SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - FRA:SAP - DE0007164600 - Common Stock
211.1 EUR
-7 (-3.21%)
SAP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 111 industry peers in the Software industry. While SAP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SAP has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years SAP had a positive operating cash flow.
1.2 Ratios
SAP's Return On Assets of 10.35% is amongst the best of the industry. SAP outperforms 81.98% of its industry peers.
SAP has a better Return On Equity (16.54%) than 72.97% of its industry peers.
The Return On Invested Capital of SAP (13.05%) is better than 82.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAP is below the industry average of 12.66%.
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 has a Profit Margin of 19.41%. This is in the better half of the industry: SAP outperforms 75.68% 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 86.49% 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 of 73.83%. This is comparable to the rest of the industry: SAP outperforms 55.86% of 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAP is creating some value.
Compared to 1 year ago, SAP has about the same amount of shares outstanding.
Compared to 5 years ago, SAP has less shares outstanding
The debt/assets ratio for SAP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.92 indicates that SAP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.92, SAP belongs to the top of the industry, outperforming 82.88% of the companies in the same industry.
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.
The Debt to FCF ratio of SAP (1.41) is better than 74.77% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that SAP is not too dependend on debt financing.
The Debt to Equity ratio of SAP (0.14) is better than 67.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.92 |
ROIC/WACC1.75
WACC7.46%
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 worse Current ratio (1.10) than 62.16% 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.
With a Quick ratio value of 1.10, SAP perfoms like the industry average, outperforming 40.54% of the companies in the same industry.
| 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.
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
Based on estimates for the next years, SAP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.58% on average per year.
SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.52% yearly.
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
EPS Next 5Y21.58%
Revenue Next Year9.2%
Revenue Next 2Y10.08%
Revenue Next 3Y10.96%
Revenue Next 5Y12.52%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SAP is valuated quite expensively with a Price/Earnings ratio of 35.66.
SAP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.91. SAP is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.20, which means the current valuation is very expensive for SAP.
SAP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.57. SAP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.66 | ||
| Fwd PE | 29.2 |
4.2 Price Multiples
SAP'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 SAP indicates a somewhat cheap valuation: SAP is cheaper than 62.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.8 | ||
| EV/EBITDA | 22.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SAP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SAP's earnings are expected to grow with 23.94% in the coming years.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y26.32%
EPS Next 3Y23.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, SAP is not a good candidate for dividend investing.
SAP's Dividend Yield is rather good when compared to the industry average which is at 2.24. SAP pays more dividend than 81.08% of the companies in the same industry.
With a Dividend Yield of 0.79, SAP pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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.
SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.73%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
FRA:SAP (11/14/2025, 5:36:15 PM)
211.1
-7 (-3.21%)
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 Cap244.93B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target293.07 (38.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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)0.15%
PT rev (3m)0.94%
EPS NQ rev (1m)-4.61%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-3.3%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.66 | ||
| Fwd PE | 29.2 | ||
| P/S | 6.71 | ||
| P/FCF | 37.8 | ||
| P/OCF | 33.52 | ||
| P/B | 5.72 | ||
| P/tB | 21.51 | ||
| EV/EBITDA | 22.1 |
EPS(TTM)5.92
EY2.8%
EPS(NY)7.23
Fwd EY3.42%
FCF(TTM)5.58
FCFY2.65%
OCF(TTM)6.3
OCFY2.98%
SpS31.45
BVpS36.89
TBVpS9.82
PEG (NY)1.02
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 | 7.92 |
F-Score9
WACC7.46%
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 Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
EPS Next 5Y21.58%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.2%
Revenue Next 2Y10.08%
Revenue Next 3Y10.96%
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 5Y21.39%
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 35.66 and the Price/Book (PB) ratio is 5.72.
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%.