SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SAP - DE0007164600 - Common Stock
192.6 EUR
-1.4 (-0.72%)
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SAP was profitable.
- SAP had a positive operating cash flow in the past year.
- Each year in the past 5 years SAP has been profitable.
- Each year in the past 5 years SAP had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.35%, SAP is in the better half of the industry, outperforming 74.79% of the companies in the same industry.
- SAP has a Return On Equity of 16.54%. This is in the better half of the industry: SAP outperforms 67.23% of its industry peers.
- With a decent Return On Invested Capital value of 13.05%, SAP is doing good in the industry, outperforming 79.83% of the companies in the same industry.
- SAP had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 13.47%.
- The 3 year average ROIC (8.58%) for SAP is below the current ROIC(13.05%), indicating increased profibility in the last year.
| 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 74.79% of its industry peers.
- In the last couple of years the Profit Margin of SAP has declined.
- With an excellent Operating Margin value of 27.47%, SAP belongs to the best of the industry, outperforming 86.55% of the companies in the same industry.
- SAP's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 73.83%, SAP is in line with its industry, outperforming 50.42% of the companies in the same industry.
- In the last couple of years the Gross Margin of SAP 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), SAP is creating some value.
- The number of shares outstanding for SAP remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, SAP has less shares outstanding
- SAP has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.29 indicates that SAP is not in any danger for bankruptcy at the moment.
- SAP has a Altman-Z score of 7.29. This is in the better half of the industry: SAP outperforms 79.83% of its industry peers.
- SAP has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.41, SAP is in the better half of the industry, outperforming 67.23% of the companies in the same industry.
- SAP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.14, SAP is doing good in the industry, outperforming 63.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.29 |
ROIC/WACC1.61
WACC8.12%
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.
- The Current ratio of SAP (1.10) is worse than 63.87% 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's Quick ratio of 1.10 is on the low side compared to the rest of the industry. SAP is outperformed by 61.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- SAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.11%, which is quite impressive.
- Measured over the past years, SAP shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.38% on average per year.
- SAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.70%.
- 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 21.23% on average over the next years. This is a very strong growth
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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 32.53, SAP can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 60.50% of the companies listed in the same industry.
- SAP is valuated rather expensively when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 26.53, SAP can be considered very expensive at the moment.
- SAP's Price/Forward Earnings is on the same level as the industry average.
- SAP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.53 | ||
| Fwd PE | 26.53 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAP.
- Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than the industry average as 62.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.62 | ||
| EV/EBITDA | 19.71 |
4.3 Compensation for Growth
- SAP's 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)0.91
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%.
- Compared to an average industry Dividend Yield of 0.63, SAP pays a better dividend. On top of this SAP pays more dividend than 84.03% of the companies listed in the same industry.
- SAP's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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
- 38.73% of the earnings are spent on dividend by SAP. This is a low number and 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 (1/21/2026, 10:52:17 AM)
192.6
-1.4 (-0.72%)
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 Cap224.30B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts77.95
Price Target289.51 (50.32%)
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 | 32.53 | ||
| Fwd PE | 26.53 | ||
| P/S | 6.15 | ||
| P/FCF | 34.62 | ||
| P/OCF | 30.7 | ||
| P/B | 5.24 | ||
| P/tB | 19.69 | ||
| EV/EBITDA | 19.71 |
EPS(TTM)5.92
EY3.07%
EPS(NY)7.26
Fwd EY3.77%
FCF(TTM)5.56
FCFY2.89%
OCF(TTM)6.27
OCFY3.26%
SpS31.34
BVpS36.76
TBVpS9.78
PEG (NY)0.91
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 | 7.29 |
F-Score9
WACC8.12%
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 6 / 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%.