SAP SE-SPONSORED ADR (SAP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAP - US8030542042 - ADR
241.75 USD
+1.73 (+0.72%)
242.9 USD
+1.15 (+0.48%)
SAP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. SAP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SAP has a correct valuation and a medium growth rate. With these ratings, SAP could be worth investigating further 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.
SAP had positive earnings in each of the past 5 years.
SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAP's Return On Assets of 10.35% is amongst the best of the industry. SAP outperforms 83.63% of its industry peers.
With an excellent Return On Equity value of 16.54%, SAP belongs to the best of the industry, outperforming 83.63% of the companies in the same industry.
The Return On Invested Capital of SAP (13.05%) is better than 90.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAP is below the industry average of 12.00%.
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 83.63% of its industry peers.
In the last couple of years the Profit Margin of SAP has declined.
SAP has a better Operating Margin (27.47%) than 91.10% 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 61.57% of its industry peers.
SAP's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, SAP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.70 indicates that SAP is not in any danger for bankruptcy at the moment.
SAP has a Altman-Z score of 7.70. This is amongst the best in the industry. SAP outperforms 81.14% of its industry peers.
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 Debt to FCF ratio of 1.41. This is in the better half of the industry: SAP outperforms 71.89% of its industry peers.
SAP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.14, SAP perfoms like the industry average, outperforming 48.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.7 |
ROIC/WACC1.75
WACC7.47%
2.3 Liquidity
SAP has a Current 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.
With a Current ratio value of 1.10, SAP is not doing good in the industry: 69.75% 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.
Looking at the Quick ratio, with a value of 1.10, SAP is doing worse than 68.33% of the companies in the same industry.
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.
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
The Earnings Per Share is expected to grow by 21.58% on average over the next years. This is a very strong growth
SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.53% yearly.
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
EPS Next 5Y21.58%
Revenue Next Year9.2%
Revenue Next 2Y10.08%
Revenue Next 3Y10.96%
Revenue Next 5Y12.53%
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
With a Price/Earnings ratio of 35.24, SAP can be considered very expensive at the moment.
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 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.88, which means the current valuation is very expensive for SAP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, SAP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.24 | ||
| Fwd PE | 28.88 |
4.2 Price Multiples
76.16% of the companies in the same industry are more expensive than SAP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.57 | ||
| EV/EBITDA | 21.26 |
4.3 Compensation for Growth
The 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 23.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y26.32%
EPS Next 3Y23.94%
5. Dividend
5.1 Amount
SAP has a Yearly Dividend Yield of 1.14%.
Compared to an average industry Dividend Yield of 50.16, SAP pays a better dividend. On top of this SAP pays more dividend than 91.81% of the companies listed in the same industry.
With a Dividend Yield of 1.14, SAP pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
The dividend of SAP is nicely growing with an annual growth rate of 7.95%!
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)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.
SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.73%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
241.75
+1.73 (+0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.23%
Inst Owner Change1.52%
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap281.54B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target340.39 (40.8%)
Short Float %0.2%
Short Ratio1.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)0.68%
PT rev (3m)-1.14%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-4.27%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.24 | ||
| Fwd PE | 28.88 | ||
| P/S | 6.67 | ||
| P/FCF | 37.57 | ||
| P/OCF | 33.31 | ||
| P/B | 5.69 | ||
| P/tB | 21.37 | ||
| EV/EBITDA | 21.26 |
EPS(TTM)6.86
EY2.84%
EPS(NY)8.37
Fwd EY3.46%
FCF(TTM)6.43
FCFY2.66%
OCF(TTM)7.26
OCFY3%
SpS36.24
BVpS42.51
TBVpS11.31
PEG (NY)1
PEG (5Y)N/A
Graham Number81.01
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 | 7.7 |
F-Score9
WACC7.47%
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 3Y23.94%
EPS Next 5Y21.58%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.2%
Revenue Next 2Y10.08%
Revenue Next 3Y10.96%
Revenue Next 5Y12.53%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year56.23%
EBIT Next 3Y28.74%
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 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 35.24 and the Price/Book (PB) ratio is 5.69.
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%.