SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SAP - DE0007164600 - Common Stock
200.95 EUR
+10.69 (+5.62%)
1SAP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 114 industry peers in the Software industry. 1SAP has only an average score on both its financial health and profitability. 1SAP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1SAP was profitable.
- In the past year 1SAP had a positive cash flow from operations.
- In the past 5 years 1SAP has always been profitable.
- 1SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1SAP's Return On Assets of 10.35% is fine compared to the rest of the industry. 1SAP outperforms 74.56% of its industry peers.
- 1SAP has a better Return On Equity (16.54%) than 67.54% of its industry peers.
- 1SAP has a Return On Invested Capital of 13.05%. This is in the better half of the industry: 1SAP outperforms 79.82% of its industry peers.
- 1SAP had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 13.49%.
- The last Return On Invested Capital (13.05%) for 1SAP is above the 3 year average (8.58%), which is a sign of increasing profitability.
| 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
- 1SAP has a better Profit Margin (19.41%) than 75.44% of its industry peers.
- In the last couple of years the Profit Margin of 1SAP has declined.
- 1SAP's Operating Margin of 27.47% is amongst the best of the industry. 1SAP outperforms 85.09% of its industry peers.
- 1SAP's Operating Margin has been stable in the last couple of years.
- 1SAP has a Gross Margin (73.83%) which is in line with its industry peers.
- 1SAP'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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1SAP is still creating some value.
- Compared to 1 year ago, 1SAP has about the same amount of shares outstanding.
- Compared to 5 years ago, 1SAP has less shares outstanding
- Compared to 1 year ago, 1SAP has a worse debt to assets ratio.
2.2 Solvency
- 1SAP has an Altman-Z score of 7.48. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
- 1SAP has a Altman-Z score of 7.48. This is amongst the best in the industry. 1SAP outperforms 81.58% of its industry peers.
- The Debt to FCF ratio of 1SAP is 1.41, which is an excellent value as it means it would take 1SAP, only 1.41 years of fcf income to pay off all of its debts.
- 1SAP has a better Debt to FCF ratio (1.41) than 69.30% of its industry peers.
- 1SAP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- 1SAP has a better Debt to Equity ratio (0.14) than 64.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.48 |
ROIC/WACC1.68
WACC7.79%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that 1SAP should not have too much problems paying its short term obligations.
- 1SAP has a Current ratio of 1.10. This is in the lower half of the industry: 1SAP underperforms 63.16% of its industry peers.
- 1SAP has a Quick Ratio of 1.10. This is a normal value and indicates that 1SAP is financially healthy and should not expect problems in meeting its short term obligations.
- 1SAP's Quick ratio of 1.10 is on the low side compared to the rest of the industry. 1SAP is outperformed by 61.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 30.11% over the past year.
- 1SAP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.38% yearly.
- Looking at the last year, 1SAP 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
- Based on estimates for the next years, 1SAP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.23% on average per year.
- 1SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.20% yearly.
EPS Next Y35.83%
EPS Next 2Y26.51%
EPS Next 3Y24.01%
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
- 1SAP is valuated quite expensively with a Price/Earnings ratio of 33.94.
- Compared to the rest of the industry, the Price/Earnings ratio of 1SAP indicates a somewhat cheap valuation: 1SAP is cheaper than 61.40% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, 1SAP is valued at the same level.
- The Price/Forward Earnings ratio is 27.72, which means the current valuation is very expensive for 1SAP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SAP is on the same level as its industry peers.
- 1SAP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.94 | ||
| Fwd PE | 27.72 |
4.2 Price Multiples
- 1SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
- 1SAP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1SAP is cheaper than 62.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.12 | ||
| EV/EBITDA | 20.43 |
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 decent profitability rating of 1SAP may justify a higher PE ratio.
- A more expensive valuation may be justified as 1SAP's earnings are expected to grow with 24.01% in the coming years.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y26.51%
EPS Next 3Y24.01%
5. Dividend
5.1 Amount
- 1SAP has a Yearly Dividend Yield of 1.24%.
- Compared to an average industry Dividend Yield of 0.68, 1SAP pays a better dividend. On top of this 1SAP pays more dividend than 84.21% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, 1SAP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
- On average, the dividend of 1SAP grows each year by 7.95%, which is quite nice.
Dividend Growth(5Y)7.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 38.73% of the earnings are spent on dividend by 1SAP. This is a low number and sustainable payout ratio.
- 1SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.73%
EPS Next 2Y26.51%
EPS Next 3Y24.01%
SAP SE / 1SAP.MI FAQ
What is the ChartMill fundamental rating of SAP SE (1SAP.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1SAP.MI.
Can you provide the valuation status for SAP SE?
ChartMill assigns a valuation rating of 4 / 10 to SAP SE (1SAP.MI). This can be considered as Fairly Valued.
How profitable is SAP SE (1SAP.MI) stock?
SAP SE (1SAP.MI) has a profitability rating of 6 / 10.
Can you provide the financial health for 1SAP stock?
The financial health rating of SAP SE (1SAP.MI) is 6 / 10.
Can you provide the dividend sustainability for 1SAP stock?
The dividend rating of SAP SE (1SAP.MI) is 6 / 10 and the dividend payout ratio is 38.73%.