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 99 industry peers in the Software industry. SAP has an average financial health and profitability rating. SAP is valied quite expensively at the moment, while it does show a decent 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.
In the past 5 years SAP always reported a positive cash flow from operatings.
1.2 Ratios
SAP's Return On Assets of 4.21% is in line compared to the rest of the industry. SAP outperforms 59.60% of its industry peers.
The Return On Equity of SAP (6.88%) is comparable to the rest of the industry.
SAP has a better Return On Invested Capital (9.79%) than 74.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAP is below the industry average of 11.50%.
The 3 year average ROIC (8.61%) for SAP is below the current ROIC(9.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 6.88% | ||
| ROIC | 9.79% |
ROA(3y)5.45%
ROA(5y)6.51%
ROE(3y)8.93%
ROE(5y)11.53%
ROIC(3y)8.61%
ROIC(5y)8.53%
1.3 Margins
The Profit Margin of SAP (9.14%) is better than 60.61% of its industry peers.
SAP's Profit Margin has declined in the last couple of years.
SAP has a better Operating Margin (23.62%) than 88.89% 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 72.94%. This is comparable to the rest of the industry: SAP outperforms 57.58% of its industry peers.
SAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.62% | ||
| PM (TTM) | 9.14% | ||
| GM | 72.94% |
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.
SAP has less shares outstanding than it did 5 years ago.
SAP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.96 indicates that SAP is not in any danger for bankruptcy at the moment.
SAP's Altman-Z score of 7.96 is amongst the best of the industry. SAP outperforms 80.81% of its industry peers.
SAP has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as SAP would need 2.59 years to pay back of all of its debts.
SAP has a Debt to FCF ratio of 2.59. This is in the better half of the industry: SAP outperforms 64.65% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that SAP is not too dependend on debt financing.
SAP has a Debt to Equity ratio of 0.16. This is in the better half of the industry: SAP outperforms 68.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 7.96 |
ROIC/WACC1.38
WACC7.08%
2.3 Liquidity
SAP has a Current Ratio of 1.12. 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 Current ratio of 1.12. This is comparable to the rest of the industry: SAP outperforms 43.43% of its industry peers.
SAP has a Quick Ratio of 1.12. 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 1.12, SAP perfoms like the industry average, outperforming 46.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
SAP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.69%.
The Earnings Per Share has been decreasing by -2.38% on average over the past years.
The Revenue has grown by 9.51% in the past year. This is quite good.
Measured over the past years, SAP shows a small growth in Revenue. The Revenue has been growing by 4.40% on average per year.
EPS 1Y (TTM)-37.69%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%-1.42%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%10.73%
3.2 Future
SAP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.87% yearly.
The Revenue is expected to grow by 11.55% on average over the next years. This is quite good.
EPS Next Y40.61%
EPS Next 2Y30.03%
EPS Next 3Y25.41%
EPS Next 5Y19.87%
Revenue Next Year13.1%
Revenue Next 2Y12.71%
Revenue Next 3Y12.84%
Revenue Next 5Y11.55%
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
A Price/Earnings ratio of 56.15 indicates a quite expensive valuation of SAP.
The rest of the industry has a similar Price/Earnings ratio as SAP.
The average S&P500 Price/Earnings ratio is at 29.35. SAP is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 39.93, the valuation of SAP can be described as expensive.
SAP's Price/Forward Earnings is on the same level as the industry average.
SAP is valuated expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.15 | ||
| Fwd PE | 39.93 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.08 | ||
| EV/EBITDA | 31.58 |
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 25.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y30.03%
EPS Next 3Y25.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, 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 2.93. SAP pays more dividend than 82.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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 Years4
Div Non Decr Years5
5.3 Sustainability
SAP pays out 82.11% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.11%
EPS Next 2Y30.03%
EPS Next 3Y25.41%
FRA:SAP (3/7/2025, 7:00:00 PM)
254.35
-7 (-2.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.22%
Inst Owner ChangeN/A
Ins Owners8.1%
Ins Owner ChangeN/A
Market Cap296.70B
Analysts76.92
Price Target281.5 (10.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP82.11%
Div Incr Years4
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.14%
Min EPS beat(2)-1.57%
Max EPS beat(2)1.86%
EPS beat(4)1
Avg EPS beat(4)-7.04%
Min EPS beat(4)-28.22%
Max EPS beat(4)1.86%
EPS beat(8)4
Avg EPS beat(8)18.27%
EPS beat(12)4
Avg EPS beat(12)6.89%
EPS beat(16)8
Avg EPS beat(16)14.58%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)1.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)3
Avg Revenue beat(12)-1.35%
Revenue beat(16)5
Avg Revenue beat(16)-0.96%
PT rev (1m)9.22%
PT rev (3m)18.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.67%
EPS NY rev (1m)2.64%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.15 | ||
| Fwd PE | 39.93 | ||
| P/S | 8.68 | ||
| P/FCF | 67.08 | ||
| P/OCF | 56.84 | ||
| P/B | 6.53 | ||
| P/tB | 25.61 | ||
| EV/EBITDA | 31.58 |
EPS(TTM)4.53
EY1.78%
EPS(NY)6.37
Fwd EY2.5%
FCF(TTM)3.79
FCFY1.49%
OCF(TTM)4.47
OCFY1.76%
SpS29.3
BVpS38.95
TBVpS9.93
PEG (NY)1.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 6.88% | ||
| ROCE | 14.66% | ||
| ROIC | 9.79% | ||
| ROICexc | 12.3% | ||
| ROICexgc | 54.14% | ||
| OM | 23.62% | ||
| PM (TTM) | 9.14% | ||
| GM | 72.94% | ||
| FCFM | 12.94% |
ROA(3y)5.45%
ROA(5y)6.51%
ROE(3y)8.93%
ROE(5y)11.53%
ROIC(3y)8.61%
ROIC(5y)8.53%
ROICexc(3y)10.74%
ROICexc(5y)10.49%
ROICexgc(3y)48.05%
ROICexgc(5y)47.94%
ROCE(3y)12.97%
ROCE(5y)12.91%
ROICexcg growth 3Y12.75%
ROICexcg growth 5Y0.43%
ROICexc growth 3Y15.56%
ROICexc growth 5Y4.33%
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-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 62.27% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 14.67 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 141.58% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 7.96 |
F-Score7
WACC7.08%
ROIC/WACC1.38
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)-37.69%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%-1.42%
EPS Next Y40.61%
EPS Next 2Y30.03%
EPS Next 3Y25.41%
EPS Next 5Y19.87%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%10.73%
Revenue Next Year13.1%
Revenue Next 2Y12.71%
Revenue Next 3Y12.84%
Revenue Next 5Y11.55%
EBIT growth 1Y23.94%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year54.89%
EBIT Next 3Y26.48%
EBIT Next 5Y21.67%
FCF growth 1Y-20.28%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y-17.57%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%