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SAP (SAP) Stock Analysis

This is a peer-relative look at SAP (SAP): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

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.

Company profile fields for SAP (SAP)
Profile ItemSAP
NameSAP SE Sponsored ADR
Country/RegionGermany
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustrySoftware
GICS Sub-IndustryApplication Software
Market Capitalization248.28 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateSeptember 18, 1995
Security TypeADR

Price Performance

Cumulative Growth

SAP
GSPC
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SAP (SAP) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for SAP (SAP) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for SAP (SAP) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

SAP (SAP) metric values compared with Software & Services industry-group medians
MetricCurrent stock: SAPIndustry group median
Total Return (1Y)-19.54%-3.78%
Total Return (3Y, Annualized)17.40%4.13%
Total Return (5Y, Annualized)9.33%-7.93%

Risk Profile

Drawdown History

SAP
GSPC
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SAP (SAP) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for SAP (SAP) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

SAP (SAP) metric values compared with Software & Services industry-group medians
MetricCurrent stock: SAPIndustry group median
Volatility (1Y, Annualized)38.84%61.43%
Beta (5Y)1.131.13
Max Drawdown (5Y)-52.26%-76.82%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. SAP is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

SAP (SAP) metric values compared with Software & Services industry-group medians
MetricCurrent stock: SAPIndustry group median
Sharpe Ratio (1Y)-0.61-0.15
Sortino Ratio (1Y)-0.83-0.22

Profitability

ROE (TTM)

SAP (SAP) posts ROE of 18.32%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

SAP

Software & Services industry group

18.32%

Group distribution
Max
62.95%
SAP
18.32%
Q3
18.06%
Median
5.27%
Q1
-14.02%
Min
-59.77%
Largest peers
ORCL
53.38%
PLTR
38.10%
IBM
34.46%
MSFT
34.04%
SAP
18.32%
PANW
1.74%
CRWD
1.46%
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Where SAP (SAP) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

SAP (SAP) keeps 20.41% 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

20.41%

Group distribution
Max
41.43%
SAP
20.41%
Q3
14.96%
Median
3.57%
Q1
-6.01%
Min
-35.38%
Largest peers
PLTR
49.01%
MSFT
40.31%
ORCL
25.37%
SAP
20.41%
IBM
15.52%
PANW
2.67%
CRWD
0.83%
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Where SAP (SAP) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

SAP (SAP) turns 27.62% 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

27.62%

Group distribution
Max
47.12%
SAP
27.62%
Q3
15.43%
Median
4.85%
Q1
-7.31%
Min
-39.13%
Largest peers
PLTR
47.12%
MSFT
45.11%
ORCL
36.20%
SAP
27.62%
IBM
16.55%
PANW
5.04%
CRWD
-2.26%
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Where SAP (SAP) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

SAP (SAP) metric values compared with Software & Services industry-group medians
MetricCurrent stock: SAPIndustry group median
ROE (TTM)18.32%5.27%
ROA (TTM)9.54%1.99%
Net Margin (TTM)20.41%3.57%
Operating Margin (TTM)27.62%4.85%
Gross Margin (TTM)73.66%68.92%

Growth

Revenue Growth

SAP (SAP) grew revenue 7.68%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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SAP (SAP): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

SAP (SAP) grew earnings per share 130.19%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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SAP (SAP): EPS Growth across different time periods, set against Software & Services industry-group medians.

Growth Metrics

SAP (SAP) metric values compared with Software & Services industry-group medians
MetricCurrent stock: SAPIndustry group median
Revenue Growth (YoY)7.68%14.65%
Revenue Growth (3Y CAGR)7.63%13.51%
EPS Growth (YoY)130.19%7.42%
EPS Growth (3Y CAGR)46.25%18.42%

Financial Strength

Current Ratio (MRQ)

SAP (SAP) has current ratio of 1.15, 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

1.15

Group distribution
Max
5.39
Q3
2.83
Median
1.63
SAP
1.15
Q1
1.01
Min
0.03
Largest peers
PLTR
7.23
CRWD
1.57
MSFT
1.23
SAP
1.15
ORCL
1.12
PANW
0.87
IBM
0.79
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Where SAP (SAP) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

SAP (SAP) has debt-to-equity ratio of 0.22, 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

0.22

Group distribution
Max
2.62
Q3
1.10
Median
0.35
SAP
0.22
Q1
0.06
Min
0.00
Largest peers
ORCL
3.89
IBM
1.89
MSFT
0.29
SAP
0.22
CRWD
0.16
PANW
0.09
PLTR
0.02
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Where SAP (SAP) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

SAP (SAP) metric values compared with Software & Services industry-group medians
MetricCurrent stock: SAPIndustry group median
Current Ratio (MRQ)1.151.63
Debt / Equity (MRQ)0.220.35
Net Debt / EBITDA-0.14-0.03

Dividends

Dividend Yield (TTM)

SAP (SAP) has dividend yield of 1.15%, 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

1.15%

Group distribution
SAP
1.15%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
2.87%
ORCL
1.30%
SAP
1.15%
MSFT
0.71%
PLTR
0.00%
PANW
0.00%
CRWD
0.00%
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Where SAP (SAP) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

SAP (SAP) has payout ratio of 37.53%, 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

37.53%

Group distribution
SAP
37.53%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
59.77%
SAP
37.53%
ORCL
34.31%
MSFT
19.83%
PLTR
0.00%
PANW
0.00%
CRWD
0.00%
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Where SAP (SAP) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

SAP (SAP) metric values compared with Software & Services industry-group medians
MetricCurrent stock: SAPIndustry group median
Dividend Yield (TTM)1.15%0.00%
Dividend Payout Ratio (TTM)37.53%0.00%

Valuation

P/E Ratio (TTM)

SAP (SAP) trades at P/E ratio of 27.79, 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

27.79

Group distribution
Max
107.29
Q3
58.41
Median
31.75
SAP
27.79
Q1
16.98
Min
0.36
Largest peers
CRWD
5,327.50
PANW
284.84
PLTR
149.00
MSFT
27.85
SAP
27.79
ORCL
27.23
IBM
20.88
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Where SAP (SAP) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

SAP (SAP) trades at 6.50 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

6.50

Group distribution
Max
20.34
Q3
9.61
SAP
6.50
Median
4.72
Q1
2.37
Min
0.02
Largest peers
PLTR
68.05
CRWD
40.44
PANW
23.66
MSFT
11.18
ORCL
6.79
SAP
6.50
IBM
3.20
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Where SAP (SAP) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

SAP (SAP) trades at 67.70 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

SAP

Software & Services industry group

67.70

Group distribution
SAP
67.70
Max
19.49
Q3
9.71
Median
4.50
Q1
2.11
Min
-4.91
Largest peers
SAP
67.70
PLTR
42.85
CRWD
42.77
ORCL
12.18
PANW
9.79
MSFT
8.39
IBM
6.42
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Where SAP (SAP) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

SAP (SAP) metric values compared with Software & Services industry-group medians
MetricCurrent stock: SAPIndustry group median
P/E Ratio (TTM)27.7931.75
P/S Ratio (TTM)6.504.72
P/B Ratio (MRQ)67.704.50
Free Cash Flow Yield (TTM)3.66%3.91%