SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SAP - DE0007164600 - Common Stock
190.26 EUR
-1.02 (-0.53%)
Overall 1SAP gets a fundamental rating of 6 out of 10. We evaluated 1SAP 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 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.
- 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
- Looking at the Return On Assets, with a value of 10.35%, 1SAP is in the better half of the industry, outperforming 74.56% of the companies in the same industry.
- 1SAP has a better Return On Equity (16.54%) than 67.54% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.05%, 1SAP is in the better half of the industry, outperforming 79.82% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1SAP 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
- The Profit Margin of 1SAP (19.41%) is better 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.
- In the last couple of years the Operating Margin of 1SAP has remained more or less at the same level.
- 1SAP's Gross Margin of 73.83% is in line compared to the rest of the industry. 1SAP outperforms 51.75% of 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.
- 1SAP has about the same amout of shares outstanding than it did 1 year ago.
- 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
- An Altman-Z score of 7.18 indicates that 1SAP is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1SAP (7.18) is better than 80.70% 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.
- The Debt to FCF ratio of 1SAP (1.41) is better 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.
- Looking at the Debt to Equity ratio, with a value of 0.14, 1SAP is in the better half of the industry, outperforming 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.18 |
ROIC/WACC1.68
WACC7.79%
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 63.16% 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.
- Looking at the Quick ratio, with a value of 1.10, 1SAP is doing worse than 61.40% of the companies in the same industry.
| 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.
- 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
- 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.
- Based on estimates for the next years, 1SAP will show a quite strong growth in Revenue. The Revenue will grow by 12.20% on average per year.
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.
- 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 32.14.
- Based on the Price/Earnings ratio, 1SAP is valued a bit cheaper than 63.16% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1SAP to the average of the S&P500 Index (27.21), we can say 1SAP is valued inline with the index average.
- The Price/Forward Earnings ratio is 26.24, which means the current valuation is very expensive for 1SAP.
- 1SAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1SAP is cheaper than 61.40% of the companies in the same industry.
- 1SAP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.14 | ||
| Fwd PE | 26.24 |
4.2 Price Multiples
- 1SAP's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, 1SAP is valued a bit cheaper than the industry average as 64.04% of the companies are valued more expensively.
| 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.
- A more expensive valuation may be justified as 1SAP's earnings are expected to grow with 24.01% in the coming years.
PEG (NY)0.9
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 83.33% 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
- 38.73% of the earnings are spent on dividend by 1SAP. This is a low number and sustainable payout ratio.
- The dividend of 1SAP is growing, but earnings are growing more, so the dividend growth is 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 5 / 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%.