SAP SE (SAP.DE) Stock Fundamental Analysis
FRA:SAP - DE0007164600 - Common Stock
231.7 EUR
-4.65 (-1.97%)
Overall SAP gets a fundamental rating of 6 out of 10. We evaluated SAP against 108 industry peers in the Software industry. SAP has an excellent profitability rating, but there are some minor concerns on its financial health. SAP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAP was profitable.
In the past year SAP had a positive cash flow from operations.
SAP had positive earnings in each of the past 5 years.
Each year in the past 5 years SAP had a positive operating cash flow.
1.2 Ratios
SAP has a Return On Assets of 9.56%. This is amongst the best in the industry. SAP outperforms 84.26% of its industry peers.
SAP has a Return On Equity of 15.95%. This is in the better half of the industry: SAP outperforms 73.15% of its industry peers.
The Return On Invested Capital of SAP (13.00%) is better than 83.33% of its industry peers.
SAP had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 12.79%.
The last Return On Invested Capital (13.00%) for SAP 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
SAP's Profit Margin of 18.23% is fine compared to the rest of the industry. SAP outperforms 75.93% of its industry peers.
In the last couple of years the Profit Margin of SAP has declined.
SAP has a Operating Margin of 27.04%. This is amongst the best in the industry. SAP outperforms 87.04% of its industry peers.
In the last couple of years the Operating Margin of SAP has remained more or less at the same level.
The Gross Margin of SAP (73.80%) is comparable to the rest of the industry.
SAP's Gross Margin has been stable in the last couple of years.
| 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), SAP is creating some value.
SAP has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SAP has been reduced compared to 5 years ago.
Compared to 1 year ago, SAP has a worse debt to assets ratio.
2.2 Solvency
SAP has an Altman-Z score of 7.78. This indicates that SAP is financially healthy and has little risk of bankruptcy at the moment.
SAP has a Altman-Z score of 7.78. This is amongst the best in the industry. SAP outperforms 81.48% of its industry peers.
SAP 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.
Looking at the Debt to FCF ratio, with a value of 1.35, SAP is in the better half of the industry, outperforming 73.15% of the companies in the same industry.
SAP has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
SAP has a Debt to Equity ratio of 0.15. This is in the better half of the industry: SAP outperforms 68.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 7.78 |
ROIC/WACC1.66
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.03 indicates that SAP should not have too much problems paying its short term obligations.
The Current ratio of SAP (1.03) is worse than 62.96% of its industry peers.
SAP has a Quick Ratio of 1.03. This is a normal value and indicates that SAP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SAP (1.03) is worse than 62.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.56% over the past year.
SAP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.38% yearly.
The Revenue has grown by 10.29% in the past year. This is quite good.
SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
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
Based on estimates for the next years, SAP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.04% on average per year.
The Revenue is expected to grow by 12.42% on average over the next years. This is quite good.
EPS Next Y34.89%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
EPS Next 5Y21.04%
Revenue Next Year9.82%
Revenue Next 2Y10.6%
Revenue Next 3Y11.43%
Revenue Next 5Y12.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 41.67, 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 62.96% of the companies are valued more expensively.
SAP is valuated expensively when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
SAP is valuated quite expensively with a Price/Forward Earnings ratio of 31.80.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 62.04% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, SAP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.67 | ||
| Fwd PE | 31.8 |
4.2 Price Multiples
SAP's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.42 | ||
| EV/EBITDA | 24 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SAP has a very decent profitability rating, which may justify a higher PE ratio.
SAP's earnings are expected to grow with 24.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y26.83%
EPS Next 3Y24.42%
5. Dividend
5.1 Amount
SAP has a yearly dividend return of 0.99%, which is pretty low.
SAP's Dividend Yield is rather good when compared to the industry average which is at 1.98. SAP pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 0.99, SAP pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
SAP pays out 41.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.94%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
FRA:SAP (8/29/2025, 7:00:00 PM)
231.7
-4.65 (-1.97%)
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 Cap268.84B
Analysts77.89
Price Target295.31 (27.45%)
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 Years1
Div Non Decr Years6
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)1.71%
PT rev (3m)5.47%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-9.22%
EPS NY rev (1m)-3.43%
EPS NY rev (3m)-3.43%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-4.12%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.67 | ||
| Fwd PE | 31.8 | ||
| P/S | 7.49 | ||
| P/FCF | 41.42 | ||
| P/OCF | 36.93 | ||
| P/B | 6.56 | ||
| P/tB | 26.43 | ||
| EV/EBITDA | 24 |
EPS(TTM)5.56
EY2.4%
EPS(NY)7.29
Fwd EY3.15%
FCF(TTM)5.59
FCFY2.41%
OCF(TTM)6.27
OCFY2.71%
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 | 7.78 |
F-Score8
WACC7.83%
ROIC/WACC1.66
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 Y34.89%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
EPS Next 5Y21.04%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
Revenue Next Year9.82%
Revenue Next 2Y10.6%
Revenue Next 3Y11.43%
Revenue Next 5Y12.42%
EBIT growth 1Y34.62%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year58.56%
EBIT Next 3Y28.56%
EBIT Next 5Y21.47%
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%