SAP Stock Analysis (NYSE:SAP)
SAP Analysis Video
View SAP stock analysis video. This is our SAP analyst opinion covering the buy and sell arguments for SAP stock.
SAP SE (ADR) Stock Rating (3.5/5)
Our SAP stock opinion is based on fundamentals of the company. This SAP stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy SAP stock?
- The company saw a significant growth in revenue with a 5 year CAGR of 4.2%.
- SAP had a healthy average operating margin of 23.3% over the last 4 quarters.
- Net margins came in at average 16.4% for SAP over the last twelve months.
- SAP generates a high return on invested capital of 13%.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for SAP at 15%.
- The company has a healthy free cash flow margin of 14.8%.
Should you sell SAP stock?
- SAP is debt laden and has a high debt/equity ratio of 0.31.
- The company has an operating cash flow which is 0.7 times the net income. This is not a healthy sign.
- The company is trading at a price to sales multiple of 4.8, which is overvalued in comparison to the Computer-Software industry average multiple of 2.6.