SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - FRA:SAP - DE0007164600 - Common Stock
216.55 EUR
-1.4 (-0.64%)
Overall SAP gets a fundamental rating of 6 out of 10. We evaluated SAP against 103 industry peers in the Software industry. SAP scores excellent on profitability, but there are some minor concerns on its financial health. SAP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SAP had positive earnings in the past year.
SAP had a positive operating cash flow in the past year.
Each year in the past 5 years SAP has been profitable.
SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SAP (10.35%) is better than 81.55% of its industry peers.
Looking at the Return On Equity, with a value of 16.54%, SAP is in the better half of the industry, outperforming 73.79% of the companies in the same industry.
SAP's Return On Invested Capital of 13.05% is amongst the best of the industry. SAP outperforms 82.52% of its industry peers.
SAP had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 12.76%.
The last Return On Invested Capital (13.05%) for SAP 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
The Profit Margin of SAP (19.41%) is better than 77.67% of its industry peers.
SAP's Profit Margin has declined in the last couple of years.
SAP's Operating Margin of 27.47% is amongst the best of the industry. SAP outperforms 87.38% of its industry peers.
SAP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 73.83%, SAP perfoms like the industry average, outperforming 54.37% of the companies in the same industry.
SAP's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAP is still creating some value.
SAP has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SAP has been reduced compared to 5 years ago.
The debt/assets ratio for SAP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.19 indicates that SAP is not in any danger for bankruptcy at the moment.
The Altman-Z score of SAP (8.19) is better than 80.58% of its industry peers.
The Debt to FCF ratio of SAP is 1.41, which is an excellent value as it means it would take SAP, only 1.41 years of fcf income to pay off all of its debts.
SAP has a better Debt to FCF ratio (1.41) than 71.84% of its industry peers.
SAP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, SAP is in the better half of the industry, outperforming 67.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 8.19 |
ROIC/WACC1.75
WACC7.45%
2.3 Liquidity
SAP has a Current Ratio of 1.10. This is a normal value and indicates that SAP is financially healthy and should not expect problems in meeting its short term obligations.
SAP has a worse Current ratio (1.10) than 63.11% of its industry peers.
A Quick Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
SAP has a Quick ratio of 1.10. This is in the lower half of the industry: SAP underperforms 61.16% 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, SAP shows a quite strong growth in Revenue. The Revenue has grown by 9.70% in the last year.
SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
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
The Earnings Per Share is expected to grow by 20.96% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.52% on average over the next years. This is quite good.
EPS Next Y36.22%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
EPS Next 5Y20.96%
Revenue Next Year9.63%
Revenue Next 2Y10.45%
Revenue Next 3Y11.33%
Revenue Next 5Y12.52%
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
Based on the Price/Earnings ratio of 36.58, the valuation of SAP can be described as expensive.
Based on the Price/Earnings ratio, SAP is valued a bit cheaper than 63.11% of the companies in the same industry.
SAP is valuated rather expensively when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.47, which means the current valuation is very expensive for SAP.
The rest of the industry has a similar Price/Forward Earnings ratio as SAP.
The average S&P500 Price/Forward Earnings ratio is at 31.86. SAP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.58 | ||
| Fwd PE | 29.47 |
4.2 Price Multiples
SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.78 | ||
| EV/EBITDA | 23.11 |
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 SAP may justify a higher PE ratio.
A more expensive valuation may be justified as SAP's earnings are expected to grow with 24.83% in the coming years.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y27.37%
EPS Next 3Y24.83%
5. Dividend
5.1 Amount
SAP has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.15, SAP pays a better dividend. On top of this SAP pays more dividend than 81.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
On average, the dividend of SAP grows each year by 7.95%, which is quite nice.
Dividend Growth(5Y)7.95%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
SAP pays out 38.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.73%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
FRA:SAP (11/7/2025, 11:10:13 AM)
216.55
-1.4 (-0.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.23%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap251.26B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.92
Price Target293.07 (35.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP38.73%
Div Incr Years1
Div Non Decr Years6
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)-1.04%
PT rev (3m)0.94%
EPS NQ rev (1m)-4.61%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.48%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.58 | ||
| Fwd PE | 29.47 | ||
| P/S | 6.88 | ||
| P/FCF | 38.78 | ||
| P/OCF | 34.39 | ||
| P/B | 5.87 | ||
| P/tB | 22.06 | ||
| EV/EBITDA | 23.11 |
EPS(TTM)5.92
EY2.73%
EPS(NY)7.35
Fwd EY3.39%
FCF(TTM)5.58
FCFY2.58%
OCF(TTM)6.3
OCFY2.91%
SpS31.45
BVpS36.89
TBVpS9.82
PEG (NY)1.01
PEG (5Y)N/A
Graham Number70.1
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 | 8.19 |
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 Y36.22%
EPS Next 2Y27.37%
EPS Next 3Y24.83%
EPS Next 5Y20.96%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.63%
Revenue Next 2Y10.45%
Revenue Next 3Y11.33%
Revenue Next 5Y12.52%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year56.23%
EBIT Next 3Y28.74%
EBIT Next 5Y21.3%
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 / SAP.DE FAQ
What is the fundamental rating for SAP stock?
ChartMill assigns a fundamental rating of 6 / 10 to SAP.DE.
What is the valuation status of SAP SE (SAP.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to SAP SE (SAP.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for SAP SE?
SAP SE (SAP.DE) has a profitability rating of 7 / 10.
What is the valuation of SAP SE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SAP SE (SAP.DE) is 36.58 and the Price/Book (PB) ratio is 5.87.
Can you provide the dividend sustainability for SAP stock?
The dividend rating of SAP SE (SAP.DE) is 6 / 10 and the dividend payout ratio is 38.73%.