Shares in the British company Sage are among those that can be traded directly online using approved brokers trading platforms. But before you launch into investing in this European asset we recommend you read this dedicated article offering useful information such as general stock market data relating to this share price, and details relating to this company’s activities, its history, its competitors and partnerships as well as some advice for completing a comprehensive fundamental analysis of this asset before taking a buying or selling position.
General presentation of the Sage Company:
The Sage Company is a British Group that is specialised in the publication of management software mainly destined for small and medium companies. At present this group is one of the world leaders in this activity sector. However we can divide the group’s activities into different sectors according to the amount of turnover generated and how it does so:
- The maintenance and technical support services are the most profitable activities of the group and in fact generate no less than 68.8% of the entire turnover of this company.
- The sale of licenses for accounts management software, human resources, customer relations, salary slips and production represent nearly 31.2% of this company’s turnover.
From a geographical point of view the Sage group exercises its activities and sells its products throughout the world. The market is shared in the following manner: It is in Europe that this company achieves most of its turnover, 57.9% of the total to be more exact. Then we find North America which provides 30.7% of the turnover and the remaining 11.4% of the Sage Company’s turnover is from other parts of the world.
Know the competition to Sage shares:
Although the Sage Group is one of the largest software editors for companies around the globe it in fact only holds third position in Europe. It therefore has some serious competitors that you should take into account during your analyses. At the global level the Sage group holds fourth position in the professional software editors sector so it is extremely important to remember its major competitors when implementing any investment strategy on the share price of the Sage Company, on the international as well as the European level. In fact, variations in the share price of this company depend greatly on movements in the market parts of each of these major companies, their innovations and any other event such as mergers, acquisitions or failures that could change the classifications in this sector. We therefore strongly recommend that when you complete your fundamental analyses you also undertake a comprehensive study of all competition and obtain the maximum of information on each of these companies.
- The German group SAP which continues to be the leader in this category.
- The French Dassault Systems Group which occupies second position in this classification.
- The German Software AG Company which holds third position in Europe.
- DATEV: Which is followed by the German DATEV group in fourth position.
- The American group, Oracle.
- The American Microsoft Group.
- The company SSA.
- The Invensys Company.
Strategic alliances implemented by the Sage Group:
Although the Sage Group is counted nowadays among the largest groups in this activity sector worldwide this is mainly due to the strategy that it implemented and has followed faithfully for a number of years. This strategy is mainly founded on the implementation of strategic alliances with other companies that exercise similar or complementary activities to its own which enables it to gain hold of a larger market share, innovate more and reduce production costs. Here we offer you the opportunity to learn about some of the more recent influential partnerships implemented by this group.
- E-THEMIS: In 2011 the Sage Group signed a new partnership with the e-THEMIS software editor with which it had already formed an alliance. The objective of this agreement was to entitle the e-THEMIS food industry software to carry the name ‘Sage X3 Trade solution’. Before, e-THEMIS was already a partner with Sage for business solutions for mass market products and pharmaceutical distribution.
- Mobil Software: In 2014 the Sage Group notably became allied with the Mobil Software group that is also specialised in the production of software including MobilOutils which offers innovative and intuitive functions that perfectly complement the range of software produced by Sage. The two companies thereby created a new version of this software that works with the Sage and Sage PE software named Batigest, Ciel and Multi-Devis. Among other things this software enables the transformation of quotes generated and signed on a PC or tablet by clients into an order or request. Through this partnership the Sage group has been able to widen their range of software destined for construction companies by creating a single solution offering quotes, service requests and orders onsite.
- Clearnox: Finally in 2018 the Sage Group renewed its alliance with the Clearnox Group in order to add the expertise and knowledge of Clearnox to its Sage 100Cloud solution for the tracking, reminders and payment of bills. It should be remembered here that the Sage100Cloud offers cloud based salary accounting and commercial management solutions for companies. This is also integrated in the Clearnox invoice tracking, reminders and payment solution.
The British company Sage did not achieve its current position without a strategy also based on strong expansion. To this end, it has been pursuing a policy of buying out companies of all sizes for a very long time. We therefore invite you to discover here the complete history of the acquisitions made by the group.
- 1991: Sage buys the American accounting company DacEasy for 15 million pounds.
- 1992 : Sage buys the French accounting company Ciel for 5 million pounds.
- 1995 : Sage buys the French accounting firm Sybel & Saari for 46 million pounds.
- 1997: Sage acquires the German accounting firm KHK for £15 million.
- 1999: Sage acquires the Swiss accounting company Sesam for 11 million pounds.
- 2000: Sage acquires the American human resources company Best for 270 million pounds.
- 2001: Sage acquires the American CRM company Interact for £227 million.
- 2004: Sage acquires the South African accounting company Softline for £53 million. In the same year, he buys the Spanish company Grupo SP, which also specializes in accounting.
- 2005: Sage acquires the Polish company Symfonia in the field of accounting for 10 million pounds.
- 2006: Sage acquires the Malaysian accounting company UBS for £12 million, the American payment management company Verus for £174 million and the American healthcare company Emdeon for £315 million.
- 2007: Sage acquires the French cash management company XRT for £44 million.
- 2010: Sage acquires the South African company NetCash in the field of payment management for 120 million pounds.
- 2012: Sage acquires Brazilian accounting company Folhamatic Tecnologia for £125 million, Brazilian company Empresa Brasiliera de Sistemas and Cenize Informatica, both in the area of accounting for £853 million.
- 2017: Sage acquires US accounting firm Intacct for 850 million pounds.
So you understand that the Sage Group is one of the companies in its sector that is most motivated to develop its production and innovation strengths even further. For each of these repurchase operations, the share price on the stock market has thus experienced interesting variations. Therefore and before taking a position on this stock with CFDs, it is interesting to follow this type of news which can represent an interesting entry point into the market.
The advantages and strengths of the Sage share as a stock market asset :
- First of all, it should be pointed out that the Sage group benefits from a solid client base, which represents an undeniable strong point for the years to come. Indeed, the number of the company's VSE and SME customers is estimated at more than 6 million worldwide. Thanks to this loyal clientele, the group will ensure stable revenues in the future.
- Moreover, the Sage Group's ability to expand internationally is also a major asset for its growth. Indeed, the group benefits from a large geographical presence and has no less than 23 offices around the world. In total, Sage distributes its products and services in no less than 160 different countries, which protects it from risks related to one and the same sector.
- One of the group's strengths is its remarkable capacity for innovation. Every year, the company invests heavily in R&D in order to remain at the cutting edge of technology and to attract new customers with ever more efficient solutions that meet their needs.
- Finally, the Sage Group can also count on its extensive experience in its field of activity, in which it has been active for more than 30 years, and on its workforce of 12,000 employees.
Disadvantages and weaknesses of the Sage share as a stock market asset :
- In the first place, while the group is well developed internationally, the North American market is the one with the highest concentration of clients. This therefore increases the risk of devaluation in the event of a decline in activity in this sector.
- Finally, and as we have seen in more detail above, the sector in which the Sage group operates is also a highly competitive sector. Faced with certain large international groups such as Microsoft or Oracle, Sage must therefore redouble its innovation and strategic acumen in order to maintain its positioning and not lose market share.