Executive Summary
SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide.
Snowflake Analysis
Excellent balance sheet with reasonable growth potential 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
Stable Share Price: SAP's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.9%
SAP
1.1%
DE Software
4.3%
DE Market
1 Year Return
5.4%
SAP
5.3%
DE Software
-14.2%
DE Market
Return vs Industry: SAP matched the German Software industry which returned -5.4% over the past year.
Return vs Market: SAP exceeded the German Market which returned -20.4% over the past year.
Shareholder returns
| SAP | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 1.1% | 4.3% |
| 30 Day | -3.6% | -3.4% | -9.0% |
| 90 Day | -14.2% | -12.8% | -21.6% |
| 1 Year | 6.8%5.4% | 6.7%5.3% | -11.7%-14.2% |
| 3 Year | 18.7%13.9% | 22.8%17.9% | -12.3%-19.6% |
| 5 Year | 62.3%50.7% | 68.5%56.5% | -14.0%-25.6% |
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
3 weeks ago | Simply Wall St
SAP SE (ETR:SAP) Has A ROE Of 11%1 month ago | Simply Wall St
Is Now An Opportune Moment To Examine SAP SE (ETR:SAP)?2 months ago | Simply Wall St
Does SAP SE's (ETR:SAP) -18% Earnings Drop Reflect A Longer Term Trend?Valuation
Is SAP undervalued compared to its fair value and its price relative to the market?
37.28x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SAP (€98.1) is trading above our estimate of fair value (€76.03)
Significantly Below Fair Value: SAP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SAP is good value based on its PE Ratio (35.3x) compared to the Software industry average (36.4x).
PE vs Market: SAP is poor value based on its PE Ratio (35.3x) compared to the German market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: SAP is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: SAP is overvalued based on its PB Ratio (3.8x) compared to the DE Software industry average (2.3x).
Next Steps
Future Growth
How is SAP forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?
18.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SAP's forecast earnings growth (19.1% per year) is above the savings rate (-0.4%).
Earnings vs Market: SAP's earnings (19.1% per year) are forecast to grow faster than the German market (14.3% per year).
High Growth Earnings: SAP's earnings are forecast to grow, but not significantly.
Revenue vs Market: SAP's revenue (6.4% per year) is forecast to grow faster than the German market (4% per year).
High Growth Revenue: SAP's revenue (6.4% 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 high in 3 years time (21%)
Next Steps
Past Performance
How has SAP performed over the past 5 years?
3.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SAP has high quality earnings.
Growing Profit Margin: SAP's current net profit margins (12.1%) are lower than last year (16.5%).
Past Earnings Growth Analysis
Earnings Trend: SAP's earnings have grown by 3.1% 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 (-18.7%) over the past year, making it difficult to compare to the Software industry average (19.1%).
Return on Equity
High ROE: SAP's Return on Equity (10.9%) is considered low.
Next Steps
Financial Health
How is SAP's financial position?
Financial Position Analysis
Short Term Liabilities: SAP's short term assets (€15.2B) exceed its short term liabilities (€14.5B).
Long Term Liabilities: SAP's short term assets (€15.2B) exceed its long term liabilities (€14.9B).
Debt to Equity History and Analysis
Debt Level: SAP's debt to equity ratio (44.2%) is considered high.
Reducing Debt: SAP's debt to equity ratio has reduced from 56.6% to 44.2% over the past 5 years.
Debt Coverage: SAP's debt is well covered by operating cash flow (25.7%).
Interest Coverage: SAP's interest payments on its debt are well covered by EBIT (19.5x coverage).
Balance Sheet
Next Steps
Dividend
What is SAP's current dividend yield, its reliability and sustainability?
1.52%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SAP's dividend (1.61%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.65%).
High Dividend: SAP's dividend (1.61%) is low compared to the top 25% of dividend payers in the German market (4.86%).
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 reasonable payout ratio (56.8%), 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 (31.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Jennifer Morgan (48yo)
0.50
Tenure
€8,625,784
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's total compensation ($USD9.48M) is above average for companies of similar size in the German market ($USD5.21M).
Compensation vs Earnings: Jennifer's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman of the Supervisory Board | 16.92yrs | €328.20k | no data | |
| Co-CEO & Member of Executive Board | 0.50yr | €8.63m | no data | |
| Co-CEO, COO & Member of Executive Board | 0.50yr | €8.26m | no data | |
| Deputy Chairperson of Supervisory Board | 4.92yrs | €246.60k | no data | |
| CFO & Member of Executive Board | 5.75yrs | €4.22m | no data | |
| Member of Executive Board | 4.42yrs | €4.24m | no data | |
| Global Customer Operations & Member of Executive Board | 2.92yrs | €4.68m | no data | |
| Chief Human Resources Officer | 4yrs | €3.86m | no data | |
| Member of Executive Board | 0.42yr | €1.41m | no data | |
| CTO & Member of Executive Board | 1.25yrs | €4.03m | no data |
2.1yrs
Average Tenure
50yo
Average Age
Experienced Management: SAP's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman of the Supervisory Board | 16.92yrs | €328.20k | no data | |
| Deputy Chairperson of Supervisory Board | 4.92yrs | €246.60k | no data | |
| Head of Sponsorships Europe & Asia and Member of Supervisory Board | 18yrs | €187.90k | no data | |
| VP of User Experience | 4.92yrs | €195.30k | no data | |
| Member of Supervisory Board & Chief Project Expert Development | 0.92yr | €124.70k | no data | |
| Member of Supervisory Board | 17.92yrs | €183.30k | no data | |
| Independent Member of Supervisory Board | 1.25yrs | €217.30k | no data | |
| Member of Supervisory Board & Support Expert | 12.92yrs | €204.40k | no data | |
| Independent Member of Supervisory Board | 1.92yrs | €208.10k | no data | |
| Independent Member of Supervisory Board | 0.92yr | €135.70k | no data |
4.9yrs
Average Tenure
52yo
Average Age
Experienced Board: SAP's board of directors are considered experienced (4.9 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 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: €120.750b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SAPG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| SAP | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| 0NW4 | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| SAP | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| SAP | BIT (Borsa Italiana) | Yes | Ordinary Shares | IT | EUR | Jan 1992 |
| SAPD | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| SAP | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jan 1992 |
| SAP | BUSE (Budapest Stock Exchange) | Yes | Ordinary Shares | HU | HUF | Jan 1992 |
| SAP | NYSE (New York Stock Exchange) | SPON ADR EACH REP 1 ORD NPV | US | USD | Oct 1995 | |
| SAP N | BMV (Bolsa Mexicana de Valores) | SPON ADR EACH REP 1 ORD NPV | MX | MXN | Oct 1995 | |
| SAPA | DB (Deutsche Boerse AG) | SPON ADR EACH REP 1 ORD NPV | DE | EUR | Oct 1995 | |
| 0A2W | LSE (London Stock Exchange) | SPON ADR EACH REP 1 ORD NPV | GB | USD | Oct 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; Intelligent Spend Group; and Qualtrics. It offers SAP HANA, which enables transactional processing for data capture and retrieval, and analytical processing for business intelligence and reporting; SAP solutions for enterprise information management; business analytics tools; SAP BusinessObjects business intelligence (BI) suite; SAP data warehouse cloud; SAP BW/4HANA, an on premise data warehouse solution; and SAP cloud platform. The company also provides SAP Leonardo IoT solutions designed to embed device and telemetry data into SAP applications; SAP Leonardo artificial intelligence; SAP Leonardo blockchain; SAP C/4HANA, a customer experience suite; SAP S/4HANA intelligent ERP suite; SAP integrated business planning cloud-based solution for supply chain; SAP intelligent asset management solutions; and SAP SuccessFactors human experience management suite for developing, managing, engaging, and empowering people. In addition, it offers SAP Ariba solutions that offer an online business-to-business marketplace; SAP Concur solutions aim to deliver a connected spend management system; SAP Fieldglass solutions, which are cloud-based applications for contingent workforce management and services procurement; and SAP digital business services comprising Premium Success, Project Success, and Continuous Success, as well as intelligent tools to help guide and deliver application management and administrative support for the company’s service offerings. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 21:26 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.