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SAP

DB:SAP
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SAP
DB
€141B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. The last earnings update was 62 days ago. More info.


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SAP Share Price and Events
7 Day Returns
1.2%
DB:SAP
3.4%
DE Software
1.5%
DE Market
1 Year Returns
18.9%
DB:SAP
18.8%
DE Software
-5.8%
DE Market
SAP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SAP (SAP) 1.2% 4.1% 16.1% 18.9% 74.7% 107.6%
DE Software 3.4% 4% 16.8% 18.8% 83.1% 113.8%
DE Market 1.5% 1.3% 2.2% -5.8% 17.6% 8.7%
1 Year Return vs Industry and Market
  • SAP matched the Software industry (18.8%) over the past year.
  • SAP outperformed the Market in Germany which returned -5.8% over the past year.
Price Volatility
SAP
Industry
5yr Volatility vs Market
Related Companies

SAP Value

 Is SAP undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SAP to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SAP.

DB:SAP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 31 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:SAP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.138 (1 + (1- 30%) (10.45%))
1.148
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.148 * 5.96%)
7.07%

Discounted Cash Flow Calculation for DB:SAP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SAP is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:SAP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.07%)
2019 3,087.62 Analyst x13 2,883.73
2020 4,697.53 Analyst x21 4,097.62
2021 5,604.20 Analyst x15 4,565.69
2022 6,709.33 Analyst x3 5,105.09
2023 7,868.50 Analyst x2 5,591.74
2024 8,750.40 Est @ 11.21% 5,807.83
2025 9,442.91 Est @ 7.91% 5,853.59
2026 9,972.48 Est @ 5.61% 5,773.66
2027 10,370.80 Est @ 3.99% 5,607.78
2028 10,667.85 Est @ 2.86% 5,387.49
Present value of next 10 years cash flows €50,674.22
DB:SAP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €10,667.85 × (1 + 0.23%) ÷ (7.07% – 0.23%)
€156,265.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €156,265.77 ÷ (1 + 7.07%)10
€78,917.57
DB:SAP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €50,674.22 + €78,917.57
€129,591.80
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €129,591.80 / 1,193.65
€108.57
DB:SAP Discount to Share Price
Calculation Result
Value per share (EUR) From above. €108.57
Current discount Discount to share price of €118.14
= -1 x (€118.14 - €108.57) / €108.57
-8.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of SAP is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SAP's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SAP's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SAP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €2.73
DB:SAP Share Price ** DB (2019-06-25) in EUR €118.14
Germany Software Industry PE Ratio Median Figure of 19 Publicly-Listed Software Companies 33.33x
Germany Market PE Ratio Median Figure of 425 Publicly-Listed Companies 19.8x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SAP.

DB:SAP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= DB:SAP Share Price ÷ EPS (both in EUR)

= 118.14 ÷ 2.73

43.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SAP is overvalued based on earnings compared to the DE Software industry average.
  • SAP is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does SAP's expected growth come at a high price?
Raw Data
DB:SAP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 43.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts
19.3%per year
Germany Software Industry PEG Ratio Median Figure of 14 Publicly-Listed Software Companies 1.98x
Germany Market PEG Ratio Median Figure of 272 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

DB:SAP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 43.27x ÷ 19.3%

2.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SAP is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on SAP's assets?
Raw Data
DB:SAP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €24.44
DB:SAP Share Price * DB (2019-06-25) in EUR €118.14
Germany Software Industry PB Ratio Median Figure of 33 Publicly-Listed Software Companies 2.91x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.8x
DB:SAP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= DB:SAP Share Price ÷ Book Value per Share (both in EUR)

= 118.14 ÷ 24.44

4.83x

* Primary Listing of SAP.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SAP is overvalued based on assets compared to the DE Software industry average.
X
Value checks
We assess SAP's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. SAP has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SAP Future Performance

 How is SAP expected to perform in the next 1 to 3 years based on estimates from 31 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SAP expected to grow at an attractive rate?
  • SAP's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • SAP's earnings growth is expected to exceed the Germany market average.
  • SAP's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SAP Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SAP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts 19.3%
DB:SAP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 31 Analysts 7%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 19.2%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:SAP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SAP Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 34,692 9,586 7,991 2
2022-12-31 34,159 8,306 7,140 3
2021-12-31 32,025 7,440 5,807 20
2020-12-31 29,514 6,354 5,074 31
2019-12-31 27,450 4,654 3,723 30
DB:SAP Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 25,537 4,527 3,261
2018-12-31 24,707 4,303 4,083
2018-09-30 24,085 4,404 4,246
2018-06-30 23,655 4,516 4,256
2018-03-31 23,438 4,751 4,195
2017-12-31 23,461 5,045 4,008
2017-09-30 23,379 5,125 3,700
2017-06-30 23,164 5,221 3,447
2017-03-31 22,619 5,018 3,595
2016-12-31 22,062 4,628 3,642
2016-09-30 21,681 4,025 3,399
2016-06-30 21,290 3,784 3,567

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SAP's earnings are expected to grow by 19.3% yearly, however this is not considered high growth (20% yearly).
  • SAP's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:SAP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below

All data from SAP Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SAP Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 6.51 6.51 6.51 1.00
2021-12-31 5.01 5.45 4.62 8.00
2020-12-31 4.30 5.22 3.70 15.00
2019-12-31 3.23 4.09 2.60 14.00
DB:SAP Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 2.73
2018-12-31 3.42
2018-09-30 3.56
2018-06-30 3.56
2018-03-31 3.51
2017-12-31 3.35
2017-09-30 3.09
2017-06-30 2.88
2017-03-31 3.00
2016-12-31 3.04
2016-09-30 2.84
2016-06-30 2.98

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SAP is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SAP's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SAP has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SAP Past Performance

  How has SAP performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SAP's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SAP's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • SAP's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • SAP's 1-year earnings growth is negative, it can't be compared to the DE Software industry average.
Earnings and Revenue History
SAP's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SAP Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SAP Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 25,537.00 3,261.00 8,380.00 3,869.00
2018-12-31 24,707.00 4,083.00 7,879.00 3,624.00
2018-09-30 24,085.00 4,246.00 7,924.00 3,560.00
2018-06-30 23,655.00 4,256.00 7,869.00 3,421.00
2018-03-31 23,438.00 4,195.00 7,748.00 3,315.00
2017-12-31 23,461.00 4,008.00 7,999.00 3,352.00
2017-09-30 23,379.00 3,700.00 7,962.00 3,334.00
2017-06-30 23,164.00 3,447.00 7,923.00 3,319.00
2017-03-31 22,619.00 3,595.00 7,643.00 3,186.00
2016-12-31 22,062.00 3,642.00 7,270.00 3,044.00
2016-09-30 21,681.00 3,399.00 7,022.00 2,973.00
2016-06-30 21,290.00 3,567.00 6,739.00 2,866.00
2016-03-31 21,023.00 3,222.00 6,906.00 2,873.00
2015-12-31 20,793.00 3,064.00 6,830.00 2,845.00
2015-09-30 19,908.00 3,092.00 6,342.00 2,719.00
2015-06-30 19,178.00 3,074.00 6,043.00 2,608.00
2015-03-31 18,359.00 3,160.00 5,504.00 2,461.00
2014-12-31 17,560.00 3,280.00 5,485.00 2,331.00
2014-09-30 17,209.00 3,291.00 5,110.00 2,283.00
2014-06-30 17,001.00 3,172.00 5,059.00 2,279.00
2014-03-31 16,912.00 3,340.00 5,029.00 2,277.00
2013-12-31 16,815.00 3,326.00 4,997.00 2,282.00
2013-09-30 16,732.00 3,086.00 4,935.00 2,294.00
2013-06-30 16,638.00 2,944.00 4,947.00 2,309.00
2013-03-31 16,474.00 2,879.00 4,866.00 2,296.00
2012-12-31 16,223.00 2,803.00 4,861.00 2,261.00
2012-09-30 15,700.00 2,920.00 4,429.00 2,155.00
2012-06-30 15,157.00 3,552.00 4,120.00 2,030.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SAP has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SAP used its assets more efficiently than the DE Software industry average last year based on Return on Assets.
  • SAP's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SAP's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SAP has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SAP Health

 How is SAP's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SAP's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SAP is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SAP's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of SAP's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SAP Company Filings, last reported 2 months ago.

DB:SAP Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 29,228.00 14,735.00 7,923.00
2018-12-31 28,877.00 11,303.00 8,953.00
2018-09-30 27,007.00 7,925.00 4,991.00
2018-06-30 25,858.00 7,675.00 4,911.00
2018-03-31 25,687.00 8,073.00 8,456.00
2017-12-31 25,515.00 6,301.00 4,853.00
2017-09-30 24,370.00 5,811.00 5,233.00
2017-06-30 24,525.00 6,767.00 5,104.00
2017-03-31 26,767.00 8,229.00 7,482.00
2016-12-31 26,397.00 7,880.00 3,898.00
2016-09-30 23,764.00 7,248.00 4,613.00
2016-06-30 22,964.00 8,688.00 4,592.00
2016-03-31 22,920.00 8,640.00 6,103.00
2015-12-31 23,295.00 9,195.00 3,438.00
2015-09-30 21,541.00 10,426.00 4,765.00
2015-06-30 20,803.00 10,390.00 3,990.00
2015-03-31 22,302.00 10,543.00 4,959.00
2014-12-31 19,533.00 11,086.00 3,369.00
2014-09-30 17,729.00 4,416.00 3,390.00
2014-06-30 16,154.00 4,248.00 3,153.00
2014-03-31 16,616.00 4,295.00 4,594.00
2013-12-31 16,048.00 4,268.00 2,786.00
2013-09-30 14,916.00 5,331.00 3,293.00
2013-06-30 14,378.00 4,994.00 3,428.00
2013-03-31 14,953.00 5,038.00 4,602.00
2012-12-31 14,133.00 4,975.00 2,492.00
2012-09-30 13,309.00 3,646.00 3,926.00
2012-06-30 12,783.00 3,962.00 3,583.00
  • SAP's level of debt (50.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (25.9% vs 50.4% today).
  • Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 24.5x coverage).
X
Financial health checks
We assess SAP's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SAP has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SAP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.27%
Current annual income from SAP dividends. Estimated to be 1.46% next year.
If you bought €2,000 of SAP shares you are expected to receive €25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SAP's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • SAP's dividend is below the markets top 25% of dividend payers in Germany (3.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:SAP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 328 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:SAP Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 2.18 1.00
2021-12-31 1.92 18.00
2020-12-31 1.74 24.00
2019-12-31 1.55 24.00
DB:SAP Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-21 1.500 1.421
2018-02-21 1.400 1.484
2017-02-23 1.250 1.355
2016-03-29 1.150 1.504
2015-03-19 1.100 1.643
2014-03-20 1.000 1.745
2013-03-21 0.850 1.469
2012-03-22 0.750 1.396
2011-03-30 0.600 1.412
2010-03-25 0.500 1.332
2009-03-26 0.500 1.578

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of SAP's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess SAP's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SAP afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SAP has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SAP Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill McDermott
COMPENSATION €11,747,300
AGE 56
TENURE AS CEO 5.1 years
CEO Bio

Mr. William R. McDermott, also known as Bill, has been an Executive Board Member of SAP since 2008. Mr. McDermott has been the Chief Executive Officer at SAP SE since May 21, 2014 and its Member of Executive Board since 2010. He served as a Co-Chief Executive Officer of SAP America, Inc. He served as the Chief Executive Officer of Global Field Operations at SAP SE. He served as the President of Global Field Operations and Chief Executive Officer of SAP Americas & Asia Pacific Japan. He served as the Chief Executive Officer and President at SAP America, Inc., a subsidiary of SAP Labs, LLC until July 2008. He served as a Co-Chief Executive Officer of SAP SE from February 7, 2010 to May 2014. He served as Corporate Officer at SAP SE since April 1, 2007. He also served as the Head of Global Field Operations at SAP SE. He spent 17 years at Xerox Corporation holding various senior management positions, including President of the U.S. Major Account Organization and Senior Vice President/General Manager of Xerox Business Systems. An award-winning corporate leader, he has earned a reputation for engineering phenomenal business performance. In his first year at the reins of SAP America, delivered four consecutive quarters of significant market share gains and revenue increases, as well as improved employee and customer satisfaction. He served as Executive Vice President for Worldwide Sales at Siebel Systems Inc., where he led global sales and field operations from 2001 to 2002. He served as the President of Gartner Inc., from 2000 to 2001. He spent 17 years at Xerox Corp., where he rose steadily through the ranks of the sales and marketing divisions as well as executive management, eventually becoming Xerox Corp.'s youngest corporate officer and Division President. He has been a Director of PAETEC Communications Inc. since April, 2004. He has been an Independent Director of SecureWorks Corp. since April 2016. He has been an Independent Director of Ansys, Inc. since July 13, 2007. He has been an Independent Director of Under Armour, Inc. since August 2005. He serves as a Board Director for the Washington-based Welfare-to-Work Partnership, which promotes career opportunities for former welfare recipients. He served on the Board of Directors of PAETEC Holding, LLC from February 2007 to November 2011. He serves as a Member of the Business Roundtable, the Enterprise Software Roundtable, the Advisory Board for Villanova University in Villanova, Pennsylvania and the KIPP School National Advisory Board. In 1997, his team received the Baldrige Award, the nation's highest honor for business performance. In March 2004, he was elected to the Dowling College Board of Trustees and was also recognized by Dowling College as its Alumnus of the Year in 2003, it is presented annually by the President of the United States for outstanding achievement in leadership, strategic planning, customer and market focus, information and analysis, human resources, process management and business results. He is an Active Civic Leader and Advocate for social responsibility in business. In early 2005, he was elected to the U.S. Chamber of Commerce, the world's largest business federation representing three million companies and organizations and to the Chamber Foundation Board. In June 2005, he was selected to Treasury & Risk Management's 100 Most Influential People in Finance. In the same month, he was named a winner by Ernst & Young for the Ernst & Young Entrepreneur of the Year 2005 Awards in Applied Technology. He serves as a Charter Member of the Advisory Council for the Hands on Network organization, a consortium of volunteer organizations in the U.S., the Philippines and China, that develops entrepreneurial strategies for bridging community resources and needs. In addition, Mr. McDermott received a B.S. degree in Business Administration from Dowling College. Mr. McDermott received an M.B.A. degree from the J.L. Kellogg Graduate School of Management at Northwestern University and completed the Executive Development Program at the University of Pennsylvania’s Wharton Graduate School of Management.

CEO Compensation
  • Bill's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bill's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the SAP management team in years:

3.2
Average Tenure
51.5
Average Age
  • The tenure for the SAP management team is about average.
Management Team

Hasso Plattner

TITLE
Co-Founder & Chairman of the Supervisory Board
COMPENSATION
€363K
AGE
74

Bill McDermott

TITLE
CEO & Member of Executive Board
COMPENSATION
€12M
AGE
56
TENURE
5.1 yrs

Luka Mucic

TITLE
CFO & Member of Executive Board
COMPENSATION
€4M
AGE
47
TENURE
4.9 yrs

Michael Kleinemeier

TITLE
Head of Digital Business Services & Member of Executive Board
COMPENSATION
€4M
AGE
61
TENURE
3.6 yrs

Adaire Fox-Martin

TITLE
President of Global Customer Operations & Member of Executive Board
COMPENSATION
€4M
AGE
54
TENURE
2.1 yrs

Stefan Ries

TITLE
Chief Human Resources Officer
COMPENSATION
€4M
AGE
51
TENURE
3.2 yrs

Jennifer Morgan

TITLE
President of Cloud Business Group & Member of Executive Board
COMPENSATION
€4M
AGE
47
TENURE
2.1 yrs

Christian Klein

TITLE
COO, Head of SAP S/4HANA & Member of Executive Board
COMPENSATION
€4M
AGE
38
TENURE
3.2 yrs

Lars Lamadé

TITLE
Head of Sponsorships Europe & Asia and Member of Supervisory Board
COMPENSATION
€187K
AGE
47
TENURE
2.3 yrs

Christine Regitz

TITLE
VP of User Experience
COMPENSATION
€187K
AGE
52
Board of Directors Tenure

Average tenure and age of the SAP board of directors in years:

7.6
Average Tenure
53
Average Age
  • The tenure for the SAP board of directors is about average.
Board of Directors

Hasso Plattner

TITLE
Co-Founder & Chairman of the Supervisory Board
COMPENSATION
€363K
AGE
74
TENURE
16.1 yrs

Margret Klein-Magar

TITLE
Deputy Chairperson of Supervisory Board
COMPENSATION
€242K
AGE
54
TENURE
4.1 yrs

Lars Lamadé

TITLE
Head of Sponsorships Europe & Asia and Member of Supervisory Board
COMPENSATION
€187K
AGE
47
TENURE
17.2 yrs

Christine Regitz

TITLE
VP of User Experience
COMPENSATION
€187K
AGE
52
TENURE
4.1 yrs

Gerhard Oswald

TITLE
Member of Supervisory Board
COMPENSATION
€4M
AGE
65
TENURE
0.4 yrs

Pekka Ala-Pietilä

TITLE
Member of Supervisory Board
COMPENSATION
€205K
AGE
61
TENURE
17.1 yrs

Panagiotis Bissiritsas

TITLE
Member of Supervisory Boad
COMPENSATION
€204K
AGE
50
TENURE
12.1 yrs

Bernard Liautaud

TITLE
Member of Supervisory Board
COMPENSATION
€198K
AGE
56
TENURE
11.2 yrs

Martin Duffek

TITLE
Member of Supervisory Board
COMPENSATION
€204K
AGE
42
TENURE
4.1 yrs

Sebastian Sick

TITLE
Member of Supervisory Board
COMPENSATION
€187K
AGE
46
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess SAP's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SAP has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SAP News

Simply Wall St News

Why SAP SE's (FRA:SAP) CEO Pay Matters To You

First, this article will compare CEO compensation with compensation at other large companies. … When we examined a group of companies with market caps over €7.1b, we found that their median CEO total compensation was €4.3m. … Thus we can conclude that Bill McDermott receives more in total compensation than the median of a group of large companies in the same market as SAP SE.

Simply Wall St -

Does The Hype Around SAP SE's (FRA:SAP) Growth Justify Its May Share Price?

SAP is trading at price-to-earnings (PE) ratio of 41.64x, this tells us the stock is overvalued compared to the DE market average ratio of 20.2x , and overvalued based on current earnings compared to the Software industry average of 36.86x. … DB:SAP Price Estimation Relative to Market, May 26th 2019 After looking at SAP's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … This tells us that when we include its growth in our analysis SAP's stock can be considered a bit overvalued , based on fundamental analysis.

Simply Wall St -

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

We assume companies with shrinking free cash flow are will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (€, Millions) €3.02k €4.68k €5.60k €6.66k €7.75k €8.58k €9.23k €9.72k €10.09k €10.37k Growth Rate Estimate Source Analyst x18 Analyst x21 Analyst x15 Analyst x3 Analyst x2 Est @ 10.67% Est @ 7.54% Est @ 5.35% Est @ 3.81% Est @ 2.74% Present Value (€, Millions) Discounted @ 7.13% €2.82k €4.08k €4.55k €5.06k €5.49k €5.68k €5.70k €5.60k €5.43k €5.21k Present Value of 10-year Cash Flow (PVCF)= €49.61b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … DB:SAP Intrinsic value, May 15th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Does SAP SE (FRA:SAP) Create Value For Shareholders?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows SAP has a return on equity of 11% for the last year. … One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.11 in profit.

Simply Wall St -

Does SAP SE (FRA:SAP) Have A Place In Your Portfolio?

Dividend paying stocks like SAP SE (FRA:SAP) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … DB:SAP Historical Dividend Yield, April 23rd 2019

Simply Wall St -

How Do Analysts See SAP SE (FRA:SAP) Performing In The Next 12 Months?

Looking at SAP SE's (FRA:SAP) earnings update in December 2018,. … it seems that analyst expectations are fairly bearish, … the higher past 5-year average growth rate of 6.2%

Simply Wall St -

SAP SE (FRA:SAP) Earns Among The Best Returns In Its Industry

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Does SAP SE's (FRA:SAP) P/E Ratio Signal A Buying Opportunity?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate SAP's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Should We Expect From SAP SE's (FRA:SAP) Earnings In The Next Couple Of Years?

SAP SE's (FRA:SAP) latest earnings update in December 2018a … confirmed … company

Simply Wall St -

Has SAP SE (FRA:SAP) Improved Earnings In Recent Times?

When SAP SE (FRA:SAP) released its most recent earnings update (31 December 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were SAP's average earnings over the past couple of years, and its industry performance. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 6.2%, indicating the rate at which SAP is growing has slowed down

Simply Wall St -

SAP Company Info

Description

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 Business Network; and Customer Experience. It offers SAP HANA, which enables businesses to process and analyze live data; SAP Data Hub, a solution for businesses to manage data from various sources; and SAP Cloud platform that offers an enterprise platform-as-a-service. The company also provides SAP Leonardo, a system that combines design thinking services with intelligent technologies for business processes; SAP Analytics Cloud, which leverages the intersection of business intelligence, planning, and predictive analytics; SAP BW/4HANA, a data warehouse solution; SAP S/4HANA, an enterprise resource planning suite for intelligent enterprises; SAP Integrated Business Planning solutions that deliver real-time supply chain planning capabilities; and SAP Business One, an on-premise and cloud business application. In addition, it offers SAP Fiori, an user experience interface; SAP SuccessFactors Human Capital Management solutions that help organizations enhance the value of their workforce; SAP Fieldglass, a cloud-based application for external workforce management and services procurement; SAP Ariba, an online business-to-business marketplace; and SAP Concur, a travel and expense management software. Further, the company provides SAP MaxAttention to turn ideas into value-based predictable outcomes; and SAP ActiveAttention program, a premium-level engagement solution to support smaller businesses. Additionally, it offers SAP Enterprise Support services that provides proactive, predictive, and preventive support for customers across hybrid landscapes; and SAP Preferred Success, which provides a bundle of prescriptive customer success activities for accelerated cloud adoption. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.

Details
Name: SAP SE
SAP
Exchange: DB
Founded: 1972
€141,017,796,586
1,193,649,878
Website: http://www.sap.com
Address: SAP SE
Dietmar-Hopp-Allee 16,
Walldorf,
Baden-Württemberg, 69190,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
DB SAP Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
OTCPK SAPG.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
XTRA SAP Ordinary Shares XETRA Trading Platform DE EUR 02. Jan 1992
LSE 0NW4 Ordinary Shares London Stock Exchange GB EUR 02. Jan 1992
SWX SAP Ordinary Shares SIX Swiss Exchange CH CHF 02. Jan 1992
BIT SAP Ordinary Shares Borsa Italiana IT EUR 02. Jan 1992
WBAG SAP Ordinary Shares Wiener Boerse AG AT EUR 02. Jan 1992
BUSE SAP Ordinary Shares Budapest Stock Exchange HU HUF 02. Jan 1992
BATS-CHIXE SAPD Ordinary Shares BATS 'Chi-X Europe' GB EUR 02. Jan 1992
NYSE SAP SPON ADR EACH REP 1 ORD NPV New York Stock Exchange US USD 20. Oct 1995
DB SAPA SPON ADR EACH REP 1 ORD NPV Deutsche Boerse AG DE EUR 20. Oct 1995
BMV SAP N SPON ADR EACH REP 1 ORD NPV Bolsa Mexicana de Valores MX MXN 20. Oct 1995
Number of employees
Current staff
Staff numbers
98,659
SAP employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 02:15
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/25
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.