SGGEF - Sage Group: Lower Quality And Lower Growth
Introduction
Sage Group (OTC:SGGEF) shares have significantly underperformed peers Intuit (INTU) and Xero (OTCPK:XROLF) since early 2018. In this article, we explain why Sage’s business is lower-quality, and how this has been reflected in lower revenue growth and margin pressures.
Company Overview
Sage is a U.K. provider of financial management software (accounting, payroll, etc.) to customers in a broad range of sectors (both accountants and businesses in various industries) and sizes (from 1 employee to 2,000). Most revenues are from recurring subscriptions, but some are from perpetual licenses and