Company Reports

Sage reported solid year-to-date organic growth of 10% in its third-quarter trading update. Shares rose 9% on July 29.

Sage reported strong organic growth of 11% in the first half of fiscal 2026, ahead of company-compiled consensus at 9.8%. Fiscal 2026 revenue growth guidance was boosted to "above 9%" from "9% or above." Shares traded flat on May 21.

Sage has largely completed its transformation from an on-premises software provider selling perpetual licenses to a cloud-based software-as-service business model where it sells its software products via subscription.

Sage reported strong organic growth of 10% in its first-quarter trading update and confirmed fiscal 2026 guidance. Shares were up 2% intraday.

Sage's fiscal 2025 results were in line with guidance and company-compiled consensus. Organic revenue growth was 9%. Shares were up 3% on Nov. 19.

Sage's third-quarter trading update reported 9% year-to-date organic revenue growth, in line with annual guidance and annual company-compiled consensus. Shares were up 1% intraday.

Sage Group is in the later stages of its transformation from an on-premises software provider selling perpetual licenses to a cloud-based software-as-service, or SaaS, business model where it sells its software products via subscription.

Sage's first-half results were slightly ahead of company-compiled consensus and fiscal 2025 guidance was maintained. Despite solid results, shares were down 4% intraday.

Sage reported in-line revenue growth and confirmed fiscal 2025 guidance in its first-quarter trading update. Shares traded roughly flat intraday.

Sage reported in-line revenue growth and fiscal 2025 guidance but delivered an impressive increase in operating margin that beat company-compiled consensus. Shares were up around 17% intraday on Nov. 20.

Sage Group is in the later stages of its transformation from an on-premises software provider selling perpetual licenses to a cloud-based software-as-service, or SaaS, business model where it sells its software products via subscription.

Narrow-moat Sage reported seemingly in-line results in its trading update with 9% organic revenue growth in the third quarter and fiscal year to date. Regardless, the shares were down around 5% intraday. We don’t expect to make a material change to our GBX 880 fair value estimate. At current levels, the shares continue to look overvalued.

Narrow-moat Sage Group reported 9.5% organic revenue growth in its first-half 2024 results, with Sage business cloud’s organic revenue up 18%. While these results were broadly in line with our estimates, management marginally tempered fiscal 2024 organic revenue growth guidance from 10% to 9.5%. The underlying operating margin came in at 22%, representing a 160-basis-point expansion versus a year prior, and management expects the positive trend to continue in fiscal 2024 and beyond. Shares are trading down intraday, likely the result of the trim to guidance. We don’t expect to make a material change to our GBX 880 fair value estimate. At current levels, the shares remain overvalued.

Narrow-moat Sage Group reported 10% total organic revenue growth in its first-quarter fiscal 2024 trading update with Sage business cloud's organic revenue up 18%. This is in line with our full-year growth expectations and the company's fiscal 2024 guidance, which was reiterated. Sage continues to expect organic total revenue growth in 2024 to be broadly in line with 2023 (10%), with operating margins expected to trend upward in 2024 and beyond. Specifically, Sage is expecting around a 50-basis-point to 100-basis-point improvement in the underlying operating margin in 2024. Shares were trading flat intraday. We don’t expect to make a material change to our GBX 880 fair value estimate. At current levels, the shares look overvalued.

Sage Group is in the later stages of its transformation from an on-premises software provider selling perpetual licenses to a cloud-based software-as-service, or SaaS, business model where it sells its software products via subscription.

Narrow-moat Sage Group reported fiscal 2023 results and its initial 2024 outlook that were largely in line with company-compiled consensus and our estimates. Somewhat surprisingly, the stock closed up over 13%. We think this was driven by Sage’s strong free cash flow growth and announcement of a new share buyback. We’re raising our fair value estimate to GBX 880 from GBX 810 due to an improvement in our expectations for the pace of margin progress. At current levels, the shares look overvalued.

Narrow-moat Sage Group reported results in its third-quarter trading update that were broadly in line with our expectations. Total revenue in the third quarter was up 10% versus last year, while recurring revenue increased 11% despite a tough comparator, driven by continued growth across the Sage Business Cloud portfolio. 2023 guidance was maintained. Shares were up around 1% intraday. We don’t expect to make a material change to our forecast or GBX 810 fair value estimate. At current levels, the shares look slightly overvalued.

Narrow-moat Sage Group reported solid first-half results with revenue and profitability slightly ahead of company-compiled consensus and our estimates. Shares reacted positively, up around 4% intraday while peers were generally flat to negative. Overall, first-half results are tracking broadly in line with our long-term view. Consequently, we don’t expect to make a material change to our GBX 810 fair value estimate. At current levels, the shares look fairly valued.

We are initiating coverage on the Sage Group with a narrow moat rating and GBX 810 fair value estimate. Our fair value estimate is equivalent to a P/E ratio of 29 times, based on fiscal 2023 estimates, which is moderately above its historical average of around 25 times. We think the implied optimism is warranted given we expect profit growth to accelerate going forward now that Sage has reached the inflection point in its transition to the cloud. Our estimates are broadly in line with consensus. Consequently, we see the stock as fairly valued at current levels.

Sage is in the later stages of its transformation from an on-premises software provider selling perpetual licenses to a cloud-based software-as-service, or SaaS, business model where it sells its software products via subscription.