SAP SE-SPONSORED ADR (SAP) Stock Fundamental Analysis
USA - NYSE:SAP - US8030542042 - ADR
251.96 USD
-1.92 (-0.76%)
276.62 USD
+24.66 (+9.79%)
Overall SAP gets a fundamental rating of 7 out of 10. We evaluated SAP against 285 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
In the past year SAP was profitable.
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
SAP has a better Return On Assets (10.35%) than 85.56% of its industry peers.
SAP has a Return On Equity of 16.54%. This is amongst the best in the industry. SAP outperforms 83.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.05%, SAP belongs to the top of the industry, outperforming 89.79% 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 11.85%.
The 3 year average ROIC (8.58%) for SAP is below the current ROIC(13.05%), indicating increased profibility in the last year.
| 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
The Profit Margin of SAP (19.41%) is better than 82.75% of its industry peers.
SAP's Profit Margin has declined in the last couple of years.
SAP has a Operating Margin of 27.47%. This is amongst the best in the industry. SAP outperforms 90.85% of its industry peers.
SAP's Operating Margin has been stable in the last couple of years.
SAP has a Gross Margin of 73.83%. This is in the better half of the industry: SAP outperforms 61.97% 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.
The number of shares outstanding for SAP has been reduced compared to 5 years ago.
SAP has a worse debt/assets ratio than last year.
2.2 Solvency
SAP has an Altman-Z score of 7.98. 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 7.98, SAP is in the better half of the industry, outperforming 79.58% of the companies in the same industry.
SAP has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
SAP has a better Debt to FCF ratio (1.41) than 72.54% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that SAP is not too dependend on debt financing.
The Debt to Equity ratio of SAP (0.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.98 |
ROIC/WACC1.75
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.10, SAP is not doing good in the industry: 67.25% of the companies in the same industry are doing better.
SAP has a Quick 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.
SAP's Quick ratio of 1.10 is on the low side compared to the rest of the industry. SAP is outperformed by 65.85% 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
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.
The Earnings Per Share has been decreasing by -2.38% on average over the past years.
The Revenue has grown by 9.70% in the past year. This is quite good.
The Revenue has been growing slightly by 4.40% on average over the past years.
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 20.96% 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 12.52% on average per year.
EPS Next Y36.22%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
EPS Next 5Y20.96%
Revenue Next Year9.63%
Revenue Next 2Y10.45%
Revenue Next 3Y11.33%
Revenue Next 5Y12.52%
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
A Price/Earnings ratio of 36.73 indicates a quite expensive valuation of SAP.
SAP's Price/Earnings is on the same level as the industry average.
SAP is valuated rather expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 29.58 indicates a quite expensive valuation of SAP.
60.56% of the companies in the same industry are more expensive than SAP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SAP to the average of the S&P500 Index (32.68), we can say SAP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.73 | ||
| Fwd PE | 29.58 |
4.2 Price Multiples
SAP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAP is cheaper than 78.52% of the companies in the same industry.
64.79% of the companies in the same industry are more expensive than SAP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.12 | ||
| EV/EBITDA | 22.31 |
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.
A more expensive valuation may be justified as SAP's earnings are expected to grow with 24.83% in the coming years.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y27.37%
EPS Next 3Y24.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, SAP is not a good candidate for dividend investing.
SAP's Dividend Yield is rather good when compared to the industry average which is at 36.25. SAP pays more dividend than 91.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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
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 2Y27.37%
EPS Next 3Y24.83%
251.96
-1.92 (-0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.23%
Inst Owner Change-0.87%
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap292.34B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target338.09 (34.18%)
Short Float %0.31%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend2.55
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)-2.33%
PT rev (3m)0.31%
EPS NQ rev (1m)-3.87%
EPS NQ rev (3m)-3.44%
EPS NY rev (1m)0.78%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.73 | ||
| Fwd PE | 29.58 | ||
| P/S | 6.95 | ||
| P/FCF | 39.12 | ||
| P/OCF | 34.69 | ||
| P/B | 5.92 | ||
| P/tB | 22.26 | ||
| EV/EBITDA | 22.31 |
EPS(TTM)6.86
EY2.72%
EPS(NY)8.52
Fwd EY3.38%
FCF(TTM)6.44
FCFY2.56%
OCF(TTM)7.26
OCFY2.88%
SpS36.27
BVpS42.55
TBVpS11.32
PEG (NY)1.01
PEG (5Y)N/A
Graham Number81.04
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 | 7.98 |
F-Score9
WACC7.44%
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 Y36.22%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
EPS Next 5Y20.96%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.63%
Revenue Next 2Y10.45%
Revenue Next 3Y11.33%
Revenue Next 5Y12.52%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year56.23%
EBIT Next 3Y28.74%
EBIT Next 5Y21.3%
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 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 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 36.73 and the Price/Book (PB) ratio is 5.92.
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%.