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The Sage Group

SGGEF
69
Software - Application · Technology
Exchange
Other OTC
Winston Score
69
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Exceptional
Growth
Good
Cash Flow
Exceptional
Stability
Mixed
Valuation
Strong
Dividends
Strong

Winston Score History

The full picture

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.

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

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

Growth + cash flow

The Sage Group is a rare growth stock that's already generating positive cash flow while growing at 10%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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

Profit per sale
Gross Margin
89.1%
Premium pricing power — 89.1% gross margin
Profit after running costs
Operating Margin
22.3%
Excellent — 22.3% operating margin
Return on the money invested
ROCE
27.8%
Exceptional — 27.8% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

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

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

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
140%
Turns 140% of profit into real cash
Spare cash per sale
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

What it owes vs what it owns
Debt / Equity
8.73
Heavy debt load (8.73)
Covers its interest
Interest Cover
8.90x
Comfortably covers interest (8.9x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
26.8x
no trend
Growth-priced — P/E 26.8

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+8.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (26.8 → 18.1)

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Dividends

Dividend
Dividend Yield
2.16%
no trend
Moderate income — 2.16% yield

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

Dividend record
Dividend Growth
+18.0%
no trend
Dividend growing fast (18.0% YoY)

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