Sapiens International Corporation N.V. (SPNS)
Valuation Overview•Is Sapiens International Corporation N.V. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
High-quality fundamentals with a strong composite quality score of 77/100, backed by robust profitability and solvency.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
SPNS demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($100M) and minimal debt risk.
The company demonstrates solid revenue growth (5.6% 3Y CAGR) paired with robust earnings compounding (14.9% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 13.7%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $152.3M | +5.4% | +5.6% | +10.7% | +13.2% | |
| EBITDA | $19.7M | — | +10.3% | — | — | |
| Net Income | $14.3M | +15.6% | +15.2% | — | +17.4% | |
| EPS (Diluted) | $0.25 | +15.2% | +14.9% | +19.9% | +15.7% | |
| Free Cash Flow | $10.2M | +2.9% | +1.7% | +8.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 44.3% | 43.3% | 42.3% | 40.3% |
| Operating Margin | 13.7% | 15.4% | 14.1% | 11.5% |
| Net Margin | 11.4% | 12.2% | 11.1% | 8.8% |
| FCF Margin | 12.8% | 11.4% | 12.3% | 10.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'25Latest | $0.35 | $0.36 | +3.8% | ||
| Q3'25 | $0.32 | $0.34 | +6.3% | ||
| Q2'25 | $0.35 | $0.37 | +5.7% | ||
| Q1'25 | $0.37 | $0.37 | +0.0% | ||
| Q4'24 | $0.38 | $0.37 | -2.6% | ||
| Q3'24 | $0.36 | $0.37 | +2.8% | ||
| Q2'24 | $0.34 | $0.36 | +5.9% | ||
| Q1'24 | $0.34 | $0.36 | +5.9% |
Total return is +52.9% (1Y), outperforming the benchmark by +27.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | — | — | — |
| 1Y | +52.9% | +27.9% | — |
| 3YCAGR | +18.3% | -1.3% | +5.5% |
| 5YCAGR | +11.0% | -1.8% | +9.0% |
| 10YCAGR | +14.3% | +0.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Sapiens International Corporation N.V. (SPNS) valuation, health, and returns.
Sapiens International Corporation N.V. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. trading near fair value (DCF: $37.60)
Sapiens International Corporation N.V. has multiple valuation anchors: DCF Intrinsic Value: $37.60 | Peer Relative Fair Value: $15.46 | Wall Street Analyst Target: $38.00 (implying -12.5% upside). A convergence of these signals offers higher conviction.
Sapiens International Corporation N.V. displays good financial health with a composite quality score of 77/100, supported by a Altman Z-Score of 8.7 (safe zone), Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 17.4%.
Sapiens International Corporation N.V. pays a 1.3% dividend yield, covered by a 44% payout ratio with 1 years of growth, supplemented by a 0.0% buyback yield.
Sapiens International Corporation N.V.'s current growth trajectory is Stable. The company achieved +5.4% 1Y revenue growth and +15.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +5.6%.
Wall Street consensus is Hold based on 10 analysts, beating EPS expectations in 58% of recent quarters with a 3-quarter streak. The consensus price target represents a -12.5% change from current levels.
Investment risks for Sapiens International Corporation N.V. include: -13.9% 1-year max drawdown. Volatility risk is characterized by a beta of 0.50x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.