Sap CDR (SAPS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SAPS -
17.24 CAD
-0.11 (-0.63%)
We assign a fundamental rating of 7 out of 10 to SAPS. SAPS was compared to 68 industry peers in the Software industry. SAPS scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SAPS. This makes SAPS very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year SAPS was profitable.
- SAPS had a positive operating cash flow in the past year.
- In the past 5 years SAPS has always been profitable.
- SAPS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SAPS has a Return On Assets of 10.35%. This is amongst the best in the industry. SAPS outperforms 88.24% of its industry peers.
- Looking at the Return On Equity, with a value of 16.54%, SAPS belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 13.05%, SAPS belongs to the best of the industry, outperforming 89.71% of the companies in the same industry.
- SAPS had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 12.48%.
- The 3 year average ROIC (8.58%) for SAPS 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
- SAPS has a Profit Margin of 19.41%. This is amongst the best in the industry. SAPS outperforms 88.24% of its industry peers.
- In the last couple of years the Profit Margin of SAPS has declined.
- SAPS has a Operating Margin of 27.47%. This is amongst the best in the industry. SAPS outperforms 94.12% of its industry peers.
- SAPS's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 73.83%, SAPS is doing good in the industry, outperforming 77.94% of the companies in the same industry.
- In the last couple of years the Gross Margin of SAPS 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAPS is still creating some value.
- The number of shares outstanding for SAPS remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, SAPS has less shares outstanding
- SAPS has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.28 indicates that SAPS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SAPS has a Altman-Z score (2.28) which is comparable to the rest of the industry.
- The Debt to FCF ratio of SAPS is 1.41, which is an excellent value as it means it would take SAPS, only 1.41 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.41, SAPS belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
- A Debt/Equity ratio of 0.14 indicates that SAPS is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.14, SAPS perfoms like the industry average, outperforming 54.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.65
WACC7.89%
2.3 Liquidity
- SAPS has a Current Ratio of 1.10. This is a normal value and indicates that SAPS is financially healthy and should not expect problems in meeting its short term obligations.
- SAPS's Current ratio of 1.10 is in line compared to the rest of the industry. SAPS outperforms 50.00% of its industry peers.
- SAPS has a Quick Ratio of 1.10. This is a normal value and indicates that SAPS is financially healthy and should not expect problems in meeting its short term obligations.
- SAPS's Quick ratio of 1.10 is in line compared to the rest of the industry. SAPS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- SAPS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.11%, which is quite impressive.
- Measured over the past years, SAPS shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.38% on average per year.
- Looking at the last year, SAPS shows a quite strong growth in Revenue. The Revenue has grown by 9.70% in the last year.
- 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
- The Earnings Per Share is expected to grow by 21.23% on average over the next years. This is a very strong growth
- SAPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.20% yearly.
EPS Next Y35.86%
EPS Next 2Y26.6%
EPS Next 3Y24.06%
EPS Next 5Y21.23%
Revenue Next Year9.26%
Revenue Next 2Y9.87%
Revenue Next 3Y10.73%
Revenue Next 5Y12.2%
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
- SAPS is valuated cheaply with a Price/Earnings ratio of 1.80.
- Compared to the rest of the industry, the Price/Earnings ratio of SAPS indicates a rather cheap valuation: SAPS is cheaper than 94.12% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, SAPS is valued rather cheaply.
- A Price/Forward Earnings ratio of 1.47 indicates a rather cheap valuation of SAPS.
- 95.59% of the companies in the same industry are more expensive than SAPS, based on the Price/Forward Earnings ratio.
- SAPS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.8 | ||
| Fwd PE | 1.47 |
4.2 Price Multiples
- 97.06% of the companies in the same industry are more expensive than SAPS, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SAPS is valued cheaper than 97.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.92 | ||
| EV/EBITDA | 0.9 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of SAPS may justify a higher PE ratio.
- SAPS's earnings are expected to grow with 24.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y26.6%
EPS Next 3Y24.06%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.14%, SAPS has a reasonable but not impressive dividend return.
- SAPS's Dividend Yield is rather good when compared to the industry average which is at 0.22. SAPS pays more dividend than 95.59% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, SAPS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
- On average, the dividend of SAPS grows each year by 7.95%, which is quite nice.
- SAPS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)7.95%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 38.73% of the earnings are spent on dividend by SAPS. This is a low number and sustainable payout ratio.
- SAPS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.73%
EPS Next 2Y26.6%
EPS Next 3Y24.06%
Sap CDR / SAPS.CA FAQ
What is the ChartMill fundamental rating of Sap CDR (SAPS.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to SAPS.CA.
What is the valuation status of Sap CDR (SAPS.CA) stock?
ChartMill assigns a valuation rating of 10 / 10 to Sap CDR (SAPS.CA). This can be considered as Undervalued.
What is the profitability of SAPS stock?
Sap CDR (SAPS.CA) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for SAPS stock?
The Price/Earnings (PE) ratio for Sap CDR (SAPS.CA) is 1.8 and the Price/Book (PB) ratio is 0.29.
Can you provide the expected EPS growth for SAPS stock?
The Earnings per Share (EPS) of Sap CDR (SAPS.CA) is expected to grow by 35.86% in the next year.