olivLaw · European equity research
The Sage Group plc. SGE.L
United Kingdom · London Stock Exchange · ISIN GB00B8C3BL03 · Vertical: Listed companies from United Kingdom
The Sage Group plc. is a global provider of accounting and business management software for small and mid-sized businesses, and fiscal 2025 was marked by product acquisitions, a new Atlanta headquarters and a £400m share buyback programme. The current interest comes from the expansion of the product ecosystem through the Fyle and Criterion acquisitions.
At the close of 05 Nov 2026, The Sage Group plc. (SGE.L) stock was 12.04 GBP (+1.22% on the day), with market capitalisation 11.8 bn GBP, P/E 32.4 on diluted EPS of 0.37 GBP over the last 12 months, dividend yield 1.76%, beta 0.28, 52-week range 7.84–12.04 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 69.1
- strong (55–70)
- Bollinger (20, 2)
- 10.68 – 12.21
- in the upper half of the band · %B 0.89 · band width 13.4%
- SMA 50 / 200
- 10.66 / 9.28
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.38 / 0.37
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +19.8% | −0.6% | +20.4 pp | — |
| 3 months | +17.1% | −4.2% | +21.3 pp | — |
| 6 months | +35.0% | +4.3% | +30.7 pp | — |
| Year to date | +11.1% | +7.5% | +3.6 pp | — |
| 1 year | +3.6% | +9.9% | −6.3 pp | +5.8% |
| 3 years | +25.0% | +49.8% | −24.8 pp | +26.3% |
| 5 years | +61.7% | +42.8% | +18.9 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 33 percentile of its own 3-quarter history (min 29.6, median 32.5, max 48.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 2.2 bn | 2.3 bn | 2.5 bn |
| Revenue YoY | unavailable | +6.8% | +7.8% |
| Net income | 211.0 m | 323.0 m | 369.0 m |
| Net income YoY | unavailable | +53.1% | +14.2% |
| Diluted EPS | 0.20 | 0.32 | 0.37 |
| Diluted EPS YoY | unavailable | +54.4% | +17.8% |
| net % | 9.7% | 13.9% | 14.7% |
| Free cash flow | 382.0 m | 472.0 m | 487.0 m |
Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 390.0 m GBP
- Financial debt
- 1.6 bn GBP
- Net debt
- 1.2 bn GBP
- Equity
- 720.0 m GBP
- Total assets
- 3.7 bn GBP
- Debt / equity
- 2.19x
- Current ratio
- 0.64x
- ROE
- 40.7%
- ROA
- 10.0%
- FCF margin
- 19.4%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 2.2 bn | 2.3 bn | 2.5 bn | esef· 03 Dec 2025verified |
| Cost of revenue | 156.0 m | 168.0 m | 183.0 m | esef· 03 Dec 2025verified |
| Gross profit | 2.0 bn | 2.2 bn | 2.3 bn | esef· 03 Dec 2025verified |
| Operating income | 315.0 m | 452.0 m | 530.0 m | esef· 03 Dec 2025verified |
| Interest expense | 45.0 m | 45.0 m | 58.0 m | esef· 03 Dec 2025verified |
| Pre-tax income | 282.0 m | 426.0 m | 484.0 m | esef· 03 Dec 2025verified |
| Income tax | 71.0 m | 103.0 m | 115.0 m | esef· 03 Dec 2025verified |
| Net income | 211.0 m | 323.0 m | 369.0 m | esef· 03 Dec 2025verified |
| Diluted EPS | 0.20 | 0.32 | 0.37 | esef· 03 Dec 2025verified |
| Dividend per share | 0.19 | 0.20 | 0.21 | esef· 03 Dec 2025derived |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 696.0 m | 508.0 m | 390.0 m | esef· 03 Dec 2025verified |
| Receivables | 376.0 m | 404.0 m | 471.0 m | esef· 03 Dec 2025verified |
| Current assets | 1.1 bn | 928.0 m | 863.0 m | esef· 03 Dec 2025verified |
| Property, plant & equipment, net | 104.0 m | 108.0 m | 144.0 m | esef· 03 Dec 2025verified |
| Goodwill | 2.2 bn | 2.1 bn | 2.2 bn | esef· 03 Dec 2025verified |
| Total assets | 3.9 bn | 3.6 bn | 3.7 bn | esef· 03 Dec 2025verified |
| Accounts payable | 378.0 m | 405.0 m | 433.0 m | esef· 03 Dec 2025verified |
| Short-term debt | 14.0 m | 15.0 m | 17.0 m | esef· 03 Dec 2025verified |
| Long-term debt | 1.2 bn | 1.2 bn | 1.6 bn | esef· 03 Dec 2025verified |
| Current liabilities | 1.2 bn | 1.2 bn | 1.4 bn | esef· 03 Dec 2025verified |
| Total liabilities | 2.5 bn | 2.5 bn | 3.0 bn | esef· 03 Dec 2025verified |
| Equity | 1.4 bn | 1.1 bn | 720.0 m | esef· 03 Dec 2025verified |
| Shares outstanding at year end | 1.0 bn | 1.0 bn | 977.7 m | esef· 03 Dec 2025derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 387.0 m | 491.0 m | 528.0 m | esef· 03 Dec 2025verified |
| Capex | 5.0 m | 19.0 m | 41.0 m | esef· 03 Dec 2025verified |
| Free cash flow | 382.0 m ≈ | 472.0 m ≈ | 487.0 m ≈ | esef· 03 Dec 2025derived |
| Investing cash flow | -36.0 m | -41.0 m | -127.0 m | esef· 03 Dec 2025verified |
| Financing cash flow | -114.0 m | -610.0 m | -521.0 m | esef· 03 Dec 2025verified |
| Dividends paid | 190.0 m | 199.0 m | 207.0 m | esef· 03 Dec 2025verified |
| Share repurchases | 0 | 348.0 m | 605.0 m | esef· 03 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 63 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 11.8 bn GBP
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
- Quality77
- Returns99
- Balance sheet60
- Valuation26
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Unattractive profile · Score 63/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 21.6% | 75 (vs peers) | 17% |
| Net margin · Quality | 14.7% | 57 (vs peers) | 10% |
| FCF conversion · Quality | 132.0% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 9.1x | 100 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 0.6x | 0 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 32.4x | 6 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 4.1% | 52 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 6.9% | 99 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 42.5% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet60/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality77/100 · 3/3 factors with a value
- Returns99/100 · 2/2 factors with a value
- Valuation26/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
THE SAGE GROUP PLC. (SGE.L). Latest full fiscal year: 2025; data up to 2025-09-30.
Figures computed from the financial statements: revenue 2.5 bn GBP in 2025; YoY growth 7.8%; net margin 14.7%; ROE 40.7%.
The estimated value range is 4.20–6.47 GBP per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 5.36 GBP, the price of 12.04 GBP leaves a potential of -55.5% (value / price − 1) and a margin of safety of -124.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 63/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 21.6%
- FCF conversion: 132.0%
- Interest coverage: 9.1x
- Shareholder yield (distributions): 6.9%
- Payout ratio (FCF): 42.5%
What contradicts it
- Current ratio: 0.6x
- P/E (TTM): 32.4x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| SGE.LThe Sage Group PLC. | 11.8 bn | 32.4 | 40.7% | 14.7% | +7.8% | +12% / +6% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for SGE.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 7.46 Total return -37% · Per year -37% | 13.17 Total return 11% · Per year 11% | 19.81 Total return 67% · Per year 67% |
| 3 years | 7.72 Total return -31% · Per year -12% | 15.30 Total return 33% · Per year 10% | 25.19 Total return 117% · Per year 30% |
| 5 years | 8.00 Total return -26% · Per year -6% | 17.76 Total return 59% · Per year 10% | 32.03 Total return 181% · Per year 23% |
- Exit P/E± 3.82
- Net margin± 2.68
- Annual revenue growth± 2.13
- Annual dilution± 0.22
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
The Sage Group plc. is a global provider of accounting and business management software for small and mid-sized businesses, and fiscal 2025 was marked by product acquisitions, a new Atlanta headquarters and a £400m share buyback programme. The current interest comes from the expansion of the product ecosystem through the Fyle and Criterion acquisitions.1
SWOT
Strengths
- The company has a broad customer base in the small and mid-sized business segment and an extensive product and partner ecosystem.
- The financial position supports share buyback programmes and a progressive dividend policy endorsed by the Board.
- The company runs clear sustainability and community engagement programmes, which strengthens its reputation for responsible business.
Weaknesses
- Some diversity and product accessibility goals are marked as behind track in the annual report.
- Integrating several recent acquisitions in the same year can place pressure on teams and internal systems.
- The share of leaders from historically underrepresented ethnic groups in the executive team remains below the targets set for 2027.
Opportunities
- Expansion into expense management and human capital software could attract new SMB customers if integration succeeds.
- Demand for carbon accounting could grow if simplified standards for SMEs expand.
- Partnerships with financial institutions and platforms through the carbon API could open new distribution channels.
Threats
- Regulatory pressure on AI and data protection could impose additional compliance costs.
- The economic situation of small businesses could reduce their software spending if conditions deteriorate.
- Competition in SMB software remains intense, and new entrants could erode market share if cheaper products emerge.
Risks
- Acquisition integration riskmedium
Integrating the Fyle and Criterion teams and technologies could encounter difficulties, which could affect execution of the strategy.1
- Cyber security riskhigh
The report lists cyber threats among its principal risks, and a security incident could affect customer trust.1
- AI and data compliance riskmedium
Evolving regulation on artificial intelligence and data protection could require changes to products and processes.1
- Talent and culture riskmedium
Difficulty attracting and retaining talent in executive and product teams could limit execution capacity.1
- Sustainability reporting risklow
Growing sustainability reporting and compliance requirements could generate costs and risks of error.1
Investment thesis
What would need to be true (bull case)
- If the acquisition integration succeeds, the company could extend its offering to existing and new small business customers.
- The solid financial position, supported by buyback programmes and a progressive dividend, provides flexibility for investment.
- The partner ecosystem and carbon accounting could open new long-term revenue sources.
What would break the thesis
- If integration of acquisitions is delayed, costs and management distraction could weigh on short-term results.
- Cyber and AI regulatory risks could raise compliance spending and affect customer confidence.
- If the economy of small businesses weakens, demand for software could fall and competition could become more aggressive.
What to watch
- Progress of the Fyle and Criterion acquisition integration2026
- Results of the Annual General Meeting on director elections and re-elections5 February 2026
- Dry run of procedures for Provision 29 of the governance codeFY26
- Evolution of diversity and product accessibility targetsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
According to the annual report for the year ended 30 September 2025, Sage describes its purpose as knocking down barriers so that everyone can thrive, with a focus on small and mid-sized businesses (SMBs) and the communities around them.1 The company aims to give SMBs the technology and data they need to operate digitally and safely, supported by a 'Tech for Good' strategy.1 The core activity is complemented by sustainability programmes and community engagement through Sage Foundation.1
Internally, the Board approved in February 2023 the capital expenditure for the new North America headquarters, which opened in March 2025 and became a hub for innovation and collaboration, including through the Sage Discovery Centre.1 In 2025 the company also launched the Sage Carbon Accounting API, giving financial institutions and platforms access to its carbon accounting engine.1 These elements show a focus on products and on relations with partners and customers.1
The governance and funding structure reflects a commitment to capital discipline: in fiscal 2025 the Board approved buyback programmes and a final dividend, while the Fyle and Criterion acquisitions were assessed as part of the strategy to extend the offering.1
Segments
Software for small and mid-sized businesses
The main segment is accounting, management and human capital software aimed at SMBs, where the company seeks to integrate new capabilities such as expense management through the Fyle acquisition.1
Partners and distribution channels
The company is building a partner ecosystem, with a Partner Centre of Excellence and channel networks that support customer success and extend product reach.1
Market context
Sage operates in markets such as the United Kingdom, the United States, France, Germany, Spain and Portugal, and the annual report highlights a particular focus on North America, where the company expanded its presence through the Atlanta headquarters.1 The SMB software market is described in the report through the need for secure digitalisation and compliance with sustainability regulation.1
The target customers are small and mid-sized businesses, and the company also supports community entrepreneurship programmes such as Sage Impact Entrepreneurship, a three-year partnership with Village Capital.1 This orientation could influence demand for Sage products depending on the evolution of the real economy of SMBs.1
Trends
- Secure digitalisation of SMBstailwind
The company promotes its Trust and Security Hub to help small businesses move to digital operations safely, which could support adoption of its products.1
- Artificial intelligence and data ethicsmixed
Sage has launched the AI trust label concept for agentic AI and included data accuracy in internal policies, but regulatory requirements in this area could raise compliance costs.1
- Sustainability reporting for smaller firmstailwind
Simplified emissions reporting standards for smaller businesses could create demand for Sage carbon accounting tools if their adoption expands.1
- Cost pressure and acquisition integrationheadwind
Integrating teams and technologies from recent acquisitions can absorb resources, and execution risk could affect short-term performance if not managed carefully.1
Competitive position
The annual report does not explicitly detail competitors, but it implies competition in the accounting and business management software space for SMBs, where Sage seeks to differentiate through its product and partner ecosystem.1 The acquisition of new capabilities such as expense management and human capital management indicates that the market is contested on several fronts.1
- US accounting software providers for SMBs
The report does not name direct competitors; the category is only indicated generically in the context of the SMB software market.
- Business expense management platforms
The Fyle acquisition suggests this category is relevant to Sage's strategy, with no other competitors named in the source.
- HR and payroll software providers
The Criterion acquisition, focused on human capital management, points to a competitive area separate from accounting.
- Carbon accounting tool providers
Sage is extending its products in this area, and the source does not name other players in the category.
News & filings
In the press
- Money Market Sage Lou Crandall to Retire From Wrightson After 44-Year CareerBloomberg Markets · 13 Oct 2026 · EN
- Athlete Spotlight : Handley cross country runner Sage WelpottSurge — GDELT DOC · 29 Sept 2026 · RO
- Sage Care (YC S24) Is Hiring Software EngineersHacker News · 26 May 2026 · EN
Annual reports (ESEF)
- Annual report 202503 Dec 2025
- Annual report 202503 Dec 2025
- Annual report 202405 Dec 2024
- Annual report 202405 Dec 2024
Sources
- [1] Annual report, fiscal year ended 2025-09-30 (ESEF) · SEC / The Sage Group plc. · 30 Sept 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.