- Sage’s operating profit for 1H was £215 million, falling short of the estimated £229.5 million.
- The operating margin is 18.7%, which is below the estimated 19.9%.
- The pretax profit was £203 million, which didn’t meet the estimated figure of £213.5 million.
- Sage predicts organic total revenue growth for fiscal year 2024 (FY24) to be comparable to the first half outcomes.
- The company anticipates operating margins to increase in FY24 and the future, focusing on efficiently expanding the Group.
- Despite ongoing macroeconomics instability, Sage remains confident in its proven strategy and continued investment to deliver further efficient growth.
- The company’s current position includes 11 buys, 8 holds, and 5 sells.
A look at Sage Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Sage Group is positioned for long-term growth and strong performance. With a momentum score of 5, indicating a high level of positive market sentiment, Sage Group is likely to experience continued positive momentum in the future. Additionally, a growth score of 3 suggests that the company has solid potential for expansion and increasing revenues over the long term.
Although Sage Group scores moderately in value, dividend, and resilience factors, the overall outlook remains positive due to its strong momentum and growth potential. As a software publishing company specializing in accounting and payroll software, Sage Group is well-positioned to benefit from the increasing demand for such services in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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