SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SAP - DE0007164600 - Common Stock
213.1 EUR
+0.75 (+0.35%)
Overall SAP gets a fundamental rating of 6 out of 10. We evaluated SAP against 125 industry peers in the Software industry. While SAP belongs to the best of the industry regarding profitability, 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.
In the past year SAP had a positive cash flow from operations.
SAP had positive earnings in each of the past 5 years.
SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SAP (10.35%) is better than 76.80% of its industry peers.
SAP's Return On Equity of 16.54% is fine compared to the rest of the industry. SAP outperforms 69.60% of its industry peers.
SAP has a better Return On Invested Capital (13.05%) than 81.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAP is below the industry average of 12.89%.
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 76.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SAP has declined.
Looking at the Operating Margin, with a value of 27.47%, SAP belongs to the top of the industry, outperforming 86.40% 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 has a Gross Margin (73.83%) which is comparable to the rest of the industry.
SAP's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAP is still 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
SAP has an Altman-Z score of 7.79. This indicates that SAP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SAP (7.79) is better than 80.80% 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.
SAP has a better Debt to FCF ratio (1.41) than 66.40% of its industry peers.
SAP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
SAP has a Debt to Equity ratio of 0.14. This is in the better half of the industry: SAP outperforms 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.79 |
ROIC/WACC1.66
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
SAP has a worse Current ratio (1.10) than 64.80% of its industry peers.
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 Quick ratio of 1.10. This is in the lower half of the industry: SAP underperforms 62.40% 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.
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 9.70%.
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)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
Based on estimates for the next years, SAP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.23% on average per year.
The Revenue is expected to grow by 12.20% on average over the next years. This is quite good.
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
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 36.00 indicates a quite expensive valuation of SAP.
SAP's Price/Earnings ratio is a bit cheaper when compared to the industry. SAP is cheaper than 61.60% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, SAP is valued a bit more expensive.
A Price/Forward Earnings ratio of 29.35 indicates a quite expensive valuation of SAP.
The rest of the industry has a similar Price/Forward Earnings ratio as SAP.
SAP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36 | ||
| Fwd PE | 29.35 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAP.
Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than 60.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.3 | ||
| EV/EBITDA | 21.6 |
4.3 Compensation for Growth
The 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 24.06% in the coming years.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y26.6%
EPS Next 3Y24.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, SAP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.62, SAP pays a better dividend. On top of this SAP pays more dividend than 82.40% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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 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 (1/12/2026, 7:00:00 PM)
213.1
+0.75 (+0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.04%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap248.18B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts77.95
Price Target292.15 (37.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)-0.38%
PT rev (3m)-0.17%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)0.59%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36 | ||
| Fwd PE | 29.35 | ||
| P/S | 6.8 | ||
| P/FCF | 38.3 | ||
| P/OCF | 33.96 | ||
| P/B | 5.8 | ||
| P/tB | 21.79 | ||
| EV/EBITDA | 21.6 |
EPS(TTM)5.92
EY2.78%
EPS(NY)7.26
Fwd EY3.41%
FCF(TTM)5.56
FCFY2.61%
OCF(TTM)6.27
OCFY2.94%
SpS31.34
BVpS36.76
TBVpS9.78
PEG (NY)1
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 | 7.79 |
F-Score9
WACC7.88%
ROIC/WACC1.66
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 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 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%.