SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SAP - DE0007164600 - Common Stock
213.4 EUR
+3.25 (+1.55%)
SAP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 116 industry peers in the Software industry. While SAP has a great profitability rating, there are some minor concerns on its financial health. SAP is quite expensive at the moment. It does show a decent 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.
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
The Return On Assets of SAP (10.35%) is better than 78.45% of its industry peers.
SAP has a Return On Equity of 16.54%. This is in the better half of the industry: SAP outperforms 69.83% of its industry peers.
SAP's Return On Invested Capital of 13.05% is amongst the best of the industry. SAP outperforms 80.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAP is below the industry average of 13.28%.
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
With a decent Profit Margin value of 19.41%, SAP is doing good in the industry, outperforming 74.14% of the companies in the same industry.
In the last couple of years the Profit Margin of SAP has declined.
The Operating Margin of SAP (27.47%) is better than 85.34% of its industry peers.
SAP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 73.83%, SAP is in line with its industry, outperforming 53.45% of the companies in the same 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.
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
SAP has an Altman-Z score of 7.73. This indicates that SAP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.73, SAP belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.41, SAP is doing good in the industry, outperforming 69.83% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that SAP is not too dependend on debt financing.
SAP's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. SAP outperforms 64.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 7.73 |
ROIC/WACC1.7
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.10 indicates that SAP should not have too much problems paying its short term obligations.
The Current ratio of SAP (1.10) is worse than 64.66% 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's Quick ratio of 1.10 is on the low side compared to the rest of the industry. SAP is outperformed by 62.07% 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 30.11% over the past year.
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.
The Revenue has grown by 9.70% in the past year. This is quite good.
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
SAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.58% yearly.
Based on estimates for the next years, SAP will show a quite strong growth in Revenue. The Revenue will grow by 12.53% on average per year.
EPS Next Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
EPS Next 5Y21.58%
Revenue Next Year9.2%
Revenue Next 2Y10.08%
Revenue Next 3Y10.96%
Revenue Next 5Y12.53%
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
Based on the Price/Earnings ratio of 36.05, the valuation of SAP can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SAP.
SAP is valuated rather expensively when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.52, the valuation of SAP can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SAP.
The average S&P500 Price/Forward Earnings ratio is at 35.40. SAP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.05 | ||
| Fwd PE | 29.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAP.
SAP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.36 | ||
| EV/EBITDA | 21.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 23.94% in the coming years.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y26.32%
EPS Next 3Y23.94%
5. Dividend
5.1 Amount
SAP has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.22, SAP pays a better dividend. On top of this SAP pays more dividend than 85.34% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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 2Y26.32%
EPS Next 3Y23.94%
FRA:SAP (12/5/2025, 5:07:13 PM)
213.4
+3.25 (+1.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.23%
Inst Owner ChangeN/A
Ins Owners8.07%
Ins Owner ChangeN/A
Market Cap248.53B
Revenue(TTM)36.49B
Net Income(TTM)7.08B
Analysts78.95
Price Target293.25 (37.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)0.21%
PT rev (3m)-0.7%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-4.65%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.05 | ||
| Fwd PE | 29.52 | ||
| P/S | 6.81 | ||
| P/FCF | 38.36 | ||
| P/OCF | 34.01 | ||
| P/B | 5.81 | ||
| P/tB | 21.82 | ||
| EV/EBITDA | 21.37 |
EPS(TTM)5.92
EY2.77%
EPS(NY)7.23
Fwd EY3.39%
FCF(TTM)5.56
FCFY2.61%
OCF(TTM)6.27
OCFY2.94%
SpS31.34
BVpS36.76
TBVpS9.78
PEG (NY)1.03
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 | 7.73 |
F-Score9
WACC7.67%
ROIC/WACC1.7
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 Y35.07%
EPS Next 2Y26.32%
EPS Next 3Y23.94%
EPS Next 5Y21.58%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%7.15%
Revenue Next Year9.2%
Revenue Next 2Y10.08%
Revenue Next 3Y10.96%
Revenue Next 5Y12.53%
EBIT growth 1Y30.45%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year56.23%
EBIT Next 3Y28.74%
EBIT Next 5Y21.39%
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 of SAP SE (SAP.DE) 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 valuation of SAP SE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SAP SE (SAP.DE) is 36.05 and the Price/Book (PB) ratio is 5.81.
Can you provide the dividend sustainability for SAP stock?
The dividend rating of SAP SE (SAP.DE) is 6 / 10 and the dividend payout ratio is 38.73%.