SAP SE-SPONSORED ADR (SAP)
US8030542042 - ADR
Taking everything into account, SAP scores 6 out of 10 in our fundamental rating. SAP was compared to 276 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, SAP could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
SAP had positive earnings in the past year.
In the past year SAP had a positive cash flow from operations.
In the past 5 years SAP has always been profitable.
In the past 5 years SAP always reported a positive cash flow from operatings.
1.2 Ratios
SAP's Return On Assets of 8.98% is amongst the best of the industry. SAP outperforms 88.69% of its industry peers.
The Return On Equity of SAP (14.22%) is better than 87.23% of its industry peers.
With an excellent Return On Invested Capital value of 8.19%, SAP belongs to the best of the industry, outperforming 86.13% of the companies in the same industry.
SAP had an Average Return On Invested Capital over the past 3 years of 7.55%. This is below the industry average of 10.35%.
The last Return On Invested Capital (8.19%) for SAP is above the 3 year average (7.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.98% | ||
| ROE | 14.22% | ||
| ROIC | 8.19% |
ROA(3y)6.51%
ROA(5y)6.77%
ROE(3y)11.15%
ROE(5y)12.31%
ROIC(3y)7.55%
ROIC(5y)8.45%
1.3 Margins
SAP has a Profit Margin of 19.67%. This is amongst the best in the industry. SAP outperforms 89.05% of its industry peers.
In the last couple of years the Profit Margin of SAP has grown nicely.
With an excellent Operating Margin value of 20.83%, SAP belongs to the best of the industry, outperforming 91.61% of the companies in the same industry.
SAP's Operating Margin has declined in the last couple of years.
SAP has a better Gross Margin (72.43%) than 62.41% of its industry peers.
SAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.83% | ||
| PM (TTM) | 19.67% | ||
| GM | 72.43% |
OM growth 3Y-7.79%
OM growth 5Y-3.96%
PM growth 3Y1.49%
PM growth 5Y3.55%
GM growth 3Y0.16%
GM growth 5Y0.43%
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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.45 indicates that SAP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.45, SAP is doing good in the industry, outperforming 77.74% of the companies in the same industry.
The Debt to FCF ratio of SAP is 1.58, which is an excellent value as it means it would take SAP, only 1.58 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.58, SAP is doing good in the industry, outperforming 71.90% of the companies in the same industry.
SAP has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
SAP's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. SAP outperforms 48.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | 6.45 |
ROIC/WACC1.21
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.40 indicates that SAP should not have too much problems paying its short term obligations.
SAP's Current ratio of 1.40 is in line compared to the rest of the industry. SAP outperforms 44.53% of its industry peers.
A Quick Ratio of 1.40 indicates that SAP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.40, SAP is in line with its industry, outperforming 45.62% 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 | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.06%, which is quite impressive.
The Earnings Per Share has been growing by 10.77% on average over the past years. This is quite good.
SAP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.09%.
SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.78% yearly.
EPS 1Y (TTM)79.06%
EPS 3Y10.35%
EPS 5Y10.77%
EPS growth Q2Q42.42%
Revenue 1Y (TTM)2.09%
Revenue growth 3Y4.51%
Revenue growth 5Y4.78%
Revenue growth Q2Q0.38%
3.2 Future
SAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.31% yearly.
SAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.94% yearly.
EPS Next Y-31.28%
EPS Next 2Y-6.53%
EPS Next 3Y0.31%
EPS Next 5Y5.31%
Revenue Next Year8.4%
Revenue Next 2Y9.63%
Revenue Next 3Y10.18%
Revenue Next 5Y7.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 22.79, which indicates a rather expensive current valuation of SAP.
SAP's Price/Earnings ratio is rather cheap when compared to the industry. SAP is cheaper than 82.48% of the companies in the same industry.
SAP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.55.
The Price/Forward Earnings ratio is 33.18, which means the current valuation is very expensive for SAP.
66.79% 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 (20.92), we can say SAP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 33.18 |
4.2 Price Multiples
SAP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SAP is cheaper than 82.12% of the companies 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 71.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.35 | ||
| EV/EBITDA | 24.3 |
4.3 Compensation for Growth
The excellent profitability rating of SAP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.12
EPS Next 2Y-6.53%
EPS Next 3Y0.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, SAP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 11.28, SAP pays a better dividend. On top of this SAP pays more dividend than 92.34% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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.
Dividend Growth(5Y)7.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SAP pays out 39.01% of its income as dividend. This is a sustainable payout ratio.
The dividend of SAP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.01%
EPS Next 2Y-6.53%
EPS Next 3Y0.31%
SAP SE-SPONSORED ADR
NYSE:SAP (5/1/2024, 7:21:08 PM)
180.07
-1.14 (-0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap210.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 33.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.98% | ||
| ROE | 14.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.83% | ||
| PM (TTM) | 19.67% | ||
| GM | 72.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)79.06%
EPS 3Y10.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y-31.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.09%
Revenue growth 3Y4.51%
Revenue growth 5Y
Revenue growth Q2Q
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Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
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