SAP SE (1SAP.MI) Stock Fundamental Analysis
BIT:1SAP - DE0007164600 - Common Stock
233.75 EUR
+1.55 (+0.67%)
We assign a fundamental rating of 6 out of 10 to 1SAP. 1SAP was compared to 101 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1SAP had positive earnings in the past year.
In the past year 1SAP had a positive cash flow from operations.
Each year in the past 5 years 1SAP has been profitable.
In the past 5 years 1SAP always reported a positive cash flow from operatings.
1.2 Ratios
1SAP's Return On Assets of 9.56% is amongst the best of the industry. 1SAP outperforms 83.17% 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 73.27% of the companies in the same industry.
1SAP's Return On Invested Capital of 13.00% is amongst the best of the industry. 1SAP outperforms 83.17% 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 12.69%.
The 3 year average ROIC (8.58%) for 1SAP is below the current ROIC(13.00%), indicating increased profibility in the last year.
| 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 better Profit Margin (18.23%) than 76.24% of its industry peers.
1SAP's Profit Margin has declined in the last couple of years.
1SAP's Operating Margin of 27.04% is amongst the best of the industry. 1SAP outperforms 84.16% of its industry peers.
1SAP's Operating Margin has been stable in the last couple of years.
The Gross Margin of 1SAP (73.80%) is comparable to the rest of the industry.
1SAP's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1SAP is creating some value.
Compared to 1 year ago, 1SAP has about the same amount of shares outstanding.
1SAP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1SAP is higher compared to a year ago.
2.2 Solvency
1SAP has an Altman-Z score of 7.84. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
1SAP's Altman-Z score of 7.84 is amongst the best of the industry. 1SAP outperforms 81.19% of its industry peers.
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 71.29% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that 1SAP is not too dependend on debt financing.
1SAP's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. 1SAP outperforms 66.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 7.84 |
ROIC/WACC1.74
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.03 indicates that 1SAP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.03, 1SAP is not doing good in the industry: 66.34% 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 65.35% 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.
The Revenue has been growing slightly by 4.40% on average over the past years.
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 21.07% on average over the next years. This is a very strong growth
1SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.62% yearly.
EPS Next Y34.89%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
EPS Next 5Y21.07%
Revenue Next Year9.82%
Revenue Next 2Y10.6%
Revenue Next 3Y11.43%
Revenue Next 5Y12.62%
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
With a Price/Earnings ratio of 42.04, 1SAP can be considered very expensive at the moment.
1SAP's Price/Earnings ratio is a bit cheaper when compared to the industry. 1SAP is cheaper than 61.39% of the companies in the same industry.
1SAP is valuated expensively when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
1SAP is valuated quite expensively with a Price/Forward Earnings ratio of 32.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SAP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, 1SAP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.04 | ||
| Fwd PE | 32.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1SAP is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1SAP is valued a bit cheaper than 60.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.79 | ||
| EV/EBITDA | 24.22 |
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.
A more expensive valuation may be justified as 1SAP's earnings are expected to grow with 24.42% in the coming years.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y26.83%
EPS Next 3Y24.42%
5. Dividend
5.1 Amount
1SAP has a Yearly Dividend Yield of 1.01%.
1SAP's Dividend Yield is rather good when compared to the industry average which is at 2.06. 1SAP pays more dividend than 82.18% 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 | 1.01% |
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
41.94% of the earnings are spent on dividend by 1SAP. 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 2Y26.83%
EPS Next 3Y24.42%
BIT:1SAP (9/1/2025, 7:00:00 PM)
233.75
+1.55 (+0.67%)
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 Cap271.21B
Analysts78.38
Price Target295 (26.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)2.37%
PT rev (3m)0.16%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-9.22%
EPS NY rev (1m)-3.43%
EPS NY rev (3m)-3.43%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-4.12%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.04 | ||
| Fwd PE | 32.08 | ||
| P/S | 7.56 | ||
| P/FCF | 41.79 | ||
| P/OCF | 37.25 | ||
| P/B | 6.62 | ||
| P/tB | 26.66 | ||
| EV/EBITDA | 24.22 |
EPS(TTM)5.56
EY2.38%
EPS(NY)7.29
Fwd EY3.12%
FCF(TTM)5.59
FCFY2.39%
OCF(TTM)6.27
OCFY2.68%
SpS30.93
BVpS35.34
TBVpS8.77
PEG (NY)1.21
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 | 7.84 |
F-Score8
WACC7.48%
ROIC/WACC1.74
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 Y34.89%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
EPS Next 5Y21.07%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
Revenue Next Year9.82%
Revenue Next 2Y10.6%
Revenue Next 3Y11.43%
Revenue Next 5Y12.62%
EBIT growth 1Y34.62%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year58.56%
EBIT Next 3Y28.56%
EBIT Next 5Y21.41%
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%