SAPIENS INTERNATIONAL CORP (SPNS) Stock Fundamental Analysis
NASDAQ:SPNS - KYG7T16G1039 - Common Stock
42.77 USD
+0.06 (+0.14%)
42.77 USD
0 (0%)
SPNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. While SPNS belongs to the best of the industry regarding profitability, 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.
SPNS had a positive operating cash flow in the past year.
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 better Return On Assets (9.24%) than 84.81% of its industry peers.
SPNS has a Return On Equity of 13.72%. This is amongst the best in the industry. SPNS outperforms 80.92% of its industry peers.
With an excellent Return On Invested Capital value of 11.68%, SPNS belongs to the best of the industry, outperforming 88.69% 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 11.99%.
| 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
Looking at the Profit Margin, with a value of 12.45%, SPNS is in the better half of the industry, outperforming 75.27% of the companies in the same industry.
SPNS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.83%, SPNS belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
SPNS's Operating Margin has improved in the last couple of years.
SPNS has a worse Gross Margin (44.26%) than 71.38% 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
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
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/WACC1.29
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.37 indicates that SPNS should not have too much problems paying its short term obligations.
SPNS has a Current ratio (1.37) which is in line with its industry peers.
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.
SPNS has a Quick ratio of 1.37. This is comparable to the rest of the industry: SPNS outperforms 45.58% of its industry peers.
| 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.
SPNS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.51% yearly.
The Revenue has been growing slightly by 3.08% in the past year.
Measured over the past years, SPNS shows a quite strong growth in Revenue. The Revenue has been growing by 10.74% on average per year.
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
The Earnings Per Share is expected to grow by 6.07% on average over the next years.
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.
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 29.50, the valuation of SPNS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SPNS indicates a somewhat cheap valuation: SPNS is cheaper than 67.14% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SPNS to the average of the S&P500 Index (27.24), we can say SPNS is valued inline with the index average.
A Price/Forward Earnings ratio of 27.05 indicates a quite expensive valuation of SPNS.
Based on the Price/Forward Earnings ratio, SPNS is valued a bit cheaper than 66.78% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, SPNS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.5 | ||
| Fwd PE | 27.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPNS is valued a bit cheaper than the industry average as 77.39% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SPNS is valued a bit cheaper than the industry average as 69.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.22 | ||
| EV/EBITDA | 22.77 |
4.3 Compensation for Growth
SPNS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.18
EPS Next 2Y3.71%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, SPNS has a reasonable but not impressive dividend return.
SPNS's Dividend Yield is rather good when compared to the industry average which is at 48.70. SPNS pays more dividend than 93.99% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, SPNS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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
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%
42.77
+0.06 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners38.06%
Inst Owner Change-2.48%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap2.39B
Analysts48.89
Price Target37.99 (-11.18%)
Short Float %2.61%
Short Ratio1.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)20.16%
PT rev (3m)22.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.74%
EPS NY rev (1m)0.89%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)1.5%
Revenue NQ rev (3m)6.82%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.5 | ||
| Fwd PE | 27.05 | ||
| P/S | 4.35 | ||
| P/FCF | 33.22 | ||
| P/OCF | 29 | ||
| P/B | 4.8 | ||
| P/tB | 40.42 | ||
| EV/EBITDA | 22.77 |
EPS(TTM)1.45
EY3.39%
EPS(NY)1.58
Fwd EY3.7%
FCF(TTM)1.29
FCFY3.01%
OCF(TTM)1.47
OCFY3.45%
SpS9.82
BVpS8.92
TBVpS1.06
PEG (NY)N/A
PEG (5Y)2.18
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
WACC9.02%
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 Year1.02%
EBIT Next 3Y7%
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%