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SAP

SAPXTRA:SAP Stock Report

Market Cap

€143.1b

7D

-4.0%

1Y

-2.9%

Updated

23 Oct, 2021

Data

Company Financials +
SAP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends5/6

SAP Overview

SAP SE operates as an enterprise application software company worldwide.

SAP Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SAP
Historical stock prices
Current Share Price€121.28
52 Week High€89.93
52 Week Low€129.20
Beta0.95
1 Month Change-1.27%
3 Month Change2.95%
1 Year Change-2.90%
3 Year Change30.42%
5 Year Change50.36%
Change since IPO10,201.84%

Recent News & Updates

Oct 07
SAP (ETR:SAP) Will Want To Turn Around Its Return Trends

SAP (ETR:SAP) Will Want To Turn Around Its Return Trends

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Sep 10
Calculating The Intrinsic Value Of SAP SE (ETR:SAP)

Calculating The Intrinsic Value Of SAP SE (ETR:SAP)

How far off is SAP SE ( ETR:SAP ) from its intrinsic value? Using the most recent financial data, we'll take a look at...

Aug 27
We Think SAP (ETR:SAP) Can Stay On Top Of Its Debt

We Think SAP (ETR:SAP) Can Stay On Top Of Its Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 14
Is SAP SE (ETR:SAP) Potentially Undervalued?

Is SAP SE (ETR:SAP) Potentially Undervalued?

Let's talk about the popular SAP SE ( ETR:SAP ). The company's shares saw a decent share price growth in the teens...

Shareholder Returns

SAPDE SoftwareDE Market
7D-4.0%-2.9%0.3%
1Y-2.9%-1.2%24.6%

Return vs Industry: SAP underperformed the German Software industry which returned -1.4% over the past year.

Return vs Market: SAP underperformed the German Market which returned 24.5% over the past year.

Price Volatility

Is SAP's price volatile compared to industry and market?
SAP volatility
SAP Beta0.95
Industry Beta0.95
Market Beta1

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

FoundedEmployeesCEOWebsite
1972103,876Christian Kleinhttps://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

How do SAP's earnings and revenue compare to its market cap?
SAP fundamental statistics
Market Cap€143.06b
Earnings (TTM)€5.74b
Revenue (TTM)€27.78b

24.9x

P/E Ratio

5.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAP income statement (TTM)
Revenue€27.78b
Cost of Revenue€7.89b
Gross Profit€19.89b
Expenses€14.16b
Earnings€5.74b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)4.86
Gross Margin71.61%
Net Profit Margin20.65%
Debt/Equity Ratio44.5%

How did SAP perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

38%

Payout Ratio

Valuation

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

21.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAP (€121.28) is trading below our estimate of fair value (€153.9)

Significantly Below Fair Value: SAP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAP is good value based on its PE Ratio (24.9x) compared to the German Software industry average (41.2x).

PE vs Market: SAP is poor value based on its PE Ratio (24.9x) compared to the German market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: SAP is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: SAP is overvalued based on its PB Ratio (4.4x) compared to the DE Software industry average (4.2x).


Future Growth

How is SAP forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAP's forecast earnings growth (5% per year) is above the savings rate (-0.01%).

Earnings vs Market: SAP's earnings (5% per year) are forecast to grow slower than the German market (12.3% 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 (16.2%).


Past Performance

How has SAP performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAP has high quality earnings.

Growing Profit Margin: SAP's current net profit margins (20.6%) are higher than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: SAP's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: SAP's earnings growth over the past year (18.1%) exceeds its 5-year average (9.2% per year).

Earnings vs Industry: SAP earnings growth over the past year (18.1%) exceeded the Software industry -13.1%.


Return on Equity

High ROE: SAP's Return on Equity (17.2%) 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 (44.5%) is considered high.

Reducing Debt: SAP's debt to equity ratio has increased from 30.5% to 44.5% over the past 5 years.

Debt Coverage: SAP's debt is well covered by operating cash flow (47.3%).

Interest Coverage: SAP's interest payments on its debt are well covered by EBIT (42.4x coverage).


Balance Sheet


Dividend

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

1.53%

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 (3.22%).


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 (38.2%), 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 (32.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Christian Klein (41 yo)

1.5yrs

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 ($USD10.72M) is above average for companies of similar size in the German market ($USD4.50M).

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 (2.7 years average tenure).


Board Members

Experienced Board: SAP's board of directors are considered experienced (4.3 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: €143.059b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 17:57
End of Day Share Price2021/10/22 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.