SAP SE-SPONSORED ADR (SAP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAP - US8030542042 - ADR
244.33 USD
+0.02 (+0.01%)
244.33 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to SAP. SAP was compared to 281 industry peers in the Software industry. SAP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SAP has a decent growth rate and is not valued too expensively. These ratings would make SAP suitable 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.
Each year in the past 5 years SAP had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.35%, SAP belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
SAP's Return On Equity of 16.54% is amongst the best of the industry. SAP outperforms 84.64% of its industry peers.
SAP's Return On Invested Capital of 13.05% is amongst the best of the industry. SAP outperforms 90.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAP is below the industry average of 10.73%.
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 83.57% of its industry peers.
In the last couple of years the Profit Margin of SAP has declined.
SAP has a Operating Margin of 27.47%. This is amongst the best in the industry. SAP outperforms 91.07% 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 has a Gross Margin of 73.83%. This is in the better half of the industry: SAP outperforms 61.43% of its industry peers.
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 | 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
SAP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SAP has about the same amount of shares outstanding.
SAP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SAP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.68 indicates that SAP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.68, SAP belongs to the best of the industry, outperforming 82.14% 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 71.43% 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.
Looking at the Debt to Equity ratio, with a value of 0.14, SAP is in line with its industry, outperforming 48.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.68 |
ROIC/WACC1.75
WACC7.45%
2.3 Liquidity
A Current Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
SAP's Current ratio of 1.10 is on the low side compared to the rest of the industry. SAP is outperformed by 70.00% of its industry peers.
A Quick Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.10, SAP is not doing good in the industry: 69.29% 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 | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.11%, which is quite impressive.
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 9.70% 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)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.
Based on estimates for the next years, SAP will show a quite strong growth in Revenue. The Revenue will grow by 12.53% on average per year.
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
A Price/Earnings ratio of 35.16 indicates a quite expensive valuation of SAP.
Compared to the rest of the industry, the Price/Earnings ratio of SAP is on the same level as its industry peers.
SAP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.38.
A Price/Forward Earnings ratio of 28.81 indicates a quite expensive valuation of SAP.
SAP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, SAP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.16 | ||
| Fwd PE | 28.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAP is valued a bit cheaper than the industry average as 76.79% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.48 | ||
| EV/EBITDA | 21.2 |
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
SAP has a Yearly Dividend Yield of 1.12%.
SAP's Dividend Yield is rather good when compared to the industry average which is at 1.94. SAP pays more dividend than 92.14% of the companies in the same industry.
SAP's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
On average, the dividend of SAP grows each year by 7.95%, which is quite nice.
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)7.95%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
38.73% of the earnings are spent on dividend by SAP. This is a low number and 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%
244.33
+0.02 (+0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.03%
Inst Owner Change1.54%
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap284.55B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target342.54 (40.2%)
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)1.32%
PT rev (3m)-1.05%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-4.27%
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 | 35.16 | ||
| Fwd PE | 28.81 | ||
| P/S | 6.65 | ||
| P/FCF | 37.48 | ||
| P/OCF | 33.23 | ||
| P/B | 5.67 | ||
| P/tB | 21.32 | ||
| EV/EBITDA | 21.2 |
EPS(TTM)6.95
EY2.84%
EPS(NY)8.48
Fwd EY3.47%
FCF(TTM)6.52
FCFY2.67%
OCF(TTM)7.35
OCFY3.01%
SpS36.72
BVpS43.08
TBVpS11.46
PEG (NY)1
PEG (5Y)N/A
Graham Number82.07
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 | 7.68 |
F-Score9
WACC7.45%
ROIC/WACC1.75
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 35.16 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%.