SAP (SAP) Stock Analysis
Here is a fundamental analysis of SAP (SAP), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: SAP | Industry group median |
|---|---|---|
| 1-Year Return | -44.64% | -18.34% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: SAP | Industry group median |
|---|---|---|
| 1-Year Volatility | 34.33% | 58.21% |
| Beta | 1.14 | 1.14 |
Company Profile
SAP (SAP) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.
| Profile Item | SAP |
|---|---|
| Name | SAP SE Sponsored ADR |
| Country/Region | Germany |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | Software |
| GICS Sub-Industry | Application Software |
| Market Capitalization | 193.56 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | September 18, 1995 |
| Security Type | ADR |
Valuation
Price-to-Earnings Ratio (TTM)
SAP (SAP) trades at P/E ratio of 22.83, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
SAP
Software & Services industry group
22.83
Group distribution
- Max
- 106.12
- Q3
- 56.70
- Median
- 30.10
- SAP
- 22.83
- Q1
- 15.65
- Min
- 0.39
Largest peers
- PANW
- 243.15
- PLTR
- 143.81
- ORCL
- 31.53
- IBM
- 24.09
- MSFT
- 23.29
- SAP
- 22.83
- CRWD
- --
Price-to-Sales Ratio (TTM)
SAP (SAP) trades at 5.18 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
SAP
Software & Services industry group
5.18
Group distribution
- Max
- 18.75
- Q3
- 8.80
- SAP
- 5.18
- Median
- 3.97
- Q1
- 2.05
- Min
- 0.02
Largest peers
- PLTR
- 58.73
- CRWD
- 34.12
- PANW
- 21.49
- MSFT
- 9.12
- ORCL
- 7.86
- SAP
- 5.18
- IBM
- 3.71
Price-to-Book Ratio (MRQ)
SAP (SAP) trades at 3.66 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
SAP
Software & Services industry group
3.66
Group distribution
- Max
- 16.52
- Q3
- 8.04
- Median
- 3.96
- SAP
- 3.66
- Q1
- 1.96
- Min
- -6.70
Largest peers
- CRWD
- 37.51
- PLTR
- 36.31
- ORCL
- 15.78
- PANW
- 8.22
- IBM
- 7.76
- MSFT
- 7.01
- SAP
- 3.66
Valuation at a Glance
| Metric | Current stock: SAP | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 22.83 | 30.10 |
| Price-to-Sales Ratio (TTM) | 5.18 | 3.97 |
| Price-to-Book Ratio (MRQ) | 3.66 | 3.96 |
| Free Cash Flow Yield | 4.21% | 4.68% |
Profitability
Return on Equity (TTM)
SAP (SAP) posts ROE of 16.35%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
SAP
Software & Services industry group
16.35%
Group distribution
- Max
- 53.38%
- Q3
- 16.49%
- SAP
- 16.35%
- Median
- 5.29%
- Q1
- -13.69%
- Min
- -58.43%
Largest peers
- ORCL
- 53.38%
- IBM
- 35.77%
- MSFT
- 34.01%
- PLTR
- 32.59%
- SAP
- 16.35%
- PANW
- 4.83%
- CRWD
- -0.25%
Net Profit Margin (TTM)
SAP (SAP) keeps 19.58% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
SAP
Software & Services industry group
19.58%
Group distribution
- Max
- 44.20%
- SAP
- 19.58%
- Q3
- 14.93%
- Median
- 3.32%
- Q1
- -6.49%
- Min
- -34.99%
Largest peers
- PLTR
- 43.67%
- MSFT
- 39.34%
- ORCL
- 25.37%
- SAP
- 19.58%
- IBM
- 15.61%
- PANW
- 7.95%
- CRWD
- -0.60%
Operating Profit Margin (TTM)
SAP (SAP) turns 30.03% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
SAP
Software & Services industry group
30.03%
Group distribution
- Max
- 60.45%
- SAP
- 30.03%
- Q3
- 16.49%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -54.21%
Largest peers
- MSFT
- 46.33%
- PLTR
- 46.18%
- ORCL
- 36.26%
- SAP
- 30.03%
- IBM
- 13.81%
- CRWD
- -2.21%
- PANW
- -2.47%
Profitability at a Glance
| Metric | Current stock: SAP | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 16.35% | 5.29% |
| Return on Assets (TTM) | 9.08% | 1.62% |
| Net Profit Margin (TTM) | 19.58% | 3.32% |
| Operating Profit Margin (TTM) | 30.03% | 4.46% |
| Gross Profit Margin (TTM) | 73.72% | 68.69% |
Financial Strength
Current Ratio (MRQ)
SAP (SAP) has current ratio of 1.07, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
SAP
Software & Services industry group
1.07
Group distribution
- Max
- 5.55
- Q3
- 2.88
- Median
- 1.73
- SAP
- 1.07
- Q1
- 1.07
- Min
- 0.03
Largest peers
- PLTR
- 6.91
- CRWD
- 1.53
- MSFT
- 1.28
- ORCL
- 1.12
- SAP
- 1.07
- PANW
- 0.86
- IBM
- 0.80
Debt-to-Equity Ratio (MRQ)
SAP (SAP) has debt-to-equity ratio of 0.17, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
SAP
Software & Services industry group
0.17
Group distribution
- Max
- 2.31
- Q3
- 1.06
- Median
- 0.32
- SAP
- 0.17
- Q1
- 0.06
- Min
- 0.00
Largest peers
- ORCL
- 3.63
- IBM
- 2.11
- MSFT
- 0.30
- CRWD
- 0.18
- SAP
- 0.17
- PANW
- 0.08
- PLTR
- 0.02
Financial Strength at a Glance
| Metric | Current stock: SAP | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.07 | 1.73 |
| Debt-to-Equity Ratio (MRQ) | 0.17 | 0.32 |
| Net Debt / EBITDA | -0.19 | -0.09 |
Dividends
Dividend Yield (TTM)
SAP (SAP) has dividend yield of 1.78%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
SAP
Software & Services industry group
1.78%
Group distribution
- SAP
- 1.78%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 2.48%
- SAP
- 1.78%
- ORCL
- 1.09%
- MSFT
- 0.93%
- PLTR
- 0.00%
- PANW
- 0.00%
- CRWD
- 0.00%
Dividend Payout Ratio (TTM)
SAP (SAP) has payout ratio of 37.15%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.
SAP
Software & Services industry group
37.15%
Group distribution
- SAP
- 37.15%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 59.47%
- SAP
- 37.15%
- ORCL
- 34.31%
- MSFT
- 20.73%
- PLTR
- 0.00%
- PANW
- 0.00%
- CRWD
- 0.00%
Dividends at a Glance
| Metric | Current stock: SAP | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 1.78% | 0.00% |
| Dividend Payout Ratio (TTM) | 37.15% | 0.00% |