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SAP SE
NYSE:SAP
![SAP SE Logo](https://ik.imagekit.io/kkbzr2uz4cp/stock/nyse/sap.png)
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Intrinsic Value
The intrinsic value of one
SAP
stock under the Base Case scenario is
158.44
USD.
Compared to the current market price of 211.33 USD,
SAP SE
is
Overvalued by 25%.
The Intrinsic Value is calculated as the average of DCF and Relative values:
![](https://ik.imagekit.io/kkbzr2uz4cp/stock/nyse/sap.png?tr=w-200)
Valuation Backtest
SAP SE
Run backtest to discover the historical profit from buying and selling
SAP
based on its intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
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SAP SE, a global leader in enterprise software, has carved out a significant niche in helping organizations worldwide manage their business operations and customer relationships effectively. Founded in 1972 in Germany, the company pioneered integrated business solutions with its flagship product, SAP ERP, which has become the backbone for countless enterprises seeking efficiency and transparency. Over the years, SAP has evolved its offerings to include cloud solutions, analytics, and artificial intelligence, positioning itself at the forefront of digital transformation. As businesses increasingly look to harness data for strategic decision-making, SAP’s innovative technologies enable them to...
SAP SE, a global leader in enterprise software, has carved out a significant niche in helping organizations worldwide manage their business operations and customer relationships effectively. Founded in 1972 in Germany, the company pioneered integrated business solutions with its flagship product, SAP ERP, which has become the backbone for countless enterprises seeking efficiency and transparency. Over the years, SAP has evolved its offerings to include cloud solutions, analytics, and artificial intelligence, positioning itself at the forefront of digital transformation. As businesses increasingly look to harness data for strategic decision-making, SAP’s innovative technologies enable them to streamline processes, enhance productivity, and unlock new revenue streams, catering to a diverse clientele ranging from small startups to multinational corporations.
For investors, SAP represents a compelling opportunity in the technology sector with a strong commitment to sustainability and corporate responsibility. The company’s strategic shift towards cloud computing has yielded impressive growth potential and recurring revenue streams, essential for resilience in fluctuating markets. With ongoing investments in research and development, SAP is continuously shaping its future offerings to meet the evolving needs of its customers. Furthermore, SAP’s robust financial performance and a solid dividend policy reflect its stability and dedication to shareholder value. As organizations increasingly embrace digital solutions, SAP is well-positioned to capitalize on this trend, making it a noteworthy consideration for those seeking long-term growth in their investment portfolios.
SAP SE, a leading global software corporation, primarily focuses on enterprise software solutions to enhance business operations across various industries. Here are the core business segments of SAP SE:
-
Cloud Solutions:
- SAP Business Technology Platform: This platform provides comprehensive tools, services, and technologies for application development, integration, and data management.
- SAP Business Cloud: A suite that includes solutions like SAP S/4HANA Cloud for enterprise resource planning (ERP), SAP SuccessFactors for human capital management, and SAP Customer Experience (CX).
-
SAP S/4HANA:
- An intelligent ERP suite designed to help businesses run their operations efficiently. It incorporates capabilities for finance, supply chain, manufacturing, and more, leveraging real-time data analytics.
-
Intelligent Technologies:
- This includes technologies like AI, machine learning, Internet of Things (IoT), and advanced analytics that enhance core business processes and decision-making.
-
Industry Solutions:
- SAP offers specialized solutions tailored for various industries, such as manufacturing, retail, automotive, and healthcare, addressing specific operational needs and regulatory requirements.
-
Business Services:
- This segment includes consulting, education, and support services that help customers implement and optimize SAP solutions.
-
Database and Data Management:
- SAP HANA is an advanced in-memory database that supports high-performance analytics and transactional processing.
-
Analytics and Business Intelligence:
- Solutions like SAP Analytics Cloud provide powerful tools for business intelligence, enabling organizations to visualize and analyze their data for better insights.
By focusing on these core segments, SAP SE effectively supports organizations in their digital transformation journeys and helps them drive efficiency, agility, and innovation.
SAP SE, a leader in enterprise resource planning (ERP) software, possesses several unique competitive advantages over its rivals in the market. Here are some key aspects:
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Integrated Suite of Solutions: SAP offers a comprehensive suite of applications that covers various business processes, including finance, supply chain, manufacturing, human resources, and customer relationship management. This integration allows businesses to streamline operations and improve data consistency.
-
Extensive Customer Base and Market Presence: SAP has a vast global customer base, including many large enterprises across different industries. This extensive presence enhances brand recognition, customer trust, and insights into various sector needs, facilitating product development and customer support.
-
Strong R&D Investment: Continuous investment in research and development allows SAP to innovate and enhance its product offerings. This commitment to innovation helps SAP stay ahead in technology trends, such as cloud computing, artificial intelligence, and machine learning.
-
Cloud Computing Expertise: With the transition to cloud-based solutions, SAP has effectively leveraged its established software expertise to deliver robust cloud products (e.g., SAP S/4HANA). Its hybrid cloud capabilities and partnerships with leading cloud providers give it a competitive edge.
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Ecosystem and Partnerships: SAP has built a vast ecosystem of partners, including system integrators, software vendors, and resellers. This ecosystem enhances the value of its offerings, providing complementary products and services that help businesses maximize their SAP investments.
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Industry-Specific Solutions: SAP tailors its software to meet specific industry requirements, enabling companies to deploy solutions that are more aligned with their unique challenges and regulatory standards. This specialization can be a significant advantage over competitors offering more generic solutions.
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Focus on Sustainability: SAP actively promotes sustainability in its software solutions, supporting businesses in tracking and reporting their environmental impact. This focus appeals to companies looking to enhance their corporate social responsibility efforts.
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Historical Data and Legacy Systems: Many organizations have legacy SAP systems in place, creating a high switching cost for migration to other platforms. This strong foothold in large enterprises gives SAP a competitive advantage, as customers are often hesitant to change due to potential disruptions.
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Strong Community and Training Resources: SAP maintains a robust community of users and developers, as well as a wealth of training resources and certifications. This creates a well-informed user base and reduces the barriers to entry for new users adapting to the system.
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Customer Engagement and Support: SAP's commitment to customer success, proactive support, and the provision of tailored solutions strengthens its long-term relationships with clients, leading to higher customer satisfaction and retention rates.
These competitive advantages help SAP maintain its position as a dominant player in the ERP market despite the rivalry from companies such as Oracle, Microsoft, and Salesforce.
SAP SE, as a leading provider of enterprise resource planning (ERP) software and business solutions, faces several risks and challenges in the near future:
-
Competitive Pressure: SAP competes with various players in the cloud computing and ERP markets, including Oracle, Microsoft, and newer cloud-native companies like Salesforce. This competition can lead to pricing pressures and a loss of market share.
-
Cloud Transition: While SAP is making significant strides in transitioning its business model to the cloud, the process is complex and can lead to disruptions. The need to support legacy systems while promoting cloud solutions can create operational challenges.
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Cybersecurity Threats: As a technology company dealing with sensitive enterprise data, SAP is a potential target for cyberattacks. Breaches can lead to data loss, financial repercussions, and damage to reputation.
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Regulatory Compliance: With increasing regulations around data privacy and security, SAP must ensure compliance with laws like the GDPR in Europe and similar regulations worldwide. Non-compliance can result in hefty fines and legal issues.
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Innovation and Technology Adoption: Rapid technological advancements, such as artificial intelligence, machine learning, and automation, require constant adaptation. SAP must continue innovating to stay relevant, which comes with R&D costs and execution risks.
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Customer Expectations: As businesses evolve, their needs change. SAP must regularly update its offerings and provide exceptional customer service to meet these expectations, which requires ongoing investment.
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Economic Conditions: Global economic fluctuations can impact IT spending among businesses. Economic downturns may lead clients to cut budgets, affecting SAP's revenue.
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Talent Acquisition and Retention: The tech industry is highly competitive for skilled labor. SAP must focus on attracting and retaining the best talent, especially in areas such as software development and data analytics.
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Implementation Challenges: Implementing ERP systems is often complex and time-consuming. Issues in deployment can lead to customer dissatisfaction, impacting sales and reputation.
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Geopolitical Risks: Global operations expose SAP to geopolitical tensions, trade tariffs, and fluctuations in currency exchange rates, which can affect international business.
By addressing these risks proactively, SAP can enhance its resilience and adapt to the changing landscape in the tech industry.
Revenue & Expenses Breakdown
SAP SE
Balance Sheet Decomposition
SAP SE
Current Assets | 20.9B |
Cash & Short-Term Investments | 11.7B |
Receivables | 6.7B |
Other Current Assets | 2.5B |
Non-Current Assets | 49.5B |
Long-Term Investments | 6.1B |
PP&E | 4.3B |
Intangibles | 32.1B |
Other Non-Current Assets | 7B |
Current Liabilities | 18.7B |
Accounts Payable | 1.9B |
Other Current Liabilities | 16.8B |
Non-Current Liabilities | 10.1B |
Long-Term Debt | 6.7B |
Other Non-Current Liabilities | 3.4B |
Earnings Waterfall
SAP SE
Revenue
|
32.5B
EUR
|
Cost of Revenue
|
-8.9B
EUR
|
Gross Profit
|
23.7B
EUR
|
Operating Expenses
|
-16.5B
EUR
|
Operating Income
|
7.2B
EUR
|
Other Expenses
|
-4.6B
EUR
|
Net Income
|
2.7B
EUR
|
Free Cash Flow Analysis
SAP SE
EUR | |
Free Cash Flow | EUR |
SAP delivered excellent Q2 2024 results, showing significant growth in cloud revenues and profitability. The cloud backlog increased by 28% to EUR 14.8 billion, while cloud revenue grew 25% year-over-year, propelled by a 33% rise in cloud ERP suite sales. Despite restructuring expenses of EUR 600 million related to ongoing transformation, their non-IFRS operating profit surged 35% to EUR 1.94 billion. Free cash flow more than doubled to EUR 1.3 billion. Looking ahead, SAP remains optimistic, maintaining its 2024 financial outlook and expecting to achieve its 2025 ambitions, supported by continued efficiency gains and integration of AI across its portfolio.
What is Earnings Call?
SAP Profitability Score
Profitability Due Diligence
SAP SE's profitability score is 57/100. The higher the profitability score, the more profitable the company is.
![](https://ik.imagekit.io/kkbzr2uz4cp/stock/nyse/sap.png)
Score
SAP SE's profitability score is 57/100. The higher the profitability score, the more profitable the company is.
SAP Solvency Score
Solvency Due Diligence
SAP SE's solvency score is 76/100. The higher the solvency score, the more solvent the company is.
![](https://ik.imagekit.io/kkbzr2uz4cp/stock/nyse/sap.png)
Score
SAP SE's solvency score is 76/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
SAP Price Targets Summary
SAP SE
According to Wall Street analysts, the average 1-year price target for
SAP
is 239.92 USD
with a low forecast of 165.2 USD and a high forecast of 282.31 USD.
Shareholder Yield
Current shareholder yield for SAP is
.
Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?
SAP Price
SAP SE
Average Annual Return | -1.18% |
Standard Deviation of Annual Returns | 17.18% |
Max Drawdown | -51% |
Market Capitalization | 246.5B USD |
Shares Outstanding | 1 179 000 000 |
Percentage of Shares Shorted | 0.2% |
Profile
![SAP SE Logo](https://ik.imagekit.io/kkbzr2uz4cp/stock/nyse/sap.png?tr=w-200)
![SAP SE Logo](https://ik.imagekit.io/kkbzr2uz4cp/stock/nyse/sap.png?tr=w-200)
Country
Industry
Market Cap
Dividend Yield
Description
SAP SE engages in the provision of enterprise application software and software-related services. The company is headquartered in Walldorf, Baden-Wuerttemberg and currently employs 107,415 full-time employees. The firm operates through three segments: Applications, Technology & Services segment, which is engaged in the sale of software licenses, subscriptions to its cloud applications, and related services, primarily support services and various professional services, and support services, as well as implementation services of its software products and education services on the use of its products; the SAP Business Network segment, which includes its cloud-based collaborative business networks and services relating to the SAP Business Network, including cloud applications, professional services and education services, as well as the Company markets and sells the cloud offerings developed by SAP Ariba, SAP Fieldglass and Concur, and the Customer Experience segment, which comprises on-premise and cloud-based products that run front office functions across the customer experience.
Contact
IPO
Employees
Officers
The intrinsic value of one
SAP
stock under the Base Case scenario is
158.44
USD.
Compared to the current market price of 211.33 USD,
SAP SE
is
Overvalued by 25%.