DB:SAP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with proven track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

SAP

5.9%

DE Software

1.5%

DE Market


1 Year Return

3.0%

SAP

5.7%

DE Software

-0.2%

DE Market

Return vs Industry: SAP underperformed the German Software industry which returned 5.7% over the past year.

Return vs Market: SAP exceeded the German Market which returned 0.1% over the past year.


Shareholder returns

SAPIndustryMarket
7 Day4.4%5.9%1.5%
30 Day4.7%5.6%5.7%
90 Day1.6%4.8%-2.7%
1 Year4.5%3.0%7.1%5.7%1.5%-0.2%
3 Year22.8%17.6%27.7%22.5%-7.1%-14.3%
5 Year87.6%74.4%93.3%80.0%5.2%-8.3%

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?

17.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAP (€113.28) is trading below our estimate of fair value (€137.42)

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 poor value based on its PE Ratio (31.9x) compared to the Software industry average (27.3x).

PE vs Market: SAP is poor value based on its PE Ratio (31.9x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: SAP is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: SAP is overvalued based on its PB Ratio (4.4x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

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

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAP's forecast earnings growth (15.1% per year) is above the savings rate (0.2%).

Earnings vs Market: SAP's earnings (15.1% per year) are forecast to grow slower than the German market (21.7% per year).

High Growth Earnings: SAP's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAP's revenue (7.2% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: SAP's revenue (7.2% 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 (19.8%).


Next Steps

Past Performance

How has SAP performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAP has high quality earnings.

Growing Profit Margin: SAP's current net profit margins (15.2%) are higher than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: SAP's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: SAP's earnings growth over the past year (30.4%) exceeds its 5-year average (3.7% per year).

Earnings vs Industry: SAP earnings growth over the past year (30.4%) underperformed the Software industry 30.4%.


Return on Equity

High ROE: SAP's Return on Equity (13.9%) is considered low.


Next Steps

Financial Health

How is SAP's financial position?


Financial Position Analysis

Short Term Liabilities: SAP's short term assets (€17.3B) do not cover its short term liabilities (€17.5B).

Long Term Liabilities: SAP's short term assets (€17.3B) exceed its long term liabilities (€14.7B).


Debt to Equity History and Analysis

Debt Level: SAP's debt to equity ratio (50.2%) is considered high.

Reducing Debt: SAP's debt to equity ratio has increased from 47.3% to 50.2% over the past 5 years.

Debt Coverage: SAP's debt is well covered by operating cash flow (23.8%).

Interest Coverage: SAP's interest payments on its debt are well covered by EBIT (18.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAP's dividend (1.39%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: SAP's dividend (1.39%) is low compared to the top 25% of dividend payers in the German market (3.94%).


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 (44.4%), 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 (31.1% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Christian Klein (39yo)

0.17

Tenure

€8,261,672

Compensation

Mr. Christian Klein has been a Chief Executive Officer at SAP SE since April 30, 2020 and its Member of Executive Board since January 1, 2018. He served as Co-Chief Executive Officer at SAP SE since Octobe ...


CEO Compensation Analysis

Compensation vs Market: Christian's total compensation ($USD9.18M) is above average for companies of similar size in the German market ($USD5.12M).

Compensation vs Earnings: Christian's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hasso Plattner
Co-Founder & Independent Chairman of the Supervisory Board17.08yrs€328.20kno data
Christian Klein
CEO, COO & Member of Executive Board0.17yr€8.26mno data
Margret Klein-Magar
Deputy Chairperson of Supervisory Board5.08yrs€246.60kno data
Luka Mucic
CFO & Member of Executive Board5.92yrs€4.22mno data
Adaire Fox-Martin
Head of Customer Success & Member of Executive Board3.08yrs€4.68mno data
Stefan Ries
Chief Human Resources Officer4.17yrs€3.86mno data
Thomas Saueressig
Member of Executive Board0.58yr€1.41mno data
Juergen Müller
CTO & Member of Executive Board1.42yrs€4.03mno data
Lars Lamadé
Head of Sponsorships Europe & Asia and Member of Supervisory Board18.17yrs€187.90kno data
Christine Regitz
VP of User Experience5.08yrs€195.30kno data

3.1yrs

Average Tenure

50yo

Average Age

Experienced Management: SAP's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hasso Plattner
Co-Founder & Independent Chairman of the Supervisory Board17.08yrs€328.20kno data
Margret Klein-Magar
Deputy Chairperson of Supervisory Board5.08yrs€246.60kno data
Lars Lamadé
Head of Sponsorships Europe & Asia and Member of Supervisory Board18.17yrs€187.90kno data
Christine Regitz
VP of User Experience5.08yrs€195.30kno data
Monika Kovachka-Dimitrova
Member of Supervisory Board & Chief Project Expert Development1.08yrs€124.70kno data
Pekka Ala-Pietilä
Independent Member of Supervisory Board18.08yrs€183.30kno data
Gerhard Oswald
Independent Member of Supervisory Board1.42yrs€217.30kno data
Panagiotis Bissiritsas
Member of Supervisory Board & Support Expert13.08yrs€204.40kno data
Friederike Rotsch
Independent Member of Supervisory Board2.08yrs€208.10kno data
Gunnar Wiedenfels
Independent Member of Supervisory Board1.08yrs€135.70kno data

5.1yrs

Average Tenure

52yo

Average Age

Experienced Board: SAP's board of directors are considered experienced (5.1 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: DB
  • Founded: 1972
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €135.159b
  • 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
SAPG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SAPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0NW4LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
SAPXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 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
SAPBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 SPON ADRARARSJul 2001

Biography

SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. It operates in Applications, Technology & Services; SAP Business Network; and Customer Experience segments. 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; SAP ActiveAttention program, a premium-level engagement solution to support smaller businesses; 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. The company has a strategic partnership with GEA Group Aktiengesellschaft. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 21:41
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.