SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SAP - DE0007164600 - Common Stock
197.17 EUR
-4.98 (-2.46%)
We assign a fundamental rating of 6 out of 10 to SAP. SAP was compared to 119 industry peers in the Software industry. SAP has only an average score on both its financial health and profitability. SAP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year SAP was profitable.
- In the past year SAP had a positive cash flow from operations.
- 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 73.95% of its industry peers.
- SAP has a better Return On Equity (16.54%) than 66.39% of its industry peers.
- The Return On Invested Capital of SAP (13.05%) is better than 78.99% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SAP is below the industry average of 13.47%.
- 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
- SAP's Profit Margin of 19.41% is fine compared to the rest of the industry. SAP outperforms 73.95% of its industry peers.
- SAP's Profit Margin has declined in the last couple of years.
- SAP has a Operating Margin of 27.47%. This is amongst the best in the industry. SAP outperforms 85.71% of its industry peers.
- In the last couple of years the Operating Margin of SAP has remained more or less at the same level.
- SAP has a Gross Margin (73.83%) which is in line with its industry peers.
- 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
- SAP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
- Compared to 1 year ago, SAP has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 7.51 indicates that SAP is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.51, SAP belongs to the best of the industry, outperforming 80.67% of the companies in the same industry.
- 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's Debt to FCF ratio of 1.41 is fine compared to the rest of the industry. SAP outperforms 66.39% 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.
- SAP's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. SAP outperforms 63.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.51 |
ROIC/WACC1.61
WACC8.13%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
- SAP has a Current ratio of 1.10. This is in the lower half of the industry: SAP underperforms 64.71% of its industry peers.
- SAP has a Quick 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 Quick ratio of 1.10. This is in the lower half of the industry: SAP underperforms 62.18% 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.
- SAP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.38% yearly.
- SAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.70%.
- 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
- SAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.23% yearly.
- SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.20% yearly.
EPS Next Y35.86%
EPS Next 2Y26.6%
EPS Next 3Y24.06%
EPS Next 5Y21.23%
Revenue Next Year9.26%
Revenue Next 2Y9.87%
Revenue Next 3Y10.73%
Revenue Next 5Y12.2%
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 33.31, SAP can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of SAP is on the same level as its industry peers.
- SAP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.38.
- SAP is valuated quite expensively with a Price/Forward Earnings ratio of 27.16.
- SAP's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. SAP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.31 | ||
| Fwd PE | 27.16 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAP is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.44 | ||
| EV/EBITDA | 20.55 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of SAP may justify a higher PE ratio.
- SAP's earnings are expected to grow with 24.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y26.6%
EPS Next 3Y24.06%
5. Dividend
5.1 Amount
- SAP has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.63, SAP pays a better dividend. On top of this SAP pays more dividend than 84.87% of the companies listed in the same industry.
- SAP's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
- The dividend of SAP is nicely growing with an annual growth rate of 7.95%!
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 2Y26.6%
EPS Next 3Y24.06%
FRA:SAP (1/19/2026, 1:15:17 PM)
197.17
-4.98 (-2.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners40.04%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap229.63B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts77.95
Price Target289.51 (46.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)-1.28%
PT rev (3m)-1.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.28%
EPS NY rev (1m)0.59%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.31 | ||
| Fwd PE | 27.16 | ||
| P/S | 6.29 | ||
| P/FCF | 35.44 | ||
| P/OCF | 31.43 | ||
| P/B | 5.36 | ||
| P/tB | 20.16 | ||
| EV/EBITDA | 20.55 |
EPS(TTM)5.92
EY3%
EPS(NY)7.26
Fwd EY3.68%
FCF(TTM)5.56
FCFY2.82%
OCF(TTM)6.27
OCFY3.18%
SpS31.34
BVpS36.76
TBVpS9.78
PEG (NY)0.93
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 | 7.51 |
F-Score9
WACC8.13%
ROIC/WACC1.61
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 Y35.86%
EPS Next 2Y26.6%
EPS Next 3Y24.06%
EPS Next 5Y21.23%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.26%
Revenue Next 2Y9.87%
Revenue Next 3Y10.73%
Revenue Next 5Y12.2%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year55.71%
EBIT Next 3Y27.8%
EBIT Next 5Y21.04%
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 for SAP 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 expected EPS growth for SAP SE (SAP.DE) stock?
The Earnings per Share (EPS) of SAP SE (SAP.DE) is expected to grow by 35.86% in the next year.
How sustainable is the dividend of SAP SE (SAP.DE) stock?
The dividend rating of SAP SE (SAP.DE) is 6 / 10 and the dividend payout ratio is 38.73%.