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 99 industry peers in the Software industry. 1SAP has only an average score on both its financial health and profitability. 1SAP is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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 has a Return On Assets of 4.21%. This is comparable to the rest of the industry: 1SAP outperforms 58.59% of its industry peers.
The Return On Equity of 1SAP (6.88%) is comparable to the rest of the industry.
1SAP's Return On Invested Capital of 9.79% is fine compared to the rest of the industry. 1SAP outperforms 73.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1SAP is below the industry average of 11.50%.
The 3 year average ROIC (8.61%) for 1SAP is below the current ROIC(9.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 6.88% | ||
| ROIC | 9.79% |
ROA(3y)5.45%
ROA(5y)6.51%
ROE(3y)8.93%
ROE(5y)11.53%
ROIC(3y)8.61%
ROIC(5y)8.53%
1.3 Margins
1SAP has a Profit Margin of 9.14%. This is comparable to the rest of the industry: 1SAP outperforms 59.60% of its industry peers.
In the last couple of years the Profit Margin of 1SAP has declined.
Looking at the Operating Margin, with a value of 23.62%, 1SAP belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
In the last couple of years the Operating Margin of 1SAP has remained more or less at the same level.
1SAP has a Gross Margin of 72.94%. This is comparable to the rest of the industry: 1SAP outperforms 56.57% 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 | 23.62% | ||
| PM (TTM) | 9.14% | ||
| GM | 72.94% |
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.
The debt/assets ratio for 1SAP is higher compared to a year ago.
2.2 Solvency
1SAP has an Altman-Z score of 8.37. This indicates that 1SAP is financially healthy and has little risk of bankruptcy at the moment.
1SAP has a better Altman-Z score (8.37) than 82.83% of its industry peers.
1SAP has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as 1SAP would need 2.59 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.59, 1SAP is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
1SAP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
1SAP has a better Debt to Equity ratio (0.16) than 67.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 8.37 |
ROIC/WACC1.38
WACC7.08%
2.3 Liquidity
A Current Ratio of 1.12 indicates that 1SAP should not have too much problems paying its short term obligations.
1SAP has a Current ratio of 1.12. This is comparable to the rest of the industry: 1SAP outperforms 42.42% of its industry peers.
1SAP has a Quick Ratio of 1.12. 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 1.12, 1SAP perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
1SAP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.69%.
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.
Looking at the last year, 1SAP shows a quite strong growth in Revenue. The Revenue has grown by 9.51% in the last year.
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)-37.69%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%-1.42%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%10.73%
3.2 Future
The Earnings Per Share is expected to grow by 19.87% on average over the next years. This is quite good.
Based on estimates for the next years, 1SAP will show a quite strong growth in Revenue. The Revenue will grow by 11.55% on average per year.
EPS Next Y40.61%
EPS Next 2Y30.03%
EPS Next 3Y25.41%
EPS Next 5Y19.87%
Revenue Next Year13.1%
Revenue Next 2Y12.71%
Revenue Next 3Y12.84%
Revenue Next 5Y11.55%
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
The Price/Earnings ratio is 59.83, which means the current valuation is very expensive for 1SAP.
Compared to the rest of the industry, the Price/Earnings ratio of 1SAP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of 1SAP to the average of the S&P500 Index (29.35), we can say 1SAP is valued expensively.
With a Price/Forward Earnings ratio of 42.55, 1SAP can be considered very expensive at the moment.
1SAP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1SAP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.83 | ||
| Fwd PE | 42.55 |
4.2 Price Multiples
1SAP's Enterprise Value to EBITDA is on the same level as the industry average.
1SAP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.49 | ||
| EV/EBITDA | 33.66 |
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.
1SAP's earnings are expected to grow with 25.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)N/A
EPS Next 2Y30.03%
EPS Next 3Y25.41%
5. Dividend
5.1 Amount
1SAP has a yearly dividend return of 0.90%, which is pretty low.
1SAP's Dividend Yield is rather good when compared to the industry average which is at 2.93. 1SAP pays more dividend than 83.84% of the companies in the same industry.
With a Dividend Yield of 0.90, 1SAP pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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 82.11% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.11%
EPS Next 2Y30.03%
EPS Next 3Y25.41%
BIT:1SAP (3/3/2025, 7:00:00 PM)
271.05
+6.95 (+2.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.22%
Inst Owner ChangeN/A
Ins Owners8.1%
Ins Owner ChangeN/A
Market Cap316.18B
Analysts76.92
Price Target280.6 (3.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP82.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.14%
Min EPS beat(2)-1.57%
Max EPS beat(2)1.86%
EPS beat(4)1
Avg EPS beat(4)-7.04%
Min EPS beat(4)-28.22%
Max EPS beat(4)1.86%
EPS beat(8)4
Avg EPS beat(8)18.27%
EPS beat(12)4
Avg EPS beat(12)6.89%
EPS beat(16)8
Avg EPS beat(16)14.58%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)1.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)3
Avg Revenue beat(12)-1.35%
Revenue beat(16)5
Avg Revenue beat(16)-0.96%
PT rev (1m)9.04%
PT rev (3m)28.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.67%
EPS NY rev (1m)2.64%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.83 | ||
| Fwd PE | 42.55 | ||
| P/S | 9.25 | ||
| P/FCF | 71.49 | ||
| P/OCF | 60.57 | ||
| P/B | 6.96 | ||
| P/tB | 27.29 | ||
| EV/EBITDA | 33.66 |
EPS(TTM)4.53
EY1.67%
EPS(NY)6.37
Fwd EY2.35%
FCF(TTM)3.79
FCFY1.4%
OCF(TTM)4.47
OCFY1.65%
SpS29.3
BVpS38.95
TBVpS9.93
PEG (NY)1.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 6.88% | ||
| ROCE | 14.66% | ||
| ROIC | 9.79% | ||
| ROICexc | 12.3% | ||
| ROICexgc | 54.14% | ||
| OM | 23.62% | ||
| PM (TTM) | 9.14% | ||
| GM | 72.94% | ||
| FCFM | 12.94% |
ROA(3y)5.45%
ROA(5y)6.51%
ROE(3y)8.93%
ROE(5y)11.53%
ROIC(3y)8.61%
ROIC(5y)8.53%
ROICexc(3y)10.74%
ROICexc(5y)10.49%
ROICexgc(3y)48.05%
ROICexgc(5y)47.94%
ROCE(3y)12.97%
ROCE(5y)12.91%
ROICexcg growth 3Y12.75%
ROICexcg growth 5Y0.43%
ROICexc growth 3Y15.56%
ROICexc growth 5Y4.33%
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-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 62.27% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 14.67 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 141.58% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 8.37 |
F-Score7
WACC7.08%
ROIC/WACC1.38
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)-37.69%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%-1.42%
EPS Next Y40.61%
EPS Next 2Y30.03%
EPS Next 3Y25.41%
EPS Next 5Y19.87%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%10.73%
Revenue Next Year13.1%
Revenue Next 2Y12.71%
Revenue Next 3Y12.84%
Revenue Next 5Y11.55%
EBIT growth 1Y23.94%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year54.89%
EBIT Next 3Y26.48%
EBIT Next 5Y21.67%
FCF growth 1Y-20.28%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y-17.57%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%