SAP SE-SPONSORED ADR (SAP) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:SAP • US8030542042
201.04 USD
+0.83 (+0.41%)
At close: Jan 30, 2026
201.15 USD
+0.11 (+0.05%)
After Hours: 1/30/2026, 8:18:03 PM
Overall SAP gets a fundamental rating of 7 out of 10. We evaluated SAP against 278 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 has a decent growth rate and is not valued too expensively. These ratings could make SAP a good candidate 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.
- 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
- With an excellent Return On Assets value of 10.41%, SAP belongs to the best of the industry, outperforming 83.45% of the companies in the same industry.
- SAP has a Return On Equity of 16.37%. This is amongst the best in the industry. SAP outperforms 83.81% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.43%, 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 10.61%. This is in line with the industry average of 10.73%.
- 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
- SAP has a better Profit Margin (19.91%) than 83.45% of its industry peers.
- SAP's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 28.17%, SAP belongs to the top of the industry, outperforming 91.01% 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.
- SAP's Gross Margin of 73.62% is fine compared to the rest of the industry. SAP outperforms 60.07% 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 | 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.
- SAP has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SAP has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.61 indicates that SAP is not in any danger for bankruptcy at the moment.
- SAP has a Altman-Z score of 6.61. This is amongst the best in the industry. SAP outperforms 82.37% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 0.96, SAP is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
- A Debt/Equity ratio of 0.13 indicates that SAP is not too dependend on debt financing.
- The Debt to Equity ratio of SAP (0.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 6.61 |
ROIC/WACC1.73
WACC7.77%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that SAP should not have too much problems paying its short term obligations.
- SAP has a Current ratio of 1.17. This is in the lower half of the industry: SAP underperforms 68.70% of its industry peers.
- A Quick Ratio of 1.17 indicates that SAP should not have too much problems paying its short term obligations.
- SAP has a worse Quick ratio (1.17) than 67.99% of its industry peers.
- 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 34.94% over the past year.
- The Earnings Per Share has been growing slightly by 2.47% on average over the past years.
- The Revenue has been growing slightly by 7.67% in the past year.
- The Revenue has been growing slightly by 6.12% on average over the past years.
EPS 1Y (TTM)34.94%
EPS 3Y14.61%
EPS 5Y2.47%
EPS Q2Q%13.86%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y7.62%
Revenue growth 5Y6.12%
Sales Q2Q%0.58%
3.2 Future
- Based on estimates for the next years, SAP will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.48% 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 13.09% on average per year.
EPS Next Y18.61%
EPS Next 2Y18.88%
EPS Next 3Y18.47%
EPS Next 5Y18.48%
Revenue Next Year10.48%
Revenue Next 2Y11.47%
Revenue Next 3Y13.9%
Revenue Next 5Y13.09%
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
- Based on the Price/Earnings ratio of 27.58, the valuation of SAP can be described as expensive.
- SAP's Price/Earnings ratio is a bit cheaper when compared to the industry. SAP is cheaper than 62.23% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. SAP is around the same levels.
- The Price/Forward Earnings ratio is 23.24, which indicates a rather expensive current valuation of SAP.
- Based on the Price/Forward Earnings ratio, SAP is valued a bit cheaper than 64.03% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, SAP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.58 | ||
| Fwd PE | 23.24 |
4.2 Price Multiples
- SAP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SAP is cheaper than 80.22% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.34 | ||
| EV/EBITDA | 16.54 |
4.3 Compensation for Growth
- SAP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of SAP may justify a higher PE ratio.
- SAP's earnings are expected to grow with 18.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)11.15
EPS Next 2Y18.88%
EPS Next 3Y18.47%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.43%, SAP has a reasonable but not impressive dividend return.
- In the last 3 months the price of SAP has falen by -22.68%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- SAP's Dividend Yield is rather good when compared to the industry average which is at 0.56. SAP pays more dividend than 94.24% of the companies in the same industry.
- SAP's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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.
- The dividend of SAP decreased 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.
- SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.44%
EPS Next 2Y18.88%
EPS Next 3Y18.47%
SAP SE-SPONSORED ADR / SAP FAQ
What is the fundamental rating for SAP stock?
ChartMill assigns a fundamental rating of 5 / 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 7 / 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 18.61% 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%.