SAP SE (1SAP.MI) Stock Fundamental Analysis
BIT:1SAP - Euronext Milan - DE0007164600 - Common Stock - Currency: EUR
1SAP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 97 industry peers in the Software industry. 1SAP scores excellent on profitability, but there are some minor concerns on its financial health. 1SAP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1SAP had positive earnings in the past year.
1SAP had a positive operating cash flow in the past year.
In the past 5 years 1SAP has always been profitable.
1SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.58%, 1SAP is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
1SAP has a better Return On Equity (12.54%) than 70.83% of its industry peers.
1SAP's Return On Invested Capital of 11.00% is amongst the best of the industry. 1SAP outperforms 83.33% of its industry peers.
1SAP had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 10.77%.
The last Return On Invested Capital (11.00%) for 1SAP is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 12.54% | ||
| ROIC | 11% |
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 16.31%. This is in the better half of the industry: 1SAP outperforms 76.04% of its industry peers.
In the last couple of years the Profit Margin of 1SAP has declined.
1SAP has a better Operating Margin (25.82%) than 87.50% of its industry peers.
In the last couple of years the Operating Margin of 1SAP has remained more or less at the same level.
1SAP has a Gross Margin (73.60%) which is comparable to the rest of the 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 | 25.82% | ||
| PM (TTM) | 16.31% | ||
| GM | 73.6% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1SAP is still creating some value.
The number of shares outstanding for 1SAP remains at a similar level compared to 1 year ago.
1SAP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1SAP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.62 indicates that 1SAP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.62, 1SAP belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
The Debt to FCF ratio of 1SAP is 1.85, which is an excellent value as it means it would take 1SAP, only 1.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.85, 1SAP is in the better half of the industry, outperforming 68.75% 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 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 7.62 |
ROIC/WACC1.44
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.17 indicates that 1SAP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.17, 1SAP perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
1SAP has a Quick Ratio of 1.17. 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 1.17 is in line compared to the rest of the industry. 1SAP outperforms 47.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for 1SAP have decreased strongly by -25.96% in the last year.
The Earnings Per Share has been decreasing by -2.38% on average over the past years.
The Revenue has grown by 10.51% in the past year. This is quite good.
Measured over the past years, 1SAP shows a small growth in Revenue. The Revenue has been growing by 4.40% on average per year.
EPS 1Y (TTM)-25.96%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%63.25%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%3.26%
3.2 Future
1SAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.09% yearly.
Based on estimates for the next years, 1SAP will show a quite strong growth in Revenue. The Revenue will grow by 12.01% on average per year.
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y21.09%
Revenue Next Year11.64%
Revenue Next 2Y11.8%
Revenue Next 3Y12.29%
Revenue Next 5Y12.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 49.35, which means the current valuation is very expensive for 1SAP.
The rest of the industry has a similar Price/Earnings ratio as 1SAP.
When comparing the Price/Earnings ratio of 1SAP to the average of the S&P500 Index (28.18), we can say 1SAP is valued expensively.
Based on the Price/Forward Earnings ratio of 32.62, the valuation of 1SAP can be described as expensive.
1SAP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, 1SAP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.35 | ||
| Fwd PE | 32.62 |
4.2 Price Multiples
1SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
1SAP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.08 | ||
| EV/EBITDA | 27.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1SAP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1SAP's earnings are expected to grow with 25.76% in the coming years.
PEG (NY)1.24
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 1.91. 1SAP pays more dividend than 82.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, 1SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of 1SAP is nicely growing with an annual growth rate of 7.95%!
Dividend Growth(5Y)7.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1SAP pays out 44.75% 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.
DP44.75%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
BIT:1SAP (4/28/2025, 7:00:00 PM)
248.7
+3.75 (+1.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.22%
Inst Owner ChangeN/A
Ins Owners8.1%
Ins Owner ChangeN/A
Market Cap290.11B
Analysts78.42
Price Target283.06 (13.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP44.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.37%
Min EPS beat(2)-1.57%
Max EPS beat(2)0.84%
EPS beat(4)2
Avg EPS beat(4)0.22%
Min EPS beat(4)-1.57%
Max EPS beat(4)1.86%
EPS beat(8)4
Avg EPS beat(8)16.53%
EPS beat(12)5
Avg EPS beat(12)7.69%
EPS beat(16)8
Avg EPS beat(16)11.12%
Revenue beat(2)1
Avg Revenue beat(2)-3.86%
Min Revenue beat(2)-9.45%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-9.45%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.52%
Revenue beat(12)3
Avg Revenue beat(12)-1.94%
Revenue beat(16)5
Avg Revenue beat(16)-1.53%
PT rev (1m)3.22%
PT rev (3m)9.99%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-3%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)-2.53%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-1.29%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.35 | ||
| Fwd PE | 32.62 | ||
| P/S | 8.25 | ||
| P/FCF | 53.08 | ||
| P/OCF | 46.46 | ||
| P/B | 6.35 | ||
| P/tB | 22.49 | ||
| EV/EBITDA | 27.48 |
EPS(TTM)5.04
EY2.03%
EPS(NY)7.62
Fwd EY3.07%
FCF(TTM)4.69
FCFY1.88%
OCF(TTM)5.35
OCFY2.15%
SpS30.13
BVpS39.19
TBVpS11.06
PEG (NY)1.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 12.54% | ||
| ROCE | 16.48% | ||
| ROIC | 11% | ||
| ROICexc | 14.39% | ||
| ROICexgc | 65.26% | ||
| OM | 25.82% | ||
| PM (TTM) | 16.31% | ||
| GM | 73.6% | ||
| FCFM | 15.55% |
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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 59.12% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 16.04 | ||
| Cash Conversion | 60.08% | ||
| Profit Quality | 95.36% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 7.62 |
F-Score8
WACC7.62%
ROIC/WACC1.44
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)-25.96%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%63.25%
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y21.09%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%3.26%
Revenue Next Year11.64%
Revenue Next 2Y11.8%
Revenue Next 3Y12.29%
Revenue Next 5Y12.01%
EBIT growth 1Y34.96%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year57.14%
EBIT Next 3Y28.55%
EBIT Next 5Y20.72%
FCF growth 1Y18.39%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y12.79%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%