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SGE Sage Group Plc

1,262.50
-1.00 (-0.08%)
Last Updated: 13:35:33
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Sage Group Plc LSE:SGE London Ordinary Share GB00B8C3BL03 ORD 1 4/77P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -1.00 -0.08% 1,262.50 1,262.00 1,263.00 1,267.00 1,249.50 1,267.00 282,116 13:35:33
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Prepackaged Software 2.18B 211M 0.2059 61.22 12.92B
Sage Group Plc is listed in the Prepackaged Software sector of the London Stock Exchange with ticker SGE. The last closing price for Sage was 1,263.50p. Over the last year, Sage shares have traded in a share price range of 742.20p to 1,285.00p.

Sage currently has 1,024,647,151 shares in issue. The market capitalisation of Sage is £12.92 billion. Sage has a price to earnings ratio (PE ratio) of 61.22.

Sage Share Discussion Threads

Showing 5176 to 5200 of 5200 messages
Chat Pages: 208  207  206  205  204  203  202  201  200  199  198  197  Older
DateSubjectAuthorDiscuss
25/3/2024
17:59
Most of the Brokers have been well off the pace with Sage, even when they moved to a buy rating the share price target has significantly lagged Mr Market - even in a risk-off market environment. So, the current consensus spt is 1168p - c.8% below today's close. I think Mr Market is backing SGE to achieve its ambition to be a 'Rule of 40' SaaS firm and justify a premium rating.

Whilst arguably SGE is looking expensive on a fwd p/e of 33 - but not excessively so if you see Intuit is on a p/e 65 or Xero on 1,250(Morning Star figs)!

maddox
25/3/2024
09:39
You've got to love an analyst! Having interacted with them, I understand that the job is more than having perfect ratings in real-time for every stock and that buy/sell/hold etc are not for instant trade instructions, but optically they look daft. They also don't get fired on the basis of poor ratings.

I don't know what was written in Socgen's note - maybe it included a huge mea culpa, but I doubt it - but for the uninitiated they might ask what has happened to the stock that you told me not to go near and that you now tell me not to buy, other than the share price rising?
I presume Barclays are still sellers per my post above.
Truly, they all hate Sage.

1968jon
25/3/2024
08:12
*SOCGEN RAISES SAGE GROUP TO 'HOLD' (SELL) - PRICE TARGET 1303 (922) PENCE
bigbigdave
22/1/2024
10:34
You see, I thought they were perfectly decent numbers, but the market clearly needs better than decent to justify a further rise. It is sometime since I have had access to IB research but I see that Barclays have run the numbers again and today go underweight and lower their price target to £9.85. Does anyone have a summary of their thesis?
1968jon
18/1/2024
09:26
Q1 Trading Update - strong start to the FY24 and full year guidance is reaffirmed. Strong ARR growth continuing the performance exiting last year (11%) and margin increase expected of 0.8%.

SGE's SME market is proving resilient in the light of the macro-economic back-drop. This is borne out by the revenue growth in key drivers:

'Sage Business Cloud revenue increased by 18% to £454m, driven by growth in cloud native revenue of 25% to £174m (Q1 23: £140m) primarily through new customer acquisition, and by growth in cloud connected revenue from both existing and new customers.'

As the Sage Business Cloud Native products become more dominant in the product mix we should see the overall revenue (at 10% for 1Q24) trend towards the higher growth rate (25% for Cloud Native in 1Q24).

maddox
06/12/2023
10:12
Very impressed by the share price resilience. The shares jumped up 14% on the results and has powered on further rather than dropping back. Clearly the share buy-backs will be supportive but I suspect the steady rise from March took out any weak holders - so buying activity is not finding ready sellers.

We've seen some more Broker upgrades, Bank of America share price target 1300p, Citi 1300p, JPM 1250p, but Canaccord amend to Sell and 970p spt.

Overall, SGE at 1145p as I post is above the 1124p Brokers Consensus and 53% up so far in the calendar year. I wonder where we'll be if SGE become fashionable?

Well done all holders.

maddox
23/11/2023
12:54
I am not saying the share price should be higher and I know some houses now have a target materially above spot and I have a very low opinion of analysts generally, but as evidence that this stock is still nowhere near fashionable, I give you Barclays and Deutsche raising their targets to £10.50 and £11 post-numbers yesterday.
1968jon
22/11/2023
12:48
Clearly a bonkers but welcome move this morning. I have little faith in analysts' assessments of this stock but at least JPM, who were ahead of the curve, have raised their target to £12.50 today. Shore cap (I know, I know, slightly different calibre of firm than JPM) will be pleased they went from buy to hold on Friday.
1968jon
22/11/2023
12:17
Yep, we've blasted through the Brokers' Consensus share price target of 1016p. As I post we're at 1128.5p up 131.3p (13%). The Brokers have been way behind Mr Market on SGE - they don't appear able to shake-off their previous perceptions of SGE as an old on-premise perpetual licence underperformer.

Interesting reaction - Mr Market has recently not responded to good results. Perhaps market sentiment is changing? Let's see how much of this gain is retained.

maddox
22/11/2023
11:23
I think it's fair to say the market likes those results. :-))
nhb001
22/11/2023
08:48
Excellent results - the transformation is now clear to anyone that cares to look. The share price has run-up in advance but it looks like these results are good enough to justify the valuation. Against a pretty grim market back drop it's very pleasing to see the performance SGE is achieving.

Highlights
>> Underlying recurring revenue increased by 12% to £2,096m;
>> Margin increasing by 140 bps to 20.9% (constant currency);
>> Underlying basic EPS increased by 22% to 32.3p;
>> Cash conversion of 116%;
>> Final dividend of 12.75p, increasing the full year dividend by 5% to 19.3p;
>> Share buyback programme of up to £350m announced.

SGE have a clear winner with SGE Intacct and are aggressively rolling out geographically as well as investing in developing tailored versions for specific market verticals - for manufacturing, construction etc.

The successful transformation to a SaaS business is clear in the metrics:

>> Renewal rate by value of 102% (FY22: 101%), ahead of last year driven by more sales to existing customers and retention.
>> Sage Business Cloud penetration of 84% (FY22: 75%);
>> Subscription penetration of 79% (FY22: 75%).

Really good to see this strong underpinning that is hugely attractive.

With high quality recurring revenue; evident pricing power; growing operating margins; generating surplus cash and new customer acquisition growth - these are very impressive results.

maddox
09/9/2023
10:00
Then select download pdf

(Available without subscription)

mellorscarthwaite
07/9/2023
10:21
Thanks BH - it looks like Advfn are disallowing sharing the live link.

Looks like we've broken through 1000p this morning.

maddox
06/9/2023
20:02
Thanks bh for sharing that link. Nice to see the reason for the surge today. It seems that a general consensus is forming that Sage now has the market leading product in Intacct. They bought Intacct way back in 2017 and it's taken an age to get to this point but it seems as if they are about to reap the rewards.
nhb001
06/9/2023
17:50
Maddox - thanks for the pointer - not perfect but this is the link, just cut and paste into a browser to access it..

Sharecast.com/news/broker-recommendations-/broker-tips-sage-bm-darktrace--14609134.html

bountyhunter
06/9/2023
16:04
Hi Jon,

Welcome aboard. Yes, Sage have suffered from an image problem - which once formed in people's minds - is very difficult to change. Admittedly the SaaS and Cloud transitions has been a long-haul as has exiting country business units, old products and business lines (payment acquisition). But opinions on SGE are changing and that is clearly being reflected in the share price.

As JPM point out SGE Intacct is an important growth engine - it's been a big success in the US market - and this growth should accelerate as it rolls out to other geographies.

(Closed 990.40p +17.40 +1.79% new 52wk closing high).

maddox
06/9/2023
14:35
I own a bloody great chunk of these but have not been on here as I had not seen recent posts before. I will not be a frequent poster but possibly join in occasionally.
My take, having owned them and been very aware of them for a good few years. Goodness me they are not/have not been seen as cool/exciting by the city for forever. Possibly (definitely) viewed as a bit parochial and old school with a sniffiness about their ability to transition from legacy stuff to the cloud.
I have hoped that these notions would eventually change. Who knows what price they should be and I note some posters comments on their considered high P/E ratio. Equally the comments referencing the valuation of Intuit.
Talking my book, I am more interested in their EV/EBITDA ratio at about 20x. European private equity accounting software/SAAS companies are sometimes/often marked at 30+x.
Doesn't mean that is where they should be but I would be surprised if during the dog days of 2022 some large shops were not looking at a takeout. Pay a 20/30% per share premium and have an instant 50% uplift on the new NAV mark.
It would be a mega deal now and I have no insight but either some marks have to come down or their share price can continue to rally (I hope)

1968jon
06/9/2023
11:46
Sharecast report

'JP Morgan has placed Sage on its "positive catalyst watch" ahead of the accounting software group's fourth-quarter results in November, where it expects to see solid growth with its cloud finance offering Intacct.

The bank reiterated its 'overweight' rating on the stock with a 1,100p target price.'

[...] [Unfortunately the pasted link is edited out]

maddox
29/8/2023
16:22
Another strong day - hit 974p before closing at yet another High 972p on above average volume. It'd be nice to see an RNS to see who's accumulating.
maddox
27/8/2023
22:59
Agreed Wad, It's been hitting repeated highs - that against this market backdrop is very positive. Somewhat perplexing is that the Brokers Analyst consensus share price target is 963.85p which we've already exceeded with an intra-day high of 665.60p. So, whilst the Brokers' consensus has now moved overwhelmingly to Buy/Strong Buy they are keeping their share price targets low.
maddox
27/8/2023
13:58
Nice to see something in my portfolio that is at an ATH. Stands alone in mine!
Sadly didn't buy enough.

wad collector
10/8/2023
15:39
That's a nice article. Thanks for posting Maddox.
nhb001
09/8/2023
12:56
Positive write-up in Investors Chronicle:



Comments positively on recent trading and growth in recurring revenue. Picks-out the success of Intacct especially in North America and Peel Hunt sees this as the main driver as it rolls-out Intacct into Europe. Mentions that investors are now seeing the value in SGE driving the valuation upto a p/e 27 - describes this as reaching the level of US peers [hardly - Intuit is on a p/e 63!].

Sage would be on a price of 2216p if rated similarly to Intuit.

maddox
27/7/2023
10:28
Q3 nine month update today. Growth is continuing and on-track for FY23 of 10% growth overall. No impact seen from macro-economic factors - interest rates/inflation.
The renewal rate is 101% consistent with past 18 months indicating a stable competitive environment.

Looking beneath the headline numbers - there are some positive growth drivers building momentum. Intacct US growth 30% and >40% in new territories - albeit from a low base. The launch in Europe has started well and I note Q3 growth was 7% up from 3% at 1H. The Sage Business Cloud organic growth at 28%.

Margins are targeted to rise - with 20.8% for FY23 and to continue widening thereafter. The aim is for SGE to be a 'Rule of 40' SaaS business.

In recent years, Rule of 40 has gained widespread usage as a yard-stick target measure of growth by investors in SaaS firms, first coined by Brad Feld. The Rule of 40 states that if a company's revenue growth rate is added to its profit margin, the total should exceed 40%. No breakdown offered on the mix today - and it'd be very interesting to know what their thoughts are?

The rationale is ofc that a SaaS Rule of 40 firm will command a premium rating, but again not stated, and on a p/e of 27 as mentioned above SGE is already considered highly valued in the context of the UK market.

Post script: Mr Market liked the results - new high 951p

maddox
19/7/2023
09:27
To put this undervaluation into context. In the UK SGE is considered highly valued on a p/e 27, however, Intuit (QuickBooks)is on a p/e 62.79 and Xero a p/e of 133.

If Sage was on a p/e similar to Intuit - it's share price would be over £20. Obviously, I'm not suggesting that SGE will valued on a similar p/e to Intuit or Xero anytime soon - it's far more likely that they will come more into line with SGE - particularly if they disappoint.

maddox
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