SAP SE-SPONSORED ADR (SAP) Stock Fundamental Analysis
NYSE:SAP • US8030542042
196.01 USD
-5.52 (-2.74%)
At close: Mar 2, 2026
189.52 USD
-6.49 (-3.31%)
Pre-Market: 3/3/2026, 5:17:54 AM
SAP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. Both the health and profitability get an excellent rating, making SAP a very profitable company, without any liquidiy or solvency issues. 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.
- In the past year SAP had a positive cash flow from operations.
- 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
- The Return On Assets of SAP (10.41%) is better than 85.87% of its industry peers.
- SAP has a better Return On Equity (16.37%) than 84.06% of its industry peers.
- SAP's Return On Invested Capital of 13.43% is amongst the best of the industry. SAP outperforms 89.86% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SAP is in line with the industry average of 10.80%.
- The last Return On Invested Capital (13.43%) for SAP is above the 3 year average (10.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 16.37% | ||
| ROIC | 13.43% |
ROA(3y)7.87%
ROA(5y)6.83%
ROE(3y)12.49%
ROE(5y)11.34%
ROIC(3y)10.61%
ROIC(5y)9.31%
1.3 Margins
- With an excellent Profit Margin value of 19.91%, SAP belongs to the best of the industry, outperforming 85.14% 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.
- Looking at the Operating Margin, with a value of 28.17%, SAP belongs to the top of the industry, outperforming 92.39% 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.
- With a decent Gross Margin value of 73.62%, SAP is doing good in the industry, outperforming 60.51% of the companies in the same industry.
- SAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.17% | ||
| PM (TTM) | 19.91% | ||
| GM | 73.62% |
OM growth 3Y8.24%
OM growth 5Y1.17%
PM growth 3Y37.04%
PM growth 5Y1.13%
GM growth 3Y0.25%
GM growth 5Y0.42%
2. Health
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.
- 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.
- SAP has a better debt/assets ratio than last year.
2.2 Solvency
- SAP has an Altman-Z score of 6.58. This indicates that SAP is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.58, SAP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- SAP has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of all of its debts.
- SAP has a better Debt to FCF ratio (0.96) than 76.09% of its industry peers.
- SAP has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
- SAP has a Debt to Equity ratio of 0.13. This is comparable to the rest of the industry: SAP outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 6.58 |
ROIC/WACC1.74
WACC7.71%
2.3 Liquidity
- SAP has a Current Ratio of 1.17. This is a normal value and indicates that SAP is financially healthy and should not expect problems in meeting its short term obligations.
- SAP has a worse Current ratio (1.17) than 68.84% of its industry peers.
- SAP has a Quick Ratio of 1.17. 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 Quick ratio value of 1.17, SAP is not doing good in the industry: 68.12% of the companies in the same industry are doing better.
- 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 | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 35.76% over the past year.
- The Earnings Per Share has been growing slightly by 2.60% on average over the past years.
- SAP shows a small growth in Revenue. In the last year, the Revenue has grown by 7.67%.
- The Revenue has been growing slightly by 6.12% on average over the past years.
EPS 1Y (TTM)35.76%
EPS 3Y14.85%
EPS 5Y2.6%
EPS Q2Q%16.55%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y7.62%
Revenue growth 5Y6.12%
Sales Q2Q%3.27%
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 18.34% yearly.
- The Revenue is expected to grow by 13.18% on average over the next years. This is quite good.
EPS Next Y17.89%
EPS Next 2Y18.52%
EPS Next 3Y18.23%
EPS Next 5Y18.34%
Revenue Next Year8.93%
Revenue Next 2Y10.49%
Revenue Next 3Y10.89%
Revenue Next 5Y13.18%
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
- The Price/Earnings ratio is 27.22, which means the current valuation is very expensive for SAP.
- Compared to the rest of the industry, the Price/Earnings ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 61.23% of the companies listed in the same industry.
- SAP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 23.08, the valuation of SAP can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 60.14% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of SAP to the average of the S&P500 Index (28.11), we can say SAP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 23.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SAP is valued a bit cheaper than 77.54% of the companies in the same industry.
- SAP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SAP is cheaper than 68.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.18 | ||
| EV/EBITDA | 16.43 |
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.
- SAP's earnings are expected to grow with 18.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)10.48
EPS Next 2Y18.52%
EPS Next 3Y18.23%
5. Dividend
5.1 Amount
- SAP has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
- The stock price of SAP dropped by -20.73% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.58, SAP pays a better dividend. On top of this SAP pays more dividend than 93.48% of the companies listed in the same industry.
- SAP's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
- The dividend of SAP is nicely growing with an annual growth rate of 8.40%!
- SAP has been paying a dividend for at least 10 years, so it has a reliable track record.
- SAP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.4%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- SAP pays out 37.44% 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.
DP37.44%
EPS Next 2Y18.52%
EPS Next 3Y18.23%
196.01
-5.52 (-2.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-23 2026-04-23/amc
Inst Owners40.04%
Inst Owner Change-2.93%
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap228.27B
Revenue(TTM)36.80B
Net Income(TTM)7.33B
Analysts77.07
Price Target296.44 (51.24%)
Short Float %0.44%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend2.78
Dividend Growth(5Y)8.4%
DP37.44%
Div Incr Years2
Div Non Decr Years2
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)-12.31%
PT rev (3m)-12.91%
EPS NQ rev (1m)2.19%
EPS NQ rev (3m)3.84%
EPS NY rev (1m)0%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)-1.83%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 23.08 | ||
| P/S | 5.3 | ||
| P/FCF | 23.18 | ||
| P/OCF | 21.31 | ||
| P/B | 4.36 | ||
| P/tB | 14.5 | ||
| EV/EBITDA | 16.43 |
EPS(TTM)7.2
EY3.67%
EPS(NY)8.49
Fwd EY4.33%
FCF(TTM)8.45
FCFY4.31%
OCF(TTM)9.2
OCFY4.69%
SpS36.96
BVpS44.95
TBVpS13.52
PEG (NY)1.52
PEG (5Y)10.48
Graham Number85.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 16.37% | ||
| ROCE | 19.52% | ||
| ROIC | 13.43% | ||
| ROICexc | 16.45% | ||
| ROICexgc | 59.21% | ||
| OM | 28.17% | ||
| PM (TTM) | 19.91% | ||
| GM | 73.62% | ||
| FCFM | 22.87% |
ROA(3y)7.87%
ROA(5y)6.83%
ROE(3y)12.49%
ROE(5y)11.34%
ROIC(3y)10.61%
ROIC(5y)9.31%
ROICexc(3y)13.63%
ROICexc(5y)11.8%
ROICexgc(3y)62.47%
ROICexgc(5y)55.44%
ROCE(3y)15.47%
ROCE(5y)13.63%
ROICexgc growth 3Y5.44%
ROICexgc growth 5Y0.02%
ROICexc growth 3Y18.72%
ROICexc growth 5Y5.54%
OM growth 3Y8.24%
OM growth 5Y1.17%
PM growth 3Y37.04%
PM growth 5Y1.13%
GM growth 3Y0.25%
GM growth 5Y0.42%
F-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 56.37% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 18.06 | ||
| Cash Conversion | 78.41% | ||
| Profit Quality | 114.88% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 6.58 |
F-Score9
WACC7.71%
ROIC/WACC1.74
Cap/Depr(3y)58.6%
Cap/Depr(5y)53.4%
Cap/Sales(3y)2.29%
Cap/Sales(5y)2.54%
Profit Quality(3y)115.61%
Profit Quality(5y)131.78%
High Growth Momentum
Growth
EPS 1Y (TTM)35.76%
EPS 3Y14.85%
EPS 5Y2.6%
EPS Q2Q%16.55%
EPS Next Y17.89%
EPS Next 2Y18.52%
EPS Next 3Y18.23%
EPS Next 5Y18.34%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y7.62%
Revenue growth 5Y6.12%
Sales Q2Q%3.27%
Revenue Next Year8.93%
Revenue Next 2Y10.49%
Revenue Next 3Y10.89%
Revenue Next 5Y13.18%
EBIT growth 1Y27.11%
EBIT growth 3Y16.49%
EBIT growth 5Y7.37%
EBIT Next Year29.34%
EBIT Next 3Y19.55%
EBIT Next 5Y17.22%
FCF growth 1Y90.3%
FCF growth 3Y20.83%
FCF growth 5Y5.71%
OCF growth 1Y75.4%
OCF growth 3Y17.49%
OCF growth 5Y4.94%
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 for 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 expected EPS growth for SAP SE-SPONSORED ADR (SAP) stock?
The Earnings per Share (EPS) of SAP SE-SPONSORED ADR (SAP) is expected to grow by 17.89% in the next year.
How sustainable is the dividend of SAP SE-SPONSORED ADR (SAP) stock?
The dividend rating of SAP SE-SPONSORED ADR (SAP) is 6 / 10 and the dividend payout ratio is 37.44%.