SAP SE-SPONSORED ADR (SAP)
US8030542042 - ADR
Overall SAP gets a fundamental rating of 5 out of 10. We evaluated SAP against 280 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. While showing a medium growth rate, SAP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SAP had positive earnings in the past year.
In the past year SAP had a positive cash flow from operations.
Each year in the past 5 years SAP has been profitable.
SAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.77%, SAP is doing good in the industry, outperforming 73.12% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.36%, SAP is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
SAP has a Return On Invested Capital of 9.44%. This is amongst the best in the industry. SAP outperforms 85.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAP is below the industry average of 12.22%.
The 3 year average ROIC (7.55%) for SAP is below the current ROIC(9.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 6.36% | ||
| ROIC | 9.44% |
ROA(3y)6.51%
ROA(5y)6.77%
ROE(3y)11.15%
ROE(5y)12.31%
ROIC(3y)7.55%
ROIC(5y)8.45%
1.3 Margins
SAP's Profit Margin of 8.15% is fine compared to the rest of the industry. SAP outperforms 75.63% of its industry peers.
SAP's Profit Margin has improved in the last couple of years.
The Operating Margin of SAP (22.16%) is better than 89.61% of its industry peers.
In the last couple of years the Operating Margin of SAP has declined.
SAP has a Gross Margin of 72.73%. This is comparable to the rest of the industry: SAP outperforms 59.86% of its industry peers.
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 | 22.16% | ||
| PM (TTM) | 8.15% | ||
| GM | 72.73% |
OM growth 3Y-7.79%
OM growth 5Y-3.96%
PM growth 3Y1.49%
PM growth 5Y3.55%
GM growth 3Y0.16%
GM growth 5Y0.43%
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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.58 indicates that SAP is not in any danger for bankruptcy at the moment.
The Altman-Z score of SAP (7.58) is better than 73.48% of its industry peers.
The Debt to FCF ratio of SAP is 1.31, which is an excellent value as it means it would take SAP, only 1.31 years of fcf income to pay off all of its debts.
SAP's Debt to FCF ratio of 1.31 is fine compared to the rest of the industry. SAP outperforms 70.25% of its industry peers.
SAP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SAP (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 7.58 |
ROIC/WACC1.39
WACC6.78%
2.3 Liquidity
A Current Ratio of 1.12 indicates that SAP should not have too much problems paying its short term obligations.
The Current ratio of SAP (1.12) is worse than 71.33% of its industry peers.
A Quick Ratio of 1.12 indicates that SAP should not have too much problems paying its short term obligations.
SAP has a Quick ratio of 1.12. This is in the lower half of the industry: SAP underperforms 70.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for SAP have decreased strongly by -33.58% in the last year.
Measured over the past years, SAP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.77% on average per year.
SAP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.71%.
SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.78% yearly.
EPS 1Y (TTM)-33.58%
EPS 3Y10.35%
EPS 5Y10.77%
EPS Q2Q%-15.17%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y4.51%
Revenue growth 5Y4.78%
Sales Q2Q%9.38%
3.2 Future
The Earnings Per Share is expected to grow by 6.01% on average over the next years.
The Revenue is expected to grow by 10.87% on average over the next years. This is quite good.
EPS Next Y-37.61%
EPS Next 2Y-7.67%
EPS Next 3Y0.73%
EPS Next 5Y6.01%
Revenue Next Year8.62%
Revenue Next 2Y9.86%
Revenue Next 3Y10.57%
Revenue Next 5Y10.87%
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 decreasing.
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
The Price/Earnings ratio is 53.12, which means the current valuation is very expensive for SAP.
SAP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.54. SAP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 39.02 indicates a quite expensive valuation of SAP.
Based on the Price/Forward Earnings ratio, SAP is valued a bit cheaper than the industry average as 62.37% of the companies are valued more expensively.
SAP is valuated expensively when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.12 | ||
| Fwd PE | 39.02 |
4.2 Price Multiples
73.84% 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 the industry average as 68.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.83 | ||
| EV/EBITDA | 32.71 |
4.3 Compensation for Growth
SAP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.93
EPS Next 2Y-7.67%
EPS Next 3Y0.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, SAP is not a good candidate for dividend investing.
SAP's Dividend Yield is rather good when compared to the industry average which is at 13.95. SAP pays more dividend than 92.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
On average, the dividend of SAP grows each year by 7.95%, which is quite nice.
SAP has paid a dividend for at least 10 years, which is a reliable track record.
SAP has decreased its dividend recently.
Dividend Growth(5Y)7.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SAP pays out 96.76% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SAP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP96.76%
EPS Next 2Y-7.67%
EPS Next 3Y0.73%
SAP SE-SPONSORED ADR
NYSE:SAP (12/26/2024, 3:05:54 PM)
253.9
+0.26 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners39.9%
Inst Owner Change0.07%
Ins Owners5.09%
Ins Owner ChangeN/A
Market Cap296.17B
Analysts76.84
Price Target251.3 (-1.02%)
Short Float %0.16%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Dividend Growth(5Y)7.95%
DP96.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.22%
Min EPS beat(2)-28.22%
Max EPS beat(2)-0.23%
EPS beat(4)1
Avg EPS beat(4)-8.85%
Min EPS beat(4)-28.22%
Max EPS beat(4)5.28%
EPS beat(8)3
Avg EPS beat(8)13%
EPS beat(12)5
Avg EPS beat(12)10.7%
EPS beat(16)9
Avg EPS beat(16)16.64%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)0.71%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)6
Avg Revenue beat(12)-0.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.6%
PT rev (1m)5.23%
PT rev (3m)4.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.12 | ||
| Fwd PE | 39.02 | ||
| P/S | 8.76 | ||
| P/FCF | 42.83 | ||
| P/OCF | 38.56 | ||
| P/B | 6.84 | ||
| P/tB | 29.96 | ||
| EV/EBITDA | 32.71 |
EPS(TTM)4.78
EY1.88%
EPS(NY)6.51
Fwd EY2.56%
FCF(TTM)5.93
FCFY2.33%
OCF(TTM)6.58
OCFY2.59%
SpS29
BVpS37.12
TBVpS8.48
PEG (NY)N/A
PEG (5Y)4.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 6.36% | ||
| ROCE | 13.94% | ||
| ROIC | 9.44% | ||
| ROICexc | 12.19% | ||
| ROICexgc | 61.8% | ||
| OM | 22.16% | ||
| PM (TTM) | 8.15% | ||
| GM | 72.73% | ||
| FCFM | 20.44% |
ROA(3y)6.51%
ROA(5y)6.77%
ROE(3y)11.15%
ROE(5y)12.31%
ROIC(3y)7.55%
ROIC(5y)8.45%
ROICexc(3y)9.41%
ROICexc(5y)10.16%
ROICexgc(3y)43.12%
ROICexgc(5y)48.37%
ROCE(3y)11.28%
ROCE(5y)12.68%
ROICexcg growth 3Y-11.02%
ROICexcg growth 5Y-13.28%
ROICexc growth 3Y-5.61%
ROICexc growth 5Y-4.8%
OM growth 3Y-7.79%
OM growth 5Y-3.96%
PM growth 3Y1.49%
PM growth 5Y3.55%
GM growth 3Y0.16%
GM growth 5Y0.43%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 57.35% | ||
| Cap/Sales | 2.26% | ||
| Interest Coverage | 13.68 | ||
| Cash Conversion | 86.98% | ||
| Profit Quality | 250.92% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 7.58 |
F-Score7
WACC6.78%
ROIC/WACC1.39
Cap/Depr(3y)49.45%
Cap/Depr(5y)47.31%
Cap/Sales(3y)2.78%
Cap/Sales(5y)2.86%
Profit Quality(3y)134.14%
Profit Quality(5y)121.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.58%
EPS 3Y10.35%
EPS 5Y10.77%
EPS Q2Q%-15.17%
EPS Next Y-37.61%
EPS Next 2Y-7.67%
EPS Next 3Y0.73%
EPS Next 5Y6.01%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y4.51%
Revenue growth 5Y4.78%
Sales Q2Q%9.38%
Revenue Next Year8.62%
Revenue Next 2Y9.86%
Revenue Next 3Y10.57%
Revenue Next 5Y10.87%
EBIT growth 1Y18.62%
EBIT growth 3Y-3.63%
EBIT growth 5Y0.64%
EBIT Next Year1.24%
EBIT Next 3Y16.08%
EBIT Next 5Y14.51%
FCF growth 1Y55.09%
FCF growth 3Y-4.54%
FCF growth 5Y14.29%
OCF growth 1Y42.07%
OCF growth 3Y-4.16%
OCF growth 5Y8.04%