SAP SE-SPONSORED ADR (SAP) Fundamental Analysis & Valuation

NYSE:SAP • US8030542042

Current stock price

164.02 USD
-3.06 (-1.83%)
At close:
164 USD
-0.02 (-0.01%)
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This SAP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. SAP Profitability Analysis

1.1 Basic Checks

  • In the past year SAP was profitable.
  • In the past year SAP had a positive cash flow from operations.
  • SAP had positive earnings in each of the past 5 years.
  • In the past 5 years SAP always reported a positive cash flow from operatings.
SAP Yearly Net Income VS EBIT VS OCF VS FCFSAP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 10.41%, SAP belongs to the top of the industry, outperforming 86.33% of the companies in the same industry.
  • SAP's Return On Equity of 16.37% is amongst the best of the industry. SAP outperforms 85.25% 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 89.93% 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 10.92%.
  • 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 RankSector 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%
SAP Yearly ROA, ROE, ROICSAP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • SAP's Profit Margin of 19.91% is amongst the best of the industry. SAP outperforms 86.33% of its industry peers.
  • SAP's Profit Margin has been stable in the last couple of years.
  • SAP has a better Operating Margin (28.17%) than 92.81% of its industry peers.
  • SAP's Operating Margin has been stable in the last couple of years.
  • SAP's Gross Margin of 73.62% is fine compared to the rest of the industry. SAP outperforms 60.43% 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 RankSector 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%
SAP Yearly Profit, Operating, Gross MarginsSAP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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7

2. SAP Health Analysis

2.1 Basic Checks

  • SAP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
SAP Yearly Shares OutstandingSAP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
SAP Yearly Total Debt VS Total AssetsSAP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • SAP has an Altman-Z score of 5.90. 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 5.90, SAP belongs to the top of the industry, outperforming 82.73% of the companies in the same industry.
  • The Debt to FCF ratio of SAP is 0.96, which is an excellent value as it means it would take SAP, only 0.96 years of fcf income to pay off all of its debts.
  • SAP has a better Debt to FCF ratio (0.96) than 75.54% 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.
  • With a Debt to Equity ratio value of 0.13, SAP perfoms like the industry average, outperforming 50.36% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 0.96
Altman-Z 5.9
ROIC/WACC1.84
WACC7.28%
SAP Yearly LT Debt VS Equity VS FCFSAP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

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.
  • The Current ratio of SAP (1.17) is worse than 67.63% 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 Quick ratio of 1.17. This is in the lower half of the industry: SAP underperforms 67.27% 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 RankSector Rank
Current Ratio 1.17
Quick Ratio 1.17
SAP Yearly Current Assets VS Current LiabilitesSAP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SAP Growth Analysis

3.1 Past

  • SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.76%, which is quite impressive.
  • Measured over the past 5 years, SAP shows a small growth in Earnings Per Share. The EPS has been growing by 2.60% on average per year.
  • SAP shows a small growth in Revenue. In the last year, the Revenue has grown by 7.67%.
  • Measured over the past years, SAP shows a small growth in Revenue. The Revenue has been growing by 6.12% on average per year.
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 Y18.8%
EPS Next 2Y17.92%
EPS Next 3Y16.97%
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.
SAP Yearly Revenue VS EstimatesSAP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
SAP Yearly EPS VS EstimatesSAP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20

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5

4. SAP Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 23.13 indicates a rather expensive valuation of SAP.
  • Based on the Price/Earnings ratio, SAP is valued a bit cheaper than the industry average as 62.59% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 24.88. SAP is around the same levels.
  • SAP is valuated rather expensively with a Price/Forward Earnings ratio of 19.47.
  • Based on the Price/Forward Earnings ratio, SAP is valued a bit cheaper than 63.31% of the companies in the same industry.
  • SAP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 23.13
Fwd PE 19.47
SAP Price Earnings VS Forward Price EarningsSAP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 79.50% of the companies listed 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 72.30% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 19.71
EV/EBITDA 13.93
SAP Per share dataSAP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The 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 16.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)8.91
EPS Next 2Y17.92%
EPS Next 3Y16.97%

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6

5. SAP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.73%, SAP has a reasonable but not impressive dividend return.
  • In the last 3 months the price of SAP has falen by -33.48%. 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 0.64. SAP pays more dividend than 94.24% of the companies in the same industry.
  • SAP's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.73%

5.2 History

  • On average, the dividend of SAP grows each year by 8.40%, 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)8.4%
Div Incr Years2
Div Non Decr Years2
SAP Yearly Dividends per shareSAP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 37.44% 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.
DP37.44%
EPS Next 2Y17.92%
EPS Next 3Y16.97%
SAP Yearly Income VS Free CF VS DividendSAP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
SAP Dividend Payout.SAP Dividend Payout, showing the Payout Ratio.SAP Dividend Payout.PayoutRetained Earnings

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SAP Fundamentals: All Metrics, Ratios and Statistics

SAP SE-SPONSORED ADR

NYSE:SAP (3/27/2026, 8:04:00 PM)

After market: 164 -0.02 (-0.01%)

164.02

-3.06 (-1.83%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners40.01%
Inst Owner Change-2.93%
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap191.02B
Revenue(TTM)36.80B
Net Income(TTM)7.33B
Analysts77.56
Price Target296.44 (80.73%)
Short Float %0.38%
Short Ratio1.2
Dividend
Industry RankSector Rank
Dividend Yield 1.73%
Yearly Dividend2.71
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)0%
PT rev (3m)-13.29%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)2.1%
EPS NY rev (1m)0.77%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.83%
Valuation
Industry RankSector Rank
PE 23.13
Fwd PE 19.47
P/S 4.51
P/FCF 19.71
P/OCF 18.11
P/B 3.71
P/tB 12.33
EV/EBITDA 13.93
EPS(TTM)7.09
EY4.32%
EPS(NY)8.42
Fwd EY5.14%
FCF(TTM)8.32
FCFY5.07%
OCF(TTM)9.05
OCFY5.52%
SpS36.39
BVpS44.26
TBVpS13.31
PEG (NY)1.23
PEG (5Y)8.91
Graham Number84.02
Profitability
Industry RankSector 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 RankSector 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 5.9
F-Score9
WACC7.28%
ROIC/WACC1.84
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 Y18.8%
EPS Next 2Y17.92%
EPS Next 3Y16.97%
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 5Y17.76%
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 Fundamental Analysis 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 5 / 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 18.8% 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%.