OTCPK:SAPG.F

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 average dividend payer.


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


Market Performance


7 Day Return

0.4%

SAPG.F

-2.6%

US Software

-1.0%

US Market


1 Year Return

26.4%

SAPG.F

35.8%

US Software

18.0%

US Market

Return vs Industry: SAPG.F underperformed the US Software industry which returned 35.8% over the past year.

Return vs Market: SAPG.F exceeded the US Market which returned 18% over the past year.


Shareholder returns

SAPG.FIndustryMarket
7 Day0.4%-2.6%-1.0%
30 Day-1.4%4.9%0.6%
90 Day1.1%15.2%7.9%
1 Year26.4%26.4%37.3%35.8%20.4%18.0%
3 Year47.6%47.6%145.0%134.6%48.0%38.5%
5 Year95.1%95.1%214.6%191.9%72.2%53.3%

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

No news available

Valuation

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

45.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAPG.F ($136.54) is trading above our estimate of fair value ($69.96)

Significantly Below Fair Value: SAPG.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SAPG.F is good value based on its PE Ratio (45.1x) compared to the Software industry average (49.4x).

PE vs Market: SAPG.F is poor value based on its PE Ratio (45.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SAPG.F is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: SAPG.F is good value based on its PB Ratio (4.9x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is SAP forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAPG.F's forecast earnings growth (18.6% per year) is above the savings rate (1.7%).

Earnings vs Market: SAPG.F's earnings (18.6% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: SAPG.F's revenue (6.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SAPG.F's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAPG.F's Return on Equity is forecast to be high in 3 years time (21.3%)


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: SAPG.F has a large one-off loss of €1.4B impacting its December 31 2019 financial results.

Growing Profit Margin: SAPG.F's current net profit margins (12.1%) are lower than last year (16.5%).


Past Earnings Growth Analysis

Earnings Trend: SAPG.F's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: SAPG.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SAPG.F had negative earnings growth (-18.3%) over the past year, making it difficult to compare to the Software industry average (18.4%).


Return on Equity

High ROE: SAPG.F's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SAP's financial position?


Financial Position Analysis

Short Term Liabilities: SAPG.F's short term assets (€15.2B) exceed its short term liabilities (€14.5B).

Long Term Liabilities: SAPG.F's short term assets (€15.2B) exceed its long term liabilities (€14.9B).


Debt to Equity History and Analysis

Debt Level: SAPG.F's debt to equity ratio (45.8%) is considered high.

Reducing Debt: SAPG.F's debt to equity ratio has reduced from 56.6% to 45.8% over the past 5 years.

Debt Coverage: SAPG.F's debt is well covered by operating cash flow (24.8%).

Interest Coverage: SAPG.F's interest payments on its debt are well covered by EBIT (394.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SAPG.F'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?

1.25%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: SAPG.F's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SAPG.F's dividend (1.25%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: SAPG.F's dividends per share have been stable in the past 10 years.

Growing Dividend: SAPG.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.5%), SAPG.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAPG.F's dividends in 3 years are forecast to be well covered by earnings (30.7% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Jennifer Morgan (48yo)

0.3yrs

Tenure

€3,994,900

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 ($USD4.34M) is below average for companies of similar size in the US market ($USD10.79M).

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 Board16.8yrs€363.00kno data
Jennifer Morgan
Co-CEO & Member of Executive Board0.3yrs€3.99mno data
Christian Klein
Co-CEO & Member of Executive Board0.3yrs€3.63mno data
Luka Mucic
CFO & Member of Executive Board5.6yrs€3.97mno data
Michael Kleinemeier
Head of Digital Business Services & Member of Executive Board4.3yrs€3.98mno data
Adaire Fox-Martin
Global Customer Operations & Member of Executive Board2.8yrs€4.01mno data
Stefan Ries
Chief Human Resources Officer3.8yrs€3.64mno data
Lars Lamadé
Head of Sponsorships Europe & Asia and Member of Supervisory Board17.8yrs€187.00kno data
Christine Regitz
VP of User Experience4.8yrs€187.00kno data
Eve Stacey
President1yrsno datano data

2.9yrs

Average Tenure

52yo

Average Age

Experienced Management: SAPG.F's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hasso Plattner
Co-Founder & Chairman of the Supervisory Board16.8yrs€363.00kno data
Lars Lamadé
Head of Sponsorships Europe & Asia and Member of Supervisory Board17.8yrs€187.00kno data
Christine Regitz
VP of User Experience4.8yrs€187.00kno data
Pekka Ala-Pietilä
Member of Supervisory Board17.8yrs€205.30kno data
Bernard Liautaud
Member of Supervisory Board11.8yrs€198.00kno data
Gerhard Oswald
Member of Supervisory Board1.1yrs€4.02mno data
Panagiotis Bissiritsas
Member of Supervisory Boad12.8yrs€203.50kno data
Friederike Rotsch
Member of Supervisory Board1.8yrs€128.30kno data
Margret Klein-Magar
Deputy Chairperson of Supervisory Board4.8yrs€242.00kno data
Gunnar Wiedenfels
Member of Supervisory Board0.8yrsno datano data

8.3yrs

Average Tenure

54yo

Average Age

Experienced Board: SAPG.F's board of directors are considered experienced (8.3 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SAP SE
  • Ticker: SAPG.F
  • Exchange: OTCPK
  • Founded: 1972
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €150.591b
  • Listing Market Cap: €163.579b
  • 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 ADRUSUSDOct 1995
SAP NBMV (Bolsa Mexicana de Valores)SPON ADRMXMXNOct 1995
SAPADB (Deutsche Boerse AG)SPON ADRDEEUROct 1995
0A2WLSE (London Stock Exchange)SPON ADRGBUSDOct 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; 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:59
End of Day Share Price2020/02/21 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.