Share Name Share Symbol Market Type Share ISIN Share Description
Sage Group 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
  -0.20p -0.03% 619.20p 618.80p 619.20p 624.20p 619.20p 621.60p 120,421 09:45:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 1,715.0 342.0 27.8 22.3 6,709.17

Sage Group Share Discussion Threads

Showing 4776 to 4798 of 4800 messages
Chat Pages: 192  191  190  189  188  187  186  185  184  183  182  181  Older
Hi walbrock82, Hmmm what business cycle are you referring to? Sage are just emerging from a period of huge transformation with target growth increasing to 7% for FY18 from 6.3% FY17. The Net Debt stood at £744m at 31 March 2018(31 March 2017: £434m), not close to £1bn, with the increase reflecting an increase in cash spent on acquisitions. Those acquisitions are performing well - so no likelihood of any impairment charge arising IMHO. And even if it did, it would be a non-cash balance sheet write-off against P/L that would reduce the statutory profit and the tax payable. It wouldn't affect cash flow. True, Operating Cash Flow is slightly down against organic growth in H1 due to an increase in working capital. This is what you would expect as a business accelerates its growth. On the other hand the Operating margin has been maintained at an excellent 27% and underlying cash conversion of 99%. As to dividend growth: Sage have a progressive dividend policy and have increased the annual dividend by 8%+ for each of the last three years. Sage is increasing the H1 dividend by 8% - so I don't know what increase you were expecting? They stated in the H1 Q&As that they have no intention to make any further large scale acquisitions - so again,I do not share your concerns. My view FWIW Mr Market appears to be in a very jittery mood and is hammering any Company that reports bad news. Sage have done this twice since January, and on the back of high expectations set at the Capital Markets Day last year. As a consequence the share price has fallen to below 600p from above 800p. IMHO Sage's fundamentals are sound, the transformation will generate accelerating growth and the share price will recover to above 800p in the next 18 months. But as always - no advice intended and please DYOR and happy to discuss your conclusions. Regards, Maddox
I feel the Sage Group£s business cycle is nearing its peak, but I could be wrong. With operating cash margin declining to the lowest since 2009, this isn£t justifying the high 20 times multiple. Add in total borrowing of close to £1bn to purchase a business at 9 times price to sales multiple, twice as high as Sage, it looks like more goodwill impairment is on the way. With £1.9bn, there are a few write-downs for management to implement. My biggest worry is the company£s operating cash flow appears not to grow and have stagnated for seven years. Meanwhile, market valuation is doubled, despite the share price falling by 23%. The rise could be down to bull market. My last concern is the company£s ability to increase their dividends given the high total borrowing and stagnate cash flow. Management may continue increasing their dividend for a few more years, but when they decide to make another large acquisition this could hamper dividend growth. Unfortunately, I wouldn£t feel comfortable investing at Sage Group£s share price at this level, knowing earnings is at single digit growth. For more on Sage, Accsys and Avon, click:
Hi Rock Star, The problems are internal to quote management 'there is no change in the competitive environment' and they are not losing clients to competitors. I'm in for more. Regards, Maddox
As I understand it Sage are suffering a 2 way squeeze from oversea competition and is becoming a higher risk investment.
rock star
It’s difficult to believe that a 1% growth shortfall causes such a reaction. A little early to enter the fray, but definitely on my watch list.
There is an absolute bargain here, not for the faint hearted but the growth in cloud and core stickiness is a major draw. I opened a spread at 550 this morning, at that time a 20% decline in the share price was an over reaction to the 1% revenue growth decline we'd already been made aware of in Jan. Will start to build a investment position here.
Intuit quick books probabaly. Added a few more this morning
Xero taking market share?
rock star
Just having a look at the technical position underlying the fall in Sage's share price - considering the recent RNS' and the declared short positions. There are no declared short positions greater than 0.5% - so the hedge funds are not (to any notifiable extent) selling Sage short. Aviva have declared that they have lent 0.12% of stock - presumably to Evil Knieval to short. Other institutions are holding their stock. So the sell-side looks pretty weak and very vulnerable - should buyers look to take advantage of the price on offer. Also, any seller short of shares will at some point need to buy back in. I'm taking the opportunity to get on the other side of Evil's position before he un-winds. in a tight market for Sage stock (which is the norm) the share price can only go one way. Regards Maddox
Nice of Mr Evil Knievil to generate some liquidity in Sage. It's a damn difficult share to jump onto, particularly if you're a value investor, as it always looks so expensive. This is due to its 'economic moat' - its strong position in the market - reflected in the 16% Return on Capital, 27% Operating Profit Margin. At the current 690p share price you get a nice 2.2% yield (based on historic paid dividends). Hilarious Evils' mention of Microsoft as a competitor - Microsoft Money was no longer sold or supported as an accounting package back in 2009 - see Microsoft is a strategic partner of Sage and they have a global technology agreement involving Azure and Office 365 cloud platform integration. I don't think Mr Evil has done his homework on this one. Regards Maddox
On the long side, Fundsmith have built up a +5% stake. Terry Smith and his sidekick Julian are men who know what they are doing.
Not only that but an awsome tech company with 90+% recurring revenue. Sticky!
Let him, anyone stupid enough to short a share in a well defined uptrend deserves what they get!
Looks like Evil has shorted SGE hTTps://
quite right, and looking back at the 2 yr chart dips like this have always been reversed pretty quickly, so joined in @763 :)
Solid first 1/4 share price reaction the same as previous years
Solid first 1/4 share price reaction the same as previous years
Sage fell out of bed today down c.50p >6% on their Q1 Trading Update. The explanation is that re-training of their sales team has caused a blip in sales momentum. Unfortunately, as they have been setting expectations towards 'accelerated growth' - this was not what Mr Market was looking for and has reacted accordingly. This was clearly not part of the plan - and is on the eve of a Sage Capital Markets Day in London. This I expect to be an up-beat presentation of Sages' plans for world domination of the 'business (accounting) solutions' sector. We'll see whether they can restore confidence in these plans and a quick recovery in the share price after tomorrow. This is not the first time that Sage have caught us out with a weak first quarter - only to then as promised again today - recover the lost ground by the full-year end. Regards, Maddox
Sold out of these today,on the grounds their rating is up with events,hard to turn down a 40% return (including divis),it's a quality outfit which have served me well.Good luck to all holders on here.
contrarian joe
Sage up 22p 3.22% to 705p as I post. Strangely, this appears to be due to a change of heart by UBS analyst Michael Briest that has moved his recommendation to Neutral from Sell, although the price has already shot past his share price target of 680p! Of course, its worth pointing out that anyone following Michael Briest's previous recommendations would have missed out on a 90% share price gain and 103% total return including dividends in under 3 years. And he's still only moved to 'neutral'? Regards Maddox
The Trading Update has some very positive aspects IMHO. Firstly, on the trading update Sage have reconfirmed their guidance for FY 2017 of at least 6% growth and 27% margin. Ok, no change so what? Well what is interesting is that the full year targets are not changing even though they are spending $850m on a fast growing but loss making US Cloud Financial Systems business ‘Intacct’;. One might have expected that this together with the funding costs and other two recent acquisitions might dent the results a tad – but no. Also, the US payments business now being disposed of has provided a further drag on growth. The implications of all this are that growth is accelerating but is being masked by the investments Sage are making. Similarly, whilst not significantly impacting the top-line numbers the new Cloud products are gaining customers and the move to SAAS pricing and service transformation are all proceeding well. This situation is not likely to continue indefinitely at some point quite soon the revenue growth and margin improvements are likely to become clearly visible. When it does the current pause in the share price appreciation will end and a further re-rating is likely. Regards Maddox
A number of 'broker recs.' out today, with the usual wide spread of forecasts. I like GS's, suggesting 860p....
Chat Pages: 192  191  190  189  188  187  186  185  184  183  182  181  Older
Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:42 V: D:20180716 09:00:20