| Sage Group PLC (GB00B8C3BL03) | |||
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| 20.04.25 08:01:07 | Calculating The Fair Value Of The Sage Group plc (LON:SGE) |  |
| Key Insights Sage Group's estimated fair value is UK£10.95 based on 2 Stage Free Cash Flow to Equity Sage Group's UK£11.72 share price indicates it is trading at similar levels as its fair value estimate Our fair value estimate is 19% lower than Sage Group's analyst price target of UK£13.46 How far off is The Sage Group plc (LON:SGE) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The Method We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£497.6m UK£554.6m UK£626.9m UK£710.5m UK£727.8m UK£744.1m UK£761.0m UK£778.3m UK£796.0m UK£814.2m Growth Rate Estimate Source Analyst x9 Analyst x9 Analyst x4 Analyst x2 Analyst x1 Est @ 2.24% Est @ 2.26% Est @ 2.27% Est @ 2.28% Est @ 2.29% Present Value (£, Millions) Discounted @ 8.4% UK£459 UK£472 UK£492 UK£515 UK£487 UK£459 UK£433 UK£409 UK£386 UK£364 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = UK£4.5b Story Continues We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£814m× (1 + 2.3%) ÷ (8.4%– 2.3%) = UK£14b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£14b÷ ( 1 + 8.4%)10= UK£6.1b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is UK£11b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of UK£11.7, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.LSE:SGE Discounted Cash Flow April 20th 2025 Important Assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Sage Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 1.187. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Sage Group SWOT Analysis for Sage Group Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Software market. Opportunity Annual revenue is forecast to grow faster than the British market. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Annual earnings are forecast to grow slower than the British market. Next Steps: Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Sage Group, we've compiled three additional factors you should further examine: Risks: For example, we've discovered 2 warning signs for Sage Group that you should be aware of before investing here. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for SGE's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 27.03.25 07:51:50 | UK's Sage Group says Cartin to replace Howell as CFO next year |  |
| (Reuters) - British software firm Sage Group named Jacqui Cartin as its new chief financial officer on Thursday, succeeding Jonathan Howell, who will leave on December 31. Cartin, currently the company's executive vice president group financial controller, will take over as CFO in January 2026. Howell, who assumed the CFO role in 2018, will step down to focus on non-executive work. During Howell's tenure, the company's stock price has more than doubled. Sage, benefiting from a surging demand for artificial intelligence, had previously forecast organic revenue growth of 9% or more for the year ending September. (Reporting by Raechel Thankam Job; Editing by Rashmi Aich and Savio D'Souza) View Comments |
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| 14.02.25 08:08:37 | Returns On Capital At Sage Group (LON:SGE) Have Stalled | |
| To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at Sage Group (LON:SGE), they do have a high ROCE, but we weren't exactly elated from how returns are trending. Return On Capital Employed (ROCE): What Is It? Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Sage Group is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.20 = UK£481m ÷ (UK£3.6b - UK£1.2b) (Based on the trailing twelve months to September 2024). Thus, Sage Group has an ROCE of 20%. In absolute terms that's a great return and it's even better than the Software industry average of 10%. See our latest analysis for Sage Group LSE:SGE Return on Capital Employed February 14th 2025 Above you can see how the current ROCE for Sage Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our freeanalyst report for Sage Group . What The Trend Of ROCE Can Tell Us Things have been pretty stable at Sage Group, with its capital employed and returns on that capital staying somewhat the same for the last five years. It's not uncommon to see this when looking at a mature and stable business that isn't re-investing its earnings because it has likely passed that phase of the business cycle. So while the current operations are delivering respectable returns, unless capital employed increases we'd be hard-pressed to believe it's a multi-bagger going forward. With fewer investment opportunities, it makes sense that Sage Group has been paying out a decent 45% of its earnings to shareholders. Unless businesses have highly compelling growth opportunities, they'll typically return some money to shareholders. Our Take On Sage Group's ROCE While Sage Group has impressive profitability from its capital, it isn't increasing that amount of capital. Although the market must be expecting these trends to improve because the stock has gained 89% over the last five years. However, unless these underlying trends turn more positive, we wouldn't get our hopes up too high. Story Continues Sage Group does have some risks though, and we've spotted 2 warning signs for Sage Group that you might be interested in. High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 13.02.25 14:57:00 | Less Manual Work, More Financial Control – Sage Intacct Further Advances AI for Finance Teams | |
| Sage From Faster Month-End Close to Smarter Decision-Making, Finance Teams Gain Trusted Insights Instantly with Sage Copilot AI-Powered Purchasing with Sage AP Automation Eliminates Manual Tasks, Reduces Errors, and Enhances Financial Oversight ATLANTA, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Sage, the leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), today announced new innovative AI-driven tools and automation features for Sage Intacct. These latest enhancements help finance teams save time, get trusted insights faster, and focus on growth by simplifying compliance, enhancing decision-making, and improving operational efficiency. Introduced into Sage Intacct in December 2024, Sage Copilot, a generative AI-assistant for accounting, has rapidly evolved with direct feedback from customers* to deliver new AI-driven capabilities that enable finance teams to streamline critical workflows and improve month-end close efficiency. Now with features like Search Help, Variance Analysis and Close Assistant, Sage Copilot reduces administrative burdens, provides real-time insights, and simplifies financial management. With AI-powered analysis and proactive alerts, finance professionals save time, budget owners gain real-time spending insights, and accounting teams close the books more accurately and confidently. “The automation and AI-driven insights from Sage Intacct have allowed us to cut processing times in half and significantly reduce manual errors,” said Christian Mulvihill, CFO at Greenidge Generation Holdings. “Beyond saving time and money, these tools have enhanced the accuracy and reliability of our financial data, enabling greater collaboration across teams and more confident decision-making. It’s transformed how we operate and plan for the future.” Simplify Finance with AI and Automation According to Sage's report "AI: The opportunity for CFOs", 86% of finance leaders have already incorporated AI into their operations, but only 49% use specialised AI solutions designed explicitly for finance. Despite this, more than three-quarters (77%) of finance leaders recognize AI as a partner that enhances job satisfaction and enables more strategic operations. "Applying AI in a way that drives real impact can be challenging for many SMBs, but these latest enhancements demonstrate how it can deliver tangible results,” said Susan Vincent, Managing Director, Baker Tilly. “As a Sage partner, these advancements help our customers gain real value while driving our growth, strengthening customer relationships, and positioning us as trusted advisors in a competitive market.” To address the increasing complexity of financial operations — where manual processes and data silos can slow decision-making, Sage is also expanding automation with the latest enhancements, including AP Automation with Purchasing. This helps finance teams reduce manual effort, improve accuracy, and gain contextual insights. With organizations already processing more than 24 million invoices, valued at over $10 billion and saving them 3-million hours, these latest advancements allow them to further focus on strategic goals, streamline complex workflows, and eliminate the bottlenecks. "In speaking with customers daily, it's clear that time is their most valuable commodity," said Dan Miller, EVP Financials and ERP Division at Sage. "It isn't just about driving more efficiency, it's about giving them space to focus on moving their business forward and driving growth and these latest updates are about putting more time in their hands. By helping them to save hours during the month-end while providing faster insight into business performance, they can make confident, data-driven decisions that propel their businesses forward." Sage Intacct Release 1 2025 Enhancements Include: Story Continues Sage Copilot Search Help: Bringing instant, conversational answers to finance teams, Sage Copilot’s generative AI-powered search enables quick and precise answers to how-to questions. With natural language understanding, Sage Copilot interprets complex queries, understands Intacct-specific terminology, and delivers useful answers fast. Availability: General availability with phased rollout to existing customers in UK & US Sage Copilot Variance Analysis: Now generally available, Sage Copilot Variance Analysis provides accounting and budget owners with real-time insights into budget variances. It uncovers spending issues and potential inaccuracies throughout the month— without having to wait for the close. Budget owners receive variances with easy-to-consume graphs and natural language descriptions of drivers of the variances. It also saves accounting teams from needing to compile and distribute variances, freeing them for higher value tasks. Availability: General availability with phased rollout to existing customers in UK & US Sage Copilot Close Assistant: Offering an at-a-glance view of month-end close progress, Close Assistant provides real-time visibility into key close status across entities and subledgers, identifies incomplete tasks, simplifies navigation, and keeps everyone aligned throughout the close process. Availability: Early Adopter in UK & US AP Automation with Purchasing: Helping to reduce hours spent manually matching POs to invoices with scalable policies and automation, this extension helps finance teams manage all accounts payable and purchasing tasks in one unified platform. Eliminating the need to switch between multiple systems, AP Automation with Purchasing leverages AI and machine learning to ensure invoices are automatically matched to purchase orders, reducing errors and manual effort. Availability: In all regions Clinical eProcurement: Enhancing procurement workflows for large healthcare organizations with vendor punchout technology, this latest addition to Sage Intacct improves spend management and ensures compliance with procurement policies. Availability: US from March Revenue Management Enhancements: Simplifying compliance with ASC 606 and IFRS 15 standards, Sage Intacct Revenue Management automates complex revenue recognition processes at the push of a button. Now customers can bring their own billing solution when they migrate from another accounting platform to Sage Intacct. With support for more than 600 billing scenarios, Revenue Management can seamlessly integrate to third-party billing solutions, providing flexibility to customize workflows and generate accurate deferred revenue waterfalls and forecasts. Availability: US, UK, AU, CA & ZA About Sage Sage exists to knock down barriers so everyone can thrive, starting with the millions of Small and Mid-Sized Businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitizing business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis. Notes to editors *Sage was recently recognized with a Pendo award for its customer-driven approach to product development. By leveraging in-app validation tools, Sage delivers features that directly address customer needs, shifting the product team’s focus from delivery to measurable outcomes. Media contact: Kev Tolliver Kev.Tolliver@sage.com View Comments |
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| 13.02.25 14:19:00 | Sage debuts new conference experience in Atlanta for SMBs – Sage Future | |
| Sage Reimagined event will empower 5,000 business leaders to shape the future of finance and business growth ATLANTA, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Sage, a global leader in accounting, financial, HR, and payroll technology for small and medium-sized businesses, today opens registration for its annual user conference, Sage Future, taking place June 3-5, 2025, at the Georgia World Congress Center. The event is expected to welcome 5,000 attendees from across the US and Canada to Atlanta, including medium-sized business and financial leaders, Value-Added Resellers (VARs), Independent Software Vendors (ISVs), strategic alliances, and community partners. A Brand New Experience: Sage Future Sage Future aims to inspire innovation and growth in the finance and accounting industry through cutting-edge thought leadership, immersive industry sessions, professional development opportunities, and in-depth product explorations. Replacing the former Sage Transform conference held in Las Vegas last year, the newly reimagined event promises to deliver an unparalleled experience designed to empower businesses to thrive in a rapidly evolving world of business and technology. Attendees will experience a dynamic event designed to spark ideas, foster connections, and provide actionable insights for business growth and professional development. “We are transforming Sage Future to be more than just a software conference,” said Dan Miller, EVP Financials and ERP Division at Sage. “This next era is about empowering senior finance leaders with the innovative solutions, data-driven insights, and human expertise they need to redefine what’s possible for their organizations. At Sage Future, we’ll dive into topics that really matter in today’s business landscape — such as AI and the evolving strategic needs of the finance function — equipping attendees to navigate complexity and become catalysts for high performance within their businesses.” What to Expect at Sage Future: Thought Leadership Content: Explore the latest trends and groundbreaking innovations shaping the accounting and financial industries. Industry Immersion Sessions: Dive deep into sector-specific challenges and opportunities. Professional Growth Experiences: Gain new skills and insights to advance careers and businesses, offering one-to-one meetings with Sage and industry experts. Product Deep-Dive Sessions: Hands-on explorations of Sage’s latest solutions and technologies. Strategic Move to Atlanta The company will reestablish its significant presence in Atlanta this year with the highly anticipated opening of its North America Headquarters at 619 Ponce in Midtown this spring. Story Continues “Bringing Sage Future to Atlanta marks a pivotal moment in our journey to boldly redefine how we connect with our community,” said Mark Hickman, Managing Director of North America at Sage. “Atlanta’s vibrant ecosystem of innovation, diverse talent pool, and strong business culture make it the ideal location to host an event of this scale. Sage has a lot of exciting experiences coming to Atlanta in 2025, like our new HQ opening in Ponce City Market and Sage Future is another experience we’re adding into the mix.” Registration Details Registration for Sage Future opens today. For more information, visit sage.com/sagefuture. About Sage Sage exists to knock down barriers so everyone can thrive, starting with the millions of Small and Mid-Sized Businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis. Media contact: Brittany Farquhar Corporate Affairs Manager, North America Brittany.farquhar@sage.com View Comments |
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| 31.01.25 09:26:53 | The Sage Group plc (SGGEF) Sees 27% Stock Surge, CEO Credits AI Innovation and Cost Discipline for Strong 2024 Growth | |
| We recently compiled a list of the Morgan Stanley's 15 Best European AI Stocks.In this article, we are going to take a look at where The Sage Group plc (OTC:SGGEF) stands against Morgan Stanley's other European AI stocks. In August last year, investment bank Morgan Stanley released an investor note highlighting that even though the chaos around prominent AI firms had somewhat subsided, an AI rumbling in Europe was just about to begin. Analysts at the investment firm compared the AI buzz to historical similarities in the mid-1990s, just before the internet craze. According to Morgan Stanley analysts, European semi stocks were experiencing a tactical correction and would hit new highs in the coming months. The note further detailed that a basket of these equities, handpicked by these experts, and nicknamed AI winners, had returned close to 45% on average since January 2023, the beginning of the AI revolution. These firms had outperformed the 14% jump recorded by the MSCI Europe benchmark, per the research. Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs. In the months since, European AI stocks have experienced significant volatility, most recently influenced by global developments and investor sentiment. A notable event was the introduction of a low-cost AI model by Chinese startup DeepSeek, which raised concerns about the profitability of existing AI companies that rely on expensive chips and infrastructure. This led to a sharp decline in European tech stocks, with the European tech index dropping 5.8%, marking the worst decline since October 2024. However, the market showed resilience shortly after. European shares reached a record high, driven by gains in retail and utilities stocks as tensions in the tech sector subsided. European stock pickers are exploring established sectors such as utilities, professional data providers, and even copper miners to tap into the next wave of AI advancements. This approach reflects a strategic shift towards industries that can support and benefit from AI infrastructure and applications. Read more about these developments by accessing 30Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities. For this article, we selected companies based in Europe that have been benefiting from the AI boom. An important investor note by investment bank Morgan Stanley on European AI stocks formed the basis for this list. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). Story Continues 5 Best States for Technology Careers in the US A businessperson contemplating modern technology while using the BrandGraph Platform. The Sage Group plc (OTC:SGGEF) Number of Hedge Fund Holders: N/A The Sage Group plc (OTC:SGGEF) provides technology solutions and services for small and medium businesses in the United States, the United Kingdom, France, and internationally. The company is headquartered in the United Kingdom. Last year, analysts at JPMorgan had placed the firm among a basket of European equities that would emerge as a winner from the AI boom. In the past six months, the share price of the company has jumped by more than 27%. Steve Hare, the CEO of the firm, has attributed the strong revenue growth of his business in 2024 to innovation, like the introduction of latest AI-powered solutions, as well as disciplined cost control. Per Hare, this drove efficiency leading to good levels of margin expansion and a significant uplift in EPS and free cash flow. Overall SGGEF ranks 9th on our list of Morgan Stanley's European AI stocks. While we acknowledge the potential of SGGEF as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than SGGEF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. View Comments |
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| 30.01.25 07:09:20 | UK software firm Sage upholds revenue forecast after robust Q1 growth | |
| (Reuters) -Britain's Sage Group on Thursday maintained its revenue forecast for fiscal 2025 after the software firm posted 10% growth in first-quarter underlying revenue, driven by higher demand, especially in North America, its fastest growing region. The company has invested heavily in cloud services in recent years and it is now counting on surging demand for artificial intelligence products and services to deploy generative AI in its offerings to help small business owners. "Sage has made a strong start to the year, achieving broad-based revenue growth in line with expectations, despite the ongoing macroeconomic uncertainty," Chief Financial Officer Jonathan Howell said in a statement. The company, whose accountancy software is used by millions of small businesses, rolled out its "Sage Copilot" generative AI-powered assistant in December. The model can help businesses track various tasks and even automate some items. The launch and rising popularity of a free AI assistant by Chinese startup DeepSeek, which claims to use less data at a fraction of current costs, has prompted investors to dump tech stocks globally this week. Still, shares of FTSE 100 component Sage are up 5% so far this year. The stock had been hovering around record highs in recent weeks, with most analysts bullish on Sage, citing attractive earnings growth prospects and progress in rolling out generative AI copilots. Sage had previously forecast organic total revenue growth of 9% or above for the year ending September. That compares with analysts' estimate of 9.2%, according to a company-compiled consensus. The company posted underlying total revenue of 612 million pounds ($760.84 million) for the three months ended Dec. 31, with North America reporting growth of 11% ($1 = 0.8044 pounds) (Reporting by Pushkala Aripaka in Bengaluru; Editing by Sonia Cheema and Jan Harvey) View Comments |
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| 21.01.25 15:50:00 | Sage and Tractics Announce Partnership to Deliver a Powerhouse Cloud Solution for Heavy Civil Contractors | |
| Sage The seamless integration between Sage Intacct Construction and Tractics offers the best in financial management and heavy civil operations software LAS VEGAS, Jan. 21, 2025 (GLOBE NEWSWIRE) -- WORLD OF CONCRETE -- Sage, the trusted software provider for small and mid-sized businesses (SMBs) in the construction industry, and Tractics, the provider of the leading cloud-native construction management platform for heavy civil contractors, announce a partnership that delivers a powerful integration between Sage Intacct Construction and Tractics. “This partnership brings together Sage’s industry-leading construction financial management solution and decades of innovation in construction technology with Tractics’ expertise in field, fleet, and project operations to deliver the best in accounting and operations software,” said Julie Adams, Senior Vice President, Construction and Real Estate, Sage. “Together, we provide the heavy civil market with a powerful and data-rich platform to seamlessly manage their entire business from the field to the office.” Integration highlights: Sage Intacct Construction provides the horsepower and dependable accounting backbone businesses need to remain competitive, while Tractics delivers a robust solution for office, field, fleet, and project operations. This powerhouse integration includes: Centralized, wide visibility into construction operations, in a single, comprehensive platform Field apps for foremen and crew so timesheets are updated in real time Access to critical data for fleet managers, dispatchers, and back-office staff to simplify operations and keep teams working in sync Customizable financial reporting and dashboards Anytime, anywhere access to real-time project data Dimensional general ledger and multi-entity consolidation Automated WIP management “Tractics was created by contractors for contractors. Drawing on years of hands-on field experience, the platform empowers heavy civil contractors with the tools they need to run their businesses more efficiently. This partnership with Sage enables us to offer our customers even more robust cloud solutions,” said Tyler VanWinkle, CEO, Tractics. “By integrating our platforms, we’re helping businesses to streamline their entire operations which also means simplifying their accounting. This helps bridge the gap between technology and everyday construction business needs so that we’re providing solutions to make our contractor’s lives easier.” The integration is available now for new and existing Sage and Tractics customers. Product demonstrations will be available during World of Concrete in the Sage booth #N1353 and the Tractics booth #N1776 in the North Hall of the Las Vegas Convention Center. To learn more about Sage construction solutions, visit SageCRE.com. To learn more about Tractics, visit Tractics.io Story Continues Media contacts: Natalia Fuscoe natalia.fuscoe@sage.com Tractics PR@tractics.io About Sage Sage exists to knock down barriers so everyone can thrive, starting with the millions of small- and mid-sized businesses served by us, our partners, and accountants. Customers trust our finance, HR, and payroll software to make work and money flow. By digitizing business processes and relationships with customers, suppliers, employees, banks, and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology, and experience to tackle digital inequality, economic inequality, and the climate crisis. Learn more at www.sage.com/en-us/ and www.sageintacct.com. About Sage Construction and Real Estate For over 50 years Construction companies have turned to Sage for their Finance, Preconstruction, and Operations needs. With over 50,000 customers and the largest partner network in the industry, Sage is well known for the being the most trusted provider of innovative and dependable business management software. Whether you are a small residential contractor, or a large commercial builder, you can trust that Sage has the right solution for your business. For more information, visit SageCRE.com. About Tractics Tractics is a powerful platform for heavy civil contractors, connecting crews, fleet and offices through real-time data to enhance project management, reporting, crew and fleet tracking, and equipment health. With tools for managing everything from bid to field operations, Tractics keeps your projects running smoothly so contractors can focus on what matters: getting the job done. View Comments |
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| 21.01.25 13:06:19 | Is The Sage Group plc (LON:SGE) A High Quality Stock To Own? | |
| While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand The Sage Group plc (LON:SGE). Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits. Check out our latest analysis for Sage Group How Is ROE Calculated? ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Sage Group is: 30% = UK£323m ÷ UK£1.1b (Based on the trailing twelve months to September 2024). The 'return' is the amount earned after tax over the last twelve months. So, this means that for every £1 of its shareholder's investments, the company generates a profit of £0.30. Does Sage Group Have A Good ROE? Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Sage Group has a better ROE than the average (10%) in the Software industry.LSE:SGE Return on Equity January 21st 2025 That's what we like to see. Bear in mind, a high ROE doesn't always mean superior financial performance. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . Our risks dashboardshould have the 2 risks we have identified for Sage Group. The Importance Of Debt To Return On Equity Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Combining Sage Group's Debt And Its 30% Return On Equity Sage Group clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.07. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it. Story Continues Summary Return on equity is useful for comparing the quality of different businesses. In our books, the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company. Of course Sage Group may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 05.01.25 07:30:27 | The Sage Group plc (LON:SGE) Goes Ex-Dividend Soon | |
| The Sage Group plc (LON:SGE) is about to trade ex-dividend in the next 3 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. This means that investors who purchase Sage Group's shares on or after the 9th of January will not receive the dividend, which will be paid on the 11th of February. The company's upcoming dividend is UK£0.135 a share, following on from the last 12 months, when the company distributed a total of UK£0.20 per share to shareholders. Based on the last year's worth of payments, Sage Group has a trailing yield of 1.6% on the current stock price of UK£12.785. If you buy this business for its dividend, you should have an idea of whether Sage Group's dividend is reliable and sustainable. So we need to investigate whether Sage Group can afford its dividend, and if the dividend could grow. See our latest analysis for Sage Group Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Sage Group is paying out an acceptable 64% of its profit, a common payout level among most companies. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Thankfully its dividend payments took up just 44% of the free cash flow it generated, which is a comfortable payout ratio. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Click here to see the company's payout ratio, plus analyst estimates of its future dividends.LSE:SGE Historic Dividend January 5th 2025 Have Earnings And Dividends Been Growing? Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're encouraged by the steady growth at Sage Group, with earnings per share up 5.8% on average over the last five years. While earnings have been growing at a credible rate, the company is paying out a majority of its earnings to shareholders. Therefore it's unlikely that the company will be able to reinvest heavily in its business, which could presage slower growth in the future. Story Continues The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, Sage Group has lifted its dividend by approximately 5.4% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. To Sum It Up Should investors buy Sage Group for the upcoming dividend? Earnings per share growth has been modest and Sage Group paid out over half of its profits and less than half of its free cash flow, although both payout ratios are within normal limits. While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Sage Group's dividend merits. With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Our analysis shows 2 warning signs for Sage Group and you should be aware of these before buying any shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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