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The Sage Group logo

The Sage Group

SGGEF
63
Software - Application · Technology
Price
$14.07
+0.39 (+2.85%)
Market Cap
$12.63B
Exchange
Other OTC
Winston Score
63
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count falling — buybacks

8.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.09B (2021) → 993.0M (2025)

Sage Group is a British software company that makes accounting, payroll, and business management software for small and medium-sized businesses. Its core products include Sage Intacct, Sage 50, and Sage Accounting, used by millions of businesses to track money, pay employees, and manage finances. Sage is one of the largest dedicated accounting software providers in the world for smaller businesses.

Sage earns most of its revenue through subscriptions, where customers pay a recurring fee to use its cloud-based software. The company operates primarily in the UK, North America, and Europe, generating roughly $2.5 billion in annual revenue. Its main competitive advantage is its large installed base of loyal small-business customers who rarely switch accounting software once it is embedded in their daily operations. The key growth driver is its ongoing shift from older desktop software to cloud subscriptions, though it faces stiff competition from rivals like Intuit and Xero in that transition.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+120.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$379M/ year

Rising (+10% vs prior year)

15.1% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

2.6%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$695M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

The Sage Group is putting 15% of revenue into R&D and that number is rising. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
89.1%
Premium pricing power — 89.1% gross margin
Operating Margin
22.3%
Excellent — 22.3% operating margin
ROCE
14.2%
Good — 14.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+8.9%
Steady sales growth (+8.9% YoY)
EPS YoY
+53.5%
Earnings growing fast (+53.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
140%
Turns 140% of profit into real cash
FCF Margin
19.2%
Converts sales into free cash efficiently (19.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
8.73
Heavy debt load (8.73)
Interest Cover
8.90x
Comfortably covers interest (8.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
35.2x
Pricey — P/E 35.2

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+11.5
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (35.2 → 23.6)

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Dividends

Dividend Yield
2.16%
Moderate income — 2.16% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+18.0%
Dividend growing fast (18.0% YoY)

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