SAP SE (SAP.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:SAP • DE0007164600
170.56 EUR
+5.94 (+3.61%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to SAP. SAP was compared to 114 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 is not valued too expensively and it also shows 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.
- Each year in the past 5 years SAP had a positive operating cash flow.
1.2 Ratios
- SAP has a Return On Assets of 10.35%. This is in the better half of the industry: SAP outperforms 73.68% of its industry peers.
- SAP has a better Return On Equity (16.54%) than 66.67% of its industry peers.
- The Return On Invested Capital of SAP (13.05%) is better than 78.95% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SAP is below the industry average of 13.49%.
- The 3 year average ROIC (8.58%) for SAP is below the current ROIC(13.05%), indicating increased profibility in the last year.
| 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
- The Profit Margin of SAP (19.41%) is better than 74.56% of its industry peers.
- In the last couple of years the Profit Margin of SAP has declined.
- SAP has a better Operating Margin (27.47%) than 84.21% 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 (73.83%) 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
- 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.
- The number of shares outstanding for SAP has been reduced compared to 5 years ago.
- Compared to 1 year ago, SAP has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.48 indicates that SAP is not in any danger for bankruptcy at the moment.
- SAP's Altman-Z score of 6.48 is amongst the best of the industry. SAP outperforms 81.58% of its industry peers.
- The Debt to FCF ratio of SAP is 1.41, which is an excellent value as it means it would take SAP, only 1.41 years of fcf income to pay off all of its debts.
- SAP has a Debt to FCF ratio of 1.41. This is in the better half of the industry: SAP outperforms 68.42% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that SAP is not too dependend on debt financing.
- The Debt to Equity ratio of SAP (0.14) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 6.48 |
ROIC/WACC1.68
WACC7.76%
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.
- SAP has a worse Current ratio (1.10) than 64.04% 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.
- The Quick ratio of SAP (1.10) is worse than 62.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 34.94% over the past year.
- SAP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.38% yearly.
- Looking at the last year, SAP shows a quite strong growth in Revenue. The Revenue has grown by 9.51% in the last year.
- SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
EPS 1Y (TTM)34.94%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%13.86%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%0.58%
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.
- SAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.20% yearly.
EPS Next Y35.83%
EPS Next 2Y26.51%
EPS Next 3Y24.01%
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
- Based on the Price/Earnings ratio of 27.91, the valuation of SAP can be described as expensive.
- 70.18% of the companies in the same industry are more expensive than SAP, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of SAP to the average of the S&P500 Index (28.30), we can say SAP is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 23.52, the valuation of SAP can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, SAP is valued a bit cheaper than 65.79% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. SAP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.91 | ||
| Fwd PE | 23.52 |
4.2 Price Multiples
- 60.53% of the companies in the same industry are more expensive than SAP, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.66 | ||
| EV/EBITDA | 16.7 |
4.3 Compensation for Growth
- SAP's 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 24.01% in the coming years.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y26.51%
EPS Next 3Y24.01%
5. Dividend
5.1 Amount
- SAP has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
- In the last 3 months the price of SAP has falen by -24.01%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 0.68, SAP pays a better dividend. On top of this SAP pays more dividend than 84.21% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, SAP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 2Y26.51%
EPS Next 3Y24.01%
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 5 / 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 35.83% 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%.