SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SAP - DE0007164600 - Common Stock
202 EUR
-11.05 (-5.19%)
Overall 1SAP gets a fundamental rating of 6 out of 10. We evaluated 1SAP against 125 industry peers in the Software industry. While 1SAP has a great profitability rating, 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
- In the past year 1SAP was profitable.
- 1SAP had a positive operating cash flow in the past year.
- 1SAP had positive earnings in each of the past 5 years.
- 1SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 10.35%, 1SAP is doing good in the industry, outperforming 76.80% of the companies in the same industry.
- With a decent Return On Equity value of 16.54%, 1SAP is doing good in the industry, outperforming 69.60% of the companies in the same industry.
- 1SAP's Return On Invested Capital of 13.05% is amongst the best of the industry. 1SAP outperforms 81.60% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1SAP is below the industry average of 12.89%.
- The 3 year average ROIC (8.58%) for 1SAP is below the current ROIC(13.05%), indicating increased profibility in the last year.
| 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 76.00% of the companies in the same industry.
- 1SAP's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 27.47%, 1SAP belongs to the best of the industry, outperforming 86.40% 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 48.80% of the companies in the same industry.
- 1SAP's Gross Margin has been stable in the last couple of years.
| 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
- 1SAP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for 1SAP remains at a similar level compared to 1 year ago.
- The number of shares outstanding for 1SAP has been reduced compared to 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 7.81. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of 1SAP (7.81) is better than 81.60% of its industry peers.
- 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.
- 1SAP has a better Debt to FCF ratio (1.41) than 66.40% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that 1SAP is not too dependend on debt financing.
- The Debt to Equity ratio of 1SAP (0.14) is better than 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.81 |
ROIC/WACC1.65
WACC7.9%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that 1SAP should not have too much problems paying its short term obligations.
- 1SAP has a Current ratio of 1.10. This is in the lower half of the industry: 1SAP underperforms 64.80% of its industry peers.
- A Quick Ratio of 1.10 indicates that 1SAP should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.10, 1SAP is doing worse than 62.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- 1SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.11%, which is quite impressive.
- 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
- The Earnings Per Share is expected to grow by 21.23% 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 12.20% yearly.
EPS Next Y35.86%
EPS Next 2Y26.6%
EPS Next 3Y24.06%
EPS Next 5Y21.23%
Revenue Next Year9.26%
Revenue Next 2Y9.87%
Revenue Next 3Y10.73%
Revenue Next 5Y12.2%
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 34.12, 1SAP can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, 1SAP is valued a bit cheaper than 60.80% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1SAP to the average of the S&P500 Index (27.47), we can say 1SAP is valued slightly more expensively.
- A Price/Forward Earnings ratio of 27.82 indicates a quite expensive valuation of 1SAP.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1SAP.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 1SAP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.12 | ||
| Fwd PE | 27.82 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1SAP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.31 | ||
| EV/EBITDA | 21.66 |
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.
- 1SAP's earnings are expected to grow with 24.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y26.6%
EPS Next 3Y24.06%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.84%, 1SAP is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.62, 1SAP pays a better dividend. On top of this 1SAP pays more dividend than 82.40% of the companies listed in the same industry.
- With a Dividend Yield of 0.84, 1SAP pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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 2Y26.6%
EPS Next 3Y24.06%
BIT:1SAP (1/16/2026, 7:00:00 PM)
202
-11.05 (-5.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners40.04%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap235.25B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts77.95
Price Target290.33 (43.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)-1.42%
PT rev (3m)-0.86%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)0.59%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.12 | ||
| Fwd PE | 27.82 | ||
| P/S | 6.45 | ||
| P/FCF | 36.31 | ||
| P/OCF | 32.2 | ||
| P/B | 5.5 | ||
| P/tB | 20.66 | ||
| EV/EBITDA | 21.66 |
EPS(TTM)5.92
EY2.93%
EPS(NY)7.26
Fwd EY3.59%
FCF(TTM)5.56
FCFY2.75%
OCF(TTM)6.27
OCFY3.11%
SpS31.34
BVpS36.76
TBVpS9.78
PEG (NY)0.95
PEG (5Y)N/A
Graham Number69.97
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 | 7.81 |
F-Score9
WACC7.9%
ROIC/WACC1.65
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 Y35.86%
EPS Next 2Y26.6%
EPS Next 3Y24.06%
EPS Next 5Y21.23%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.26%
Revenue Next 2Y9.87%
Revenue Next 3Y10.73%
Revenue Next 5Y12.2%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year55.71%
EBIT Next 3Y27.8%
EBIT Next 5Y21.04%
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.
Can you provide the valuation status for SAP SE?
ChartMill assigns a valuation rating of 3 / 10 to SAP SE (1SAP.MI). This can be considered as Overvalued.
How profitable is SAP SE (1SAP.MI) stock?
SAP SE (1SAP.MI) has a profitability rating of 7 / 10.
Can you provide the financial health for 1SAP stock?
The financial health rating of SAP SE (1SAP.MI) is 6 / 10.
Can you provide the dividend sustainability for 1SAP stock?
The dividend rating of SAP SE (1SAP.MI) is 6 / 10 and the dividend payout ratio is 38.73%.