SAP Stock Analysis (NYSE:SAP)

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$89.4 $0.17 (0.19%) SAP stock closing price Jan 20, 2017 (Closing)
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SAP
Updated on : Jan 20, 2017
previous close
SAP 89.4 (0%)
NASDAQ 5555.3 (0%)
Closing Price On: Jan 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
22.6%
Sector Average:
4.8%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
9.5B
Debt/Equity Ratio:
 0.36
Compared to the industry
Cash Flow
Operating cash flow:
$747.5M
Net Income:
$814.6M
Dividend Yield
SAP dividend yield:
1.04%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SAP PS :
4.5
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.7%
Return on Equity:
14.8%
Free Cash Flow Margin:
12.5%
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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 (3.4/5)

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.

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