Is Sage Group (SGE) Halal?

LSE Technology United Kingdom $7.5B
✓ HALAL
Confidence: 95/100
Sage Group (SGE) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 20.0% against the AAOIFI threshold of 30%, Sage Group comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Application), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from September 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 20.0%
/ 30%
4.9%
/ 30%
4.5%
/ 30%
0.48%
/ 5%
✓ HALAL
DJIM 20.0%
/ 33%
4.9%
/ 33%
4.5%
/ 33%
0.48%
/ 5%
✓ HALAL
MSCI 42.5%
/ 33%
10.5%
/ 33%
9.6%
/ 33%
0.48%
/ 5%
✗ NOT HALAL
S&P 20.0%
/ 33%
4.9%
/ 33%
4.5%
/ 33%
0.48%
/ 5%
✓ HALAL
FTSE 42.5%
/ 33%
10.5%
/ 33%
9.6%
/ 50%
0.48%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
21.9
Forward: 14.2
EPS
$0.37
Dividend Yield
269.0%
Payout: 56.4%
P/B Ratio
1075.9
EV/EBITDA
15.2
EV: $8.9B
Revenue
$2.5B
Growth: 7.7%
Beta
0.3
Low volatility
Current Ratio
0.6

Profitability

Gross Margin 92.7%
Operating Margin 22.8%
Net Margin 14.7%
Return on Equity (ROE) 40.7%
Return on Assets (ROA) 9.5%

Cash Flow & Balance Sheet

Operating Cash Flow$528M
Free Cash Flow$469M
Total Debt$1.6B
Debt-to-Equity219.3
Current Ratio0.6
Total Assets$3.7B

Price & Trading

Last CloseGBp 814.60
50-Day MAGBp 866.14
200-Day MAGBp 1,064.14
Avg Volume4.5M
Beta0.3
52-Week Range
GBp 771.66
GBp 1,335.00

About Sage Group (SGE)

CEO
Mr. Stephen Hare ACA, B.A., B.Com
Employees
11,094
Sector
Technology
Industry
Software - Application
Country
United Kingdom
Exchange
LSE
Market Cap
$7.5B
Currency
GBp

The Sage Group plc, together with its subsidiaries, offers technology solutions and services for small and medium businesses in North America, Europe, the United Kingdom, Ireland, Africa and Asia-Pacific. It offers Sage Intacct, cloud accounting and financial management software for mid-sized and growing businesses; Sage People, an integrated HR and Payroll solution; Sage 200, a scalable management solution; Sage X3, a flexible, intuitive, and tailored business solution; Sage Accounting, a cloud software for managing invoicing, cash flow, tax, and more, from anywhere. Ideal for small businesses; Sage Payroll for start-ups and small businesses manage their payroll; and Sage HR for small and mid-sized businesses for record management, leave management, staff scheduling, and expenses services. The company also provides Sage 50 accounts, that manages accounting, inventory, and payments, as well as Sage 50 payroll. The Sage Group plc was formerly known as Ployfinal Public Limited Company and changed its name to The Sage Group plc in September 1988. The company was founded in 1981 and is based in Newcastle upon Tyne, United Kingdom.

Purification Calculator

As a halal stock with 0.48% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Sage Group (SGE) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Sage Group is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Sage Group's debt ratio?

Sage Group's debt ratio is 20.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 42.5%.

Does Sage Group require dividend purification?

Yes, Sage Group has an impermissible income ratio of 0.48%, which means 0.48% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Sage Group's key financial metrics?

Sage Group has a market capitalization of $7.5B, trailing P/E ratio of 21.9, and revenue of $2.5B. The company maintains a gross margin of 92.7% and a net margin of 14.7%. Return on equity stands at 40.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.