SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - BIT:1SAP - DE0007164600 - Common Stock
232.5 EUR
+7 (+3.1%)
We assign a fundamental rating of 6 out of 10 to 1SAP. 1SAP was compared to 111 industry peers in the Software industry. 1SAP scores excellent on profitability, but there are some minor concerns on its financial health. 1SAP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1SAP had positive earnings in the past year.
1SAP had a positive operating cash flow in the past year.
In the past 5 years 1SAP has always been profitable.
In the past 5 years 1SAP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1SAP (9.56%) is better than 81.65% of its industry peers.
Looking at the Return On Equity, with a value of 15.95%, 1SAP is in the better half of the industry, outperforming 73.39% of the companies in the same industry.
1SAP has a better Return On Invested Capital (13.00%) than 83.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1SAP is below the industry average of 12.56%.
The 3 year average ROIC (8.58%) for 1SAP is below the current ROIC(13.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 15.95% | ||
| ROIC | 13% |
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 (18.23%) than 77.98% of its industry peers.
In the last couple of years the Profit Margin of 1SAP has declined.
1SAP's Operating Margin of 27.04% is amongst the best of the industry. 1SAP outperforms 85.32% of its industry peers.
In the last couple of years the Operating Margin of 1SAP has remained more or less at the same level.
With a Gross Margin value of 73.80%, 1SAP perfoms like the industry average, outperforming 57.80% of the companies in the same industry.
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 | 27.04% | ||
| PM (TTM) | 18.23% | ||
| GM | 73.8% |
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.
1SAP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1SAP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.69 indicates that 1SAP is not in any danger for bankruptcy at the moment.
1SAP has a better Altman-Z score (7.69) than 80.73% of its industry peers.
1SAP has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.35, 1SAP is in the better half of the industry, outperforming 73.39% of the companies in the same industry.
1SAP has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.15, 1SAP is in the better half of the industry, outperforming 68.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 7.69 |
ROIC/WACC1.71
WACC7.6%
2.3 Liquidity
1SAP has a Current Ratio of 1.03. 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 worse Current ratio (1.03) than 62.39% of its industry peers.
A Quick Ratio of 1.03 indicates that 1SAP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.03, 1SAP is not doing good in the industry: 60.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.56% 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 10.29% in the last year.
Measured over the past years, 1SAP shows a small growth in Revenue. The Revenue has been growing by 4.40% on average per year.
EPS 1Y (TTM)16.56%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%36.36%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
3.2 Future
The Earnings Per Share is expected to grow by 20.96% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.52% on average over the next years. This is quite good.
EPS Next Y36.22%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
EPS Next 5Y20.96%
Revenue Next Year9.63%
Revenue Next 2Y10.45%
Revenue Next 3Y11.33%
Revenue Next 5Y12.52%
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
The Price/Earnings ratio is 41.82, which means the current valuation is very expensive for 1SAP.
Based on the Price/Earnings ratio, 1SAP is valued a bit cheaper than 61.47% of the companies in the same industry.
1SAP is valuated expensively when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 31.64, the valuation of 1SAP can be described as expensive.
1SAP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 1SAP to the average of the S&P500 Index (23.04), we can say 1SAP is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.82 | ||
| Fwd PE | 31.64 |
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 61.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.57 | ||
| EV/EBITDA | 23.6 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 24.83% in the coming years.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y27.37%
EPS Next 3Y24.83%
5. Dividend
5.1 Amount
1SAP has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 2.10, 1SAP pays a better dividend. On top of this 1SAP pays more dividend than 84.40% of the companies listed in the same industry.
With a Dividend Yield of 0.99, 1SAP pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
1SAP pays out 41.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.94%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
BIT:1SAP (10/14/2025, 7:00:00 PM)
232.5
+7 (+3.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.23%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap269.76B
Analysts78.92
Price Target292.83 (25.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP41.94%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.72%
Min EPS beat(2)1.63%
Max EPS beat(2)9.81%
EPS beat(4)3
Avg EPS beat(4)2.93%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)-2.96%
EPS beat(12)6
Avg EPS beat(12)9.64%
EPS beat(16)8
Avg EPS beat(16)8.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.6%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.56%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)5
Avg Revenue beat(16)-1.09%
PT rev (1m)-0.73%
PT rev (3m)0.53%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-4.77%
EPS NY rev (1m)0.98%
EPS NY rev (3m)-2.48%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.82 | ||
| Fwd PE | 31.64 | ||
| P/S | 7.52 | ||
| P/FCF | 41.57 | ||
| P/OCF | 37.06 | ||
| P/B | 6.58 | ||
| P/tB | 26.52 | ||
| EV/EBITDA | 23.6 |
EPS(TTM)5.56
EY2.39%
EPS(NY)7.35
Fwd EY3.16%
FCF(TTM)5.59
FCFY2.41%
OCF(TTM)6.27
OCFY2.7%
SpS30.93
BVpS35.34
TBVpS8.77
PEG (NY)1.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 15.95% | ||
| ROCE | 19.67% | ||
| ROIC | 13% | ||
| ROICexc | 16.33% | ||
| ROICexgc | 73.27% | ||
| OM | 27.04% | ||
| PM (TTM) | 18.23% | ||
| GM | 73.8% | ||
| FCFM | 18.08% |
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%
ROICexcg growth 3Y10.63%
ROICexcg 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-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 59.76% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 17.61 | ||
| Cash Conversion | 66.02% | ||
| Profit Quality | 99.22% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 7.69 |
F-Score8
WACC7.6%
ROIC/WACC1.71
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)16.56%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%36.36%
EPS Next Y36.22%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
EPS Next 5Y20.96%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
Revenue Next Year9.63%
Revenue Next 2Y10.45%
Revenue Next 3Y11.33%
Revenue Next 5Y12.52%
EBIT growth 1Y34.62%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year56.23%
EBIT Next 3Y28.74%
EBIT Next 5Y21.3%
FCF growth 1Y22.34%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y18.64%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%