Latest Ratios: P/E Ratio 33.7x · EV/EBITDA 22.1x · ROE 15.5%. (1996–2024 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.4B | $1.5B | $1.6B | $1.0B | $1.9B | $1.6B | $1.2B | $553M | $575M | $714M | $503M |
| Enterprise Value | $2.3B | $1.4B | $1.6B | $983M | $1.9B | $1.6B | $1.2B | $567M | $582M | $668M | $462M |
| P/E Ratio → | 33.68 | 20.83 | 25.84 | 19.45 | 40.53 | 47.09 | 44.23 | 39.39 | 1645.71 | 36.77 | 24.88 |
| P/S Ratio | 4.48 | 2.78 | 3.13 | 2.16 | 4.15 | 4.17 | 3.58 | 1.91 | 2.14 | 3.30 | 2.71 |
| P/B Ratio | 5.09 | 3.15 | 3.58 | 2.55 | 4.69 | 4.16 | 5.17 | 2.73 | 2.85 | 3.66 | 2.75 |
| P/FCF | 33.63 | 20.89 | 22.99 | 29.57 | 27.88 | 33.96 | 23.77 | 26.79 | 1038.17 | 45.09 | 15.93 |
| P/OCF | 29.54 | 18.35 | 20.30 | 23.46 | 23.78 | 27.41 | 17.61 | 19.95 | 65.78 | 27.41 | 12.44 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.60 | 3.06 | 2.07 | 4.06 | 4.23 | 3.74 | 1.96 | 2.16 | 3.09 | 2.49 |
| EV / EBITDA | 22.11 | 13.38 | 16.64 | 11.86 | 23.87 | 26.22 | 21.39 | 13.21 | 34.49 | 19.15 | 13.59 |
| EV / EBIT | 25.49 | 15.62 | 19.86 | 14.79 | 29.67 | 34.80 | 31.97 | 24.61 | 386.94 | 26.88 | 18.97 |
| EV / FCF | — | 19.51 | 22.42 | 28.31 | 27.27 | 34.48 | 24.87 | 27.47 | 1050.47 | 42.18 | 14.62 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.0% | 45.0% | 42.7% | 42.2% | 40.7% | 40.7% | 39.8% | 37.8% | 34.7% | 39.7% | 40.1% |
| Operating Margin | 16.8% | 16.8% | 15.3% | 14.0% | 12.5% | 11.8% | 11.6% | 7.9% | 0.4% | 11.5% | 13.1% |
| Net Profit Margin | 13.3% | 13.3% | 12.1% | 11.1% | 10.2% | 8.8% | 8.1% | 4.8% | 0.1% | 8.9% | 10.8% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.5% | 15.5% | 14.6% | 13.0% | 11.9% | 11.1% | 12.3% | 6.8% | 0.2% | 10.2% | 11.1% |
| ROA | 10.5% | 10.5% | 9.2% | 7.6% | 6.6% | 5.8% | 6.3% | 3.7% | 0.1% | 7.7% | 8.5% |
| ROIC | 17.4% | 17.4% | 15.4% | 13.7% | 11.1% | 9.8% | 11.5% | 8.1% | 0.4% | 12.8% | 12.8% |
| ROCE | 16.9% | 16.9% | 14.8% | 12.2% | 10.2% | 9.8% | 11.7% | 7.7% | 0.4% | 12.3% | 12.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.13 | 0.13 | 0.19 | 0.29 | 0.36 | 0.46 | 0.53 | 0.39 | 0.39 | 0.08 | 0.07 |
| Debt / EBITDA | 0.61 | 0.61 | 0.92 | 1.41 | 1.89 | 2.87 | 2.11 | 1.83 | 4.64 | 0.42 | 0.38 |
| Net Debt / Equity | — | -0.21 | -0.09 | -0.11 | -0.10 | 0.06 | 0.24 | 0.07 | 0.03 | -0.24 | -0.23 |
| Net Debt / EBITDA | -0.95 | -0.95 | -0.42 | -0.53 | -0.53 | 0.40 | 0.95 | 0.32 | 0.40 | -1.32 | -1.21 |
| Debt / FCF | — | -1.38 | -0.57 | -1.26 | -0.61 | 0.52 | 1.10 | 0.67 | 12.30 | -2.91 | -1.31 |
| Interest Coverage | 228.41 | 228.41 | 232.92 | 42.27 | 16.64 | 8.32 | 12.58 | 7.14 | 0.89 | 92.00 | 155.10 |
Net cash position: cash ($164M) exceeds total debt ($64M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.24 | 2.24 | 2.11 | 1.95 | 1.98 | 1.85 | 1.40 | 1.60 | 1.88 | 2.52 | 2.09 |
| Quick Ratio | 2.24 | 2.24 | 2.11 | 1.95 | 2.07 | 1.85 | 1.40 | 1.60 | 1.97 | 2.52 | 2.09 |
| Cash Ratio | 1.45 | 1.45 | 1.36 | 1.24 | 1.39 | 1.26 | 0.63 | 0.80 | 1.02 | 1.66 | 1.34 |
| Asset Turnover | — | 0.78 | 0.75 | 0.71 | 0.64 | 0.54 | 0.72 | 0.76 | 0.73 | 0.84 | 0.77 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 67.03 | 64.03 | 71.80 | 60.38 | 62.35 | 56.29 | 74.53 | 72.17 | 58.56 | 69.24 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.3% | 2.1% | 1.7% | 3.8% | 1.1% | 0.4% | 0.9% | 1.8% | 1.7% | 1.4% | 1.4% |
| Payout Ratio | 44.1% | 44.1% | 45.1% | 73.4% | 42.9% | 20.9% | 41.9% | 72.4% | 2798.6% | 50.6% | 35.9% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 4.8% | 3.9% | 5.1% | 2.5% | 2.1% | 2.3% | 2.5% | 0.1% | 2.7% | 4.0% |
| FCF Yield | 3.0% | 4.8% | 4.4% | 3.4% | 3.6% | 2.9% | 4.2% | 3.7% | 0.1% | 2.2% | 6.3% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.3% | 2.1% | 1.7% | 3.8% | 1.1% | 0.4% | 1.0% | 1.8% | 1.7% | 1.4% | 1.4% |
| Shares Outstanding | — | $56M | $56M | $56M | $56M | $52M | $51M | $50M | $50M | $50M | $49M |
Geopolitical and operational concentration
Based on current market data, Sapiens trades at a forward P/E of 27.85, which appears to price in significant cloud-transition success while remaining at a substantial discount to Guidewire's triple-digit multiple, suggesting the market views Sapiens as a secondary player in the core insurance software vertical.
The current P/S ratio of 4.48 indicates that investors are paying a premium for the shift toward recurring revenue, yet the PEG ratio of 1.69 suggests that this valuation may be stretched if the company fails to accelerate its top-line growth. This valuation gap relative to Guidewire implies that the market is not yet fully convinced of Sapiens' ability to capture Tier 1 market share.
According to recent financial disclosures, Sapiens' ROIC has trended downward from 4.2% in 2025Q1 to 2.7% in 2025Q3, a decline that appears to be driven by the heavy integration of goodwill from past acquisitions rather than a fundamental deterioration in the core software business's underlying profitability.
The persistent gap between ROIC and the company's cost of capital suggests that management's acquisition-led growth strategy is currently failing to generate significant economic value-add. Investors should monitor whether the company can improve its asset turnover, which has remained stagnant near 0.20, to drive better returns on its invested capital base.
As reported in quarterly filings, the company's DSO has expanded from 66 days in 2023Q4 to 92 days in 2025Q3, indicating that Sapiens is experiencing increased difficulty in collecting receivables, which directly impacts the efficiency of its cash conversion cycle and overall liquidity management.
This lengthening of the collection cycle suggests that the company may be granting more lenient payment terms to secure large-scale insurance contracts, which could be a sign of heightened competitive pressure. The lack of consistent data for DIO and DPO further complicates the assessment of working capital, but the rising DSO is a clear indicator of potential cash flow friction.
Based on reported figures, Sapiens maintains a disciplined balance sheet with a debt-to-equity ratio of 0.08 as of 2025Q3, a significant improvement from 0.21 in 2023Q3, which provides the firm with substantial financial flexibility to navigate potential operational disruptions or fund future R&D initiatives.
The low debt-to-EBITDA ratio of 2.21 suggests that the company is well-positioned to service its existing obligations without relying on external financing. This conservative capital structure is a defensive strength, particularly given the geopolitical risks associated with the company's concentration of R&D talent in Israel.
The P/E ratio is frequently misapplied to Sapiens because it fails to account for the company's aggressive capitalization of software development costs, which artificially inflates reported net income and obscures the true cash-generating capability of the business model compared to peers who expense R&D costs immediately.
Analysts should instead focus on P/FCF or EV/EBITDA, as these metrics are less sensitive to the accounting choices surrounding R&D capitalization and the lumpy nature of percentage-of-completion revenue recognition. Relying solely on P/E may lead to an overly optimistic view of the company's earnings quality and its ability to sustain dividend payments.
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Quick answers to the most common questions about buying SPNS stock.
Sapiens International Corporation N.V.'s current P/E ratio is 33.7x. The historical average is 28.0x. This places it at the 61th percentile of its historical range.
Sapiens International Corporation N.V.'s current EV/EBITDA is 22.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.2x.
Sapiens International Corporation N.V.'s return on equity (ROE) is 15.5%. The historical average is -12.8%.
Based on historical data, Sapiens International Corporation N.V. is trading at a P/E of 33.7x. This is at the 61th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sapiens International Corporation N.V.'s current dividend yield is 1.30% with a payout ratio of 44.1%.
Sapiens International Corporation N.V. has 45.0% gross margin and 16.8% operating margin. Operating margin between 10-20% is typical for established companies.
Sapiens International Corporation N.V.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.