SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1SAP • DE0007164600
171.48 EUR
+7 (+4.26%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to 1SAP. 1SAP was compared to 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
- 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
- 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.
- Looking at the Return On Equity, with a value of 16.54%, 1SAP is in the better half of the industry, outperforming 67.54% of the companies in the same industry.
- 1SAP's Return On Invested Capital of 13.05% is fine compared to the rest of the industry. 1SAP outperforms 79.82% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1SAP is below the industry average of 13.49%.
- The 3 year average ROIC (8.58%) for 1SAP is below the current ROIC(13.05%), indicating increased profibility in the last year.
| 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 75.44% of the companies in the same industry.
- 1SAP's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 27.47%, 1SAP belongs to the top of the industry, outperforming 85.09% of the companies in the same industry.
- 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 comparable to the rest of the industry.
- 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.
- 1SAP has less shares outstanding than it did 5 years ago.
- 1SAP has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.48 indicates that 1SAP is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.48, 1SAP belongs to the top of the industry, outperforming 80.70% of the companies in the same industry.
- 1SAP has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.41, 1SAP is doing good in the industry, outperforming 69.30% of the companies in the same industry.
- A Debt/Equity ratio of 0.14 indicates that 1SAP is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.14, 1SAP is doing good in 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 | 6.48 |
ROIC/WACC1.68
WACC7.76%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that 1SAP should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.10, 1SAP is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- 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.
- 1SAP's Quick ratio of 1.10 is on the low side compared to the rest of the industry. 1SAP is outperformed by 61.40% 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.
- 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.
- 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
- 1SAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.23% yearly.
- 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.
- 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
- 1SAP is valuated quite expensively with a Price/Earnings ratio of 28.97.
- 67.54% of the companies in the same industry are more expensive than 1SAP, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.30. 1SAP is around the same levels.
- A Price/Forward Earnings ratio of 23.65 indicates a rather expensive valuation of 1SAP.
- Based on the Price/Forward Earnings ratio, 1SAP is valued a bit cheaper than 66.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1SAP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.97 | ||
| Fwd PE | 23.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1SAP indicates a somewhat cheap valuation: 1SAP is cheaper than 61.40% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1SAP indicates a somewhat cheap valuation: 1SAP is cheaper than 64.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.82 | ||
| EV/EBITDA | 16.69 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 24.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
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.
- The stock price of 1SAP dropped by -24.76% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.68, 1SAP pays a better dividend. On top of this 1SAP pays more dividend than 83.33% of the companies listed in the same industry.
- 1SAP's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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.
- 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 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%.