SAP SE (1SAP.MI) Stock Fundamental Analysis
BIT:1SAP - Euronext Milan - DE0007164600 - Common Stock - Currency: EUR
1SAP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 94 industry peers in the Software industry. 1SAP has only an average score on both its financial health and profitability. 1SAP is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years 1SAP has been profitable.
1SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1SAP (4.21%) is better than 61.70% of its industry peers.
1SAP has a Return On Equity (6.88%) which is in line with its industry peers.
1SAP's Return On Invested Capital of 9.79% is fine compared to the rest of the industry. 1SAP outperforms 79.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1SAP is below the industry average of 11.00%.
The 3 year average ROIC (8.61%) for 1SAP is below the current ROIC(9.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 6.88% | ||
| ROIC | 9.79% |
ROA(3y)5.45%
ROA(5y)6.51%
ROE(3y)8.93%
ROE(5y)11.53%
ROIC(3y)8.61%
ROIC(5y)8.53%
1.3 Margins
Looking at the Profit Margin, with a value of 9.14%, 1SAP is in the better half of the industry, outperforming 64.89% of the companies in the same industry.
In the last couple of years the Profit Margin of 1SAP has declined.
With an excellent Operating Margin value of 23.62%, 1SAP belongs to the best of the industry, outperforming 88.30% of the companies in the same industry.
1SAP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 72.94%, 1SAP perfoms like the industry average, outperforming 59.57% of the companies in the same industry.
1SAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.62% | ||
| PM (TTM) | 9.14% | ||
| GM | 72.94% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1SAP is creating some value.
The number of shares outstanding for 1SAP remains at a similar level compared to 1 year ago.
The number of shares outstanding for 1SAP has been reduced compared to 5 years ago.
1SAP has a worse debt/assets ratio than last year.
2.2 Solvency
1SAP has an Altman-Z score of 7.64. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1SAP (7.64) is better than 82.98% of its industry peers.
The Debt to FCF ratio of 1SAP is 2.59, which is a good value as it means it would take 1SAP, 2.59 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.59, 1SAP is doing good in the industry, outperforming 62.77% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that 1SAP is not too dependend on debt financing.
The Debt to Equity ratio of 1SAP (0.16) is better than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 7.64 |
ROIC/WACC1.28
WACC7.63%
2.3 Liquidity
1SAP has a Current Ratio of 1.12. This is a normal value and indicates that 1SAP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.12, 1SAP is in line with its industry, outperforming 42.55% of the companies in the same industry.
1SAP has a Quick Ratio of 1.12. This is a normal value and indicates that 1SAP is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.12, 1SAP perfoms like the industry average, outperforming 43.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
1SAP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.69%.
The Earnings Per Share has been decreasing by -2.38% on average over the past years.
The Revenue has grown by 9.51% in the past year. This is quite good.
The Revenue has been growing slightly by 4.40% on average over the past years.
EPS 1Y (TTM)-37.69%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%-1.42%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%10.73%
3.2 Future
The Earnings Per Share is expected to grow by 21.09% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.01% on average over the next years. This is quite good.
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y21.09%
Revenue Next Year13.1%
Revenue Next 2Y12.71%
Revenue Next 3Y12.84%
Revenue Next 5Y12.01%
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.
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
Based on the Price/Earnings ratio of 54.07, the valuation of 1SAP can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as 1SAP.
When comparing the Price/Earnings ratio of 1SAP to the average of the S&P500 Index (28.79), we can say 1SAP is valued expensively.
With a Price/Forward Earnings ratio of 38.71, 1SAP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SAP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, 1SAP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.07 | ||
| Fwd PE | 38.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1SAP is on the same level as its industry peers.
1SAP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.6 | ||
| EV/EBITDA | 29.92 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1SAP has a very decent profitability rating, which may justify a higher PE ratio.
1SAP's earnings are expected to grow with 25.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y29.72%
EPS Next 3Y25.76%
5. Dividend
5.1 Amount
1SAP has a yearly dividend return of 0.97%, which is pretty low.
1SAP's Dividend Yield is rather good when compared to the industry average which is at 2.00. 1SAP pays more dividend than 84.04% of the companies in the same industry.
With a Dividend Yield of 0.97, 1SAP pays less dividend than the S&P500 average, which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
The dividend of 1SAP is nicely growing with an annual growth rate of 7.95%!
Dividend Growth(5Y)7.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
82.11% of the earnings are spent on dividend by 1SAP. This is not a sustainable payout ratio.
1SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.11%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
BIT:1SAP (4/25/2025, 7:00:00 PM)
244.95
+3.85 (+1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.22%
Inst Owner ChangeN/A
Ins Owners8.1%
Ins Owner ChangeN/A
Market Cap285.74B
Analysts78.42
Price Target283.06 (15.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP82.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.14%
Min EPS beat(2)-1.57%
Max EPS beat(2)1.86%
EPS beat(4)1
Avg EPS beat(4)-7.04%
Min EPS beat(4)-28.22%
Max EPS beat(4)1.86%
EPS beat(8)4
Avg EPS beat(8)18.27%
EPS beat(12)4
Avg EPS beat(12)6.89%
EPS beat(16)8
Avg EPS beat(16)14.58%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)1.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)3
Avg Revenue beat(12)-1.35%
Revenue beat(16)5
Avg Revenue beat(16)-0.96%
PT rev (1m)2%
PT rev (3m)17.14%
EPS NQ rev (1m)-3.14%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)2.09%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.07 | ||
| Fwd PE | 38.71 | ||
| P/S | 8.36 | ||
| P/FCF | 64.6 | ||
| P/OCF | 54.74 | ||
| P/B | 6.29 | ||
| P/tB | 24.66 | ||
| EV/EBITDA | 29.92 |
EPS(TTM)4.53
EY1.85%
EPS(NY)6.33
Fwd EY2.58%
FCF(TTM)3.79
FCFY1.55%
OCF(TTM)4.47
OCFY1.83%
SpS29.3
BVpS38.95
TBVpS9.93
PEG (NY)1.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 6.88% | ||
| ROCE | 14.66% | ||
| ROIC | 9.79% | ||
| ROICexc | 12.3% | ||
| ROICexgc | 54.14% | ||
| OM | 23.62% | ||
| PM (TTM) | 9.14% | ||
| GM | 72.94% | ||
| FCFM | 12.94% |
ROA(3y)5.45%
ROA(5y)6.51%
ROE(3y)8.93%
ROE(5y)11.53%
ROIC(3y)8.61%
ROIC(5y)8.53%
ROICexc(3y)10.74%
ROICexc(5y)10.49%
ROICexgc(3y)48.05%
ROICexgc(5y)47.94%
ROCE(3y)12.97%
ROCE(5y)12.91%
ROICexcg growth 3Y12.75%
ROICexcg growth 5Y0.43%
ROICexc growth 3Y15.56%
ROICexc growth 5Y4.33%
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-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 62.27% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 14.67 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 141.58% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 7.64 |
F-Score7
WACC7.63%
ROIC/WACC1.28
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)-37.69%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%-1.42%
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y21.09%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%10.73%
Revenue Next Year13.1%
Revenue Next 2Y12.71%
Revenue Next 3Y12.84%
Revenue Next 5Y12.01%
EBIT growth 1Y23.94%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year57.14%
EBIT Next 3Y28.55%
EBIT Next 5Y20.72%
FCF growth 1Y-20.28%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y-17.57%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%