SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SAP - DE0007164600 - Common Stock
208.45 EUR
+0.75 (+0.36%)
We assign a fundamental rating of 6 out of 10 to SAP. SAP was compared to 105 industry peers in the Software industry. SAP has an average financial health and profitability rating. SAP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAP was profitable.
SAP had a positive operating cash flow in the past year.
Each year in the past 5 years SAP has been profitable.
In the past 5 years SAP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.35%, SAP is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
SAP has a better Return On Equity (16.54%) than 67.62% of its industry peers.
With a decent Return On Invested Capital value of 13.05%, SAP is doing good in the industry, outperforming 79.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAP is below the industry average of 13.30%.
The last Return On Invested Capital (13.05%) for SAP is above the 3 year average (8.58%), which is a sign of increasing profitability.
| 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%, SAP is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
In the last couple of years the Profit Margin of SAP has declined.
Looking at the Operating Margin, with a value of 27.47%, SAP belongs to the top of the industry, outperforming 84.76% of the companies in the same industry.
In the last couple of years the Operating Margin of SAP has remained more or less at the same level.
SAP's Gross Margin of 73.83% is in line compared to the rest of the industry. SAP outperforms 52.38% of its industry peers.
In the last couple of years the Gross Margin of SAP has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SAP is creating value.
Compared to 1 year ago, SAP has about the same amount of shares outstanding.
Compared to 5 years ago, SAP has less shares outstanding
Compared to 1 year ago, SAP has a worse debt to assets ratio.
2.2 Solvency
SAP has an Altman-Z score of 7.66. This indicates that SAP is financially healthy and has little risk of bankruptcy at the moment.
SAP's Altman-Z score of 7.66 is fine compared to the rest of the industry. SAP outperforms 80.00% of its industry peers.
SAP has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
SAP has a Debt to FCF ratio of 1.41. This is in the better half of the industry: SAP outperforms 67.62% of its industry peers.
SAP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, SAP is in the better half of the industry, outperforming 63.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.66 |
ROIC/WACC1.82
WACC7.16%
2.3 Liquidity
A Current Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
SAP has a Current ratio of 1.10. This is in the lower half of the industry: SAP underperforms 63.81% of its industry peers.
A Quick Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, SAP is doing worse than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.11%, which is quite impressive.
SAP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.38% yearly.
SAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.70%.
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
SAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.58% yearly.
Based on estimates for the next years, SAP will show a quite strong growth in Revenue. The Revenue will grow by 12.53% on average per year.
EPS Next Y35.86%
EPS Next 2Y26.6%
EPS Next 3Y24.06%
EPS Next 5Y21.58%
Revenue Next Year9.26%
Revenue Next 2Y9.87%
Revenue Next 3Y10.73%
Revenue Next 5Y12.53%
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
With a Price/Earnings ratio of 35.21, SAP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SAP is valued a bit cheaper than the industry average as 60.95% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.84. SAP is valued slightly more expensive when compared to this.
SAP is valuated quite expensively with a Price/Forward Earnings ratio of 28.71.
SAP's Price/Forward Earnings is on the same level as the industry average.
SAP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.21 | ||
| Fwd PE | 28.71 |
4.2 Price Multiples
SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
SAP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.47 | ||
| EV/EBITDA | 21.12 |
4.3 Compensation for Growth
SAP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SAP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SAP's earnings are expected to grow with 24.06% in the coming years.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y26.6%
EPS Next 3Y24.06%
5. Dividend
5.1 Amount
SAP has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.70, SAP pays a better dividend. On top of this SAP pays more dividend than 82.86% of the companies listed in the same industry.
With a Dividend Yield of 1.13, SAP pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of SAP is nicely growing with an annual growth rate of 7.95%!
Dividend Growth(5Y)7.95%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
38.73% of the earnings are spent on dividend by SAP. This is a low number and sustainable payout ratio.
The dividend of SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.73%
EPS Next 2Y26.6%
EPS Next 3Y24.06%
FRA:SAP (12/29/2025, 7:00:00 PM)
208.45
+0.75 (+0.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.03%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap242.76B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target292.15 (40.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP38.73%
Div Incr Years1
Div Non Decr Years6
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)-0.38%
PT rev (3m)-1.36%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)0.59%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.21 | ||
| Fwd PE | 28.71 | ||
| P/S | 6.65 | ||
| P/FCF | 37.47 | ||
| P/OCF | 33.22 | ||
| P/B | 5.67 | ||
| P/tB | 21.32 | ||
| EV/EBITDA | 21.12 |
EPS(TTM)5.92
EY2.84%
EPS(NY)7.26
Fwd EY3.48%
FCF(TTM)5.56
FCFY2.67%
OCF(TTM)6.27
OCFY3.01%
SpS31.34
BVpS36.76
TBVpS9.78
PEG (NY)0.98
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 | 7.66 |
F-Score9
WACC7.16%
ROIC/WACC1.82
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 5Y21.58%
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 5Y12.53%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year55.71%
EBIT Next 3Y27.8%
EBIT Next 5Y21.39%
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 / SAP.DE FAQ
What is the fundamental rating for SAP stock?
ChartMill assigns a fundamental rating of 6 / 10 to SAP.DE.
What is the valuation status of SAP SE (SAP.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to SAP SE (SAP.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for SAP SE?
SAP SE (SAP.DE) has a profitability rating of 6 / 10.
What is the valuation of SAP SE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SAP SE (SAP.DE) is 35.21 and the Price/Book (PB) ratio is 5.67.
Can you provide the dividend sustainability for SAP stock?
The dividend rating of SAP SE (SAP.DE) is 6 / 10 and the dividend payout ratio is 38.73%.