The Sage Group

SGPYY

Software - Application · Technology

Price

$56.88

-0.82 (-1.42%)

Market Cap

$12.76B

Exchange

Other OTC

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Sep 2, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Exceptional

Growth

Good

Cash Flow

Exceptional

Stability

Mixed

Valuation

Good

Dividends

Good

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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: 272.5M (2021) → 248.3M (2025)

Winston Score History

The full picture

Sage Group makes accounting and business management software for small and medium-sized companies. Its products help businesses handle tasks like payroll, invoicing, bookkeeping, and tax compliance. Headquartered in the UK, Sage is one of the largest providers of business software in Europe and has a strong presence in North America, Africa, and the Middle East.

Sage makes most of its money through recurring software subscriptions, with customers paying monthly or annual fees for cloud-based tools. The company has a market cap around $12.8 billion and benefits from high switching costs, since businesses rely heavily on their accounting systems and rarely change providers. Sage's key growth driver is its ongoing shift to cloud subscriptions, which produce more predictable revenue, though it faces intense competition from rivals like Intuit and Xero in the small business software market.

Growth Profile

For growth stock investors

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

Revenue Growth

+11.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+16.7% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

£368M/ year

14.6% of revenue

In line with sector average (15%)

Research and development spending

Insider Activity

4.9%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

£693M 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 11%. 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

27.1%

Exceptional — 27.1% 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

+9.5%

Steady sales growth (+9.5% YoY)

Profit growth

EPS YoY

+20.6%

Earnings growing fast (+20.6% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

143%

Turns 143% of profit into real cash

Spare cash per sale

FCF Margin

19.7%

Converts sales into free cash efficiently (19.7%)

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

8.78

Heavy debt load (8.78)

Covers its interest

Interest Cover

8.65x

Comfortably covers interest (8.7x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

34.7x

Pricey — P/E 34.7

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

Cheaper or dearer next year

P/E vs Forward

+16.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (34.7 → 18.3)

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Dividends

Dividend

Dividend Yield

1.51%

Small dividend — 1.51% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+19.5%

Dividend growing fast (19.5% YoY)

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