SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SAP - DE0007164600 - Common Stock
204.75 EUR
-2.15 (-1.04%)
We assign a fundamental rating of 6 out of 10 to 1SAP. 1SAP was compared to 114 industry peers in the Software industry. While 1SAP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1SAP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1SAP was profitable.
In the past year 1SAP had a positive cash flow from operations.
Each year in the past 5 years 1SAP has been profitable.
Each year in the past 5 years 1SAP had a positive operating cash flow.
1.2 Ratios
1SAP has a better Return On Assets (10.35%) than 82.46% of its industry peers.
Looking at the Return On Equity, with a value of 16.54%, 1SAP is in the better half of the industry, outperforming 72.81% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.05%, 1SAP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1SAP is below the industry average of 13.10%.
The last Return On Invested Capital (13.05%) for 1SAP is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 16.54% | ||
| ROIC | 13.05% |
ROA(3y)5.45%
ROA(5y)6.51%
ROE(3y)8.93%
ROE(5y)11.53%
ROIC(3y)8.58%
ROIC(5y)8.51%
1.3 Margins
Looking at the Profit Margin, with a value of 19.41%, 1SAP is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
In the last couple of years the Profit Margin of 1SAP has declined.
Looking at the Operating Margin, with a value of 27.47%, 1SAP belongs to the top of the industry, outperforming 87.72% of the companies in the same industry.
In the last couple of years the Operating Margin of 1SAP has remained more or less at the same level.
With a Gross Margin value of 73.83%, 1SAP perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
In the last couple of years the Gross Margin of 1SAP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.47% | ||
| PM (TTM) | 19.41% | ||
| GM | 73.83% |
OM growth 3Y7.42%
OM growth 5Y1.05%
PM growth 3Y-21.47%
PM growth 5Y-5.38%
GM growth 3Y0.43%
GM growth 5Y0.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1SAP is creating some value.
1SAP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1SAP has less shares outstanding
1SAP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.56 indicates that 1SAP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.56, 1SAP belongs to the best of the industry, outperforming 82.46% of the companies in the same industry.
The Debt to FCF ratio of 1SAP is 1.41, which is an excellent value as it means it would take 1SAP, only 1.41 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.41, 1SAP is doing good in the industry, outperforming 72.81% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that 1SAP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, 1SAP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.56 |
ROIC/WACC1.75
WACC7.45%
2.3 Liquidity
1SAP has a Current Ratio of 1.10. This is a normal value and indicates that 1SAP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1SAP (1.10) is worse than 60.53% of its industry peers.
1SAP has a Quick Ratio of 1.10. This is a normal value and indicates that 1SAP is financially healthy and should not expect problems in meeting its short term obligations.
1SAP's Quick ratio of 1.10 is in line compared to the rest of the industry. 1SAP outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.11% over the past year.
The Earnings Per Share has been decreasing by -2.38% on average over the past years.
Looking at the last year, 1SAP shows a quite strong growth in Revenue. The Revenue has grown by 9.70% in the last year.
The Revenue has been growing slightly by 4.40% on average over the past years.
EPS 1Y (TTM)30.11%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%29.27%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
3.2 Future
Based on estimates for the next years, 1SAP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.58% on average per year.
Based on estimates for the next years, 1SAP will show a quite strong growth in Revenue. The Revenue will grow by 12.52% on average per year.
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
EPS Next 5Y21.58%
Revenue Next Year9.2%
Revenue Next 2Y10.08%
Revenue Next 3Y10.96%
Revenue Next 5Y12.52%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1SAP is valuated quite expensively with a Price/Earnings ratio of 34.59.
Based on the Price/Earnings ratio, 1SAP is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
1SAP is valuated rather expensively when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.32, 1SAP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SAP is on the same level as its industry peers.
1SAP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.59 | ||
| Fwd PE | 28.32 |
4.2 Price Multiples
1SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1SAP is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.67 | ||
| EV/EBITDA | 20.74 |
4.3 Compensation for Growth
1SAP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 1SAP may justify a higher PE ratio.
A more expensive valuation may be justified as 1SAP's earnings are expected to grow with 23.94% in the coming years.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y26.32%
EPS Next 3Y23.94%
5. Dividend
5.1 Amount
1SAP has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of 1SAP has falen by -22.40%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
1SAP's Dividend Yield is rather good when compared to the industry average which is at 2.24. 1SAP pays more dividend than 84.21% of the companies in the same industry.
With a Dividend Yield of 1.14, 1SAP pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
On average, the dividend of 1SAP grows each year by 7.95%, which is quite nice.
Dividend Growth(5Y)7.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1SAP pays out 38.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.73%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
BIT:1SAP (11/25/2025, 7:00:00 PM)
204.75
-2.15 (-1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.23%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap237.57B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target294.09 (43.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP38.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.84%
Min EPS beat(2)1.63%
Max EPS beat(2)4.05%
EPS beat(4)3
Avg EPS beat(4)3.48%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)-3.11%
EPS beat(12)7
Avg EPS beat(12)10.96%
EPS beat(16)8
Avg EPS beat(16)6.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-1.6%
Revenue beat(4)1
Avg Revenue beat(4)-0.84%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.54%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)4
Avg Revenue beat(16)-1.25%
PT rev (1m)0.43%
PT rev (3m)0.44%
EPS NQ rev (1m)-4.45%
EPS NQ rev (3m)-4.43%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.59 | ||
| Fwd PE | 28.32 | ||
| P/S | 6.51 | ||
| P/FCF | 36.67 | ||
| P/OCF | 32.51 | ||
| P/B | 5.55 | ||
| P/tB | 20.86 | ||
| EV/EBITDA | 20.74 |
EPS(TTM)5.92
EY2.89%
EPS(NY)7.23
Fwd EY3.53%
FCF(TTM)5.58
FCFY2.73%
OCF(TTM)6.3
OCFY3.08%
SpS31.45
BVpS36.89
TBVpS9.82
PEG (NY)0.99
PEG (5Y)N/A
Graham Number70.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 16.54% | ||
| ROCE | 19.55% | ||
| ROIC | 13.05% | ||
| ROICexc | 16.19% | ||
| ROICexgc | 67.39% | ||
| OM | 27.47% | ||
| PM (TTM) | 19.41% | ||
| GM | 73.83% | ||
| FCFM | 17.75% |
ROA(3y)5.45%
ROA(5y)6.51%
ROE(3y)8.93%
ROE(5y)11.53%
ROIC(3y)8.58%
ROIC(5y)8.51%
ROICexc(3y)10.69%
ROICexc(5y)10.46%
ROICexgc(3y)47.04%
ROICexgc(5y)47.34%
ROCE(3y)12.97%
ROCE(5y)12.91%
ROICexgc growth 3Y10.63%
ROICexgc growth 5Y-0.71%
ROICexc growth 3Y15.06%
ROICexc growth 5Y4.05%
OM growth 3Y7.42%
OM growth 5Y1.05%
PM growth 3Y-21.47%
PM growth 5Y-5.38%
GM growth 3Y0.43%
GM growth 5Y0.66%
F-Score9
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 62.59% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 17.84 | ||
| Cash Conversion | 64.38% | ||
| Profit Quality | 91.49% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 7.56 |
F-Score9
WACC7.45%
ROIC/WACC1.75
Cap/Depr(3y)55.18%
Cap/Depr(5y)51.03%
Cap/Sales(3y)2.6%
Cap/Sales(5y)2.73%
Profit Quality(3y)146.95%
Profit Quality(5y)133.59%
High Growth Momentum
Growth
EPS 1Y (TTM)30.11%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%29.27%
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
EPS Next 5Y21.58%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.2%
Revenue Next 2Y10.08%
Revenue Next 3Y10.96%
Revenue Next 5Y12.52%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year56.23%
EBIT Next 3Y28.74%
EBIT Next 5Y21.39%
FCF growth 1Y15.2%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y14.03%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%
SAP SE / 1SAP.MI FAQ
What is the ChartMill fundamental rating of SAP SE (1SAP.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1SAP.MI.
What is the valuation status of SAP SE (1SAP.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to SAP SE (1SAP.MI). This can be considered as Fairly Valued.
How profitable is SAP SE (1SAP.MI) stock?
SAP SE (1SAP.MI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of SAP SE (1SAP.MI) stock?
The Price/Earnings (PE) ratio for SAP SE (1SAP.MI) is 34.59 and the Price/Book (PB) ratio is 5.55.
What is the financial health of SAP SE (1SAP.MI) stock?
The financial health rating of SAP SE (1SAP.MI) is 6 / 10.