XTRA:SAP

Stock Analysis Report

Executive Summary

SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide.

Snowflake

Fundamentals

High growth potential with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has SAP's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

SAP

10.0%

DE Software

3.9%

DE Market


1 Year Return

21.5%

SAP

21.0%

DE Software

3.4%

DE Market

Return vs Industry: SAP matched the German Software industry which returned 21% over the past year.

Return vs Market: SAP exceeded the German Market which returned 3.4% over the past year.


Shareholder returns

SAPIndustryMarket
7 Day0.1%10.0%3.9%
30 Day6.7%6.8%2.1%
90 Day3.4%3.1%3.7%
1 Year23.2%21.5%22.6%21.0%6.7%3.4%
3 Year47.2%41.3%54.7%48.4%18.9%8.6%
5 Year141.5%124.3%144.4%127.1%41.8%22.5%

Price Volatility Vs. Market

How volatile is SAP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SAP undervalued compared to its fair value and its price relative to the market?

40.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SAP (€115.82) is trading above our estimate of fair value (€99.74)

Significantly Undervalued: SAP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SAP is poor value based on its PE Ratio (40.9x) compared to the Software industry average (36.6x).

PE vs Market: SAP is poor value based on its PE Ratio (40.9x) compared to the German market (19.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: SAP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SAP is overvalued based on its PB Ratio (5x) compared to the DE Software industry average (3x).


Next Steps

Future Growth

How is SAP forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAP's forecast earnings growth (25.9% per year) is above the savings rate (0.2%).

Earnings vs Market: SAP's earnings (25.9% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SAP's revenue (6.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: SAP's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SAP's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has SAP performed over the past 5 years?

3.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SAP's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: SAP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SAP had negative earnings growth (-19.4%) over the past year, making it difficult to compare to the Software industry average (14.5%).


Return on Equity

High ROE: SAP's Return on Equity (12.4%) is considered low.


Return on Assets

ROA vs Industry: SAP has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: SAP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is SAP's financial position?


Financial Position Analysis

Short Term Liabilities: SAP's short term assets (€13.6B) do not cover its short term liabilities (€14.2B)

Long Term Liabilities: SAP's short term assets (13.6B) do not cover its long term liabilities (15.9B)


Debt to Equity History and Analysis

Debt Level: SAP's debt to equity ratio (5.3%) is considered satisfactory

Reducing Debt: SAP's debt to equity ratio has reduced from 25.3% to 5.3% over the past 5 years.

Debt Coverage: SAP's debt is well covered by operating cash flow (274.5%).

Interest Coverage: SAP's interest payments on its debt are well covered by EBIT (23.8x coverage).


Balance Sheet

Inventory Level: SAP has a low level of unsold assets or inventory.

Debt Coverage by Assets: SAP's debt is covered by short term assets (assets are 9.307000x debt).


Next Steps

Dividend

What is SAP's current dividend yield, its reliability and sustainability?

1.30%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SAP's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: SAP's dividend (1.3%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: SAP's dividends per share have been stable in the past 10 years.

Growing Dividend: SAP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53%), SAP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAP's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).


Next Steps

Management

What is the CEO of SAP's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Jennifer Morgan (48yo)

0yrs

Tenure

€3,994,900

Compensation

Ms. Jennifer B. Morgan, also known as Jen, is a Co-Chief Executive Officer at SAP SE since October 10, 2019 and is its Member of Executive Board since May 1, 2017. Ms. Morgan was President of Global Custom ...


CEO Compensation Analysis

Compensation vs. Market: Jennifer has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Jennifer's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SAP's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

54yo

Average Age

Experienced Board: SAP's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Bill McDermott (57yo)

    Member of Executive Board

    • Tenure: 11.3yrs
    • Compensation: €11.75m
  • Hasso Plattner (75yo)

    Co-Founder & Chairman of the Supervisory Board

    • Tenure: 16.4yrs
    • Compensation: €363.00k
  • Lars Lamadé (48yo)

    Head of Sponsorships Europe & Asia and Member of Supervisory Board

    • Tenure: 17.5yrs
    • Compensation: €187.00k
  • Michael Kleinemeier (62yo)

    Head of Digital Business Services & Member of Executive Board

    • Tenure: 3.9yrs
    • Compensation: €3.98m
  • Jennifer Morgan (48yo)

    Co-CEO & Member of Executive Board

    • Tenure: 0yrs
    • Compensation: €3.99m
  • Luka Mucic (48yo)

    CFO & Member of Executive Board

    • Tenure: 5.3yrs
    • Compensation: €3.97m
  • Adaire Fox-Martin (55yo)

    Global Customer Operations & Member of Executive Board

    • Tenure: 2.4yrs
    • Compensation: €4.01m
  • Stefan Ries (52yo)

    Chief Human Resources Officer

    • Tenure: 3.5yrs
    • Compensation: €3.64m
  • Christine Regitz (53yo)

    VP of User Experience

    • Tenure: 4.4yrs
    • Compensation: €187.00k
  • Christian Klein (39yo)

    Co-CEO & Member of Executive Board

    • Tenure: 0yrs
    • Compensation: €3.63m

Board Members

  • Pekka Ala-Pietilä (62yo)

    Member of Supervisory Board

    • Tenure: 17.4yrs
    • Compensation: €205.30k
  • Bernard Liautaud (57yo)

    Member of Supervisory Board

    • Tenure: 11.5yrs
    • Compensation: €198.00k
  • Hasso Plattner (75yo)

    Co-Founder & Chairman of the Supervisory Board

    • Tenure: 16.4yrs
    • Compensation: €363.00k
  • Gerhard Oswald (66yo)

    Member of Supervisory Board

    • Tenure: 0.8yrs
    • Compensation: €4.02m
  • Lars Lamadé (48yo)

    Head of Sponsorships Europe & Asia and Member of Supervisory Board

    • Tenure: 17.5yrs
    • Compensation: €187.00k
  • Panagiotis Bissiritsas (51yo)

    Member of Supervisory Boad

    • Tenure: 12.4yrs
    • Compensation: €203.50k
  • Margret Klein-Magar (55yo)

    Deputy Chairperson of Supervisory Board

    • Tenure: 4.4yrs
    • Compensation: €242.00k
  • Martin Duffek (43yo)

    Member of Supervisory Board

    • Tenure: 4.4yrs
    • Compensation: €203.50k
  • Sebastian Sick (47yo)

    Member of Supervisory Board

    • Tenure: 4.4yrs
    • Compensation: €187.00k
  • Christine Regitz (53yo)

    VP of User Experience

    • Tenure: 4.4yrs
    • Compensation: €187.00k

Company Information

SAP SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SAP SE
  • Ticker: SAP
  • Exchange: XTRA
  • Founded: 1972
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €138.249b
  • Shares outstanding: 1.19b
  • Website: https://www.sap.com

Number of Employees


Location

  • SAP SE
  • Dietmar-Hopp-Allee 16
  • Walldorf
  • Baden-Württemberg
  • 69190
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAPXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
SAPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0NW4LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
SAPG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SAPBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
SAPDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
SAPWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
SAPBUSE (Budapest Stock Exchange)YesOrdinary SharesHUHUFJan 1992
SAPNYSE (New York Stock Exchange)SPON ADR EACH REP 1 ORD NPVUSUSDOct 1995
SAP NBMV (Bolsa Mexicana de Valores)SPON ADR EACH REP 1 ORD NPVMXMXNOct 1995
SAPADB (Deutsche Boerse AG)SPON ADR EACH REP 1 ORD NPVDEEUROct 1995
0A2WLSE (London Stock Exchange)SPON ADR EACH REP 1 ORD NPVGBUSDOct 1995

Biography

SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. The company operates through three segments: Applications, Technology & Services; SAP Busin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 21:00
End of Day Share Price2019/10/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.