SAP SE (1SAP.MI) Stock Fundamental Analysis
Europe - BIT:1SAP - DE0007164600 - Common Stock
213.8 EUR
-6.6 (-2.99%)
Overall 1SAP gets a fundamental rating of 6 out of 10. We evaluated 1SAP against 103 industry peers in the Software industry. 1SAP scores excellent on profitability, but there are some minor concerns on its financial health. 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.
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 9.56% is amongst the best of the industry. 1SAP outperforms 83.50% of its industry peers.
With a decent Return On Equity value of 15.95%, 1SAP is doing good in the industry, outperforming 72.82% of the companies in the same industry.
1SAP has a better Return On Invested Capital (13.00%) than 83.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1SAP is below the industry average of 12.80%.
The 3 year average ROIC (8.58%) for 1SAP is below the current ROIC(13.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 15.95% | ||
| ROIC | 13% |
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 18.23%, 1SAP is doing good in the industry, outperforming 76.70% of the companies in the same industry.
In the last couple of years the Profit Margin of 1SAP has declined.
1SAP's Operating Margin of 27.04% is amongst the best of the industry. 1SAP outperforms 85.44% of its industry peers.
1SAP's Operating Margin has been stable in the last couple of years.
1SAP has a Gross Margin (73.80%) which is in line with 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 | 27.04% | ||
| PM (TTM) | 18.23% | ||
| GM | 73.8% |
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
An Altman-Z score of 7.50 indicates that 1SAP is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1SAP (7.50) is better than 80.58% of its industry peers.
The Debt to FCF ratio of 1SAP is 1.35, which is an excellent value as it means it would take 1SAP, only 1.35 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.35, 1SAP is doing good in the industry, outperforming 72.82% of the companies in the same industry.
1SAP has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
1SAP has a Debt to Equity ratio of 0.15. This is in the better half of the industry: 1SAP outperforms 68.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 7.5 |
ROIC/WACC1.76
WACC7.39%
2.3 Liquidity
1SAP has a Current Ratio of 1.03. 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 worse Current ratio (1.03) than 62.14% of its industry peers.
1SAP has a Quick Ratio of 1.03. This is a normal value and indicates that 1SAP is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.03, 1SAP is not doing good in the industry: 61.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
1SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.56%, which is quite good.
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 10.29% in the last year.
1SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
EPS 1Y (TTM)16.56%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%36.36%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
3.2 Future
The Earnings Per Share is expected to grow by 21.07% 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 12.62% yearly.
EPS Next Y34.89%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
EPS Next 5Y21.07%
Revenue Next Year9.81%
Revenue Next 2Y10.6%
Revenue Next 3Y11.45%
Revenue Next 5Y12.62%
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
With a Price/Earnings ratio of 38.45, 1SAP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1SAP is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
1SAP is valuated rather expensively when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.34, 1SAP can be considered very expensive at the moment.
1SAP's Price/Forward Earnings is on the same level as the industry average.
1SAP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.45 | ||
| Fwd PE | 29.34 |
4.2 Price Multiples
1SAP's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1SAP indicates a somewhat cheap valuation: 1SAP is cheaper than 62.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.22 | ||
| EV/EBITDA | 22.81 |
4.3 Compensation for Growth
The 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.
1SAP's earnings are expected to grow with 24.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y26.83%
EPS Next 3Y24.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, 1SAP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.08, 1SAP pays a better dividend. On top of this 1SAP pays more dividend than 81.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
41.94% of the earnings are spent on dividend by 1SAP. This is a bit on the high side, but may be sustainable.
1SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.94%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
BIT:1SAP (9/15/2025, 7:00:00 PM)
213.8
-6.6 (-2.99%)
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 Cap248.07B
Analysts78.38
Price Target294.55 (37.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP41.94%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.72%
Min EPS beat(2)1.63%
Max EPS beat(2)9.81%
EPS beat(4)3
Avg EPS beat(4)2.93%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)-2.96%
EPS beat(12)6
Avg EPS beat(12)9.64%
EPS beat(16)8
Avg EPS beat(16)8.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.6%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.56%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)5
Avg Revenue beat(16)-1.09%
PT rev (1m)1.8%
PT rev (3m)0.01%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-9.22%
EPS NY rev (1m)-3.43%
EPS NY rev (3m)-3.43%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-4.12%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.45 | ||
| Fwd PE | 29.34 | ||
| P/S | 6.91 | ||
| P/FCF | 38.22 | ||
| P/OCF | 34.08 | ||
| P/B | 6.05 | ||
| P/tB | 24.38 | ||
| EV/EBITDA | 22.81 |
EPS(TTM)5.56
EY2.6%
EPS(NY)7.29
Fwd EY3.41%
FCF(TTM)5.59
FCFY2.62%
OCF(TTM)6.27
OCFY2.93%
SpS30.93
BVpS35.34
TBVpS8.77
PEG (NY)1.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 15.95% | ||
| ROCE | 19.67% | ||
| ROIC | 13% | ||
| ROICexc | 16.33% | ||
| ROICexgc | 73.27% | ||
| OM | 27.04% | ||
| PM (TTM) | 18.23% | ||
| GM | 73.8% | ||
| FCFM | 18.08% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 59.76% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 17.61 | ||
| Cash Conversion | 66.02% | ||
| Profit Quality | 99.22% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 7.5 |
F-Score8
WACC7.39%
ROIC/WACC1.76
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)16.56%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%36.36%
EPS Next Y34.89%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
EPS Next 5Y21.07%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
Revenue Next Year9.81%
Revenue Next 2Y10.6%
Revenue Next 3Y11.45%
Revenue Next 5Y12.62%
EBIT growth 1Y34.62%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year58.56%
EBIT Next 3Y28.56%
EBIT Next 5Y21.41%
FCF growth 1Y22.34%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y18.64%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%