SAP SE
SAP SE Fundamental Analysis
SAP SE (SAPGF) shows moderate financial fundamentals with a PE ratio of 27.44, profit margin of 19.91%, and ROE of 16.12%. The company generates $36.8B in annual revenue with moderate year-over-year growth of 9.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SAPGF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSAPGF demonstrates superior asset utilization.
Valuation Score
WeakSAPGF trades at a premium to fair value.
Growth Score
ModerateSAPGF shows steady but slowing expansion.
Financial Health Score
ExcellentSAPGF maintains a strong and stable balance sheet.
Profitability Score
ExcellentSAPGF achieves industry-leading margins.
Key Financial Metrics
Is SAPGF Expensive or Cheap?
P/E Ratio
SAPGF trades at 27.44 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SAPGF's PEG of 9.36 indicates potential overvaluation.
Price to Book
The market values SAP SE at 4.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.26 times EBITDA. This signals the market has high growth expectations.
How Well Does SAPGF Make Money?
Net Profit Margin
For every $100 in sales, SAP SE keeps $19.91 as profit after all expenses.
Operating Margin
Core operations generate 27.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.12 in profit for every $100 of shareholder equity.
ROA
SAP SE generates $10.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SAP SE produces operating cash flow of $9.12B, showing steady but balanced cash generation.
Free Cash Flow
SAP SE generates strong free cash flow of $8.39B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.20 in free cash annually.
FCF Yield
SAPGF converts 4.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How SAPGF Stacks Against Its Sector Peers
| Metric | SAPGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.44 | 35.87 | Better (Cheaper) |
| ROE | 16.12% | 1175.00% | Weak |
| Net Margin | 19.91% | -136937.00% (disorted) | Strong |
| Debt/Equity | 0.18 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.17 | 4.81 | Neutral |
| ROA | 10.42% | -312685.00% (disorted) | Strong |
SAPGF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SAP SE's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.02%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-3.67%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
52.86%
Industry Style: Growth, Innovation, High Beta
High Growth