SGPYY (Sage Group (The)) Financial Strength: 5 (As of Mar. 2026) — 17% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SGPYY Sage Group (The) PLC SGPYY
90 GF Score
Price $60.05
GF Value $74.02
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Sage Group (The) Financial Strength?

Sage Group (The) SGPYY +0.29% 90 Financial Strength is 5 as of Mar. 2026, which is 17% below its 10-year median of 6.00. GuruFocus rates SGPYY with a GF Score™ of 90/100 and a GF Value™ of $74.02 (Modestly Undervalued). The stock has 3 warning signs investors should review.

Sage Group (The) has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Sage Group (The)'s Interest Coverage for the quarter that ended in Mar. 2026 was 8.37. Sage Group (The)'s debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.74. As of today, Sage Group (The)'s Altman Z-Score is 3.17.


Sage Group (The)  (OTCPK:SGPYY) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Sage Group (The) has the Financial Strength Rank of 5.


Sage Group (The) Financial Strength Related Terms


SGPYY vs QH, SHOP, UBER: Financial Strength Comparison

For the Software - Application subindustry, Sage Group (The)'s Financial Strength, along with its competitors' market caps and Financial Strength 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) Financial Strength vs Software Industry

For the Software industry and Technology sector, Sage Group (The)'s Financial Strength distribution charts can be found below:

* The bar in red indicates where Sage Group (The)'s Financial Strength falls into.


SGPYY
90GF Score
Sage Group (The) PLC SGPYY
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sage Group (The) Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Sage Group (The)'s Interest Expense for the months ended in Mar. 2026 was $-47 Mil. Its Operating Income for the months ended in Mar. 2026 was $391 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was $2,676 Mil.

Sage Group (The)'s Interest Coverage for the quarter that ended in Mar. 2026 is

Interest Coverage=-1*Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*390.667/-46.667
=8.37

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Sage Group (The)'s Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(20 + 2676) / 3634.666
=0.74

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Sage Group (The) has a Z-score of 3.17, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.17 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
Sage Group (The) (SGPYY) has a Financial Strength of 5 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sage Group (The) and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, Sage Group (The)'s Financial Strength has ranged from 5.00 to 7.00.
Is Sage Group (The)'s Financial Strength too high?
Sage Group (The)'s current Financial Strength of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 7.00. Overall, Sage Group (The) has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sage Group (The)'s Financial Strength compare to QH and SHOP?
Sage Group (The)'s Financial Strength of 5 can be compared against companies in the Software industry. Historically, Sage Group (The)'s own Financial Strength has ranged from 5.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sage Group (The) and its competitors. Sage Group (The)'s current Financial Strength is 5, which is 17% below median its own 10-year median of 6.00. 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) (SGPYY) is currently considered Modestly Undervalued. The stock's GF Value™ is $74.02, compared to a current price of $60.05 — trading 18.9% below its estimated fair value. The current Financial Strength is 5, which is 17% below median its 10-year median of 6.00. Sage Group (The)'s overall GF Score™ is 90/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Sage Group (The) (SGPYY), the current Financial Strength is 5 as of Mar. 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) (SGPYY) Overvalued in 2026?

Based on GuruFocus' analysis, Sage Group (The) stock appears to be undervalued. The current stock price of $60.05 is trading 18.9% below its estimated GF Value™ of $74.02. GuruFocus considers Sage Group (The) to be Modestly Undervalued.

Key valuation signals for SGPYY:

  • Financial Strength: 5 (17% below median its 10-year median of 6.00)
  • GF Value™: $74.02 vs. price of $60.05 (18.9% below fair value)
  • GF Score™: 90/100 with 3 warning signs

No single metric tells the full story. See the SGPYY 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.
90GF Score

Get the complete analysis for SGPYY

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

$60.05
Price
$74.02
GF Value