SAP SE (SAP.DE) Stock Fundamental Analysis
FRA:SAP • DE0007164600
170.74 EUR
-2.64 (-1.52%)
Last: Feb 19, 2026, 07:00 PM
Taking everything into account, SAP scores 6 out of 10 in our fundamental rating. SAP was compared to 117 industry peers in the Software industry. While SAP has a great profitability rating, 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.
- SAP had a positive operating cash flow in the past year.
- 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
- With a decent Return On Assets value of 10.41%, SAP is doing good in the industry, outperforming 76.07% of the companies in the same industry.
- SAP's Return On Equity of 16.37% is fine compared to the rest of the industry. SAP outperforms 66.67% of its industry peers.
- SAP has a Return On Invested Capital of 13.43%. This is in the better half of the industry: SAP outperforms 79.49% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SAP is below the industry average of 13.32%.
- The 3 year average ROIC (10.61%) for SAP is below the current ROIC(13.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 16.37% | ||
| ROIC | 13.43% |
ROA(3y)7.87%
ROA(5y)6.83%
ROE(3y)12.49%
ROE(5y)11.34%
ROIC(3y)10.61%
ROIC(5y)9.31%
1.3 Margins
- With a decent Profit Margin value of 19.91%, SAP is doing good in the industry, outperforming 76.07% of the companies in the same industry.
- In the last couple of years the Profit Margin of SAP has remained more or less at the same level.
- SAP has a Operating Margin of 28.17%. This is amongst the best in the industry. SAP outperforms 83.76% of its industry peers.
- In the last couple of years the Operating Margin of SAP has remained more or less at the same level.
- The Gross Margin of SAP (73.62%) is comparable to the rest of the industry.
- 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 | 28.17% | ||
| PM (TTM) | 19.91% | ||
| GM | 73.62% |
OM growth 3Y8.24%
OM growth 5Y1.17%
PM growth 3Y37.04%
PM growth 5Y1.13%
GM growth 3Y0.25%
GM growth 5Y0.42%
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.
- SAP has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for SAP has been reduced compared to 5 years ago.
- SAP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.74 indicates that SAP is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.74, SAP belongs to the top of the industry, outperforming 85.47% of the companies in the same industry.
- The Debt to FCF ratio of SAP is 0.96, which is an excellent value as it means it would take SAP, only 0.96 years of fcf income to pay off all of its debts.
- SAP has a Debt to FCF ratio of 0.96. This is in the better half of the industry: SAP outperforms 76.92% of its industry peers.
- A Debt/Equity ratio of 0.13 indicates that SAP is not too dependend on debt financing.
- SAP has a Debt to Equity ratio of 0.13. This is in the better half of the industry: SAP outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 6.74 |
ROIC/WACC1.68
WACC8.01%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that SAP should not have too much problems paying its short term obligations.
- The Current ratio of SAP (1.17) is worse than 62.39% of its industry peers.
- A Quick Ratio of 1.17 indicates that SAP should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.17, SAP is not doing good in the industry: 60.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 35.76% over the past year.
- The Earnings Per Share has been growing slightly by 2.60% on average over the past years.
- SAP shows a small growth in Revenue. In the last year, the Revenue has grown by 7.67%.
- SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.12% yearly.
EPS 1Y (TTM)35.76%
EPS 3Y14.85%
EPS 5Y2.6%
EPS Q2Q%16.55%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y7.62%
Revenue growth 5Y6.12%
Sales Q2Q%3.27%
3.2 Future
- Based on estimates for the next years, SAP will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.34% on average per year.
- Based on estimates for the next years, SAP will show a quite strong growth in Revenue. The Revenue will grow by 13.09% on average per year.
EPS Next Y17.89%
EPS Next 2Y18.52%
EPS Next 3Y18.23%
EPS Next 5Y18.34%
Revenue Next Year10.48%
Revenue Next 2Y11.47%
Revenue Next 3Y13.9%
Revenue Next 5Y13.09%
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 27.76, SAP can be considered very expensive at the moment.
- SAP's Price/Earnings ratio is in line with the industry average.
- SAP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.09.
- SAP is valuated rather expensively with a Price/Forward Earnings ratio of 23.55.
- SAP's Price/Forward Earnings ratio is in line with the industry average.
- SAP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.76 | ||
| Fwd PE | 23.55 |
4.2 Price Multiples
- SAP's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than the industry average as 64.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.62 | ||
| EV/EBITDA | 17.01 |
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.
- SAP's earnings are expected to grow with 18.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)10.69
EPS Next 2Y18.52%
EPS Next 3Y18.23%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.38%, 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 0.69. SAP pays more dividend than 84.62% of the companies in the same industry.
- SAP's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
- The dividend of SAP is nicely growing with an annual growth rate of 8.40%!
Dividend Growth(5Y)8.4%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
- 37.44% of the earnings are spent on dividend by SAP. This is a low number and sustainable payout ratio.
- SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.44%
EPS Next 2Y18.52%
EPS Next 3Y18.23%
FRA:SAP (2/19/2026, 7:00:00 PM)
170.74
-2.64 (-1.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-23 2026-04-23/amc
Inst Owners40.04%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap198.84B
Revenue(TTM)36.80B
Net Income(TTM)7.33B
Analysts77.07
Price Target257.7 (50.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend2.35
Dividend Growth(5Y)8.4%
DP37.44%
Div Incr Years1
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.87%
Min EPS beat(2)3.69%
Max EPS beat(2)4.05%
EPS beat(4)4
Avg EPS beat(4)4.8%
Min EPS beat(4)1.63%
Max EPS beat(4)9.81%
EPS beat(8)5
Avg EPS beat(8)-1.12%
EPS beat(12)8
Avg EPS beat(12)13.78%
EPS beat(16)8
Avg EPS beat(16)6.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.88%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.6%
Revenue beat(8)1
Avg Revenue beat(8)-0.88%
Revenue beat(12)3
Avg Revenue beat(12)-0.79%
Revenue beat(16)3
Avg Revenue beat(16)-1.45%
PT rev (1m)-11.79%
PT rev (3m)-12.07%
EPS NQ rev (1m)2.27%
EPS NQ rev (3m)3.93%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)-1.84%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.76 | ||
| Fwd PE | 23.55 | ||
| P/S | 5.4 | ||
| P/FCF | 23.62 | ||
| P/OCF | 21.72 | ||
| P/B | 4.44 | ||
| P/tB | 14.78 | ||
| EV/EBITDA | 17.01 |
EPS(TTM)6.15
EY3.6%
EPS(NY)7.25
Fwd EY4.25%
FCF(TTM)7.23
FCFY4.23%
OCF(TTM)7.86
OCFY4.6%
SpS31.6
BVpS38.43
TBVpS11.55
PEG (NY)1.55
PEG (5Y)10.69
Graham Number72.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 16.37% | ||
| ROCE | 19.52% | ||
| ROIC | 13.43% | ||
| ROICexc | 16.45% | ||
| ROICexgc | 59.21% | ||
| OM | 28.17% | ||
| PM (TTM) | 19.91% | ||
| GM | 73.62% | ||
| FCFM | 22.87% |
ROA(3y)7.87%
ROA(5y)6.83%
ROE(3y)12.49%
ROE(5y)11.34%
ROIC(3y)10.61%
ROIC(5y)9.31%
ROICexc(3y)13.63%
ROICexc(5y)11.8%
ROICexgc(3y)62.47%
ROICexgc(5y)55.44%
ROCE(3y)15.47%
ROCE(5y)13.63%
ROICexgc growth 3Y5.44%
ROICexgc growth 5Y0.02%
ROICexc growth 3Y18.72%
ROICexc growth 5Y5.54%
OM growth 3Y8.24%
OM growth 5Y1.17%
PM growth 3Y37.04%
PM growth 5Y1.13%
GM growth 3Y0.25%
GM growth 5Y0.42%
F-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 56.37% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 18.06 | ||
| Cash Conversion | 78.41% | ||
| Profit Quality | 114.88% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 6.74 |
F-Score9
WACC8.01%
ROIC/WACC1.68
Cap/Depr(3y)58.6%
Cap/Depr(5y)53.4%
Cap/Sales(3y)2.29%
Cap/Sales(5y)2.54%
Profit Quality(3y)115.61%
Profit Quality(5y)131.78%
High Growth Momentum
Growth
EPS 1Y (TTM)35.76%
EPS 3Y14.85%
EPS 5Y2.6%
EPS Q2Q%16.55%
EPS Next Y17.89%
EPS Next 2Y18.52%
EPS Next 3Y18.23%
EPS Next 5Y18.34%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y7.62%
Revenue growth 5Y6.12%
Sales Q2Q%3.27%
Revenue Next Year10.48%
Revenue Next 2Y11.47%
Revenue Next 3Y13.9%
Revenue Next 5Y13.09%
EBIT growth 1Y27.11%
EBIT growth 3Y16.49%
EBIT growth 5Y7.37%
EBIT Next Year28.66%
EBIT Next 3Y18.39%
EBIT Next 5Y17.07%
FCF growth 1Y90.3%
FCF growth 3Y20.83%
FCF growth 5Y5.71%
OCF growth 1Y75.4%
OCF growth 3Y17.49%
OCF growth 5Y4.94%
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 7 / 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 17.89% 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 37.44%.