SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SAP - DE0007164600 - Common Stock
209 EUR
+2.9 (+1.41%)
1SAP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 113 industry peers in the Software industry. 1SAP scores excellent on profitability, but there are some minor concerns on its financial health. 1SAP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1SAP had positive earnings in the past year.
In the past year 1SAP had a positive cash flow from operations.
Each year in the past 5 years 1SAP has been profitable.
In the past 5 years 1SAP always reported a positive cash flow from operatings.
1.2 Ratios
1SAP has a Return On Assets of 10.35%. This is in the better half of the industry: 1SAP outperforms 77.88% of its industry peers.
The Return On Equity of 1SAP (16.54%) is better than 69.03% of its industry peers.
1SAP's Return On Invested Capital of 13.05% is amongst the best of the industry. 1SAP outperforms 80.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1SAP is below the industry average of 13.33%.
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
With a decent Profit Margin value of 19.41%, 1SAP is doing good in the industry, outperforming 74.34% of the companies in the same industry.
1SAP's Profit Margin has declined in the last couple of years.
1SAP's Operating Margin of 27.47% is amongst the best of the industry. 1SAP outperforms 85.84% of its industry peers.
In the last couple of years the Operating Margin of 1SAP has remained more or less at the same level.
1SAP has a Gross Margin (73.83%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1SAP 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 1SAP is still creating some value.
Compared to 1 year ago, 1SAP has about the same amount of shares outstanding.
The number of shares outstanding for 1SAP has been reduced compared to 5 years ago.
Compared to 1 year ago, 1SAP has a worse debt to assets ratio.
2.2 Solvency
1SAP has an Altman-Z score of 7.70. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
1SAP's Altman-Z score of 7.70 is amongst the best of the industry. 1SAP outperforms 82.30% 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.
Looking at the Debt to FCF ratio, with a value of 1.41, 1SAP is in the better half of the industry, outperforming 69.91% of the companies in the same industry.
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 Debt to Equity ratio of 0.14. This is in the better half of the industry: 1SAP outperforms 65.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.7 |
ROIC/WACC1.7
WACC7.68%
2.3 Liquidity
1SAP has a Current 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.
With a Current ratio value of 1.10, 1SAP is not doing good in the industry: 63.72% of the companies in the same industry are doing better.
A Quick Ratio of 1.10 indicates that 1SAP should not have too much problems paying its short term obligations.
The Quick ratio of 1SAP (1.10) is worse than 61.06% 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.
1SAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.70%.
1SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
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 21.58% on average per year.
Based on estimates for the next years, 1SAP will show a quite strong growth in Revenue. The Revenue will grow by 12.53% on average per year.
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.9%
EPS Next 5Y21.58%
Revenue Next Year9.19%
Revenue Next 2Y10.07%
Revenue Next 3Y10.93%
Revenue Next 5Y12.53%
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.
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
1SAP is valuated quite expensively with a Price/Earnings ratio of 35.30.
Compared to the rest of the industry, the Price/Earnings ratio of 1SAP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.49. 1SAP is valued slightly more expensive when compared to this.
1SAP is valuated quite expensively with a Price/Forward Earnings ratio of 28.91.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SAP.
1SAP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.3 | ||
| Fwd PE | 28.91 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1SAP.
Based on the Price/Free Cash Flow ratio, 1SAP is valued a bit cheaper than 60.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.57 | ||
| EV/EBITDA | 21.25 |
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.
A more expensive valuation may be justified as 1SAP's earnings are expected to grow with 23.90% in the coming years.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y26.32%
EPS Next 3Y23.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, 1SAP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.24, 1SAP pays a better dividend. On top of this 1SAP pays more dividend than 84.07% of the companies listed in the same industry.
With a Dividend Yield of 1.11, 1SAP pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
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 2Y26.32%
EPS Next 3Y23.9%
BIT:1SAP (12/1/2025, 7:00:00 PM)
209
+2.9 (+1.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.03%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap243.40B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target294.51 (40.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP38.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.84%
Min EPS beat(2)1.63%
Max EPS beat(2)4.05%
EPS beat(4)3
Avg EPS beat(4)3.48%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)-3.11%
EPS beat(12)7
Avg EPS beat(12)10.96%
EPS beat(16)8
Avg EPS beat(16)6.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-1.6%
Revenue beat(4)1
Avg Revenue beat(4)-0.84%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.54%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)4
Avg Revenue beat(16)-1.25%
PT rev (1m)0.34%
PT rev (3m)-0.17%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-4.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.3 | ||
| Fwd PE | 28.91 | ||
| P/S | 6.67 | ||
| P/FCF | 37.57 | ||
| P/OCF | 33.31 | ||
| P/B | 5.69 | ||
| P/tB | 21.37 | ||
| EV/EBITDA | 21.25 |
EPS(TTM)5.92
EY2.83%
EPS(NY)7.23
Fwd EY3.46%
FCF(TTM)5.56
FCFY2.66%
OCF(TTM)6.27
OCFY3%
SpS31.34
BVpS36.76
TBVpS9.78
PEG (NY)1.01
PEG (5Y)N/A
Graham Number69.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 16.54% | ||
| ROCE | 19.55% | ||
| ROIC | 13.05% | ||
| ROICexc | 16.19% | ||
| ROICexgc | 67.39% | ||
| OM | 27.47% | ||
| PM (TTM) | 19.41% | ||
| GM | 73.83% | ||
| FCFM | 17.75% |
ROA(3y)5.45%
ROA(5y)6.51%
ROE(3y)8.93%
ROE(5y)11.53%
ROIC(3y)8.58%
ROIC(5y)8.51%
ROICexc(3y)10.69%
ROICexc(5y)10.46%
ROICexgc(3y)47.04%
ROICexgc(5y)47.34%
ROCE(3y)12.97%
ROCE(5y)12.91%
ROICexgc growth 3Y10.63%
ROICexgc growth 5Y-0.71%
ROICexc growth 3Y15.06%
ROICexc growth 5Y4.05%
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-Score9
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 62.59% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 17.84 | ||
| Cash Conversion | 64.38% | ||
| Profit Quality | 91.49% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 7.7 |
F-Score9
WACC7.68%
ROIC/WACC1.7
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)30.11%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%29.27%
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.9%
EPS Next 5Y21.58%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.19%
Revenue Next 2Y10.07%
Revenue Next 3Y10.93%
Revenue Next 5Y12.53%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year55.23%
EBIT Next 3Y27.92%
EBIT Next 5Y21.39%
FCF growth 1Y15.2%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y14.03%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%
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.
What is the valuation status of SAP SE (1SAP.MI) stock?
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 7 / 10.
What are the PE and PB ratios of SAP SE (1SAP.MI) stock?
The Price/Earnings (PE) ratio for SAP SE (1SAP.MI) is 35.3 and the Price/Book (PB) ratio is 5.69.
What is the financial health of SAP SE (1SAP.MI) stock?
The financial health rating of SAP SE (1SAP.MI) is 6 / 10.