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 101 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.
In the past year 1SAP had a positive cash flow from operations.
1SAP had positive earnings in each of the past 5 years.
Each year in the past 5 years 1SAP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1SAP (7.58%) is better than 75.25% of its industry peers.
The Return On Equity of 1SAP (12.54%) is better than 70.30% of its industry peers.
The Return On Invested Capital of 1SAP (11.00%) is better than 81.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1SAP is below the industry average of 10.99%.
The 3 year average ROIC (8.58%) for 1SAP is below the current ROIC(11.00%), indicating increased profibility in the last year.
| 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 better Profit Margin (16.31%) than 72.28% of its industry peers.
1SAP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.82%, 1SAP belongs to the top of the industry, outperforming 85.15% of the companies in the same industry.
1SAP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 73.60%, 1SAP is in line with its industry, outperforming 58.42% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1SAP is creating some value.
1SAP has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1SAP has been reduced compared to 5 years ago.
1SAP has a worse debt/assets ratio than last year.
2.2 Solvency
1SAP has an Altman-Z score of 7.94. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
1SAP has a better Altman-Z score (7.94) than 80.20% 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.
The Debt to FCF ratio of 1SAP (1.85) is better than 70.30% of its industry peers.
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 73.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 7.94 |
ROIC/WACC1.37
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.17 indicates that 1SAP should not have too much problems paying its short term obligations.
The Current ratio of 1SAP (1.17) is comparable to the rest of the industry.
A Quick Ratio of 1.17 indicates that 1SAP should not have too much problems paying its short term obligations.
1SAP's Quick ratio of 1.17 is in line compared to the rest of the industry. 1SAP outperforms 46.53% 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%.
The Earnings Per Share has been decreasing by -2.38% on average over the past years.
1SAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.51%.
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
The Earnings Per Share is expected to grow by 21.09% 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 12.01% yearly.
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y21.09%
Revenue Next Year10.84%
Revenue Next 2Y11.3%
Revenue Next 3Y11.91%
Revenue Next 5Y12.01%
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 50.82, 1SAP can be considered very expensive at the moment.
1SAP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.25, 1SAP is valued quite expensively.
1SAP is valuated quite expensively with a Price/Forward Earnings ratio of 34.40.
1SAP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, 1SAP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.82 | ||
| Fwd PE | 34.4 |
4.2 Price Multiples
1SAP's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1SAP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.97 | ||
| EV/EBITDA | 29 |
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.
1SAP's earnings are expected to grow with 25.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y29.72%
EPS Next 3Y25.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, 1SAP is not a good candidate for dividend investing.
1SAP's Dividend Yield is rather good when compared to the industry average which is at 1.87. 1SAP pays more dividend than 80.20% of the companies in the same industry.
With a Dividend Yield of 0.88, 1SAP pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 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 (5/29/2025, 7:00:00 PM)
262.25
-2.75 (-1.04%)
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 Cap305.92B
Analysts78.42
Price Target279.8 (6.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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)-2.24%
PT rev (3m)-0.04%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-2.41%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.82 | ||
| Fwd PE | 34.4 | ||
| P/S | 8.7 | ||
| P/FCF | 55.97 | ||
| P/OCF | 48.99 | ||
| P/B | 6.69 | ||
| P/tB | 23.71 | ||
| EV/EBITDA | 29 |
EPS(TTM)5.16
EY1.97%
EPS(NY)7.62
Fwd EY2.91%
FCF(TTM)4.69
FCFY1.79%
OCF(TTM)5.35
OCFY2.04%
SpS30.13
BVpS39.19
TBVpS11.06
PEG (NY)1.28
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 | 7.94 |
F-Score8
WACC8.04%
ROIC/WACC1.37
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 5Y21.09%
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 5Y12.01%
EBIT growth 1Y34.96%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year58.56%
EBIT Next 3Y28.56%
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%