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?
- Long term revenue growth has been strong with a 5 year compounded annual growth of 4.2%.
- SAP's average operating margin of 23.3% was exceptional.
- Net margins stood at a healthy 16.4% (average) for SAP in the Trailing Twelve Months.
- SAP generates a high return on invested capital of 13%.
- SAP has a good Return On Equity (ROE) of 15%.
- The company has a good Free Cash Flow (FCF) margin of 14.8%.
Should you sell SAP stock?
- SAP has a debt/equity ratio of 0.31, which is worse than the average in the Computer and Technology sector.
- Cash flow from operations is 0.7 times net income which is a negative signal.
- The company is trading at a price to sales multiple of 4.8, which is higher in comparison to the Computer-Software industry average of 2.6, making SAP stock expensive.