SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SAP - DE0007164600 - Common Stock
197.92 EUR
+8.08 (+4.26%)
Overall SAP gets a fundamental rating of 6 out of 10. We evaluated SAP against 114 industry peers in the Software industry. SAP has an average financial health and profitability rating. 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.
- Each year in the past 5 years SAP has been profitable.
- Each year in the past 5 years SAP had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SAP (10.35%) is better than 73.95% of its industry peers.
- With a decent Return On Equity value of 16.54%, SAP is doing good in the industry, outperforming 66.39% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 13.05%, SAP is in the better half of the industry, outperforming 78.99% of the companies in the same industry.
- SAP had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 13.49%.
- 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
- SAP has a Profit Margin of 19.41%. This is in the better half of the industry: SAP outperforms 73.95% of its industry peers.
- In the last couple of years the Profit Margin of SAP has declined.
- SAP's Operating Margin of 27.47% is amongst the best of the industry. SAP outperforms 85.71% of its industry peers.
- In the last couple of years the Operating Margin of SAP has remained more or less at the same level.
- With a Gross Margin value of 73.83%, SAP perfoms like the industry average, outperforming 49.58% of the companies in the same 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 | 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.
- Compared to 1 year ago, SAP has about the same amount of shares outstanding.
- SAP has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SAP has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 7.39 indicates that SAP is not in any danger for bankruptcy at the moment.
- SAP's Altman-Z score of 7.39 is amongst the best of the industry. SAP outperforms 80.67% 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.
- The Debt to FCF ratio of SAP (1.41) is better than 66.39% 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 63.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.39 |
ROIC/WACC1.61
WACC8.12%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
- SAP's Current ratio of 1.10 is on the low side compared to the rest of the industry. SAP is outperformed by 64.71% of its industry peers.
- A Quick Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
- SAP has a Quick ratio of 1.10. This is in the lower half of the industry: SAP underperforms 62.18% 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.
- The Earnings Per Share has been decreasing by -2.38% on average over the past years.
- The Revenue has grown by 9.70% 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)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
- SAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.23% yearly.
- 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
- A Price/Earnings ratio of 33.43 indicates a quite expensive valuation of SAP.
- Compared to the rest of the industry, the Price/Earnings ratio of SAP is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of SAP to the average of the S&P500 Index (27.21), we can say SAP is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 27.30, the valuation of SAP can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as SAP.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SAP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 27.3 |
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 indicates a somewhat cheap valuation: SAP is cheaper than 60.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.58 | ||
| EV/EBITDA | 20.12 |
4.3 Compensation for Growth
- The 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.
- SAP's earnings are expected to grow with 24.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
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.
- SAP's Dividend Yield is rather good when compared to the industry average which is at 0.68. SAP pays more dividend than 84.87% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.81, SAP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 Years1
Div Non Decr Years6
5.3 Sustainability
- 38.73% 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.
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 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 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%.