SAP SE (SAP.DE) Stock Fundamental Analysis
Europe - FRA:SAP - DE0007164600 - Common Stock
210.95 EUR
-3.7 (-1.72%)
We assign a fundamental rating of 6 out of 10 to SAP. SAP was compared to 103 industry peers in the Software industry. While SAP has a great profitability rating, there are some minor concerns on its financial health. SAP has a decent growth rate and is not valued too expensively.
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.
In the past 5 years SAP always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.56%, SAP belongs to the best of the industry, outperforming 82.52% of the companies in the same industry.
SAP has a better Return On Equity (15.95%) than 71.84% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.00%, SAP belongs to the top of the industry, outperforming 82.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAP is below the industry average of 12.80%.
The 3 year average ROIC (8.58%) for SAP is below the current ROIC(13.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 15.95% | ||
| ROIC | 13% |
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 better Profit Margin (18.23%) than 75.73% of its industry peers.
In the last couple of years the Profit Margin of SAP has declined.
SAP has a Operating Margin of 27.04%. This is amongst the best in the industry. SAP outperforms 84.47% of its industry peers.
SAP's Operating Margin has been stable in the last couple of years.
SAP's Gross Margin of 73.80% is in line compared to the rest of the industry. SAP outperforms 56.31% of its industry peers.
SAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.04% | ||
| PM (TTM) | 18.23% | ||
| GM | 73.8% |
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.
SAP has less shares outstanding than it did 5 years ago.
SAP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.35 indicates that SAP is not in any danger for bankruptcy at the moment.
The Altman-Z score of SAP (7.35) is better than 80.58% of its industry peers.
SAP has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
SAP's Debt to FCF ratio of 1.35 is fine compared to the rest of the industry. SAP outperforms 71.84% of its industry peers.
SAP has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.15, SAP is doing good in the industry, outperforming 67.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 7.35 |
ROIC/WACC1.76
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.03 indicates that SAP should not have too much problems paying its short term obligations.
The Current ratio of SAP (1.03) is worse than 63.11% of its industry peers.
A Quick Ratio of 1.03 indicates that SAP should not have too much problems paying its short term obligations.
SAP's Quick ratio of 1.03 is on the low side compared to the rest of the industry. SAP is outperformed by 62.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.56% 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.
SAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.29%.
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)16.56%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%36.36%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
3.2 Future
The Earnings Per Share is expected to grow by 21.07% 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 12.62% yearly.
EPS Next Y34.89%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
EPS Next 5Y21.07%
Revenue Next Year9.81%
Revenue Next 2Y10.6%
Revenue Next 3Y11.45%
Revenue Next 5Y12.62%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SAP is valuated quite expensively with a Price/Earnings ratio of 37.94.
Compared to the rest of the industry, the Price/Earnings ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 62.14% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SAP to the average of the S&P500 Index (27.27), we can say SAP is valued slightly more expensively.
The Price/Forward Earnings ratio is 28.95, which means the current valuation is very expensive for SAP.
The rest of the industry has a similar Price/Forward Earnings ratio as SAP.
The average S&P500 Price/Forward Earnings ratio is at 22.77. SAP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 28.95 |
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 62.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.71 | ||
| EV/EBITDA | 22.21 |
4.3 Compensation for Growth
SAP's 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.
SAP's earnings are expected to grow with 24.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y26.83%
EPS Next 3Y24.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, SAP has a reasonable but not impressive dividend return.
SAP's Dividend Yield is rather good when compared to the industry average which is at 2.08. SAP pays more dividend than 82.52% of the companies in the same industry.
With a Dividend Yield of 1.07, SAP pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
41.94% of the earnings are spent on dividend by SAP. This is a bit on the high side, but may be sustainable.
The dividend of SAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.94%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
FRA:SAP (9/16/2025, 5:36:15 PM)
210.95
-3.7 (-1.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.46%
Inst Owner ChangeN/A
Ins Owners5.09%
Ins Owner ChangeN/A
Market Cap244.76B
Analysts78.38
Price Target296.16 (40.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend2.2
Dividend Growth(5Y)7.95%
DP41.94%
Div Incr Years1
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.72%
Min EPS beat(2)1.63%
Max EPS beat(2)9.81%
EPS beat(4)3
Avg EPS beat(4)2.93%
Min EPS beat(4)-1.57%
Max EPS beat(4)9.81%
EPS beat(8)4
Avg EPS beat(8)-2.96%
EPS beat(12)6
Avg EPS beat(12)9.64%
EPS beat(16)8
Avg EPS beat(16)8.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.6%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.56%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)5
Avg Revenue beat(16)-1.09%
PT rev (1m)2.17%
PT rev (3m)2.85%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-9.22%
EPS NY rev (1m)-3.43%
EPS NY rev (3m)-3.43%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-4.12%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 28.95 | ||
| P/S | 6.82 | ||
| P/FCF | 37.71 | ||
| P/OCF | 33.62 | ||
| P/B | 5.97 | ||
| P/tB | 24.06 | ||
| EV/EBITDA | 22.21 |
EPS(TTM)5.56
EY2.64%
EPS(NY)7.29
Fwd EY3.45%
FCF(TTM)5.59
FCFY2.65%
OCF(TTM)6.27
OCFY2.97%
SpS30.93
BVpS35.34
TBVpS8.77
PEG (NY)1.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 15.95% | ||
| ROCE | 19.67% | ||
| ROIC | 13% | ||
| ROICexc | 16.33% | ||
| ROICexgc | 73.27% | ||
| OM | 27.04% | ||
| PM (TTM) | 18.23% | ||
| GM | 73.8% | ||
| FCFM | 18.08% |
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%
ROICexcg growth 3Y10.63%
ROICexcg 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-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 59.76% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 17.61 | ||
| Cash Conversion | 66.02% | ||
| Profit Quality | 99.22% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 7.35 |
F-Score8
WACC7.39%
ROIC/WACC1.76
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)16.56%
EPS 3Y-12.45%
EPS 5Y-2.38%
EPS Q2Q%36.36%
EPS Next Y34.89%
EPS Next 2Y26.83%
EPS Next 3Y24.42%
EPS Next 5Y21.07%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y7.07%
Revenue growth 5Y4.4%
Sales Q2Q%8.92%
Revenue Next Year9.81%
Revenue Next 2Y10.6%
Revenue Next 3Y11.45%
Revenue Next 5Y12.62%
EBIT growth 1Y34.62%
EBIT growth 3Y15.02%
EBIT growth 5Y5.49%
EBIT Next Year58.56%
EBIT Next 3Y28.56%
EBIT Next 5Y21.41%
FCF growth 1Y22.34%
FCF growth 3Y-6.56%
FCF growth 5Y10.55%
OCF growth 1Y18.64%
OCF growth 3Y-5.69%
OCF growth 5Y8.35%