SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SAP - DE0007164600 - Common Stock
208.55 EUR
-0.25 (-0.12%)
We assign a fundamental rating of 6 out of 10 to SAP. SAP was compared to 115 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 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.
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 fine compared to the rest of the industry. SAP outperforms 78.26% of its industry peers.
With a decent Return On Equity value of 16.54%, SAP is doing good in the industry, outperforming 69.57% 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 80.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAP is below the industry average of 12.89%.
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
SAP's Profit Margin of 19.41% is fine compared to the rest of the industry. SAP outperforms 74.78% of its industry peers.
SAP's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 27.47%, SAP belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
In the last couple of years the Operating Margin of SAP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 73.83%, SAP is in line with its industry, outperforming 53.91% 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.
Compared to 1 year ago, SAP has about the same amount of shares outstanding.
Compared to 5 years ago, SAP has less shares outstanding
Compared to 1 year ago, SAP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.69 indicates that SAP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.69, SAP belongs to the top of the industry, outperforming 83.48% 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.
SAP has a better Debt to FCF ratio (1.41) than 71.30% 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.
The Debt to Equity ratio of SAP (0.14) is better than 66.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.69 |
ROIC/WACC1.7
WACC7.7%
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.
With a Current ratio value of 1.10, SAP is not doing good in the industry: 63.48% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 1.10, SAP is doing worse than 60.87% of the companies in the same industry.
| 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.
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.
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
The Earnings Per Share is expected to grow by 21.58% 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 12.53% yearly.
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.9%
EPS Next 5Y21.58%
Revenue Next Year9.19%
Revenue Next 2Y10.07%
Revenue Next 3Y10.93%
Revenue Next 5Y12.53%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 35.23, SAP can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as SAP.
SAP is valuated rather expensively when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.85, SAP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAP is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.84. SAP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.23 | ||
| Fwd PE | 28.85 |
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.
60.87% of the companies in the same industry are more expensive than SAP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.49 | ||
| EV/EBITDA | 21.23 |
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.
SAP's earnings are expected to grow with 23.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y26.32%
EPS Next 3Y23.9%
5. Dividend
5.1 Amount
SAP has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
SAP's Dividend Yield is rather good when compared to the industry average which is at 0.66. SAP pays more dividend than 84.35% of the companies in the same industry.
With a Dividend Yield of 1.12, SAP pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 2Y26.32%
EPS Next 3Y23.9%
FRA:SAP (12/22/2025, 5:36:15 PM)
208.55
-0.25 (-0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.03%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap242.88B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target292.15 (40.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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)-0.32%
PT rev (3m)-1.36%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.23 | ||
| Fwd PE | 28.85 | ||
| P/S | 6.66 | ||
| P/FCF | 37.49 | ||
| P/OCF | 33.24 | ||
| P/B | 5.67 | ||
| P/tB | 21.33 | ||
| EV/EBITDA | 21.23 |
EPS(TTM)5.92
EY2.84%
EPS(NY)7.23
Fwd EY3.47%
FCF(TTM)5.56
FCFY2.67%
OCF(TTM)6.27
OCFY3.01%
SpS31.34
BVpS36.76
TBVpS9.78
PEG (NY)1
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 | 7.69 |
F-Score9
WACC7.7%
ROIC/WACC1.7
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 3Y23.9%
EPS Next 5Y21.58%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.19%
Revenue Next 2Y10.07%
Revenue Next 3Y10.93%
Revenue Next 5Y12.53%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year55.23%
EBIT Next 3Y27.92%
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 3 / 10 to SAP SE (SAP.DE). This can be considered as Overvalued.
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 35.23 and the Price/Book (PB) ratio is 5.67.
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%.