SAP Stock Analysis (NYSE:SAP)

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$97.89 $0.02 (0.02%) SAP stock closing price Mar 24, 2017 (Closing)
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SAP
Updated on : Mar 24, 2017
previous close
SAP 97.9 (0%)
NASDAQ 5828.7 (0%)
Closing Price On: Mar 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
4.2%
Operating Profit
Operating Margin:
23.3%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
9.18B
Debt/Equity Ratio:
 0.31
Compared to the industry
Cash Flow
Operating cash flow:
$1.07B
Net Income:
$1.63B
Dividend Yield
SAP dividend yield:
0.95%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
High Debt Burden
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SAP PS :
4.8
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13%
Return on Equity:
15%
Free Cash Flow Margin:
14.8%
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SAP Analysis Video

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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.

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