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 (3.4/5)
Our SAP stock opinion is based on fundamentals of the company. This SAP stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy SAP stock?
- SAP had a healthy average operating margin of 22.6% over the last 4 quarters.
- LTM Net margins were good at 15.7% for SAP.
- SAP's return on invested capital of 12.7% is good.
- The LTM ROE of 14.8% for SAP is attractive.
- The company has a good Free Cash Flow (FCF) margin of 12.5%.
Should you sell SAP stock?
- SAP is debt laden and has a high debt/equity ratio of 0.36.
- The company is trading at a price to sales multiple of 4.5, which is higher in comparison to the Computer-Software industry average of 2.4, making SAP stock expensive.