SGGEF (Sage Group (The)) Beneish M-Score: -2.57 (As of Jun. 26, 2026)


SGGEF Sage Group (The) PLC SGGEF
84 GF Score
Price $10.90
GF Value $17.23
Valuation Significantly Undervalued
! 4 Warning Signs
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What is Sage Group (The) Beneish M-Score?

Sage Group (The) SGGEF 84 Beneish M-Score is -2.57 as of Jun. 26, 2026. GuruFocus rates SGGEF with a GF Score™ of 84/100 and a GF Value™ of $17.23 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,634 Software companies, Sage Group (The) ranks better than 51.78% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.57 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Sage Group (The)'s Beneish M-Score or its related term are showing as below:

SGGEF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.96   Med: -2.62   Max: -2.32
Current: -2.57

During the past 13 years, the highest Beneish M-Score of Sage Group (The) was -2.32. The lowest was -2.96. And the median was -2.62.

Sage Group (The) Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Sage Group (The)'s Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Sage Group (The) Beneish M-Score Chart

Sage Group (The) Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.63 -2.32 -2.70 -2.61 -2.57

Sage Group (The) Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -2.61 0.00 -2.57 0.00

SGGEF vs CRM, SHOP, UBER: Beneish M-Score Comparison

For the Software - Application subindustry, Sage Group (The)'s Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sage Group (The) Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Sage Group (The)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sage Group (The)'s Beneish M-Score falls into.


SGGEF
84GF Score
Sage Group (The) PLC SGGEF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sage Group (The) Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Sage Group (The) for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0665+0.528 * 1.0008+0.404 * 1.0189+0.892 * 1.1009+0.115 * 1.2235
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9757+4.679 * -0.042823-0.327 * 1.1636
=-2.54

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep25) TTM:Last Year (Sep24) TTM:
Total Receivables was $520 Mil.
Revenue was $3,396 Mil.
Gross Profit was $3,149 Mil.
Total Current Assets was $1,166 Mil.
Total Assets was $5,018 Mil.
Property, Plant and Equipment(Net PPE) was $195 Mil.
Depreciation, Depletion and Amortization(DDA) was $122 Mil.
Selling, General, & Admin. Expense(SGA) was $2,432 Mil.
Total Current Liabilities was $1,831 Mil.
Long-Term Debt & Capital Lease Obligation was $2,111 Mil.
Net Income was $499 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $714 Mil.
 Total Receivables was $443 Mil.
Revenue was $3,085 Mil.
Gross Profit was $2,862 Mil.
Total Current Assets was $1,228 Mil.
Total Assets was $4,813 Mil.
Property, Plant and Equipment(Net PPE) was $143 Mil.
Depreciation, Depletion and Amortization(DDA) was $127 Mil.
Selling, General, & Admin. Expense(SGA) was $2,265 Mil.
Total Current Liabilities was $1,622 Mil.
Long-Term Debt & Capital Lease Obligation was $1,628 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(520.27 / 3395.946) / (443.122 / 3084.656)
=0.153203 / 0.143654
=1.0665

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2862.434 / 3084.656) / (3148.649 / 3395.946)
=0.927959 / 0.927179
=1.0008

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1166.216 + 194.595) / 5017.568) / (1 - (1227.513 + 142.857) / 4813.492)
=0.728791 / 0.715306
=1.0189

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=3395.946 / 3084.656
=1.1009

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(126.984 / (126.984 + 142.857)) / (121.622 / (121.622 + 194.595))
=0.470588 / 0.384616
=1.2235

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(2432.432 / 3395.946) / (2264.55 / 3084.656)
=0.716275 / 0.734134
=0.9757

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((2110.811 + 1831.081) / 5017.568) / ((1628.307 + 1621.693) / 4813.492)
=0.785618 / 0.675185
=1.1636

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(498.649 - 0 - 713.514) / 5017.568
=-0.042823

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Sage Group (The) has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.57 mean?
Sage Group (The) (SGGEF) has a Beneish M-Score of -2.57 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Sage Group (The) and its competitors. According to the industry distribution chart, Sage Group (The) ranks #1270 out of 2634 companies in the Software industry, placing it in the top 48.2%.
Is Sage Group (The)'s Beneish M-Score too high?
Sage Group (The)'s current Beneish M-Score is -2.57. Based on the distribution chart, Sage Group (The) ranks #1270 out of 2634 companies in the Software industry, which is above the industry midpoint. Overall, Sage Group (The) has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sage Group (The)'s Beneish M-Score compare to CRM and SHOP?
According to the Software industry distribution chart, Sage Group (The) ranks #1270 out of 2634 companies for Beneish M-Score. This puts Sage Group (The) in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Software company?
A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Sage Group (The) and its competitors. Sage Group (The)'s current Beneish M-Score is -2.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sage Group (The) stock overvalued right now?
Based on GuruFocus' analysis, Sage Group (The) (SGGEF) is currently considered Significantly Undervalued. The stock's GF Value™ is $17.23, compared to a current price of $10.90 — trading 36.7% below its estimated fair value. The current Beneish M-Score is -2.57. Sage Group (The)'s overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Sage Group (The) (SGGEF), the current Beneish M-Score is -2.57 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Sage Group (The) (SGGEF) Overvalued in 2026?

Based on GuruFocus' analysis, Sage Group (The) stock appears to be undervalued. The current stock price of $10.90 is trading 36.7% below its estimated GF Value™ of $17.23. GuruFocus considers Sage Group (The) to be Significantly Undervalued.

Key valuation signals for SGGEF:

  • Beneish M-Score: -2.57
  • GF Value™: $17.23 vs. price of $10.90 (36.7% below fair value)
  • GF Score™: 84/100 with 4 warning signs

No single metric tells the full story. See the SGGEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Sage Group (The) Business Description

Address C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, GBR, NE28 9EJ
The Sage Group is a UK-based provider of accounting and enterprise resource planning software, predominantly to customers in the US and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud-connected and cloud native products, sold via software-as-a-service contracts. Sage's main cloud-native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.
84GF Score

Get the complete analysis for SGGEF

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$10.90
Price
$17.23
GF Value