SAP SE (1SAP.MI) Stock Fundamental Analysis
BIT:1SAP - Euronext Milan - DE0007164600 - Common Stock - Currency: EUR
Taking everything into account, 1SAP scores 6 out of 10 in our fundamental rating. 1SAP was compared to 104 industry peers in the Software industry. 1SAP scores excellent on profitability, but there are some minor concerns on its financial health. 1SAP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1SAP was profitable.
1SAP had a positive operating cash flow in the past year.
In the past 5 years 1SAP has always been profitable.
Each year in the past 5 years 1SAP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1SAP (9.56%) is better than 84.62% of its industry peers.
Looking at the Return On Equity, with a value of 15.95%, 1SAP is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.00%, 1SAP belongs to the best of the industry, outperforming 84.62% 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 11.25%.
The last Return On Invested Capital (13.00%) for 1SAP is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 15.95% | ||
| ROIC | 13% |
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
1SAP has a Profit Margin of 18.23%. This is in the better half of the industry: 1SAP outperforms 77.88% of its industry peers.
In the last couple of years the Profit Margin of 1SAP has declined.
Looking at the Operating Margin, with a value of 27.04%, 1SAP belongs to the top of the industry, outperforming 86.54% 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.
1SAP's Gross Margin of 73.80% is in line compared to the rest of the industry. 1SAP outperforms 59.62% of its industry peers.
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 | 27.04% | ||
| PM (TTM) | 18.23% | ||
| GM | 73.8% |
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
1SAP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 8.38 indicates that 1SAP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.38, 1SAP belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
1SAP has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.35, 1SAP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
1SAP has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of 1SAP (0.15) is better than 68.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 8.38 |
ROIC/WACC1.72
WACC7.57%
2.3 Liquidity
1SAP has a Current Ratio of 1.03. This is a normal value and indicates that 1SAP is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.03, 1SAP is not doing good in the industry: 63.46% of the companies in the same industry are doing better.
1SAP has a Quick Ratio of 1.03. This is a normal value and indicates that 1SAP is financially healthy and should not expect problems in meeting its short term obligations.
1SAP has a worse Quick ratio (1.03) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
1SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.56%, which is quite good.
The Earnings Per Share has been decreasing by -2.38% on average over the past years.
The Revenue has grown by 10.29% in the past year. This is quite good.
1SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
EPS 1Y (TTM)16.56%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%36.36%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
3.2 Future
The Earnings Per Share is expected to grow by 20.23% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.17% on average over the next years. This is quite good.
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y20.23%
Revenue Next Year9.78%
Revenue Next 2Y10.71%
Revenue Next 3Y11.52%
Revenue Next 5Y12.17%
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
A Price/Earnings ratio of 45.91 indicates a quite expensive valuation of 1SAP.
The rest of the industry has a similar Price/Earnings ratio as 1SAP.
1SAP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 33.48 indicates a quite expensive valuation of 1SAP.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SAP.
1SAP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.91 | ||
| Fwd PE | 33.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1SAP.
Based on the Price/Free Cash Flow ratio, 1SAP is valued a bit cheaper than the industry average as 60.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.63 | ||
| EV/EBITDA | 26.48 |
4.3 Compensation for Growth
1SAP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1SAP may justify a higher PE ratio.
1SAP's earnings are expected to grow with 25.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)N/A
EPS Next 2Y29.72%
EPS Next 3Y25.76%
5. Dividend
5.1 Amount
1SAP has a yearly dividend return of 0.92%, which is pretty low.
1SAP's Dividend Yield is rather good when compared to the industry average which is at 2.06. 1SAP pays more dividend than 83.65% of the companies in the same industry.
With a Dividend Yield of 0.92, 1SAP pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 41.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.94%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
BIT:1SAP (8/7/2025, 7:00:00 PM)
255.25
+6.45 (+2.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.46%
Inst Owner ChangeN/A
Ins Owners5.09%
Ins Owner ChangeN/A
Market Cap296.16B
Analysts77.89
Price Target289.35 (13.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP41.94%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.72%
Min EPS beat(2)1.63%
Max EPS beat(2)9.81%
EPS beat(4)3
Avg EPS beat(4)2.93%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)-2.96%
EPS beat(12)6
Avg EPS beat(12)9.64%
EPS beat(16)8
Avg EPS beat(16)8.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.6%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.56%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)5
Avg Revenue beat(16)-1.09%
PT rev (1m)-0.66%
PT rev (3m)3.42%
EPS NQ rev (1m)-4.17%
EPS NQ rev (3m)-8.74%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-4.11%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.91 | ||
| Fwd PE | 33.48 | ||
| P/S | 8.25 | ||
| P/FCF | 45.63 | ||
| P/OCF | 40.68 | ||
| P/B | 7.22 | ||
| P/tB | 29.11 | ||
| EV/EBITDA | 26.48 |
EPS(TTM)5.56
EY2.18%
EPS(NY)7.62
Fwd EY2.99%
FCF(TTM)5.59
FCFY2.19%
OCF(TTM)6.27
OCFY2.46%
SpS30.93
BVpS35.34
TBVpS8.77
PEG (NY)1.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 15.95% | ||
| ROCE | 19.67% | ||
| ROIC | 13% | ||
| ROICexc | 16.33% | ||
| ROICexgc | 73.27% | ||
| OM | 27.04% | ||
| PM (TTM) | 18.23% | ||
| GM | 73.8% | ||
| FCFM | 18.08% |
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%
ROICexcg growth 3Y10.63%
ROICexcg 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-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 59.76% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 17.61 | ||
| Cash Conversion | 66.02% | ||
| Profit Quality | 99.22% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 8.38 |
F-Score8
WACC7.57%
ROIC/WACC1.72
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)16.56%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%36.36%
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y20.23%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
Revenue Next Year9.78%
Revenue Next 2Y10.71%
Revenue Next 3Y11.52%
Revenue Next 5Y12.17%
EBIT growth 1Y34.62%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year58.56%
EBIT Next 3Y28.56%
EBIT Next 5Y20.54%
FCF growth 1Y22.34%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y18.64%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%