SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SAP - DE0007164600 - Common Stock
190.26 EUR
-1.02 (-0.53%)
1SAP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 114 industry peers in the Software industry. Both the profitability and the financial health of 1SAP get a neutral evaluation. Nothing too spectacular is happening here. 1SAP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1SAP was profitable.
- 1SAP had a positive operating cash flow in the past year.
- 1SAP had positive earnings in each of the past 5 years.
- In the past 5 years 1SAP always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 10.35%, 1SAP is doing good in the industry, outperforming 74.79% of the companies in the same industry.
- 1SAP has a Return On Equity of 16.54%. This is in the better half of the industry: 1SAP outperforms 67.23% of its industry peers.
- The Return On Invested Capital of 1SAP (13.05%) is better than 79.83% 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
- With a decent Profit Margin value of 19.41%, 1SAP is doing good in the industry, outperforming 74.79% of the companies in the same industry.
- 1SAP's Profit Margin has declined in the last couple of years.
- 1SAP has a Operating Margin of 27.47%. This is amongst the best in the industry. 1SAP outperforms 86.55% of its industry peers.
- 1SAP's Operating Margin has been stable in the last couple of years.
- 1SAP's Gross Margin of 73.83% is in line compared to the rest of the industry. 1SAP outperforms 50.42% of 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.
- 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 7.18. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of 1SAP (7.18) is better than 79.83% 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 67.23% 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.
- Looking at the Debt to Equity ratio, with a value of 0.14, 1SAP is in the better half of the industry, outperforming 63.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.18 |
ROIC/WACC1.61
WACC8.12%
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.
- 1SAP has a Current ratio of 1.10. This is in the lower half of the industry: 1SAP underperforms 63.87% of its industry peers.
- A Quick Ratio of 1.10 indicates that 1SAP should not have too much problems paying 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 61.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- 1SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.11%, which is quite impressive.
- The Earnings Per Share has been decreasing by -2.38% on average over the past years.
- The Revenue has grown by 9.70% 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)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
- 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
- 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
- The Price/Earnings ratio is 32.14, which means the current valuation is very expensive for 1SAP.
- Based on the Price/Earnings ratio, 1SAP is valued a bit cheaper than 61.34% of the companies in the same industry.
- 1SAP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 26.24 indicates a quite expensive valuation of 1SAP.
- 1SAP's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1SAP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.14 | ||
| Fwd PE | 26.24 |
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 ratio is a bit cheaper when compared to the industry. 1SAP is cheaper than 63.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.2 | ||
| EV/EBITDA | 19.33 |
4.3 Compensation for Growth
- 1SAP's 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.
- 1SAP's earnings are expected to grow with 24.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
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%. Purely for dividend investing, there may be better candidates out there.
- 1SAP's Dividend Yield is rather good when compared to the industry average which is at 0.68. 1SAP pays more dividend than 84.03% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.81, 1SAP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
- 1SAP pays out 38.73% of its income as dividend. This is a 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%.