SAP SE (SAP.DE) Stock Fundamental Analysis
FRA:SAP - Deutsche Boerse Ag - DE0007164600 - Common Stock - Currency: EUR
Taking everything into account, SAP scores 6 out of 10 in our fundamental rating. SAP was compared to 101 industry peers in the Software industry. SAP has an excellent profitability rating, but there are some minor concerns on its financial health. SAP is valied quite expensively at the moment, while it does show a decent 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.
In the past 5 years SAP has always been profitable.
Each year in the past 5 years SAP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.58%, SAP is doing good in the industry, outperforming 75.25% of the companies in the same industry.
The Return On Equity of SAP (12.54%) is better than 70.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.00%, SAP belongs to the top of the industry, outperforming 81.19% 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 10.99%.
The last Return On Invested Capital (11.00%) for SAP 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
SAP has a better Profit Margin (16.31%) than 72.28% of its industry peers.
In the last couple of years the Profit Margin of SAP has declined.
With an excellent Operating Margin value of 25.82%, SAP belongs to the best of the industry, outperforming 85.15% of the companies in the same industry.
SAP's Operating Margin has been stable in the last couple of years.
SAP has a Gross Margin (73.60%) which 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 | 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), SAP is creating some value.
The number of shares outstanding for SAP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SAP has less shares outstanding
SAP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.96 indicates that SAP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.96, SAP belongs to the top of the industry, outperforming 80.20% of the companies in the same industry.
SAP 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.
With a decent Debt to FCF ratio value of 1.85, SAP is doing good in the industry, outperforming 70.30% 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 better Debt to Equity ratio (0.15) than 73.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 7.96 |
ROIC/WACC1.37
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.17 indicates that SAP should not have too much problems paying its short term obligations.
SAP's Current ratio of 1.17 is in line compared to the rest of the industry. SAP outperforms 44.55% of its industry peers.
A Quick Ratio of 1.17 indicates that SAP should not have too much problems paying its short term obligations.
The Quick ratio of SAP (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for SAP have decreased strongly by -24.23% in the last year.
Measured over the past years, SAP shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.38% on average per year.
Looking at the last year, SAP shows a quite strong growth in Revenue. The Revenue has grown by 10.51% in the last year.
SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
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, SAP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.09% on average per year.
SAP 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
SAP is valuated quite expensively with a Price/Earnings ratio of 50.86.
SAP's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SAP to the average of the S&P500 Index (26.20), we can say SAP is valued expensively.
Based on the Price/Forward Earnings ratio of 34.43, the valuation of SAP can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SAP.
When comparing the Price/Forward Earnings ratio of SAP to the average of the S&P500 Index (22.13), we can say SAP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.86 | ||
| Fwd PE | 34.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAP.
SAP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.01 | ||
| EV/EBITDA | 29.12 |
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 a very decent profitability rating, which may justify a higher PE ratio.
SAP'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
SAP has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 1.87, SAP pays a better dividend. On top of this SAP pays more dividend than 80.20% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
On average, the dividend of SAP grows each year by 7.95%, which is quite nice.
Dividend Growth(5Y)7.95%
Div Incr Years4
Div Non Decr Years5
5.3 Sustainability
SAP pays out 44.75% 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.
DP44.75%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
FRA:SAP (5/29/2025, 5:36:15 PM)
262.45
-0.85 (-0.32%)
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 Cap306.15B
Analysts78.42
Price Target280.01 (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 Years4
Div Non Decr Years5
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)-2.41%
PT rev (3m)0.02%
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 | 50.86 | ||
| Fwd PE | 34.43 | ||
| P/S | 8.71 | ||
| P/FCF | 56.01 | ||
| P/OCF | 49.03 | ||
| P/B | 6.7 | ||
| P/tB | 23.73 | ||
| EV/EBITDA | 29.12 |
EPS(TTM)5.16
EY1.97%
EPS(NY)7.62
Fwd EY2.9%
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 | 7.96 |
F-Score8
WACC8.05%
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%