SAP SE-SPONSORED ADR (SAP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAP - US8030542042 - ADR
245.6 USD
+0.64 (+0.26%)
245.6 USD
0 (0%)
Taking everything into account, SAP scores 7 out of 10 in our fundamental rating. SAP was compared to 278 industry peers in the Software industry. SAP gets an excellent profitability rating and is at the same time showing great financial health properties. SAP is not valued too expensively and it also shows a decent growth rate. This makes SAP very considerable for quality investing!
1. Profitability
1.1 Basic Checks
SAP had positive earnings in the past year.
SAP had a positive operating cash flow in the past year.
Each year in the past 5 years SAP has been profitable.
SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.35%, SAP belongs to the best of the industry, outperforming 84.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.54%, SAP belongs to the top of the industry, outperforming 84.17% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.05%, SAP belongs to the top of the industry, outperforming 90.65% of the companies in the same industry.
SAP had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 10.78%.
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
SAP has a Profit Margin of 19.41%. This is amongst the best in the industry. SAP outperforms 83.45% of its industry peers.
In the last couple of years the Profit Margin of SAP has declined.
The Operating Margin of SAP (27.47%) is better than 91.01% of its industry peers.
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 fine compared to the rest of the industry. SAP outperforms 61.15% of its industry peers.
SAP's Gross Margin has been stable in the last couple of years.
| 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) 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.
The debt/assets ratio for SAP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.66 indicates that SAP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.66, SAP belongs to the best of the industry, outperforming 82.01% of the companies in the same industry.
The Debt to FCF ratio of SAP is 1.41, which is an excellent value as it means it would take SAP, only 1.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.41, SAP is in the better half of the industry, outperforming 71.22% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that SAP is not too dependend on debt financing.
SAP has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: SAP outperforms 47.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.66 |
ROIC/WACC1.7
WACC7.69%
2.3 Liquidity
SAP has a Current Ratio of 1.10. This is a normal value and indicates that SAP is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.10, SAP is not doing good in the industry: 70.14% of the companies in the same industry are doing better.
A Quick Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
SAP's Quick ratio of 1.10 is on the low side compared to the rest of the industry. SAP is outperformed by 69.42% of its industry peers.
The current and quick ratio evaluation for SAP is rather negative, while it does have 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 | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.11% over the past 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 9.70% 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)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
Based on estimates for the next years, SAP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.58% on average per year.
SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.53% yearly.
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.9%
EPS Next 5Y21.58%
Revenue Next Year9.19%
Revenue Next 2Y10.07%
Revenue Next 3Y10.93%
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.
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
Based on the Price/Earnings ratio of 35.14, the valuation of SAP can be described as expensive.
SAP's Price/Earnings ratio is in line with the industry average.
SAP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.50.
Based on the Price/Forward Earnings ratio of 28.79, the valuation of SAP can be described as expensive.
SAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SAP is cheaper than 60.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.93. SAP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.14 | ||
| Fwd PE | 28.79 |
4.2 Price Multiples
SAP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAP is cheaper than 75.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 64.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.46 | ||
| EV/EBITDA | 21.13 |
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 23.90% in the coming years.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y26.32%
EPS Next 3Y23.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.12%, SAP has a reasonable but not impressive dividend return.
SAP's Dividend Yield is rather good when compared to the industry average which is at 0.52. SAP pays more dividend than 92.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of SAP is nicely growing with an annual growth rate of 7.95%!
SAP has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SAP decreased in the last 3 years.
Dividend Growth(5Y)7.95%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SAP pays out 38.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.73%
EPS Next 2Y26.32%
EPS Next 3Y23.9%
245.6
+0.64 (+0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.03%
Inst Owner Change1.53%
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap286.03B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price TargetN/A
Short Float %0.19%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend2.58
Dividend Growth(5Y)7.95%
DP38.73%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)0.04%
PT rev (3m)-1.05%
EPS NQ rev (1m)-1.24%
EPS NQ rev (3m)-4.88%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.14 | ||
| Fwd PE | 28.79 | ||
| P/S | 6.65 | ||
| P/FCF | 37.46 | ||
| P/OCF | 33.21 | ||
| P/B | 5.67 | ||
| P/tB | 21.31 | ||
| EV/EBITDA | 21.13 |
EPS(TTM)6.99
EY2.85%
EPS(NY)8.53
Fwd EY3.47%
FCF(TTM)6.56
FCFY2.67%
OCF(TTM)7.39
OCFY3.01%
SpS36.93
BVpS43.32
TBVpS11.53
PEG (NY)1
PEG (5Y)N/A
Graham Number82.54
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
WACC7.69%
ROIC/WACC1.7
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 Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.9%
EPS Next 5Y21.58%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.19%
Revenue Next 2Y10.07%
Revenue Next 3Y10.93%
Revenue Next 5Y12.53%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year55.23%
EBIT Next 3Y27.92%
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-SPONSORED ADR / SAP FAQ
What is the fundamental rating for SAP stock?
ChartMill assigns a fundamental rating of 7 / 10 to SAP.
What is the valuation status of SAP SE-SPONSORED ADR (SAP) stock?
ChartMill assigns a valuation rating of 4 / 10 to SAP SE-SPONSORED ADR (SAP). This can be considered as Fairly Valued.
Can you provide the profitability details for SAP SE-SPONSORED ADR?
SAP SE-SPONSORED ADR (SAP) has a profitability rating of 8 / 10.
What is the valuation of SAP SE-SPONSORED ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SAP SE-SPONSORED ADR (SAP) is 35.14 and the Price/Book (PB) ratio is 5.67.
Can you provide the dividend sustainability for SAP stock?
The dividend rating of SAP SE-SPONSORED ADR (SAP) is 6 / 10 and the dividend payout ratio is 38.73%.