SAP SE (1SAP.MI) Stock Fundamental Analysis
BIT:1SAP - Euronext Milan - DE0007164600 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1SAP. 1SAP was compared to 100 industry peers in the Software industry. 1SAP has an average financial health and profitability rating. While showing a medium growth rate, 1SAP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1SAP was profitable.
1SAP had a positive operating cash flow in the past year.
Each year in the past 5 years 1SAP has been profitable.
1SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1SAP has a better Return On Assets (7.58%) than 79.00% of its industry peers.
With a decent Return On Equity value of 12.54%, 1SAP is doing good in the industry, outperforming 73.00% of the companies in the same industry.
The Return On Invested Capital of 1SAP (11.00%) is better than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1SAP is below the industry average of 11.09%.
The last Return On Invested Capital (11.00%) for 1SAP is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 12.54% | ||
| ROIC | 11% |
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 (16.31%) is better than 80.00% of its industry peers.
1SAP's Profit Margin has declined in the last couple of years.
1SAP has a better Operating Margin (25.82%) than 89.00% of its industry peers.
In the last couple of years the Operating Margin of 1SAP has remained more or less at the same level.
The Gross Margin of 1SAP (73.60%) 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 | 25.82% | ||
| PM (TTM) | 16.31% | ||
| GM | 73.6% |
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.
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 7.76 indicates that 1SAP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.76, 1SAP is doing good in the industry, outperforming 77.00% of the companies in the same industry.
1SAP has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
1SAP has a Debt to FCF ratio of 1.85. This is in the better half of the industry: 1SAP outperforms 69.00% of its industry peers.
1SAP has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.15, 1SAP is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 7.76 |
ROIC/WACC1.43
WACC7.7%
2.3 Liquidity
1SAP has a Current Ratio of 1.17. 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 (1.17) which is comparable to the rest of the industry.
1SAP has a Quick Ratio of 1.17. 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 Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
1SAP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.23%.
Measured over the past years, 1SAP shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.38% on average per year.
The Revenue has grown by 10.51% in the past year. This is quite good.
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)-24.23%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%77.78%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%12.09%
3.2 Future
The Earnings Per Share is expected to grow by 20.66% on average over the next years. This is a very strong growth
1SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.35% yearly.
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y20.66%
Revenue Next Year10.84%
Revenue Next 2Y11.3%
Revenue Next 3Y11.91%
Revenue Next 5Y12.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 49.91 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 63.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. 1SAP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 33.78 indicates a quite expensive valuation of 1SAP.
1SAP's Price/Forward Earnings ratio is in line with the industry average.
1SAP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.91 | ||
| Fwd PE | 33.78 |
4.2 Price Multiples
1SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
1SAP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.96 | ||
| EV/EBITDA | 28.17 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 25.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y29.72%
EPS Next 3Y25.76%
5. Dividend
5.1 Amount
1SAP has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 2.13, 1SAP pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.90, 1SAP pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
44.75% of the earnings are spent on dividend by 1SAP. 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.
DP44.75%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
BIT:1SAP (7/3/2025, 7:00:00 PM)
257.55
+2.7 (+1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.46%
Inst Owner ChangeN/A
Ins Owners5.09%
Ins Owner ChangeN/A
Market Cap300.43B
Analysts79.46
Price Target294.51 (14.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP44.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.12%
Min EPS beat(2)-1.57%
Max EPS beat(2)9.81%
EPS beat(4)2
Avg EPS beat(4)2.47%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)17.66%
EPS beat(12)5
Avg EPS beat(12)8.44%
EPS beat(16)8
Avg EPS beat(16)11.68%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.55%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)5
Avg Revenue beat(16)-1.05%
PT rev (1m)5.26%
PT rev (3m)4.96%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.91 | ||
| Fwd PE | 33.78 | ||
| P/S | 8.55 | ||
| P/FCF | 54.96 | ||
| P/OCF | 48.12 | ||
| P/B | 6.57 | ||
| P/tB | 23.29 | ||
| EV/EBITDA | 28.17 |
EPS(TTM)5.16
EY2%
EPS(NY)7.62
Fwd EY2.96%
FCF(TTM)4.69
FCFY1.82%
OCF(TTM)5.35
OCFY2.08%
SpS30.13
BVpS39.19
TBVpS11.06
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 12.54% | ||
| ROCE | 16.48% | ||
| ROIC | 11% | ||
| ROICexc | 14.39% | ||
| ROICexgc | 65.26% | ||
| OM | 25.82% | ||
| PM (TTM) | 16.31% | ||
| GM | 73.6% | ||
| FCFM | 15.55% |
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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 59.12% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 16.04 | ||
| Cash Conversion | 60.08% | ||
| Profit Quality | 95.36% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 7.76 |
F-Score8
WACC7.7%
ROIC/WACC1.43
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)-24.23%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%77.78%
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y20.66%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%12.09%
Revenue Next Year10.84%
Revenue Next 2Y11.3%
Revenue Next 3Y11.91%
Revenue Next 5Y12.35%
EBIT growth 1Y34.96%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year58.56%
EBIT Next 3Y28.56%
EBIT Next 5Y20.97%
FCF growth 1Y18.39%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y12.79%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%