| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
SAP Overview
SAP SE operates as an enterprise application software company worldwide.
SAP Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | €121.42 |
| 52 Week High | €89.93 |
| 52 Week Low | €135.62 |
| Beta | 0.93 |
| 1 Month Change | -3.45% |
| 3 Month Change | 1.40% |
| 1 Year Change | -9.83% |
| 3 Year Change | 13.82% |
| 5 Year Change | 50.05% |
| Change since IPO | 10,213.74% |
Recent News & Updates
Shareholder Returns
| SAP | DE Software | DE Market | |
|---|---|---|---|
| 7D | 2.1% | 0.04% | -0.3% |
| 1Y | -9.8% | -3.6% | 27.2% |
Return vs Industry: SAP underperformed the German Software industry which returned -3.6% over the past year.
Return vs Market: SAP underperformed the German Market which returned 27% over the past year.
Price Volatility
| SAP volatility | |
|---|---|
| SAP Beta | 0.93 |
| Industry Beta | 0.93 |
| Market Beta | 1 |
Stable Share Price: SAP is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SAP's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1972 | 103,876 | Christian Klein | https://www.sap.com |
SAP SE operates as an enterprise application software company worldwide. The company operates through four segments: Applications, Technology & Support; Concur; Qualtrics; and Services. It offers SAP S/4HANA, an enterprise resource planning suite for intelligent technologies; SAP Integrated Business Planning for Supply Chain, a cloud-based solution that delivers real-time supply chain planning capabilities; SAP Intelligent Asset Management, a solution that helps to define, plan, and monitor service and maintenance strategy; SAP SuccessFactors Human Experience Management Suite, a cloud software that helps to develop, manage, and engage people; SAP Ariba, a digital business-to-business marketplace; SAP Concur, a travel and expense management software; and SAP Fieldglass, a cloud application for services procurement and contingent workforce management.
SAP Fundamentals Summary
| SAP fundamental statistics | |
|---|---|
| Market Cap | €143.01b |
| Earnings (TTM) | €5.86b |
| Revenue (TTM) | €27.09b |
24.4x
P/E Ratio5.3x
P/S RatioIs SAP overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SAP income statement (TTM) | |
|---|---|
| Revenue | €27.09b |
| Cost of Revenue | €7.65b |
| Gross Profit | €19.45b |
| Expenses | €13.59b |
| Earnings | €5.86b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 21, 2021
| Earnings per share (EPS) | 4.97 |
| Gross Margin | 71.78% |
| Net Profit Margin | 21.63% |
| Debt/Equity Ratio | 38.3% |
How did SAP perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield37%
Payout RatioValuation
Is SAP undervalued compared to its fair value and its price relative to the market?
17.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SAP (€121.24) is trading below our estimate of fair value (€147.89)
Significantly Below Fair Value: SAP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SAP is good value based on its PE Ratio (24.4x) compared to the German Software industry average (39.7x).
PE vs Market: SAP is poor value based on its PE Ratio (24.4x) compared to the German market (23.2x).
Price to Earnings Growth Ratio
PEG Ratio: SAP is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: SAP's PB Ratio (4.4x) is in line with the DE Software industry average.
Future Growth
How is SAP forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
7.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SAP's forecast earnings growth (7.8% per year) is above the savings rate (0.01%).
Earnings vs Market: SAP's earnings (7.8% per year) are forecast to grow slower than the German market (12.5% per year).
High Growth Earnings: SAP's earnings are forecast to grow, but not significantly.
Revenue vs Market: SAP's revenue (6% per year) is forecast to grow faster than the German market (5.9% per year).
High Growth Revenue: SAP's revenue (6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SAP's Return on Equity is forecast to be low in 3 years time (16.9%).
Past Performance
How has SAP performed over the past 5 years?
8.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SAP has a large one-off gain of €2.2B impacting its June 30 2021 financial results.
Growing Profit Margin: SAP's current net profit margins (21.6%) are higher than last year (16.2%).
Past Earnings Growth Analysis
Earnings Trend: SAP's earnings have grown by 8% per year over the past 5 years.
Accelerating Growth: SAP's earnings growth over the past year (28.9%) exceeds its 5-year average (8% per year).
Earnings vs Industry: SAP earnings growth over the past year (28.9%) exceeded the Software industry -4.4%.
Return on Equity
High ROE: SAP's Return on Equity (17.9%) is considered low.
Financial Health
How is SAP's financial position?
Financial Position Analysis
Short Term Liabilities: SAP's short term assets (€16.5B) exceed its short term liabilities (€15.4B).
Long Term Liabilities: SAP's short term assets (€16.5B) exceed its long term liabilities (€13.6B).
Debt to Equity History and Analysis
Debt Level: SAP's debt to equity ratio (38.3%) is considered satisfactory.
Reducing Debt: SAP's debt to equity ratio has increased from 37.8% to 38.3% over the past 5 years.
Debt Coverage: SAP's debt is well covered by operating cash flow (55%).
Interest Coverage: SAP's interest payments on its debt are well covered by EBIT (43.2x coverage).
Balance Sheet
Dividend
What is SAP current dividend yield, its reliability and sustainability?
1.52%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SAP's dividend (1.53%) is higher than the bottom 25% of dividend payers in the German market (1%).
High Dividend: SAP's dividend (1.53%) is low compared to the top 25% of dividend payers in the German market (3.14%).
Stability and Growth of Payments
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 reasonably low payout ratio (37.2%), SAP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SAP's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Christian Klein (41 yo)
1.42yrs
Tenure
€9,213,700
Compensation
Mr. Christian Klein has been the Chief Executive Officer of SAP SE since April 20, 2020 and its Member of Executive Board since January 1, 2018. Mr. Klein serves as Member of Supervisory Board at adidas AG...
CEO Compensation Analysis
Compensation vs Market: Christian's total compensation ($USD10.79M) is above average for companies of similar size in the German market ($USD4.35M).
Compensation vs Earnings: Christian's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SAP's management team is considered experienced (2.6 years average tenure).
Board Members
Experienced Board: SAP's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
SAP SE's 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: €143.012b
- Shares outstanding: 1.18b
- Website: https://www.sap.com
Number of Employees
Location
- SAP SE
- Dietmar-Hopp-Allee 16
- Walldorf
- Baden-Württemberg
- 69190
- Germany
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 17:53 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.