPNS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SPNS indicates a rather cheap valuation: SPNS is cheaper than 82.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.05, SPNS is valued at the same level.
With a Price/Forward Earnings ratio of 22.78, SPNS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SPNS is valued cheaply inside the industry as 80.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.30, SPNS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 22.78 |
4.2 Price Multiples
SPNS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SPNS is cheaper than 88.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SPNS is valued cheaper than 81.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.63 | ||
| EV/EBITDA | 15.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SPNS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)1.34
EPS Next 2Y9.13%
EPS Next 3Y8.76%
5. Dividend
5.1 Amount
SPNS has a Yearly Dividend Yield of 1.78%.
Compared to an average industry Dividend Yield of 11.41, SPNS pays a better dividend. On top of this SPNS pays more dividend than 94.89% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, SPNS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
On average, the dividend of SPNS grows each year by 20.49%, which is quite nice.
SPNS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)20.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SPNS pays out 45.05% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SPNS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.05%
EPS Next 2Y9.13%
EPS Next 3Y8.76%
SAPIENS INTERNATIONAL CORP
NASDAQ:SPNS (5/8/2024, 7:19:49 PM)
After market: 33.52 0 (0%)33.52
+2.14 (+6.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 22.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.56
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 13.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.33% | ||
| PM (TTM) | 12.14% | ||
| GM | 42.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.67%
EPS 3Y10.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.37%
Revenue growth 3Y10.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y