SAP SE (SAP.DE) Fundamental Analysis & Valuation
FRA:SAP • DE0007164600
Current stock price
145.5 EUR
-0.38 (-0.26%)
Last:
This SAP.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SAP.DE Profitability Analysis
1.1 Basic Checks
- SAP had positive earnings in the past year.
- SAP had a positive operating cash flow in the past year.
- In the past 5 years SAP has always 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 10.18%, SAP belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- SAP has a Return On Equity of 16.06%. This is in the better half of the industry: SAP outperforms 71.43% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.40%, SAP belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SAP is in line with the industry average of 12.32%.
- The 3 year average ROIC (10.60%) for SAP is below the current ROIC(13.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.18% | ||
| ROE | 16.06% | ||
| ROIC | 13.4% |
ROA(3y)7.79%
ROA(5y)6.78%
ROE(3y)12.39%
ROE(5y)11.27%
ROIC(3y)10.6%
ROIC(5y)9.29%
1.3 Margins
- With an excellent Profit Margin value of 19.46%, SAP belongs to the best of the industry, outperforming 84.82% of the companies in the same industry.
- In the last couple of years the Profit Margin of SAP has remained more or less at the same level.
- SAP has a better Operating Margin (28.31%) than 87.50% of its industry peers.
- SAP's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 73.77%, SAP is in line with its industry, outperforming 53.57% of the companies in the same industry.
- 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 | 28.31% | ||
| PM (TTM) | 19.46% | ||
| GM | 73.77% |
OM growth 3Y8.42%
OM growth 5Y1.28%
PM growth 3Y35.99%
PM growth 5Y0.67%
GM growth 3Y0.31%
GM growth 5Y0.46%
2. SAP.DE Health Analysis
2.1 Basic Checks
- SAP 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 SAP remains at a similar level compared to 1 year ago.
- The number of shares outstanding for SAP has been reduced compared to 5 years ago.
- SAP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.16 indicates that SAP is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.16, SAP belongs to the best of the industry, outperforming 83.04% of the companies in the same industry.
- The Debt to FCF ratio of SAP is 0.89, which is an excellent value as it means it would take SAP, only 0.89 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.89, SAP belongs to the top of the industry, outperforming 80.36% of the companies in the same industry.
- SAP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- SAP's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. SAP outperforms 65.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 6.16 |
ROIC/WACC1.77
WACC7.58%
2.3 Liquidity
- A Current Ratio of 1.16 indicates that SAP should not have too much problems paying its short term obligations.
- SAP's Current ratio of 1.16 is on the low side compared to the rest of the industry. SAP is outperformed by 66.07% of its industry peers.
- SAP has a Quick Ratio of 1.16. This is a normal value and indicates that SAP is financially healthy and should not expect problems in meeting its short term obligations.
- SAP's Quick ratio of 1.16 is on the low side compared to the rest of the industry. SAP is outperformed by 64.29% of its industry peers.
- SAP does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. SAP.DE Growth Analysis
3.1 Past
- SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.62%, which is quite impressive.
- SAP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.60% yearly.
- Looking at the last year, SAP shows a small growth in Revenue. The Revenue has grown by 7.68% in the last year.
- Measured over the past years, SAP shows a small growth in Revenue. The Revenue has been growing by 6.12% on average per year.
EPS 1Y (TTM)24.62%
EPS 3Y14.85%
EPS 5Y2.6%
EPS Q2Q%19.47%
Revenue 1Y (TTM)7.68%
Revenue growth 3Y7.62%
Revenue growth 5Y6.12%
Sales Q2Q%6.18%
3.2 Future
- SAP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.59% yearly.
- The Revenue is expected to grow by 10.55% on average over the next years. This is quite good.
EPS Next Y18.39%
EPS Next 2Y17.63%
EPS Next 3Y17.41%
EPS Next 5Y18.59%
Revenue Next Year8.81%
Revenue Next 2Y10.27%
Revenue Next 3Y10.69%
Revenue Next 5Y10.55%
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. SAP.DE Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.63, SAP is valued on the expensive side.
- Based on the Price/Earnings ratio, SAP is valued a bit cheaper than 74.11% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.77. SAP is around the same levels.
- A Price/Forward Earnings ratio of 17.10 indicates a rather expensive valuation of SAP.
- Based on the Price/Forward Earnings ratio, SAP is valued a bit cheaper than 72.32% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 21.75. SAP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SAP is valued a bit cheaper than the industry average as 66.07% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.24 | ||
| EV/EBITDA | 14.87 |
4.3 Compensation for Growth
- SAP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- SAP has an outstanding 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 17.41% in the coming years.
PEG (NY)1.23
PEG (5Y)8.71
EPS Next 2Y17.63%
EPS Next 3Y17.41%
5. SAP.DE Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.78%, SAP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.74, SAP pays a better dividend. On top of this SAP pays more dividend than 87.50% of the companies listed in the same industry.
- SAP's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
- The dividend of SAP is nicely growing with an annual growth rate of 8.39%!
Dividend Growth(5Y)8.39%
Div Incr Years2
Div Non Decr Years7
5.3 Sustainability
- 38.30% of the earnings are spent on dividend by SAP. This is a low number and sustainable payout ratio.
- SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.3%
EPS Next 2Y17.63%
EPS Next 3Y17.41%
SAP.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:SAP (4/30/2026, 7:00:00 PM)
145.5
-0.38 (-0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength11.49
Industry Growth60.67
Earnings (Last)04-23 2026-04-23/amc
Earnings (Next)07-23 2026-07-23/amc
Inst Owners38.98%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap178.75B
Revenue(TTM)36.80B
Net Income(TTM)7.16B
Analysts76.59
Price Target241.78 (66.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend2.35
Dividend Growth(5Y)8.39%
DP38.3%
Div Incr Years2
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.87%
Min EPS beat(2)3.69%
Max EPS beat(2)4.05%
EPS beat(4)4
Avg EPS beat(4)4.8%
Min EPS beat(4)1.63%
Max EPS beat(4)9.81%
EPS beat(8)5
Avg EPS beat(8)-1.12%
EPS beat(12)8
Avg EPS beat(12)13.78%
EPS beat(16)8
Avg EPS beat(16)6.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.88%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.6%
Revenue beat(8)1
Avg Revenue beat(8)-0.88%
Revenue beat(12)3
Avg Revenue beat(12)-0.79%
Revenue beat(16)3
Avg Revenue beat(16)-1.45%
PT rev (1m)-4.42%
PT rev (3m)-16.49%
EPS NQ rev (1m)1.3%
EPS NQ rev (3m)3.57%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 17.1 | ||
| P/S | 4.86 | ||
| P/FCF | 21.24 | ||
| P/OCF | 19.52 | ||
| P/B | 4.01 | ||
| P/tB | 13.45 | ||
| EV/EBITDA | 14.87 |
EPS(TTM)6.43
EY4.42%
EPS(NY)8.51
Fwd EY5.85%
FCF(TTM)6.85
FCFY4.71%
OCF(TTM)7.45
OCFY5.12%
SpS29.96
BVpS36.29
TBVpS10.82
PEG (NY)1.23
PEG (5Y)8.71
Graham Number72.4609 (-50.2%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.18% | ||
| ROE | 16.06% | ||
| ROCE | 19.68% | ||
| ROIC | 13.4% | ||
| ROICexc | 16.4% | ||
| ROICexgc | 57.86% | ||
| OM | 28.31% | ||
| PM (TTM) | 19.46% | ||
| GM | 73.77% | ||
| FCFM | 22.87% |
ROA(3y)7.79%
ROA(5y)6.78%
ROE(3y)12.39%
ROE(5y)11.27%
ROIC(3y)10.6%
ROIC(5y)9.29%
ROICexc(3y)13.16%
ROICexc(5y)11.52%
ROICexgc(3y)50.63%
ROICexgc(5y)48.33%
ROCE(3y)15.52%
ROCE(5y)13.66%
ROICexgc growth 3Y4.2%
ROICexgc growth 5Y-0.69%
ROICexc growth 3Y18.46%
ROICexc growth 5Y5.4%
OM growth 3Y8.42%
OM growth 5Y1.28%
PM growth 3Y35.99%
PM growth 5Y0.67%
GM growth 3Y0.31%
GM growth 5Y0.46%
F-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 56.37% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 18.15 | ||
| Cash Conversion | 78.06% | ||
| Profit Quality | 117.54% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 6.16 |
F-Score9
WACC7.58%
ROIC/WACC1.77
Cap/Depr(3y)58.6%
Cap/Depr(5y)53.4%
Cap/Sales(3y)2.29%
Cap/Sales(5y)2.54%
Profit Quality(3y)116.35%
Profit Quality(5y)132.22%
High Growth Momentum
Growth
EPS 1Y (TTM)24.62%
EPS 3Y14.85%
EPS 5Y2.6%
EPS Q2Q%19.47%
EPS Next Y18.39%
EPS Next 2Y17.63%
EPS Next 3Y17.41%
EPS Next 5Y18.59%
Revenue 1Y (TTM)7.68%
Revenue growth 3Y7.62%
Revenue growth 5Y6.12%
Sales Q2Q%6.18%
Revenue Next Year8.81%
Revenue Next 2Y10.27%
Revenue Next 3Y10.69%
Revenue Next 5Y10.55%
EBIT growth 1Y27.76%
EBIT growth 3Y16.68%
EBIT growth 5Y7.48%
EBIT Next Year28.79%
EBIT Next 3Y19.32%
EBIT Next 5Y17.6%
FCF growth 1Y90.91%
FCF growth 3Y20.83%
FCF growth 5Y5.71%
OCF growth 1Y75.87%
OCF growth 3Y17.49%
OCF growth 5Y4.94%
SAP SE / SAP.DE Fundamental Analysis FAQ
What is the fundamental rating for SAP stock?
ChartMill assigns a fundamental rating of 7 / 10 to SAP.DE.
What is the valuation status for SAP stock?
ChartMill assigns a valuation rating of 5 / 10 to SAP SE (SAP.DE). This can be considered as Fairly Valued.
What is the profitability of SAP stock?
SAP SE (SAP.DE) has a profitability rating of 8 / 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 22.63 and the Price/Book (PB) ratio is 4.01.
How financially healthy is SAP SE?
The financial health rating of SAP SE (SAP.DE) is 8 / 10.