SAPIENS INTERNATIONAL CORP (SPNS) Stock Fundamental Analysis
NASDAQ:SPNS - Nasdaq - KYG7T16G1039 - Common Stock - Currency: USD
SPNS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. Both the health and profitability get an excellent rating, making SPNS a very profitable company, without any liquidiy or solvency issues. SPNS has a correct valuation and a medium 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 better Return On Assets (10.43%) than 86.57% of its industry peers.
SPNS has a Return On Equity of 15.05%. This is amongst the best in the industry. SPNS outperforms 81.63% of its industry peers.
SPNS has a Return On Invested Capital of 12.83%. This is amongst the best in the industry. SPNS outperforms 90.81% 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 12.21%.
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
Looking at the Profit Margin, with a value of 13.31%, SPNS is in the better half of the industry, outperforming 78.45% of the companies in the same industry.
SPNS's Profit Margin has improved in the last couple of years.
SPNS has a better Operating Margin (15.83%) than 83.39% 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 72.79% of its industry peers.
SPNS's Gross Margin has improved in the last couple of years.
| 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.
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
An Altman-Z score of 6.24 indicates that SPNS is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPNS (6.24) is better than 73.85% 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.
The Debt to FCF ratio of SPNS (0.55) is better than 77.03% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that SPNS is not too dependend on debt financing.
SPNS has a Debt to Equity ratio of 0.04. This is comparable to the rest of the industry: SPNS outperforms 59.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 6.24 |
ROIC/WACC1.43
WACC8.98%
2.3 Liquidity
A Current Ratio of 2.24 indicates that SPNS has no problem at all paying its short term obligations.
SPNS's Current ratio of 2.24 is fine compared to the rest of the industry. SPNS outperforms 65.72% of its industry peers.
A Quick Ratio of 2.24 indicates that SPNS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.24, SPNS is in the better half of the industry, outperforming 66.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.47% 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.
The Revenue has been growing slightly by 5.40% in the past year.
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)5.4%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%1.38%
3.2 Future
SPNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.30% yearly.
Based on estimates for the next years, SPNS will show a small growth in Revenue. The Revenue will grow by 5.96% on average per year.
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.
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
A Price/Earnings ratio of 18.66 indicates a rather expensive valuation of SPNS.
SPNS's Price/Earnings ratio is rather cheap when compared to the industry. SPNS is cheaper than 80.57% of the companies in the same industry.
SPNS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 17.51 indicates a rather expensive valuation of SPNS.
Based on the Price/Forward Earnings ratio, SPNS is valued a bit cheaper than 78.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SPNS to the average of the S&P500 Index (21.85), we can say SPNS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.66 | ||
| Fwd PE | 17.51 |
4.2 Price Multiples
SPNS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SPNS is cheaper than 89.75% 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 79.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.37 | ||
| EV/EBITDA | 12.51 |
4.3 Compensation for Growth
The excellent profitability rating of SPNS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y3.57%
EPS Next 3Y4.3%
5. Dividend
5.1 Amount
SPNS has a Yearly Dividend Yield of 2.07%.
Compared to an average industry Dividend Yield of 14.14, SPNS pays a better dividend. On top of this SPNS pays more dividend than 96.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SPNS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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 2Y3.57%
EPS Next 3Y4.3%
27.61
-0.19 (-0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners37.7%
Inst Owner Change3.1%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap1.54B
Analysts48
Price Target30.94 (12.06%)
Short Float %1.25%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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)-1.83%
EPS NY rev (1m)-3.2%
EPS NY rev (3m)-4.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)2.92%
Revenue NY rev (3m)2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.66 | ||
| Fwd PE | 17.51 | ||
| P/S | 2.85 | ||
| P/FCF | 21.37 | ||
| P/OCF | 18.77 | ||
| P/B | 3.22 | ||
| P/tB | 8.71 | ||
| EV/EBITDA | 12.51 |
EPS(TTM)1.48
EY5.36%
EPS(NY)1.58
Fwd EY5.71%
FCF(TTM)1.29
FCFY4.68%
OCF(TTM)1.47
OCFY5.33%
SpS9.7
BVpS8.58
TBVpS3.17
PEG (NY)N/A
PEG (5Y)1.38
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 | 6.24 |
F-Score8
WACC8.98%
ROIC/WACC1.43
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)5.4%
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 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%