SGGEF - The Sage Group Is Growing Well, But It Is Still Too Expensive
2025-03-04 23:53:19 ET
Summary
- Sage Group has posted strong results in 4Q24 and 1Q25, with notable growth in North America and Europe/UKIA despite economic challenges.
- Sage's mid-market segment, driven by Sage Intacct, shows impressive ARR growth, but competition from Intuit is increasing.
- Product improvements, like the AI-powered Sage Copilot, could boost ARPU and customer retention, though adoption is still early.
- Despite strong performance and growth prospects, Sage's high valuation at 30x earnings leaves little upside, leading to a Hold rating.
The Sage Group plc ( SGGEF ) ( SGPYY ) has posted another two quarters ( 4Q24 and 1Q25 ) of very good results since I last covered it in October 2024 ....
The Sage Group Is Growing Well, But It Is Still Too Expensive