SAP SE (1SAP.MI) Stock Fundamental Analysis
BIT:1SAP - Euronext Milan - DE0007164600 - Common Stock - Currency: EUR
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 is quite expensive at the moment. 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.
Each year in the past 5 years 1SAP had a positive operating cash flow.
1.2 Ratios
1SAP has a Return On Assets of 7.58%. This is in the better half of the industry: 1SAP outperforms 77.06% of its industry peers.
Looking at the Return On Equity, with a value of 12.54%, 1SAP is in the better half of the industry, outperforming 71.56% of the companies in the same industry.
1SAP has a Return On Invested Capital of 11.00%. This is amongst the best in the industry. 1SAP outperforms 81.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1SAP is below the industry average of 11.19%.
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
The Profit Margin of 1SAP (16.31%) is better than 76.15% of its industry peers.
1SAP's Profit Margin has declined in the last couple of years.
1SAP has a Operating Margin of 25.82%. This is amongst the best in the industry. 1SAP outperforms 87.16% 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 of 73.60%. This is comparable to the rest of the industry: 1SAP outperforms 55.96% of its industry peers.
1SAP's Gross Margin has been stable in the last couple of years.
| 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
1SAP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 8.15. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
1SAP's Altman-Z score of 8.15 is fine compared to the rest of the industry. 1SAP outperforms 77.06% of its industry peers.
1SAP has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of 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 67.89% 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.
1SAP's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. 1SAP outperforms 71.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 8.15 |
ROIC/WACC1.43
WACC7.7%
2.3 Liquidity
1SAP has a Current 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.
Looking at the Current ratio, with a value of 1.17, 1SAP is doing worse than 60.55% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that 1SAP should not have too much problems paying its short term obligations.
1SAP has a Quick ratio of 1.17. This is comparable to the rest of the industry: 1SAP outperforms 42.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
1SAP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.23%.
1SAP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.38% yearly.
Looking at the last year, 1SAP shows a quite strong growth in Revenue. The Revenue has grown by 10.51% in the last year.
The Revenue has been growing slightly by 4.40% on average over the past years.
EPS 1Y (TTM)-24.23%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%77.78%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%12.09%
3.2 Future
Based on estimates for the next years, 1SAP will show a very strong growth in Earnings Per Share. The EPS will grow by 20.66% on average per year.
1SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.35% yearly.
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y20.66%
Revenue Next Year10.84%
Revenue Next 2Y11.3%
Revenue Next 3Y11.91%
Revenue Next 5Y12.35%
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 49.39, which means the current valuation is very expensive for 1SAP.
Compared to the rest of the industry, the Price/Earnings ratio of 1SAP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of 1SAP to the average of the S&P500 Index (26.92), we can say 1SAP is valued expensively.
The Price/Forward Earnings ratio is 33.43, which means the current valuation is very expensive for 1SAP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SAP is on the same level as its industry peers.
1SAP is valuated expensively when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.39 | ||
| Fwd PE | 33.43 |
4.2 Price Multiples
1SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1SAP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.39 | ||
| EV/EBITDA | 30.04 |
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 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 2.20, 1SAP pays a better dividend. On top of this 1SAP pays more dividend than 82.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 1SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
44.75% 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.
DP44.75%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
BIT:1SAP (6/24/2025, 7:00:00 PM)
254.85
-9.85 (-3.72%)
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 Cap297.28B
Analysts79.46
Price Target294.51 (15.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)4.12%
Min EPS beat(2)-1.57%
Max EPS beat(2)9.81%
EPS beat(4)2
Avg EPS beat(4)2.47%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)17.66%
EPS beat(12)5
Avg EPS beat(12)8.44%
EPS beat(16)8
Avg EPS beat(16)11.68%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.55%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)5
Avg Revenue beat(16)-1.05%
PT rev (1m)5.26%
PT rev (3m)4.96%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.39 | ||
| Fwd PE | 33.43 | ||
| P/S | 8.46 | ||
| P/FCF | 54.39 | ||
| P/OCF | 47.61 | ||
| P/B | 6.5 | ||
| P/tB | 23.04 | ||
| EV/EBITDA | 30.04 |
EPS(TTM)5.16
EY2.02%
EPS(NY)7.62
Fwd EY2.99%
FCF(TTM)4.69
FCFY1.84%
OCF(TTM)5.35
OCFY2.1%
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 | 8.15 |
F-Score8
WACC7.7%
ROIC/WACC1.43
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)-24.23%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%77.78%
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y20.66%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%12.09%
Revenue Next Year10.84%
Revenue Next 2Y11.3%
Revenue Next 3Y11.91%
Revenue Next 5Y12.35%
EBIT growth 1Y34.96%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year58.56%
EBIT Next 3Y28.56%
EBIT Next 5Y20.97%
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%