SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SAP - DE0007164600 - Common Stock
192.94 EUR
-3.02 (-1.54%)
We assign a fundamental rating of 6 out of 10 to SAP. SAP was compared to 119 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. 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.
- SAP had a positive operating cash flow in the past year.
- SAP had positive earnings in each of the past 5 years.
- 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.
- With a decent Return On Equity value of 16.54%, SAP is doing good in the industry, outperforming 67.23% of the companies in the same industry.
- SAP has a better Return On Invested Capital (13.05%) than 79.83% of its industry peers.
- 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 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
- With a decent Profit Margin value of 19.41%, SAP is doing good in the industry, outperforming 74.79% of the companies in the same industry.
- 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 86.55% of its industry peers.
- SAP's Operating Margin has been stable in the last couple of years.
- SAP has a Gross Margin (73.83%) which is in line with its industry peers.
- 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
- The debt/assets ratio for SAP is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.34 indicates that SAP is not in any danger for bankruptcy at the moment.
- The Altman-Z score of SAP (7.34) is better than 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.
- Looking at the Debt to Equity ratio, with a value of 0.14, SAP is in the better half of 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 | 7.34 |
ROIC/WACC1.61
WACC8.13%
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.
- Looking at the Current ratio, with a value of 1.10, SAP is doing worse than 63.87% of the companies in the same industry.
- 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 worse Quick ratio (1.10) than 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.
- SAP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.38% yearly.
- The Revenue has grown by 9.70% in the past year. This is quite good.
- 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
- Based on estimates for the next years, SAP will show a quite strong growth in Revenue. The Revenue will grow by 12.20% on average per year.
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 32.59, SAP can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, SAP is valued a bit cheaper than 60.50% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, SAP is valued at the same level.
- A Price/Forward Earnings ratio of 26.57 indicates a quite expensive valuation of SAP.
- SAP's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of SAP to the average of the S&P500 Index (24.29), we can say SAP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 26.57 |
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 61.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.68 | ||
| EV/EBITDA | 19.92 |
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.
- A more expensive valuation may be justified as SAP's earnings are expected to grow with 24.06% in the coming years.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y26.6%
EPS Next 3Y24.06%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.14%, SAP has a reasonable but not impressive dividend return.
- SAP's Dividend Yield is rather good when compared to the industry average which is at 0.63. SAP pays more dividend than 84.03% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.84, SAP is paying slightly less dividend.
| 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.
- SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.73%
EPS Next 2Y26.6%
EPS Next 3Y24.06%
FRA:SAP (1/20/2026, 3:43:16 PM)
192.94
-3.02 (-1.54%)
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 Cap224.70B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts77.95
Price Target289.51 (50.05%)
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 | 32.59 | ||
| Fwd PE | 26.57 | ||
| P/S | 6.16 | ||
| P/FCF | 34.68 | ||
| P/OCF | 30.75 | ||
| P/B | 5.25 | ||
| P/tB | 19.73 | ||
| EV/EBITDA | 19.92 |
EPS(TTM)5.92
EY3.07%
EPS(NY)7.26
Fwd EY3.76%
FCF(TTM)5.56
FCFY2.88%
OCF(TTM)6.27
OCFY3.25%
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 | 7.34 |
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 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%.