BIT:SAP

Stock Analysis Report

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

-0.2%

SAP

4.7%

IT Software

-1.1%

IT Market


1 Year Return

3.5%

SAP

5.4%

IT Software

-26.2%

IT Market

Return vs Industry: SAP underperformed the Italian Software industry which returned 6.6% over the past year.

Return vs Market: SAP exceeded the Italian Market which returned -24.5% over the past year.


Shareholder returns

SAPIndustryMarket
7 Day-0.2%4.7%-1.1%
30 Day-5.5%2.8%-18.8%
90 Day-14.4%-11.2%-28.7%
1 Year4.9%3.5%6.5%5.4%-23.0%-26.2%
3 Year17.1%12.3%-12.0%-15.7%-13.5%-22.1%
5 Year58.2%46.9%39.4%28.3%-26.2%-51.8%

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

No news available

Valuation

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

36.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAP (€97.05) is trading above our estimate of fair value (€70.33)

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 (35x) compared to the Software industry average (36x).

PE vs Market: SAP is poor value based on its PE Ratio (35x) compared to the Italian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: SAP is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SAP is overvalued based on its PB Ratio (3.8x) compared to the IT Software industry average (3.7x).


Next Steps

Future Growth

How is SAP forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?

18.6%

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 (1.2%).

Earnings vs Market: SAP's earnings (19.1% per year) are forecast to grow faster than the Italian market (11.9% per year).

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

Revenue vs Market: SAP's revenue (6.3% per year) is forecast to grow faster than the Italian market (0.1% per year).

High Growth Revenue: SAP's revenue (6.3% 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 (-25.5%).


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

Inventory Level: SAP has a low level of unsold assets or inventory.

Debt Coverage by Assets: SAP's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

1.56%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SAP's dividend (1.62%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (2.36%).

High Dividend: SAP's dividend (1.62%) is low compared to the top 25% of dividend payers in the Italian market (5.73%).


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 (31.4% 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 ($USD9.31M) is above average for companies of similar size in the Italian market ($USD4.19M).

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

NamePositionTenureCompensationOwnership
Hasso Plattner
Co-Founder & Chairman of the Supervisory Board16.92yrs€328.20kno data
Jennifer Morgan
Co-CEO & Member of Executive Board0.50yr€8.63mno data
Christian Klein
Co-CEO, COO & Member of Executive Board0.50yr€8.26mno data
Margret Klein-Magar
Deputy Chairperson of Supervisory Board4.92yrs€246.60kno data
Luka Mucic
CFO & Member of Executive Board5.75yrs€4.22mno data
Michael Kleinemeier
Member of Executive Board4.42yrs€4.24mno data
Adaire Fox-Martin
Global Customer Operations & Member of Executive Board2.92yrs€4.68mno data
Stefan Ries
Chief Human Resources Officer4yrs€3.86mno data
Thomas Saueressig
Member of Executive Board0.42yr€1.41mno data
Juergen Müller
CTO & Member of Executive Board1.25yrs€4.03mno data

2.1yrs

Average Tenure

50yo

Average Age

Experienced Management: SAP's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hasso Plattner
Co-Founder & Chairman of the Supervisory Board16.92yrs€328.20kno data
Margret Klein-Magar
Deputy Chairperson of Supervisory Board4.92yrs€246.60kno data
Lars Lamadé
Head of Sponsorships Europe & Asia and Member of Supervisory Board18yrs€187.90kno data
Christine Regitz
VP of User Experience4.92yrs€195.30kno data
Monika Kovachka-Dimitrova
Member of Supervisory Board & Chief Project Expert Development0.92yr€124.70kno data
Pekka Ala-Pietilä
Member of Supervisory Board17.92yrs€183.30kno data
Gerhard Oswald
Independent Member of Supervisory Board1.25yrs€217.30kno data
Panagiotis Bissiritsas
Member of Supervisory Board & Support Expert12.92yrs€204.40kno data
Friederike Rotsch
Independent Member of Supervisory Board1.92yrs€208.10kno data
Gunnar Wiedenfels
Independent Member of Supervisory Board0.92yr€135.70kno 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: BIT
  • 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

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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 00:49
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.