# The Sage Group plc (SGE.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / Software. Price 1033p, market value 9.3 billionp.

## Valuation
- **P/E (trailing): 25.8×** (5-yr avg 3325.6×, 3-yr avg 3704.9×). The Sage Group plc trades at 25.8× trailing earnings, well below its own five-year average of 3325.6×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 17.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.15**. A PEG of 1.15 is in the range usually read as fairly priced for its growth.
- **Price / sales: 1.8×**. Each dollar of revenue is priced at 1.8×.
- **Price / book: 43.4×**. The shares trade at 43.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 8.3×**. Enterprise value is 8.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 9.6%** (5-yr avg 0.0%). Free cash flow equals 9.6% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.9%**. The inverse of the P/E: 3.9% of the price is earned each year.

## Profitability
- **Gross margin: 89.0%**. The Sage Group plc keeps 89.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 22.1%**. 22.1% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.7%**. 14.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 51.2%**. A 51.2% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 44.2%**. Return on all capital, debt included, is 44.2%: comfortably above what that capital costs.
- **Return on assets: 19.7%**. Each dollar of assets produces 19.7% of profit.

## Growth
- **Revenue growth (1 yr): 7.8%** (3-yr 8.8%/yr, 5-yr 5.7%/yr). Revenue grew 7.8% over the last year, against 5.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 15.6%** (3-yr 14.0%/yr, 5-yr 5.7%/yr). Earnings per share rose 15.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 28.6%/yr**. Free cash flow has compounded at 28.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 2.19**. Debt is 2.19 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.9×**. It would take 0.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 9.6×**. Operating profit covers interest 9.6× over, a safe margin.
- **Current ratio: 0.60** (quick 0.60). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 3.13**. A Z-score of 3.13 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.17%** (0p per share, trailing). The Sage Group plc yields 2.17%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 56%** (39% of free cash flow). 56% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 11**. 11 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 4.2%/yr** (1-yr 6.3%). The dividend has grown 4.2% a year over five years.
- **Shareholder yield: 11.8%**. Dividends plus net buybacks return 11.8% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (18 analysts). 18 analysts cover The Sage Group plc; the consensus is buy, with an average price target of 1120p (+8% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -3.9%** (YTD -3.7%, 3-mo 20.9%). The shares are down 3.9% over twelve months including dividends.
- **From 52-week high: -12.5%** (33.9% above the low). Trading 13% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.06** (volatility 32%). Beta of 0.06 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SGE.L · Page: https://foliofundamentals.com/stocks/sge.l

Not investment advice.