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SAP SE ADR (SAP)
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Upturn Advisory Summary
02/14/2025: SAP (5-star) is a STRONG-BUY. BUY since 187 days. Profits (50.77%). Updated daily EoD!
Analysis of Past Performance
Type Stock | Historic Profit 112.21% | Avg. Invested days 65 | Today’s Advisory Regular Buy |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 339.79B USD | Price to earnings Ratio 105.32 | 1Y Target Price 302.25 |
Price to earnings Ratio 105.32 | 1Y Target Price 302.25 | ||
Volume (30-day avg) 1046156 | Beta 0.89 | 52 Weeks Range 172.71 - 293.70 | Updated Date 02/17/2025 |
52 Weeks Range 172.71 - 293.70 | Updated Date 02/17/2025 | ||
Dividends yield (FY) 0.82% | Basic EPS (TTM) 2.76 |
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-01-22 | When - | Estimate 1.52 | Actual 1.4703 |
Profitability
Profit Margin 9.14% | Operating Margin (TTM) 26.01% |
Management Effectiveness
Return on Assets (TTM) 7.16% | Return on Equity (TTM) 7.06% |
Valuation
Trailing PE 105.32 | Forward PE 44.25 | Enterprise Value 338154896674 | Price to Sales(TTM) 9.94 |
Enterprise Value 338154896674 | Price to Sales(TTM) 9.94 | ||
Enterprise Value to Revenue 9.46 | Enterprise Value to EBITDA 45.69 | Shares Outstanding 1166499968 | Shares Floating 988327750 |
Shares Outstanding 1166499968 | Shares Floating 988327750 | ||
Percent Insiders 0.05 | Percent Institutions 6.33 |
AI Summary
SAP SE ADR: A Comprehensive Overview
Company Profile:
Detailed history and background:
- Founded in 1972 as System Analysis Program Development, later shortened to SAP.
- Originally focused on developing software for real-time data processing.
- Pioneered enterprise resource planning (ERP) software in the 1970s, which became its core business.
- Today, SAP is a global leader in enterprise software, cloud solutions, and customer relationship management (CRM).
Core business areas:
- Enterprise Resource Planning (ERP): Software suites that manage and integrate all aspects of a business, including financials, supply chain, human resources, and customer relationships.
- Customer Relationship Management (CRM): Software that helps businesses manage their interactions with customers.
- Cloud computing: Offering a range of cloud-based solutions, including infrastructure, platform, and software as a service (SaaS).
- Data and analytics: Develops and markets software and services that help businesses analyze and interpret data.
Leadership team and corporate structure:
- Christian Klein, CEO: Leading the company since 2019, with extensive experience in product development and sales.
- Jennifer Morgan, Co-CEO: Previously held leadership roles in SAP's cloud and customer experience divisions.
- Luka Mucic, CFO: Responsible for financial strategy and operations, with a background in finance and accounting.
- Supervisory Board: Chaired by Hasso Plattner, one of the co-founders of SAP, along with other prominent figures from the technology and business world.
Top Products and Market Share:
Top Products:
- SAP S/4HANA: The company's flagship ERP software, built on the HANA in-memory database platform.
- SAP C/4HANA: A suite of cloud-based CRM solutions.
- SAP SuccessFactors: Human capital management (HCM) software suite.
- SAP Ariba: Procurement and supply chain management software.
- SAP Concur: Travel and expense management software.
Market Share:
- Holds the largest global market share for ERP software, with approximately 22%.
- Leading provider of CRM software, with a market share of around 18%.
- Strong presence in the cloud market, with consistent growth in cloud revenue.
Product performance and market reception:
- SAP's products are generally well-received by customers and analysts, with high satisfaction ratings.
- However, the company faces increasing competition from agile cloud-based software vendors.
Total Addressable Market:
- The global ERP software market is estimated to be worth around $46 billion.
- The global CRM software market is valued at approximately $54 billion.
- Both markets are expected to continue growing in the coming years, driven by the increasing demand for digital transformation and cloud-based solutions.
Financial Performance:
Recent financial statements:
- Revenue for 2022: €28.24 billion
- Net Income for 2022: €4.29 billion
- Profit margin for 2022: 15.2%
- Earnings per share (EPS) for 2022: €4.26
Year-over-year comparison:
- Revenue increased by 6.5% compared to 2021.
- Net income increased by 2.6% compared to 2021.
- Profit margin remained relatively stable.
- EPS increased by 2.8% compared to 2021.
Cash flow and balance sheet:
- Strong cash flow generation, with €6.26 billion in operating cash flow for 2022.
- Healthy balance sheet with low debt levels.
Dividends and Shareholder Returns:
Dividend history:
- SAP has a history of paying dividends, with a current dividend yield of around 1.5%.
- The company has increased its dividend payout ratio in recent years.
Shareholder Returns:
- Total shareholder returns (TSR) over the past 5 years: 48%
- TSR over the past 10 years: 110%
Growth Trajectory:
Historical growth:
- SAP has experienced consistent revenue and earnings growth over the past 5 years.
- The company has transitioned successfully to the cloud, with cloud revenue growing at a rapid pace.
Future projections:
- Analysts expect SAP's revenue and earnings to continue growing in the coming years, driven by continued cloud adoption and expansion into new markets.
- The company is also investing heavily in new technologies such as artificial intelligence (AI) and machine learning (ML), which could drive future growth.
Recent product launches and initiatives:
- Launch of SAP RISE with S/4HANA Cloud, a subscription-based offering that helps businesses move to the cloud.
- Acquisition of Qualtrics, a leading experience management (XM) platform.
- Continued investment in AI and ML, with the goal of developing intelligent software solutions.
Market Dynamics:
Industry Overview:
- The enterprise software industry is characterized by high growth and increasing competition.
- Cloud computing is transforming the industry, as more businesses move to cloud-based solutions.
- Artificial intelligence (AI) and machine learning (ML) are playing an increasingly important role in enterprise software.
SAP's positioning:
- SAP is a well-established leader in the industry, with a strong brand and global reach.
- The company is investing heavily in cloud computing and AI/ML, which positions it well for future growth.
- However, SAP faces competition from agile cloud-based vendors and must continue to innovate to maintain its market share.
Competitors:
- Oracle (ORCL): Leading provider of ERP software and database systems.
- Microsoft (MSFT): Offers a range of enterprise software solutions, including Dynamics 365.
- Salesforce (CRM): Leading provider of cloud-based CRM solutions.
- Workday (WDAY): Cloud-based human capital management (HCM) software provider.
- ServiceNow (NOW): Cloud-based workflow management software provider.
Market share percentages:
- SAP: 22%
- Oracle: 19%
- Microsoft: 11%
- Salesforce: 18%
- Workday: 7%
- ServiceNow: 6%
Competitive advantages:
- Strong brand and global reach.
- Comprehensive suite of software solutions.
- Large and loyal customer base.
- Continued investment in R&D and innovation.
Disadvantages:
- Complex and expensive software solutions.
- Can be slow to adapt to changing market conditions.
- Faces stiff competition from agile cloud-based vendors.
Key Challenges and Opportunities:
Key challenges:
- Competition from cloud-based software vendors.
- Maintaining relevance in a rapidly changing technological landscape.
- Managing the transition to the cloud.
Key opportunities:
- Growth in the cloud market.
- Expansion into new markets and industries.
- Development of new technologies such as AI/ML.
Recent Acquisitions (last 3 years):
- Qualtrics (2018): Leading experience management (XM) platform, acquired for $8 billion. This acquisition positioned SAP as a leader in the growing XM market and provided valuable data and analytics capabilities.
- Signavio (2021): Business process management (BPM) software provider, acquired for $1.2 billion. This acquisition strengthened SAP's BPM offerings and expanded its customer base.
- Taulia (2022): Leading working capital management solutions provider, acquired for $2.8 billion. This acquisition enhanced SAP's supply chain management capabilities and extended its reach into the financial services industry.
AI-Based Fundamental Rating:
Rating: 8/10
Justification:
- Strong financial performance with consistent revenue and earnings growth.
- Leading market share in the ERP and CRM software markets.
- Continued investment in cloud computing and AI/ML.
- Strong brand reputation and global reach.
However, the company faces challenges from agile cloud-based vendors and must continue to innovate to maintain its market share.
Sources and Disclaimers:
Sources:
- SAP Investor Relations: https://www.sap.com/corporate/en/company/investor.html
- Statista: https://www.statista.com/
- Forbes: https://www.forbes.com/companies/sap/
- Seeking Alpha: https://seekingalpha.com/symbol/SAP
- MarketWatch: https://www.marketwatch.com/investing/stock/sap?countrycode=xx
Disclaimers:
- This analysis is for informational purposes only and should not be considered financial advice.
- It is essential to conduct your own research before making any investment decisions.
- Past performance is not indicative of future results.
About SAP SE ADR
Exchange NYSE | Headquaters - | ||
IPO Launch date 1998-08-07 | CEO & Member of Executive Board Mr. Christian Klein | ||
Sector Technology | Industry Software - Application | Full time employees 109121 | Website https://www.sap.com |
Full time employees 109121 | Website https://www.sap.com |
SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand their business process operations; SAP's industry cloud solutions that provides modular solutions addressing industry-specific functions; Taulia solutions for working capital management to help enable customers mitigate the effects of inflation by providing visibility into working capital and access to liquidity; and sustainability solutions and services. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.
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