SAP SE (SAP.DE) Stock Fundamental Analysis
FRA:SAP - Deutsche Boerse Ag - DE0007164600 - Common Stock - Currency: EUR
SAP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 94 industry peers in the Software industry. SAP has only an average score on both its financial health and profitability. 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.
In the past 5 years SAP has always been profitable.
SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.21%, SAP is in the better half of the industry, outperforming 60.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.88%, SAP is in line with its industry, outperforming 56.38% of the companies in the same industry.
SAP has a better Return On Invested Capital (9.79%) than 78.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAP is below the industry average of 11.00%.
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
Looking at the Profit Margin, with a value of 9.14%, SAP is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
SAP's Profit Margin has declined in the last couple of years.
The Operating Margin of SAP (23.62%) is better than 87.23% of its industry peers.
SAP's Operating Margin has been stable in the last couple of years.
SAP's Gross Margin of 72.94% is in line compared to the rest of the industry. SAP outperforms 58.51% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAP is still creating some value.
SAP has about the same amout of shares outstanding than it did 1 year ago.
SAP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SAP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.64 indicates that SAP is not in any danger for bankruptcy at the moment.
The Altman-Z score of SAP (7.64) is better than 84.04% 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's Debt to FCF ratio of 2.59 is fine compared to the rest of the industry. SAP outperforms 61.70% of its industry peers.
SAP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.16, SAP is doing good in the industry, outperforming 67.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 7.64 |
ROIC/WACC1.28
WACC7.63%
2.3 Liquidity
A Current Ratio of 1.12 indicates that SAP should not have too much problems paying its short term obligations.
SAP has a Current ratio (1.12) which is in line with 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.
SAP has a Quick ratio of 1.12. This is comparable to the rest of the industry: SAP outperforms 42.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for SAP have decreased strongly by -25.96% in the last year.
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.
The Revenue has been growing slightly by 4.40% on average over the past years.
EPS 1Y (TTM)-25.96%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%63.25%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%3.26%
3.2 Future
The Earnings Per Share is expected to grow by 21.09% 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 12.01% yearly.
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y21.09%
Revenue Next Year13.1%
Revenue Next 2Y12.71%
Revenue Next 3Y12.84%
Revenue Next 5Y12.01%
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
Based on the Price/Earnings ratio of 48.55, the valuation of SAP can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SAP.
When comparing the Price/Earnings ratio of SAP to the average of the S&P500 Index (28.92), we can say SAP is valued expensively.
The Price/Forward Earnings ratio is 32.10, which means the current valuation is very expensive for SAP.
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 21.65, SAP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.55 | ||
| Fwd PE | 32.1 |
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 | 64.54 | ||
| EV/EBITDA | 29.93 |
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)1.22
PEG (5Y)N/A
EPS Next 2Y29.72%
EPS Next 3Y25.76%
5. Dividend
5.1 Amount
SAP has a Yearly Dividend Yield of 1.04%.
Compared to an average industry Dividend Yield of 2.04, SAP pays a better dividend. On top of this SAP pays more dividend than 85.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 Years4
Div Non Decr Years5
5.3 Sustainability
82.11% of the earnings are spent on dividend by SAP. This is not a sustainable payout ratio.
SAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.11%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
FRA:SAP (4/25/2025, 5:36:15 PM)
244.7
+3.55 (+1.47%)
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 Cap285.44B
Analysts78.42
Price Target286.91 (17.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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)1.92%
PT rev (3m)18.34%
EPS NQ rev (1m)-3.14%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)2.09%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.55 | ||
| Fwd PE | 32.1 | ||
| P/S | 8.35 | ||
| P/FCF | 64.54 | ||
| P/OCF | 54.68 | ||
| P/B | 6.28 | ||
| P/tB | 24.63 | ||
| EV/EBITDA | 29.93 |
EPS(TTM)5.04
EY2.06%
EPS(NY)7.62
Fwd EY3.12%
FCF(TTM)3.79
FCFY1.55%
OCF(TTM)4.47
OCFY1.83%
SpS29.3
BVpS38.95
TBVpS9.93
PEG (NY)1.22
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 | 7.64 |
F-Score7
WACC7.63%
ROIC/WACC1.28
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)-25.96%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%63.25%
EPS Next Y39.67%
EPS Next 2Y29.72%
EPS Next 3Y25.76%
EPS Next 5Y21.09%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%3.26%
Revenue Next Year13.1%
Revenue Next 2Y12.71%
Revenue Next 3Y12.84%
Revenue Next 5Y12.01%
EBIT growth 1Y23.94%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year57.14%
EBIT Next 3Y28.55%
EBIT Next 5Y20.72%
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%