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 105 industry peers in the Software industry. 1SAP has an excellent profitability rating, 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.
1SAP had a positive operating cash flow in the past year.
1SAP had positive earnings in each of the past 5 years.
1SAP had a positive operating cash flow in each of the past 5 years.
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 has a better Return On Equity (16.54%) than 69.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.05%, 1SAP belongs to the top of the industry, outperforming 81.03% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1SAP is below the industry average of 13.30%.
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 75.86% of its industry peers.
In the last couple of years the Profit Margin of 1SAP has declined.
1SAP has a Operating Margin of 27.47%. This is amongst the best in the industry. 1SAP outperforms 87.07% of its industry peers.
1SAP's Operating Margin has been stable in the last couple of years.
1SAP has a Gross Margin of 73.83%. This is comparable to the rest of the industry: 1SAP outperforms 51.72% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1SAP 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
1SAP has an Altman-Z score of 7.68. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1SAP (7.68) is better than 81.03% 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.
With a decent Debt to FCF ratio value of 1.41, 1SAP is doing good in 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.
With a decent Debt to Equity ratio value of 0.14, 1SAP is doing good in the industry, outperforming 61.21% of the companies in the same industry.
| 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.
The Current ratio of 1SAP (1.10) is worse than 64.66% 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.
1SAP's Quick ratio of 1.10 is on the low side compared to the rest of the industry. 1SAP is outperformed by 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.
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 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
Based on estimates for the next years, 1SAP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.58% on average per year.
The Revenue is expected to grow by 12.53% on average over the next years. This is quite good.
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
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
With a Price/Earnings ratio of 35.20, 1SAP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1SAP is valued a bit cheaper than 61.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. 1SAP is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 28.83, 1SAP can be considered very expensive at the moment.
1SAP's Price/Forward Earnings ratio is in line with the industry average.
1SAP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.46, 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
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.
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%.
1SAP's Dividend Yield is rather good when compared to the industry average which is at 0.70. 1SAP pays more dividend than 84.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, 1SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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.
The dividend of 1SAP is growing, but earnings are growing more, so the dividend growth is 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.