SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - BIT:1SAP - DE0007164600 - Common Stock
239.25 EUR
+6.75 (+2.9%)
1SAP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 110 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. While showing a medium growth rate, 1SAP is valued expensive at the moment.
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.
Each year in the past 5 years 1SAP has been profitable.
1SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1SAP has a Return On Assets of 9.56%. This is amongst the best in the industry. 1SAP outperforms 80.91% of its industry peers.
1SAP has a Return On Equity of 15.95%. This is in the better half of the industry: 1SAP outperforms 72.73% of its industry peers.
With an excellent Return On Invested Capital value of 13.00%, 1SAP belongs to the best of the industry, outperforming 82.73% 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 12.42%.
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
Looking at the Profit Margin, with a value of 18.23%, 1SAP is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
1SAP's Profit Margin has declined in the last couple of years.
1SAP has a Operating Margin of 27.04%. This is amongst the best in the industry. 1SAP outperforms 86.36% 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 (73.80%) 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 | 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.
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 7.98. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
1SAP has a better Altman-Z score (7.98) than 80.00% 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.
With a decent Debt to FCF ratio value of 1.35, 1SAP is doing good in the industry, outperforming 69.09% 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 has a better Debt to Equity ratio (0.15) than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 7.98 |
ROIC/WACC1.64
WACC7.95%
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.
1SAP has a Current ratio of 1.03. This is in the lower half of the industry: 1SAP underperforms 64.55% of its industry peers.
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.
The Quick ratio of 1SAP (1.03) is worse than 62.73% 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 20.96% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.52% on average over the next years. This is quite good.
EPS Next Y36.22%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
EPS Next 5Y20.96%
Revenue Next Year9.63%
Revenue Next 2Y10.45%
Revenue Next 3Y11.33%
Revenue Next 5Y12.52%
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
1SAP is valuated quite expensively with a Price/Earnings ratio of 43.03.
The rest of the industry has a similar Price/Earnings ratio as 1SAP.
The average S&P500 Price/Earnings ratio is at 27.69. 1SAP is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 32.56, the valuation of 1SAP can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SAP.
1SAP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.03 | ||
| Fwd PE | 32.56 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1SAP.
1SAP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.77 | ||
| EV/EBITDA | 24.8 |
4.3 Compensation for Growth
The 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 24.83% in the coming years.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y27.37%
EPS Next 3Y24.83%
5. Dividend
5.1 Amount
1SAP has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 2.80, 1SAP pays a better dividend. On top of this 1SAP pays more dividend than 82.73% of the companies listed in the same industry.
With a Dividend Yield of 0.99, 1SAP pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
41.94% of the earnings are spent on dividend by 1SAP. This is a bit on the high side, but may be sustainable.
1SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.94%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
BIT:1SAP (10/20/2025, 7:00:00 PM)
239.25
+6.75 (+2.9%)
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 Cap277.60B
Analysts78.92
Price Target292.83 (22.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)-0.73%
PT rev (3m)0.53%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-4.77%
EPS NY rev (1m)0.98%
EPS NY rev (3m)-2.48%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.03 | ||
| Fwd PE | 32.56 | ||
| P/S | 7.74 | ||
| P/FCF | 42.77 | ||
| P/OCF | 38.13 | ||
| P/B | 6.77 | ||
| P/tB | 27.29 | ||
| EV/EBITDA | 24.8 |
EPS(TTM)5.56
EY2.32%
EPS(NY)7.35
Fwd EY3.07%
FCF(TTM)5.59
FCFY2.34%
OCF(TTM)6.27
OCFY2.62%
SpS30.93
BVpS35.34
TBVpS8.77
PEG (NY)1.19
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 | 7.98 |
F-Score8
WACC7.95%
ROIC/WACC1.64
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 Y36.22%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
EPS Next 5Y20.96%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
Revenue Next Year9.63%
Revenue Next 2Y10.45%
Revenue Next 3Y11.33%
Revenue Next 5Y12.52%
EBIT growth 1Y34.62%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year56.23%
EBIT Next 3Y28.74%
EBIT Next 5Y21.3%
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%