SAP SE (SAP.DE) Stock Fundamental Analysis
FRA:SAP - Deutsche Boerse Ag - DE0007164600 - Common Stock - Currency: EUR
Overall SAP gets a fundamental rating of 5 out of 10. We evaluated SAP against 101 industry peers in the Software industry. Both the profitability and the financial health of SAP get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, SAP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SAP had positive earnings in the past year.
In the past year SAP had a positive cash flow from operations.
SAP had positive earnings in each of the past 5 years.
In the past 5 years SAP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SAP (7.58%) is better than 79.00% of its industry peers.
SAP has a better Return On Equity (12.54%) than 73.00% of its industry peers.
SAP's Return On Invested Capital of 11.00% is fine compared to the rest of the industry. SAP outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAP is below the industry average of 11.09%.
The last Return On Invested Capital (11.00%) for SAP is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 12.54% | ||
| ROIC | 11% |
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
Looking at the Profit Margin, with a value of 16.31%, SAP is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
SAP's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 25.82%, SAP belongs to the best of the industry, outperforming 89.00% 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.
SAP's Gross Margin of 73.60% is in line compared to the rest of the industry. SAP outperforms 57.00% of its industry peers.
SAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.82% | ||
| PM (TTM) | 16.31% | ||
| GM | 73.6% |
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.
The number of shares outstanding for SAP remains at a similar level compared to 1 year ago.
The number of shares outstanding for SAP has been reduced compared to 5 years ago.
SAP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.84 indicates that SAP is not in any danger for bankruptcy at the moment.
The Altman-Z score of SAP (7.84) is better than 77.00% of its industry peers.
SAP has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
SAP has a Debt to FCF ratio of 1.85. This is in the better half of the industry: SAP outperforms 69.00% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that SAP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.15, SAP is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 7.84 |
ROIC/WACC1.39
WACC7.93%
2.3 Liquidity
A Current Ratio of 1.17 indicates that SAP should not have too much problems paying its short term obligations.
SAP has a Current ratio of 1.17. This is comparable to the rest of the industry: SAP outperforms 44.00% of its industry peers.
SAP has a Quick Ratio of 1.17. This is a normal value and indicates that SAP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SAP (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
SAP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.23%.
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 10.51%.
SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
EPS 1Y (TTM)-24.23%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%77.78%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%12.09%
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 20.23% on average per year.
SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.17% yearly.
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y20.23%
Revenue Next Year10.84%
Revenue Next 2Y11.3%
Revenue Next 3Y11.91%
Revenue Next 5Y12.17%
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
The Price/Earnings ratio is 49.52, which means the current valuation is very expensive for SAP.
SAP's Price/Earnings ratio is a bit cheaper when compared to the industry. SAP is cheaper than 63.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. SAP is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 33.52, the valuation of SAP can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, SAP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.52 | ||
| Fwd PE | 33.52 |
4.2 Price Multiples
SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as SAP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.53 | ||
| EV/EBITDA | 28.55 |
4.3 Compensation for Growth
SAP's 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 25.76% in the coming years.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y29.72%
EPS Next 3Y25.76%
5. Dividend
5.1 Amount
SAP has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 2.13, SAP pays a better dividend. On top of this SAP pays more dividend than 81.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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 44.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.75%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
FRA:SAP (7/4/2025, 7:00:00 PM)
255.5
-2.7 (-1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.46%
Inst Owner ChangeN/A
Ins Owners5.09%
Ins Owner ChangeN/A
Market Cap298.04B
Analysts77.95
Price Target290.19 (13.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP44.75%
Div Incr Years1
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.12%
Min EPS beat(2)-1.57%
Max EPS beat(2)9.81%
EPS beat(4)2
Avg EPS beat(4)2.47%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)17.66%
EPS beat(12)5
Avg EPS beat(12)8.44%
EPS beat(16)8
Avg EPS beat(16)11.68%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.55%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)5
Avg Revenue beat(16)-1.05%
PT rev (1m)3.64%
PT rev (3m)3.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.52 | ||
| Fwd PE | 33.52 | ||
| P/S | 8.48 | ||
| P/FCF | 54.53 | ||
| P/OCF | 47.73 | ||
| P/B | 6.52 | ||
| P/tB | 23.1 | ||
| EV/EBITDA | 28.55 |
EPS(TTM)5.16
EY2.02%
EPS(NY)7.62
Fwd EY2.98%
FCF(TTM)4.69
FCFY1.83%
OCF(TTM)5.35
OCFY2.1%
SpS30.13
BVpS39.19
TBVpS11.06
PEG (NY)1.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 12.54% | ||
| ROCE | 16.48% | ||
| ROIC | 11% | ||
| ROICexc | 14.39% | ||
| ROICexgc | 65.26% | ||
| OM | 25.82% | ||
| PM (TTM) | 16.31% | ||
| GM | 73.6% | ||
| FCFM | 15.55% |
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%
ROICexcg growth 3Y10.63%
ROICexcg 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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 59.12% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 16.04 | ||
| Cash Conversion | 60.08% | ||
| Profit Quality | 95.36% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 7.84 |
F-Score8
WACC7.93%
ROIC/WACC1.39
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)-24.23%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%77.78%
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y20.23%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%12.09%
Revenue Next Year10.84%
Revenue Next 2Y11.3%
Revenue Next 3Y11.91%
Revenue Next 5Y12.17%
EBIT growth 1Y34.96%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year58.56%
EBIT Next 3Y28.56%
EBIT Next 5Y20.54%
FCF growth 1Y18.39%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y12.79%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%