SAPIENS INTERNATIONAL CORP (SPNS) Stock Fundamental Analysis
NASDAQ:SPNS - Nasdaq - KYG7T16G1039 - Common Stock - Currency: USD
Taking everything into account, SPNS scores 6 out of 10 in our fundamental rating. SPNS was compared to 282 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SPNS was profitable.
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
With an excellent Return On Assets value of 10.19%, SPNS belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.80%, SPNS belongs to the top of the industry, outperforming 82.62% of the companies in the same industry.
SPNS has a Return On Invested Capital of 13.51%. This is amongst the best in the industry. SPNS outperforms 91.13% 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 12.28%.
The 3 year average ROIC (11.66%) for SPNS is below the current ROIC(13.51%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 13.37%, SPNS is doing good in the industry, outperforming 79.43% of the companies in the same industry.
In the last couple of years the Profit Margin of SPNS has grown nicely.
Looking at the Operating Margin, with a value of 15.90%, SPNS belongs to the top of the industry, outperforming 83.69% of the companies in the same industry.
In the last couple of years the Operating Margin of SPNS has grown nicely.
SPNS has a worse Gross Margin (44.32%) than 71.63% 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
Compared to 1 year ago, SPNS has an improved debt to assets ratio.
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 | 0.25 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC9.51%
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 has a Current ratio (1.68) which is comparable to the rest of the industry.
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's Quick ratio of 1.68 is in line compared to the rest of the industry. SPNS outperforms 52.13% of its industry peers.
| 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.
Looking at the last year, SPNS shows a small growth in Revenue. The Revenue has grown by 3.84% in the last 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)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
Based on estimates for the next years, SPNS will show a small growth in Earnings Per Share. The EPS will grow by 4.72% on average per year.
SPNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.02% yearly.
EPS Next Y-1.89%
EPS Next 2Y3.57%
EPS Next 3Y4.72%
EPS Next 5YN/A
Revenue Next Year5.86%
Revenue Next 2Y6.64%
Revenue Next 3Y7.02%
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 19.94 indicates a rather expensive valuation of SPNS.
Based on the Price/Earnings ratio, SPNS is valued cheaper than 80.85% 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 27.30.
With a Price/Forward Earnings ratio of 18.71, SPNS is valued on the expensive side.
80.14% of the companies in the same industry are more expensive than SPNS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SPNS to the average of the S&P500 Index (21.76), we can say SPNS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.94 | ||
| Fwd PE | 18.71 |
4.2 Price Multiples
87.94% of the companies in the same industry are more expensive than SPNS, based on the Enterprise Value to EBITDA ratio.
SPNS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SPNS is cheaper than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.89 | ||
| EV/EBITDA | 13.5 |
4.3 Compensation for Growth
SPNS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y3.57%
EPS Next 3Y4.72%
5. Dividend
5.1 Amount
SPNS has a Yearly Dividend Yield of 1.97%.
SPNS's Dividend Yield is rather good when compared to the industry average which is at 33.28. SPNS pays more dividend than 96.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, SPNS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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 in the last 3 years.
Dividend Growth(5Y)21%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SPNS pays out 43.74% 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.
DP43.74%
EPS Next 2Y3.57%
EPS Next 3Y4.72%
29.51
-0.5 (-1.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners37.96%
Inst Owner Change0%
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap1.65B
Analysts48
Price Target31.62 (7.15%)
Short Float %2.63%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)2.2%
PT rev (3m)2.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.59%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.94 | ||
| Fwd PE | 18.71 | ||
| P/S | 3.03 | ||
| P/FCF | 20.89 | ||
| P/OCF | 18.51 | ||
| P/B | 3.58 | ||
| P/tB | 12.61 | ||
| EV/EBITDA | 13.5 |
EPS(TTM)1.48
EY5.02%
EPS(NY)1.58
Fwd EY5.34%
FCF(TTM)1.41
FCFY4.79%
OCF(TTM)1.59
OCFY5.4%
SpS9.74
BVpS8.24
TBVpS2.34
PEG (NY)N/A
PEG (5Y)1.48
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
WACC9.51%
ROIC/WACC1.42
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-1.89%
EPS Next 2Y3.57%
EPS Next 3Y4.72%
EPS Next 5YN/A
Revenue 1Y (TTM)3.84%
Revenue growth 3Y5.57%
Revenue growth 5Y10.74%
Sales Q2Q%1.38%
Revenue Next Year5.86%
Revenue Next 2Y6.64%
Revenue Next 3Y7.02%
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%