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1. Company Snapshot

1.a. Company Description

Sapiens International Corporation N.V. provides software solutions for the insurance and financial services industries in North America, the European Union, the United Kingdom, Israel, and internationally.The company offers Sapiens CoreSuite and Sapiens IDITSuite for personal, commercial, and specialty lines; and Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster for life, pension, and annuities.It also provides Sapiens DigitalSuite for customers, agents, brokers, risk managers, customer groups and third-party service providers; Sapiens ReinsuranceMaster and Sapiens ReinsurancePro reinsurance solutions; and Sapiens Platform, Sapiens CoreSuite, Sapiens PolicyPro, and Sapiens ClaimsPro, as well as Sapiens PolicyGo, and Sapiens ClaimsGo for workers' compensation.


In addition, the company offers financial and compliance solutions, which comprise Sapiens FinancialPro, Sapiens Financial GO, Sapiens StatementPro, Sapiens CheckPro, and Sapiens Reporting Tools; and Sapiens Decision, an enterprise-scale platform that enables institutions to centrally author, store, and manage various organizational business logics.Further, it provides tailor-made solutions based on its Sapiens eMerge platform; and program delivery, business, and managed services.The company markets and sells its products and services through direct and partner sales.


Sapiens International Corporation N.V. was founded in 1982 and is headquartered in Holon, Israel.

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1.b. Last Insights on SPNS

Recent negative drivers behind Sapiens International Corporation N.V.'s performance include a Securities Fraud Investigation initiated by Levi & Korsinsky, as notified in multiple press releases between December 30, 2024, and January 16, 2025. This investigation may indicate potential issues with the company's financial reporting or business practices. Additionally, the company's Q3 earnings release on November 11, 2024, showed a modest beat, but the latest trend in earnings estimate revisions suggests limited further strength.

1.c. Company Highlights

2. Sapiens International Delivers Steady Q1 2025 Results with Strategic Acquisitions

Sapiens International reported Q1 2025 revenues of $136 million, a 1.4% year-over-year increase, despite a negative currency impact. On a constant currency basis, revenue would have been $2 million higher. The company posted a gross margin of 46.3%, up 90 basis points, driven by strong recurring revenue growth. Operating margin remained stable at 18%, while net income rose 1.3% to $21 million, with earnings per diluted share of $0.37, beating consensus estimates of $0.35. This performance underscores Sapiens' ability to maintain profitability while investing in growth initiatives.

Publication Date: May -10

📋 Highlights
  • Revenue Growth: Total revenue reached $136 million, up 1.4% year-over-year, with North America contributing $57 million, a 3.1% increase.
  • Annual Recurring Revenue (ARR): ARR grew 11.8% to $187 million, driven by strong recurring software products and services.
  • Recurring Revenue Performance: Recurring revenue rose 14.7% to $108 million, accounting for 79% of total revenue.
  • Gross Margin Improvement: Gross margin expanded by 90 basis points to 46.3%, reflecting operational efficiency.
  • Guidance Update: The company raised its 2025 non-GAAP revenue guidance to $574-$578 million, representing 6% growth at the midpoint.

Regional Performance and Segment Highlights

North America led the charge with a 3.1% revenue increase to $57 million, fueled by robust demand for Life and Annuity solutions. Europe revenue dipped 1.8% to $67 million, reflecting macroeconomic headwinds, while the Rest of the World, including APAC and South Africa, saw a 13.4% revenue surge to $12 million. The Life segment now accounts for 26% of total revenue, a 300 basis point improvement year-over-year, highlighting the success of Sapiens' strategic focus on this vertical.

Strategic Acquisitions and Innovation

Sapiens announced two key acquisitions: Candela, an intelligent automation company in APAC, and Advantage Go, a commercial insurance software provider. These deals enhance Sapiens' platform capabilities and expand its market reach, particularly in underwriting solutions. CEO Roni Al-Dor emphasized the importance of innovation, noting continued investments in AI and cloud adoption. Nearly all new deals are now on cloud platforms, positioning the company for long-term growth.

Updated Guidance and Valuation

Sapiens raised its 2025 non-GAAP revenue guidance to $574-$578 million, representing 6% growth at the midpoint. Operating profit guidance was revised to $94-$96 million, with a margin of 16.5%. The company also declared a special dividend of $0.36 per share, reflecting its financial stability. With a P/E ratio of 21.98 and a P/B ratio of 3.31, Sapiens trades at a premium, but its strong recurring revenue, solid ROE of 15.59%, and growing dividend yield of 3.35% suggest the market is pricing in continued growth and profitability.

3. NewsRoom

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Hamamatsu Photonics KK: A Significant Addition to Oakmark Intl Small Cap's Portfolio

Nov -25

Source: gurufocus.com

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Aviva PLC Sells 5,777 Shares of Sapiens International Corporation N.V. $SPNS

Nov -14

Source: defenseworld.net

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Sapiens (SPNS) Beats Q3 Earnings and Revenue Estimates

Nov -13

Source: zacks.com

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Sapiens Reports Third Quarter 2025 Financial Results

Nov -13

Source: prnewswire.com

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Chuck Royce's Strategic Moves: Significant Reduction in Air Lease Corp

Nov -12

Source: gurufocus.com

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SAPIENS TO ANNOUNCE THIRD QUARTER 2025 FINANCIAL RESULTS ON NOVEMBER 13, 2025

Nov -06

Source: prnewswire.com

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Sapiens Customer Summit Highlighted Transformative Insurance Technology in Phoenix, Arizona

Oct -30

Source: prnewswire.com

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Sapiens Launches Decision Analytics, Bringing Real-Time Visibility and Optimization to AI Decisioning

Oct -28

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.07%)

6. Segments

Insurance

Expected Growth: 10.2%

Growing demand for digital transformation in the insurance industry, increasing adoption of cloud-based solutions, and rising need for efficient policy administration and claims management systems drive the growth of Sapiens International Corporation N.V.'s insurance solutions.

All Other

Expected Growth: 7.2%

The All Other segment's growth is driven by increasing demand for maintenance and consulting services, as well as the growing need for digital transformation in the insurance industry.

Unallocated

Expected Growth: 12.3%

The unallocated segment of Sapiens International Corporation N.V. is expected to grow at a CAGR of 12.3% driven by increasing demand for digital transformation in the insurance industry, expansion into new markets, and strategic investments in emerging technologies.

7. Detailed Products

Sapiens CoreSuite

A comprehensive, modular insurance platform that supports the entire policy lifecycle, from underwriting to claims

Sapiens IDIT

A comprehensive, modular insurance platform that supports the entire policy lifecycle, from underwriting to claims, specifically designed for the Japanese market

Sapiens Reinsurance

A comprehensive reinsurance platform that supports the entire reinsurance lifecycle, from underwriting to claims

Sapiens Workers' Compensation

A comprehensive workers' compensation platform that supports the entire policy lifecycle, from underwriting to claims

Sapiens Property and Casualty

A comprehensive property and casualty insurance platform that supports the entire policy lifecycle, from underwriting to claims

Sapiens Life Insurance

A comprehensive life insurance platform that supports the entire policy lifecycle, from underwriting to claims

Sapiens DigitalSuite

A digital insurance platform that enables insurers to rapidly develop and deploy digital insurance products and services

Sapiens Intelligence

A business intelligence and analytics platform that provides insights and analytics for insurance companies

8. Sapiens International Corporation N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Sapiens International Corporation N.V. is medium due to the presence of alternative solutions in the market.

Bargaining Power Of Customers

The bargaining power of customers for Sapiens International Corporation N.V. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Sapiens International Corporation N.V. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Sapiens International Corporation N.V. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Sapiens International Corporation N.V. is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.85%
Debt Cost 3.95%
Equity Weight 87.15%
Equity Cost 9.78%
WACC 9.03%
Leverage 14.75%

11. Quality Control: Sapiens International Corporation N.V. passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mensch und Maschine Software

A-Score: 5.5/10

Value: 2.5

Growth: 7.0

Quality: 7.7

Yield: 6.2

Momentum: 2.0

Volatility: 7.3

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TXT

A-Score: 4.8/10

Value: 3.7

Growth: 9.1

Quality: 3.9

Yield: 1.2

Momentum: 6.5

Volatility: 4.3

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Quadient

A-Score: 4.7/10

Value: 8.6

Growth: 3.3

Quality: 4.1

Yield: 5.6

Momentum: 2.0

Volatility: 4.7

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Sapiens

A-Score: 4.5/10

Value: 1.3

Growth: 6.2

Quality: 7.6

Yield: 3.8

Momentum: 7.0

Volatility: 1.0

1-Year Total Return ->

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Admicom

A-Score: 4.1/10

Value: 0.2

Growth: 5.6

Quality: 8.0

Yield: 3.8

Momentum: 3.0

Volatility: 4.3

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NCC Group

A-Score: 3.4/10

Value: 4.5

Growth: 2.0

Quality: 2.6

Yield: 4.4

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.3$

Current Price

43.3$

Potential

-0.00%

Expected Cash-Flows