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
Fundamental Rating

5

SAP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. While SAP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SAP has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

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 4 of the past 5 years.
  • SAP had a positive operating cash flow in 4 of the past 5 years.
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 2B 4B 6B 8B

1.2 Ratios

  • SAP has a better Return On Assets (10.35%) than 83.45% of its industry peers.
  • With an excellent Return On Equity value of 16.54%, SAP belongs to the best of the industry, outperforming 83.81% of the companies in the same industry.
  • SAP has a better Return On Invested Capital (13.05%) than 90.65% 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 RankSector 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%
SAP Yearly ROA, ROE, ROICSAP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • With an excellent Profit Margin value of 19.41%, SAP belongs to the best of the industry, outperforming 82.73% of the companies in the same industry.
  • 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 91.01% of its industry peers.
  • In the last couple of years the Operating Margin of SAP has remained more or less at the same level.
  • The Gross Margin of SAP (73.83%) is better than 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 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%
SAP Yearly Profit, Operating, Gross MarginsSAP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAP is still creating some value.
  • SAP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
SAP Yearly Shares OutstandingSAP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 20B 40B 60B

2.2 Solvency

  • SAP has an Altman-Z score of 6.56. This indicates that SAP is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of SAP (6.56) is better than 81.65% of its industry peers.
  • 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.
  • SAP has a Debt to FCF ratio of 1.41. This is in the better half of the industry: SAP outperforms 71.22% of its industry peers.
  • A Debt/Equity ratio of 0.14 indicates that SAP is not too dependend on debt financing.
  • SAP's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. SAP outperforms 47.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 1.41
Altman-Z 6.56
ROIC/WACC1.68
WACC7.77%
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 10B 20B 30B 40B

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.
  • Looking at the Current ratio, with a value of 1.10, SAP is doing worse than 70.14% of the companies in the same industry.
  • A Quick Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.10, SAP is doing worse than 69.42% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1
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 5B 10B 15B 20B

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4

3. Growth

3.1 Past

  • SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.94%, which is quite impressive.
  • The Earnings Per Share has been growing slightly by 2.47% on average over the past years.
EPS 1Y (TTM)34.94%
EPS 3Y14.61%
EPS 5Y2.47%
EPS Q2Q%13.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
  • The Revenue is expected to grow by 13.09% on average over the next years. This is quite good.
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

  • 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.
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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4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.46, the valuation of SAP can be described as expensive.
  • Based on the Price/Earnings ratio, SAP is valued a bit cheaper than 62.59% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of SAP to the average of the S&P500 Index (28.30), we can say SAP is valued inline with the index average.
  • SAP is valuated rather expensively with a Price/Forward Earnings ratio of 23.14.
  • SAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SAP is cheaper than 64.75% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of SAP to the average of the S&P500 Index (25.57), we can say SAP is valued inline with the index average.
Industry RankSector Rank
PE 27.46
Fwd PE 23.14
SAP Price Earnings VS Forward Price EarningsSAP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SAP is valued a bit cheaper than the industry average as 79.86% of the companies are valued more expensively.
  • SAP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SAP is cheaper than 66.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 30.19
EV/EBITDA 16.97
SAP Per share dataSAP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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 decent 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)11.11
EPS Next 2Y18.88%
EPS Next 3Y18.47%

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6

5. Dividend

5.1 Amount

  • SAP has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
  • 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 0.54. SAP pays more dividend than 93.17% of the companies in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.82, SAP is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.2%

5.2 History

  • On average, the dividend of SAP grows each year by 7.95%, which is quite nice.
  • SAP has paid a dividend for at least 10 years, which is 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
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

  • 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 2Y18.88%
EPS Next 3Y18.47%
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 2B 4B 6B
SAP Dividend Payout.SAP Dividend Payout, showing the Payout Ratio.SAP Dividend Payout.PayoutRetained Earnings

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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 38.73%.