SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SAP - DE0007164600 - Common Stock
208.4 EUR
-1.35 (-0.64%)
We assign a fundamental rating of 6 out of 10 to 1SAP. 1SAP was compared to 115 industry peers in the Software industry. 1SAP scores excellent on profitability, but there are some minor concerns on its financial health. 1SAP has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years 1SAP had a positive operating cash flow.
1.2 Ratios
1SAP's Return On Assets of 10.35% is fine compared to the rest of the industry. 1SAP outperforms 78.45% of its industry peers.
1SAP's Return On Equity of 16.54% is fine compared to the rest of the industry. 1SAP outperforms 69.83% of its industry peers.
1SAP has a better Return On Invested Capital (13.05%) than 81.03% 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 12.89%.
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 75.86% of the companies in the same industry.
1SAP's Profit Margin has declined in the last couple of years.
The Operating Margin of 1SAP (27.47%) is better than 87.07% of its industry peers.
1SAP's Operating Margin has been stable in the last couple of years.
1SAP has a Gross Margin (73.83%) which is comparable to the rest of the 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 | 27.47% | ||
| 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.
1SAP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1SAP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.68 indicates that 1SAP is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1SAP (7.68) is better than 81.03% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.41, 1SAP is in the better half of the industry, outperforming 66.38% 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 better Debt to Equity ratio (0.14) than 61.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.68 |
ROIC/WACC1.75
WACC7.45%
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: 64.66% of the companies in the same industry are doing better.
A Quick Ratio of 1.10 indicates that 1SAP should not have too much problems paying its short term obligations.
1SAP has a worse Quick ratio (1.10) than 62.07% 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.
Looking at the last year, 1SAP shows a quite strong growth in Revenue. The Revenue has grown by 9.70% in the last year.
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
1SAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.58% yearly.
1SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.53% yearly.
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.9%
EPS Next 5Y21.58%
Revenue Next Year9.19%
Revenue Next 2Y10.07%
Revenue Next 3Y10.93%
Revenue Next 5Y12.53%
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 35.20.
Based on the Price/Earnings ratio, 1SAP is valued a bit cheaper than the industry average as 61.21% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1SAP to the average of the S&P500 Index (26.61), we can say 1SAP is valued slightly more expensively.
With a Price/Forward Earnings ratio of 28.83, 1SAP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SAP is on the same level as its industry peers.
1SAP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.2 | ||
| Fwd PE | 28.83 |
4.2 Price Multiples
1SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1SAP is valued a bit cheaper than the industry average as 60.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.46 | ||
| EV/EBITDA | 21.19 |
4.3 Compensation for Growth
1SAP's 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 23.90% in the coming years.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y26.32%
EPS Next 3Y23.9%
5. Dividend
5.1 Amount
1SAP has a Yearly Dividend Yield of 1.12%. 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 0.66. 1SAP pays more dividend than 84.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, 1SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 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 2Y26.32%
EPS Next 3Y23.9%
BIT:1SAP (12/12/2025, 7:00:00 PM)
208.4
-1.35 (-0.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.03%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap242.70B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target294.51 (41.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP38.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.84%
Min EPS beat(2)1.63%
Max EPS beat(2)4.05%
EPS beat(4)3
Avg EPS beat(4)3.48%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)-3.11%
EPS beat(12)7
Avg EPS beat(12)10.96%
EPS beat(16)8
Avg EPS beat(16)6.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-1.6%
Revenue beat(4)1
Avg Revenue beat(4)-0.84%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.54%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)4
Avg Revenue beat(16)-1.25%
PT rev (1m)0.4%
PT rev (3m)-0.02%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.2 | ||
| Fwd PE | 28.83 | ||
| P/S | 6.65 | ||
| P/FCF | 37.46 | ||
| P/OCF | 33.22 | ||
| P/B | 5.67 | ||
| P/tB | 21.31 | ||
| EV/EBITDA | 21.19 |
EPS(TTM)5.92
EY2.84%
EPS(NY)7.23
Fwd EY3.47%
FCF(TTM)5.56
FCFY2.67%
OCF(TTM)6.27
OCFY3.01%
SpS31.34
BVpS36.76
TBVpS9.78
PEG (NY)1
PEG (5Y)N/A
Graham Number69.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 16.54% | ||
| ROCE | 19.55% | ||
| ROIC | 13.05% | ||
| ROICexc | 16.19% | ||
| ROICexgc | 67.39% | ||
| OM | 27.47% | ||
| PM (TTM) | 19.41% | ||
| GM | 73.83% | ||
| FCFM | 17.75% |
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%
ROICexgc growth 3Y10.63%
ROICexgc 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-Score9
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 62.59% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 17.84 | ||
| Cash Conversion | 64.38% | ||
| Profit Quality | 91.49% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 7.68 |
F-Score9
WACC7.45%
ROIC/WACC1.75
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)30.11%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%29.27%
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.9%
EPS Next 5Y21.58%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.19%
Revenue Next 2Y10.07%
Revenue Next 3Y10.93%
Revenue Next 5Y12.53%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year55.23%
EBIT Next 3Y27.92%
EBIT Next 5Y21.39%
FCF growth 1Y15.2%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y14.03%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%
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.
What is the valuation status of SAP SE (1SAP.MI) stock?
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 7 / 10.
What are the PE and PB ratios of SAP SE (1SAP.MI) stock?
The Price/Earnings (PE) ratio for SAP SE (1SAP.MI) is 35.2 and the Price/Book (PB) ratio is 5.67.
What is the financial health of SAP SE (1SAP.MI) stock?
The financial health rating of SAP SE (1SAP.MI) is 6 / 10.