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SGE Sage Group Plc

1,265.50
2.00 (0.16%)
28 Mar 2024 - Closed
Delayed by 15 minutes

Dividends

Announcement Date Type Currency Amount Ex-Dividend Date Record Date Payment
22/11/2023 Dividend income or Cash Dividend GBP 0.1275 11/1/2024 12/1/2024 09/2/2024
17/5/2023 Dividend income or Cash Dividend GBP 0.0655 01/6/2023 02/6/2023 23/6/2023
16/11/2022 Dividend income or Cash Dividend GBP 0.121 12/1/2023 13/1/2023 10/2/2023
13/5/2022 Dividend income or Cash Dividend GBP 0.063 26/5/2022 27/5/2022 17/6/2022
17/11/2021 Dividend income or Cash Dividend GBP 0.1163 13/1/2022 14/1/2022 10/2/2022
20/11/2020 Dividend income or Cash Dividend GBP 0.1132 14/1/2021 15/1/2021 11/2/2021
04/12/2019 Dividend income or Cash Dividend GBP 0.0593 21/5/2020 22/5/2020 12/6/2020
20/11/2019 Dividend income or Cash Dividend GBP 0.1112 06/2/2020 07/2/2020 02/3/2020
- Dividend income or Cash Dividend GBP 0.1112 05/2/2020 07/2/2020 02/3/2020
17/5/2019 Dividend income or Cash Dividend GBP 0.0579 30/5/2019 31/5/2019 14/6/2019
- Dividend income or Cash Dividend GBP 0.0579 29/5/2019 31/5/2019 14/6/2019
Dividends data is taken only from official company reports.

Top Dividend Posts

Top Posts
Posted at 25/3/2024 17:59 by maddox
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)!
Posted at 06/12/2023 10:12 by maddox
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.
Posted at 22/11/2023 12:17 by maddox
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.
Posted at 22/11/2023 08:48 by maddox
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.
Posted at 06/9/2023 16:04 by maddox
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).
Posted at 09/8/2023 12:56 by maddox
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.
Posted at 27/7/2023 10:28 by maddox
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
Posted at 19/7/2023 09:27 by maddox
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.
Posted at 17/5/2023 23:07 by maddox
Hi justiceforthemany,

Nop not cheap. If your looking for cheap - SGE is never 'cheap'.

However, that doesn't make SGE a bad investment - if growth accelerates and its margins widen, as appears to be occurring, then it might be very good value at 842.8p (up 21.8p 2.66% today from 821p).

My assessment is that SGE's painful transition is largely complete and they'll deliver the promised sustained double digit growth, that with widening margins, will propel the earnings per share forward and will throw off cash. If this occurs 842p will look cheap looking back and deserving of its premium rating.

Looking forward to see how the next few results go - that should confirm the growth trajectory or not.
Posted at 19/4/2023 06:48 by maddox
Much talk about the valuation anomaly between US and UK.

Looking at a side-by-side of SGE 797p versus Intuit Inc (Quick Books) $442.59. In the UK SGE is considered highly valued on a p/e of 25 whereas Intuit is on an eye-watering p/e 64. Similarly, SGE is priced at 4.15x revenue versus 9x for Intuit.

If SGE was valued on INTU's p/e the share price would be 2040p or 1800p on INTU's revenue multiple.

I note that Terry Smith's Fundsmith has sold-out of INTU - he disapproves of their accounting treatment of Share-based remuneration and thinks that they have overpaid for Mailchimp. Intuit paid 12x revenue!

So, UK 'highly valued' firms look extremely cheap from a US perspective.

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