SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SAP - DE0007164600 - Common Stock
190.26 EUR
-1.02 (-0.53%)
Taking everything into account, 1SAP scores 6 out of 10 in our fundamental rating. 1SAP was compared to 114 industry peers in the Software industry. 1SAP has only an average score on both its financial health and profitability. 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.
- 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 better Return On Assets (10.35%) than 74.56% of its industry peers.
- 1SAP's Return On Equity of 16.54% is fine compared to the rest of the industry. 1SAP outperforms 67.54% of its industry peers.
- 1SAP has a Return On Invested Capital of 13.05%. This is in the better half of the industry: 1SAP outperforms 79.82% 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
- 1SAP's Profit Margin of 19.41% is fine compared to the rest of the industry. 1SAP outperforms 75.44% of its industry peers.
- In the last couple of years the Profit Margin of 1SAP has declined.
- With an excellent Operating Margin value of 27.47%, 1SAP belongs to the best of the industry, outperforming 85.09% of the companies in the same industry.
- 1SAP's Operating Margin has been stable in the last couple of years.
- 1SAP has a Gross Margin (73.83%) which is in line with 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
- 1SAP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
- 1SAP has a Altman-Z score of 7.18. This is amongst the best in the industry. 1SAP outperforms 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.
- Looking at the Debt to FCF ratio, with a value of 1.41, 1SAP is in the better half of 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.
- 1SAP has a Debt to Equity ratio of 0.14. This is in the better half of the industry: 1SAP outperforms 64.04% of its industry peers.
| 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's Current ratio of 1.10 is on the low side compared to the rest of the industry. 1SAP is outperformed by 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.
- 1SAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.70%.
- 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
- The Revenue is expected to grow by 12.20% on average over the next years. This is quite good.
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
- 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
- A Price/Earnings ratio of 32.14 indicates a quite expensive valuation of 1SAP.
- Compared to the rest of the industry, the Price/Earnings ratio of 1SAP indicates a somewhat cheap valuation: 1SAP is cheaper than 63.16% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. 1SAP is around the same levels.
- A Price/Forward Earnings ratio of 26.24 indicates a quite expensive valuation of 1SAP.
- 61.40% of the companies in the same industry are more expensive than 1SAP, based on the Price/Forward Earnings ratio.
- 1SAP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.14 | ||
| Fwd PE | 26.24 |
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 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
- 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.
- 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
- With a Yearly Dividend Yield of 1.24%, 1SAP has a reasonable but not impressive dividend return.
- 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
- 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
- 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%.